How to Get an Ecommerce License in Dubai: A Step-by-Step Guide

Dubai is an excellent city to begin an e-business. Numerous people sell and purchase items on the web every day. Dubai provides enough scope for business on the Internet. If you wish to operate a lawful internet business, you require an Ecommerce License in Dubai. The license enables you to market merchandise and services online. If you do not possess it, your business is illegal.

First, you will have to select the right license type. Secondly, you will have to apply and obtain approvals. Last but not least, you can begin selling online. It is not a complicated procedure if you do it correctly. So, read this guide and start your online business.

What is an Ecommerce License in Dubai?

A Dubai Ecommerce License enables you to sell goods and services online. It is a valid license for an online business. Moreover, you cannot sell in Dubai without this license. Most businesses require this license to operate safely. It even assists you in opening a bank account. Additionally, more individuals believe in the companies that possess licenses. Therefore, obtaining a license is extremely significant.

First, select the proper license type. Then, submit your application with documents needed. Lastly, pay fees and be approved. It is easy and fast. This license will enable you to grow your online business and purchase customers easily.

Why Do You Require an Ecommerce License in Dubai?

There are several reasons why you must obtain an Ecommerce License in Dubai. Following are some of the essentials:

• It legitimizes and protects your business.
• You can easily get a business bank account.
• You can conduct transactions with suppliers with no hassle.
• Customers trust businesses more if they are licensed.
• You can legally promote and advertise your business.
• It will not cause any legal problems for you in the future.

Types of Ecommerce License in Dubai

There are different types of ecommerce licenses available in Dubai. You must choose the right one as per your business need.

1. Freezone Ecommerce License in Dubai

It is for those who want to work in a free zone. It allows you to trade internationally without any restrictions. You also have tax benefits and 100% ownership of the business. Moreover, you do not need a local sponsor.

2. Mainland Ecommerce License

It allows you to sell to Dubai and other UAE-based customers. You can trade with the local market without restriction. You also need a local service agent to register your company.

3. Professional License in Dubai for Ecommerce

If you are offering digital services like web designing, content writing, or marketing, you need a professional license in Dubai. It is best suited for freelancers and consultants offering online services.

Step-by-step guide on how to get ecommerce license in dubai

To get your Ecommerce License in Dubai, follow the below steps:

Step 1: Choose Your Business Activity

Decide what you want to sell. You can sell products like clothes, electronics, or accessories. You can also provide services like graphic design, online marketing, or IT solutions.

Step 2: Freezone or Mainland

• Freezone: You can sell all over the world but with certain restrictions in the UAE.
• Mainland: You can sell anywhere in the UAE and Dubai. Also, there will be no restrictions.

Step 3: Business Name

• Your business name must abide by the laws of Dubai.
• It must not include abusive language or religious expressions.
• It must be a name that denotes your business activity.

Step 4: Obtain the License

• Apply for a mainland license at the Department of Economic Development (DED).
• In case you’re choosing a free zone, apply for it in the concerned free zone authority.
• Double-check that you send in all required documents.

Step 5: Obtain Approvals

• Authorities will review your application.
• They could ask you to provide extra information or papers.
• When they accept it, proceed to the next step.

Step 6: Pay the Fees

• Remit your E-commerce license fee in Dubai.
• The cost depends on the type of license and location.

Step 7: Obtain Your License

• You will be issued your Ecommerce License in Dubai after approval.
• You can now legally operate your online business.

Cost of an Ecommerce License in Dubai

It costs differently depending on various factors, such as:

Whether you choose a mainland or free zone

Free zones are more affordable. Mainland licenses allow you to sell within the UAE. And each of them has different rules. So, choose based on your business needs.

Registration type of business you register

Some activities are more expensive. Selling commodities may have an extra charge. Moreover, companies that provide services are less expensive. So, decide on the expenditure first before you select your activity.

Number of visas you require for your employees

Other visas are costly. Free zones have quotas on visas. Mainland enterprises also receive extra visas. So, plan your team size well in advance before applying.

Any other assistance you need

Extra assistance is costly. You may need office space. Also, some businesses need approvals. So, consider these expenses while preparing your budget for your Ecommerce License in Dubai.

The average can range from AED 5,500 to AED 20,000.

Documents Required

To get an Ecommerce License in Dubai, you need:

Passport copy

You need to submit a copy of your passport because it proves your identity. Also, it makes verification easy. So, update your passport before applying.

Visa copy

A copy of the visa is required because it proves your residence status. Also, tourist visas are accepted in certain free zones. So, ensure the visa requirement before application.

A detailed business plan

A business plan outlines your goals. It includes services, target customers, and strategies. Also, authorities review it. So, make a clear and effective business plan.

A completed application form

You need to fill out the application form. It has business details. Wrong information could cause delays. Therefore, verify all before submission.

No Objection Certificate (NOC) if required

A No Objection Certificate (NOC) might be necessary in certain situations. This is because it confirms your current employer does not have any objections to you starting a business. Also, not all businesses need it. Hence, confirm before applying.

Benefits of an Ecommerce License in Dubai

The following are several benefits of having an Ecommerce License in Dubai:

1. 100% ownership within free zones

Free zones allow you total business ownership. You don’t need a local partner. You even have total command over profit. Thus, the majority of entrepreneurs utilize free zones for e-commerce businesses.

2. Minimal taxation in contrast with other countries

Dubai offers low tax rates to businesses. There is no income tax on individuals. Additionally, corporate tax is low. Therefore, you get to save a lot of money and use it for further business growth.

3. Access to the global market to sell online

You can sell all over the world with an Ecommerce License in Dubai. International trade is easy in free zones. Furthermore, Dubai has very good logistics. Thus, it is easy to deliver goods to other countries.

4. Easy setup process with minimal documentation

The setup process is simple. You simply need a few documents. Additionally, approvals are quick. So, you can start your online business at once.

5. You can work legally and will not get fined

It is always safe to have a legitimate business. You may get fined without a license. Also, your business may be shut down by the authorities. Thus, getting the proper license is important.

6. Greater credibility among customers and suppliers

A licensed business builds credibility. Your customers are confident about purchasing from you. Suppliers like dealing with legitimate businesses, too. So, having an Ecommerce License in Dubai increases your business’s credibility.

How Business Setup Experts in Dubai Can Assist

Starting a business is perplexing. Business setup consultants in Dubai simplify the process. They assist you:

• Selecting the correct type of license.
• Gathering the documents needed.
• Submit your application.
• Obtain approvals without delays.
• Know the costs involved.

If you are new to Dubai or setting up your first business, seeking the help of business setup consultants in Dubai is a smart decision. This is because they will see to it that your business gets registered correctly.

FAQs

What is an Ecommerce License in Dubai?

An Ecommerce License in Dubai lets you sell goods and services online. It also gives legitimacy to your business. Moreover, it supports growth and establishment of trust from customers.

How much does an Ecommerce License cost in Dubai?

It depends on location and kind of business. It costs an average of AED 5,500 to AED 20,000. But subject to additional services, it could increase.

Can you sell in Dubai on a free zone license?

Yes, a free zone license supports international sales. But for local sales, you would need a distributor. So, choose your license carefully before you start.

What do you need for an Ecommerce License?

You need a copy of your passport, visa or copy, business plan, and application form. Additionally, some authorities can ask for more documents based on your business.

Can business setup consultants help?

Yes, business setup consultants in Dubai facilitate it. They draw up paperwork, secure approvals, and deal with fees. Therefore, they make it easier to start an online business and accelerate it.

Conclusion

Getting an Ecommerce License in Dubai is simple if you do the right things. Whether you go for the mainland or the free zone, it is simple and hassle-free. If you get the right guidance from business setup experts in Dubai, you can start your online business without any stress.

If you are ready to start, contact business setup in Dubai professionals today. They will guide you through each step.