There are two key reasons why most entrepreneurs invest here. First, it is an ideal place to handle payments because of the UAE’s low taxes. Another is to focus on the local market in the UAE. Are you planning to set up your e-commerce venture in the UAE? If yes, then here are some pertinent details to consider.
If you happen to be a businessperson hoping to take benefit of this prospect, then keep an eye for the details discussed here.
This blog will take you through the step-by-step process of launching your e-commerce company and obtaining a Business license in UAE
Starting an E-commerce Company in the UAE- The Process
- Determine Your UAE Jurisdiction
Choose between registering a mainland company and a free zone firm. This is a significant decision when you wish to launch your e-commerce venture in the United Arab Emirates,
Establishing a free zone corporation is a better choice for e-commerce start-ups. Which option is best for you, though, will ultimately rely on your long-term goals and business ambitions.
When deciding between the free zone and the mainland, you must consider the following aspects as described below:
- Visas Needed: You only have a certain number of visas, and they are somewhat pricey in the free zones. Thus, if you intend to have one to four visas, a free zone may be a good option.
- Office Space: Although shared or flexible desks are convenient in free zones, you are allowed to have an office in the free zone where your business is registered. Go with a mainland business if you require a physical office beyond the free zone.
- Cost: Establishing an online store in a free zone is typically less expensive than doing so on the mainland. E-commerce license in Dubai depends on the location and business activity. Additionally, you can cut costs on things like office space.
- Register E-commerce Company
After determining which jurisdiction is best for your firm, the next step is registering your e-commerce business and reserving the trade name. With their vast knowledge in this field, our professionals at A&A Associates can assist you in quickly registering your firm.
Three of your selected trade names are submitted by A&A Associates along with information about shareholders, share capital, and visa requirements. You may obtain your business license in three to five business days using our expedited process.
- Acquire Investor Visa for UAE
The next step after starting your online store is to travel to the United Arab Emirates to get an Emirates ID and a medical check-up.
To help you with this, A&A Associates will apply for your Investor’s Visa and make sure you get an electronic visa that allows you to enter the UAE. Once you arrive, we will then apply for your Emirates ID and medical examination. Usually, this procedure takes four to seven business days.
Once you have your Emirates ID, you can open an account at any preferred bank in the United Arab Emirates for business purposes.
- Set up Logistics for E-Commerce Operations
A free zone e-commerce business in the UAE is not allowed to ship its goods directly to UAE clients, per UAE laws.
But you have the option to perform any of the following:
- Launch your website and collaborate with a logistics firm: The first thing you can do is use your website and social media accounts to market and sell your products and use a third-party logistics company to handle order fulfilment. With this strategy, you can keep control over your commercial operations, customer experience, and branding activities. You can utilize freight forwarders to take care of everything—from customs to warehousing—on your behalf especially when your products are being imported.
- Sell on existing marketplaces: Selling your goods on already-existing marketplaces like Amazon and Noon is your backup plan. The procedure is comparable to the previous one in that goods can be shipped to Amazon’s warehouse through logistics companies or imported through freight forwarders.
Takeaway
The UAE presents numerous prospects for establishing an eCommerce company because of its advantageous position, tech-savvy populace, and friendly regulatory framework for acquiring an eCommerce business license. Entrepreneurs can successfully traverse this dynamic landscape and achieve sustainable growth by knowing local market trends, utilizing digital marketing methods, and adhering to legal regulations with the help of a professional Business setup consultant in UAE.
