Dubai’s E-commerce is booming. Shop online now more than ever before, and the regional digital industry continues its upward trend. Dubai has emerged as a global ecommerce hub. The market is expected grow to USD 16.53 billion dollars by 2028 at a CAGR 11.52%. It is due to the convenience that online shopping offers. This has made traders, businessmen and entrepreneurs in Dubai consider establishing an ecommerce business. In order to navigate the ecommerce environment in Dubai, one must have more than a simple online presence. They also need legal recognition, and to follow regulatory frameworks. Here is where the importance of having an e-commerce license in Dubai comes into action.
Online business in Dubai
Dubai’s 3,6 million residents are served by about 100 well known online shops. Most of the population in Dubai is middle-aged, with mobile phones, laptops, and a decent wage to spend. The convenience of online shopping is what makes people choose it. You can shop online 24/7. This saves you time and allows you to get the best deals from the comfort of home. It’s no wonder that the demand for Ecommerce licenses is increasing in Dubai. The market offers many options for establishing an Ecommerce business.
Growth of E-commerce in Dubai
Dubai is at forefront of technological advances and innovation. Dubai has experienced a significant increase in ecommerce. The e-commerce market has been boosted by this.
Young and tech-savvy population: Dubai is home to a young and tech-savvy population who are increasingly comfortable doing their shopping online. Government Support Dubai’s: government supports ecommerce and has taken a number initiatives to promote it, including the Dubai Smart City initiative.
A wider product selection Online stores offer access to an array of products around the globe, and are not just limited to physical shops.
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What is E-commerce
E-business or ecommerce simply means to make money online by selling goods and services over the Internet. You can find everything from online grocery stores to private jet reservations in the world of e-commerce. It doesn’t matter if you’re a independent or an international corporation. An online presence is important. Nowadays, every business must be an ebusiness.
E-commerce License in Dubai
An ecommerce license in Dubai, issued by the Dubai Department of Economic Development(DED), allows businesses to conduct electronic commerce activities within the Emirate. The license is required for any business who sells online products or services, regardless of whether it has a physical location or not.
Why You Need an E-commerce License in Dubai?
1. Legality and Compliance
Obtaining a license to operate an ecommerce business ensures that you are operating your business legally, in accordance with Dubai’s rules and regulations. It protects you against potential fines and penalties.
2. Credibility
Your business will gain credibility with an ecommerce license. It signals to investors, partners and customers alike that you are a well-established, legitimate company.
3. Banking and Financial Services
An ecommerce license may be required in order to handle financial transactions and access payment gateways.
4. Tax Benefits and Financial Incentive
Dubai offers a variety of tax benefits to ecommerce businesses, such as reduced taxes and tax exemptions.
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Types of E-commerce License in Dubai
The UAE offers several different types of licenses for e-commerce. Dubai offers three different types of licenses for e-commerce. You can choose these licenses based on nationality or business activity. Dubai has three types of E-commerce Licenses:
1. E-Trader License
The E-trader license is perfect for those who conduct their ecommerce business solely at home, or without having a physical location. This is the simplest and most affordable ecommerce license.
2. Portal License
The portal license is a second e-commerce license in Dubai that non-UAE residents can also acquire. Portal licenses are also perfect for a listing web site that lists products, services and reservations.
3. Virtual Company License Dubai
Virtual Company License is a new initiative by Dubai Economy that allows foreign investors and non-residents to engage in commercial activity in the region. It allows companies in various industries to run in Dubai, without needing to open a physical location.
Online trading in UAE
Although the market is not saturated yet, there are only a few large names in the top 10.
- www.amazon.ae
- www.noon.com
- www.namshi.com
- www.carrefouruae.com
- www.kibsons.com
- www.dubizzle.com
- www.shein.com
- www.ubuy.ae
- www.mumzworld.com
There are three ways you can sell your product or service online in UAE:
- Get guaranteed views by selling through a marketplace. Save money on advertising. Pay the marketplace commission and provide goods on schedule.
- Own your website and sell it. There are no commissions for marketplaces. Higher advertising costs. Logistics are on you as well.
- Make money on social media. Find your target audience.
The best way to do online sales in the UAE would be a combination. The majority of UAE online trading business uses all possible channels for internet presence .
How to Get an E-commerce License in Dubai, UAE
These include ensuring compliance with regulatory frameworks and establishing your business legitimacy. Here is the simplified process for getting an ecommerce licence in Dubai.
1. Select the Right License Type
The first thing you should do is determine which ecommerce licensing option best suits your business.
2. Gather Requirement Documents
The requirements for a particular type of license for e-commerce vary depending on where in the Emirate the business is operating.
The following are the requirements for obtaining an e-commerce licence:
- All business partners and managers are required to have an Emirates ID.
- A passport copy is required for all managers and partners of the business.
- Plan your business in detail
- Proof of residence in the UAE
3. Register your Business with DED
You’ll then need to submit a request for approval to Dubai Department of Economic Development.
4. Obey the Regulations
Once you have an ecommerce permit, you will need to follow all the applicable laws and rules governing online business in the UAE. It is important to register your business at the UAE Federal Tax Authority as well as obtain all necessary permits and licenses.
How to start online business in UAE
There are several licensing options available in the UAE for online business. They are dependent on the type E-commerce venture you intend to conduct.
1. Portal license
Portals or E-marketplaces are the names of the business activities in the UAE that involve your company acting as an agent between a buyer and a seller. Amazon.com has become the most well-known example of an online marketplace. It is a site that allows both buyers and sellers to interact. Portal will help you find similar activities. This type of activity is available in many free zones, so finding it shouldn’t be difficult.
2. E-commerce license
Companies who wish to sell products through their own websites can opt for an e-commerce setup. A website can sell only 1-2 different types of products or a big online retailer like Mumzworld.com.
3. Commercial or Service License
Even if the license you hold does not specifically relate to online commerce, this does not mean it is impossible for you to sell your goods or services. You can set up a company to conduct any kind of business online. In terms of the law, mode of sales makes no difference. You can run a business on the internet by selling food, clothes, consulting with marketing, providing educational training, etc.
4. E-trader license
The Dubai Department of Economic Development grants the license for 1 070 AED.
5. Freelance license UAE
As freelance work is now legalized by the UAE, freelancers can now apply for freelance license. The license allows you to advertise online and provide services both in UAE and internationally. The solution is ideal for designers, tutors, personal assistants, and other freelancers.
What is the Cost of E-commerce License in Dubai?
A Dubai mainland e-commerce licensing cost can be as low at AED 11,500*. we will assist you in obtaining an e-commerce licence.
You should be aware that the cost of an ecommerce license in Dubai depends on the license type you choose, the emirate in which you operate, and the complexity your business operations.
Other expenses will be required in addition to the licensing fees. These include:
- Register your store physically (if needed)
- Office rent
- Visa costs
- Specialized permits
- Emirates ID and medical costs for Investors
- Charges for foreign names, if applicable
- Investors’ medical insurance fees
- All other taxes payable
In Dubai Freezone, the cost for the cheapest ecommerce license is typically around 12,500 AED*. Costs can vary depending upon several factors such as the business model, size and structure. Each Freezone charges its own administrative and licensing fees.
The benefits of obtaining an ecommerce license within a Dubai Freezone include tax exemptions and the ability to reach a global audience.
For an accurate cost estimate for your business, it’s best to speak with a professional.
Online shopping sites where you can sell your goods
Selling goods on marketplaces is the most popular form of online business in Dubai. List of UAE online shopping websites where you can launch your e-business:
- www.noon.com
- www.amazon.com
- www.mumzworld.com
- www.firstcry.ae
- www.ubuy.ae
- www.dubaistore.com
- www.theluxurycloset.com
- uae.sharafdg.com
- www.cobone.com
How to create your e-commerce website in Dubai
Set up an online store in Dubai. You can use online platforms such as:
- www.shopify.com
- www.code-brew.com
- www.ecwid.com
By using these tools, you will be able to launch your website quicker and save a lot of time.
Payment gateway UAE
You should include a payment option on your website to enable customers to pay with a credit or debit card. There are some online payment providers that are friendly for new businesses.
- www.stripe.com
- www.paytabs.com
- www.telr.com
- www.hyperpay.com
- www.foloosi.com
PayPal UAE is also an option, as well as cash on delivery.
Stripe UAE, the most popular and easiest to set up service.
It can vary from 2% to 3,1%, depending upon the goods sold and their volume. Some have subscription charges.
Get ready to provide the following documents when setting up an online payment gateway.
- Company incorporation documentation: licenses & MoA
- Personal documents: a passport, a residency visa, and an Emirates ID
- Address proof: recent utility bills
- UAE company bank account
E-commerce delivery service Dubai
Deliveries are a crucial part of making online business work in Dubai. Most e-shops hire third parties to pick up and deliver goods in UAE. Find out about flexible and affordable delivery services available in UAE.
- www.zajel.com
- www.aramex.com
The majority of delivery service providers in the UAE provide not only local packages but also regional, national and international ones. To manage and track your shipments you will also receive dedicated managers as well as user-friendly applications.
E-commerce license in Dubai or UAE
Dubai E-commerce license is among the most highly sought after. It does not matter if your license has nothing to do with e-commerce. You can still sell online. An e-commerce firm in the UAE sells their products and services online. In today’s market, virtually any company can be categorized as ecommerce. Everybody has an online presence, and this trend is growing rapidly.
In the current market, almost any business can be classified as ecommerce. Online presence is a trend that has grown dramatically. can be used to open a Dubai company for any type of activity. The mode of sale does not matter according to law. Why then do people get an ecommerce license in Dubai. Most often, it is a requirement of their vendors or business partners. You may need an ecommerce license if, for example, you want to sell goods on a popular marketplace.
Cheapest e-commerce license in UAE
In Dubai, establishing an e-commerce firm is not a difficult task. Nearly all UAE freezones offer an e-commerce business, such as an e-marketplace, portal or e-commerce.
Cost of E-commerce License in UAE depends on several factors.
- Registering authority
- The eligibility of residents visas
- Facilities (flexi-desks, offices, warehouses)
These are the freezones that have an E-commerce activity license:
- UAQ free trade zone
- RAKEZ
- IFZA
- Ajman free zone
- DMCC
- DTEC
- Ajman Media City is a free zone
- Fujairah Creative City
- SHAMS
- Commercity
The smaller Emirates are the ones that offer the lowest ecommerce licensing fees. Umm Al Quwain’s UAQ free trade zone is a good choice. Its ecommerce license is also valid for online trading in Dubai.
E-commerce license Abu Dhabi
In order to operate your Ecommerce business in Abu Dhabi it is reasonable to register a company there. It will save you from any potential difficulties with the local authorities and vendors. Many only work with Abu Dhabi entities.
The following authorities are able to open an Ecommerce license Abu Dhabi.
- Department of Economic Development of Abu Dhabi
- Free Zone – KIZAD
ADDED restricts Ecommerce within Abu Dhabi to UAE residents or partners with UAE citizens.
FAQs
1. What are the types of products that I can sell with a Dubai e-commerce licence?
With an ecommerce licence, you are able to sell most of the products that are allowed on mainland Dubai. Some restricted products, like weapons, drugs, and endangered animals, are only allowed with special permits. Consult your Freezone provider or business setup specialists for details.
2. What documentation am I required to provide when I apply for an E-Commerce Business License?
Documents that are required include a completed application form, copies of your passport, a business proposal, proofs of funding, as well as any other specific documents requested by the Freezone you have chosen. You can avoid delays by consulting with a business specialist to make sure you have all the documents needed.
3. What are the consequences if you operate an ecommerce store without a Dubai licence?
Dubai’s e-commerce laws make it illegal to run an unauthorized business. You could face heavy fines, closure of your business and even the cancellation of your visa.
4. Can I start my ecommerce from outside Dubai?
You can still manage your online store from a distance, but there are restrictions regarding your physical presence at the Freezone. Clarify all requirements with the Freezone you choose to ensure compliance.
5. Can I use an e-commerce licence to trade outside Dubai?
Yes, you are able to trade internationally with your best e-commerce licensing in Dubai.
6. What’s the difference between E-traders and E-commerce licenses in Dubai
The biggest difference between E commerce and E trader is in the scope and scale. E-trader licenses are ideal for online businesses that are smaller and only apply to UAE/GCC Nationals. The E-commerce licenses, on the other hand, are more suitable for large and complex online businesses. They are also available to foreigners.
