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7 Ultimate Steps To Acquire eCommerce Business License In UAE (2022 Tips)

Willing to acquire an eCommerce business license in UAE but don’t know where to start? Check out this guide to know the ultimate steps for the eCommerce business license registration procedure. 

Believe it or not but eCommerce platforms are gradually becoming the talk of the town. And why not. After all, eCommerce stores help you in reaching your target audience worldwide and that too without spending much on marketing. Surprisingly, the E-commerce sales in the UAE are expected to grow by an average of 23% per year between 2018 and 2022. 

Now, the question is, “ How are you going to become a billionaire after attaining an eCommerce business license in Dubai?” Well, it’s easy. But before that, let’s explore the opportunities and benefits of incorporating eCommerce businesses in the UAE. 

What are the opportunities and benefits of getting An eCommerce Business License In The UAE?

Did you know? As per the reports by UAE National Economic Register, the eCommerce sector issued the highest number of eCommerce business licenses. Here are some good things about setting up an eCommerce entity across the regions of the UAE:

1. Benefits of zero taxes, excluding 5% of VAT

2. There isn’t any additional fee required for starting the business or during the entire business process

3. Permission for multiple currency transactions

4. Expatriates get 100% ownership 

5. No restrictions on capital withdrawal

6. Minimal cost of operation 

How Many Types of E-commerce Licenses in UAE are currently available? 

Now, when you know the benefits of starting an eCommerce business in UAE, let’s explore the types of eCommerce licenses.   

E-trader license  

The e-trade license scheme by the DED(Department of Economic Development) aims to help online stores on various social media platforms, including Facebook, Snapchat, Instagram, etc. 

These online stores can get an eCommerce license, no matter what platform they are currently running. Currently, only UAE citizens can are eligible to avail of this scheme. Additionally, this scheme restrains individuals from launching a physical store. 

Portal License  

Even non-UAE citizens can are eligible for obtaining this type of eCommerce business License in UAE. You can lap up the benefits of linking your buyers and sellers with each other via portal license. This type of license is extremely beneficial for listing websites.

Virtual Company License  

Another essential eCommerce license is a virtual company license. However, its business scope is limited to only three sectors, including:

1. Computer and technology

2. Designing Related Businesses

3. Printing and advertising related services

Here are the 7 steps you need to follow to get an Ecommerce Business License in Dubai

1-Analyse The Legal Structure Of Your Ecommerce Business 

Prior to starting your business, it’s essential to understand the legal structure of your business. Choose your suitable business model from the following list:

1. business-to-business(B2B) model 

2. business-to-client(B2C) model

3. client-to-business(C2B) model

2-Select The Suitable Location For eCommerce Business Incorporation In Dubai 

Once you know the legal structure of your eCommerce entity, the next step is to choose the most suitable location for your business. This location complete depends on the type of business activity you practice. Presently, there are 30+ free zones and 2 Dubai Mainland locations available for incorporating aN eCommerce business in UAE. 

3-Register Your eCommerce Entity’s Name 

After picking the relevant location, another step is to begin the registration process of your eCommerce trade’s name. Go to the suitable Economic Department for collecting the registration form and fill it up. 

Point to Remember: 

Make sure you are using a name that’s valid as per the norms decided by the UAE government. Avoid using foul, religious, and controversial terms in your entity name. 

4-Submit Your Dubai eCommerce License Application 

One more important step for completing the registration process of your eCommerce business is to submit the license application. Check below the list of documents you need to present:

1. The application form must be filled out completely

2. A copy of each shareholder’s passport/visa

3. Investors and shareholders must provide proof of their identity and address

4. Copies of sponsors’ passports/ Emirates IDs

5. An agreement between a local service provider and a civil contractor

6. Obtain a letter of authorization or NOC from the appropriate authority

7. Memorandum & Articles of Association

5-Rent A Physical Space For Your Business 

Your eCommerce store isn’t considered a legal entity without a physical office space. Make sure you have one for performing and managing your business activities, such as shipping. 

6-Accede to the Export/Import Regulations 

Make sure your business has a registration with one of the ports and customs authorities. It will allow you in receiving an importer’s code. Right now, UAE imposes a custom duty of 5% on imported goods. You can sell your product/service within the free zone regions without any import duty if your company belongs to Dubai free zone. 

7-Set Up A Corporate Bank Account 

Setting up a corporate bank account is also essential for hassle-free transactions of your eCommerce store in Dubai. The application procedure to open a corporate bank account is quick and easy. So, all you need to do is to look for the bank that fulfils your trading needs and open an account in it. 

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