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E-Commerce License Dubai
  • By Business Consultant
  • October 24, 2024

The whole world is a witness to the growing digital market of the United Arab Emirates (UAE). We can see the attraction of the world in the investment of this lucrative market. While this is true, the main focus is on Dubai. A hub of technology and innovation, Dubai seems to be the perfect place to get an e-commerce trading license. The main forces behind this digital shift are the young entrepreneurial minds, the tech-savvy generation, and the deep integration of the internet and mobile phones in the lives of people. 

In this article, we will be trying to provide a clear view of this e-commerce license Dubai, UAE, its benefits, ways to get it, and many other aspects associated with it.

Dubai E-commerce License

The e-commerce sector in Dubai is thriving and the expected growth of the market till 2025, is almost as high as 8 billion USD. Starting an online business setup in Dubai in such a vast and economically growing market, it is a profitable opportunity for aspiring entrepreneurs. All you need is an e-commerce license in Dubai provided by the city’s government authorities.

E-commerce license Dubai is simply the permit given by the Department of Economic Development (DED) that allows you to sell products over the internet solely. But if you plan on opening a store or selling your products through retail stores, then owning a trading permit is mandatory. 

For details on the procedure and eligibility of getting an e-commerce license issued in Dubai, follow through the blog.

Why Is It Important To Get a UAE E-commerce License?

Obtaining an e-commerce license in the UAE is important for several reasons. These reasons include:

  • Credibility: For your customers to trust you and your products, it becomes important for you to build credibility, and having a DED e-commerce license does that for you. It plays a crucial role in getting your business the desired trust. 
  • Legal compliance: Obtaining a license binds you to the legal framework of the UAE, providing your business with both the protection and guidelines to regulate it within the boundaries of the Emirates.
  • Protection: It acts as a shield of protection for your business if you encounter any legal conflict. The license thus acts in regulating the conflict using the framework laid for the business. 
  • Market access: The license is the key to the lucrative UAE e-commerce market, unlocking your access to the vast customer database. 

What Makes You Eligible for a DED E-commerce License?

For you to be eligible for a DED e-commerce license, there are a few guidelines that must be followed. These include:

  • Legal entity: There is a mandatory requirement that you must be an established legal entity in the UAE. It can be in the form of a branch of a foreign business or a limited liability company. 
  • Sufficient capital: There should be proper documentation, including bank statements, to show that you have sufficient funds for your e-commerce business. 
  • Business activities: This means that your primary business activity must be e-commerce, where you sell products or services. These activities can also include online retail, marketplace operations, or online auction services. 
  • Regulations and compliance: This means that you are obliged to follow all the compliance and regulations that fall into the framework of the UAE. 
  • No criminal record: For you to get a license or even a residence visa, it is important for you to prove that you have no previous criminal record in your name or that of your business. 
  • Local partner: This requirement is especially for foreign investors, where it becomes mandatory for them to have a local partner or sponsor. This can be subject to the type of license you want to obtain. 
  • Adherence to ethical standards: Again, the primary responsibility of the business is to adhere to the ethical standards of not being involved in any fraudulent activity or illegal substances. 

How to Get an E-commerce License in UAE: Step-by-Step Guide 

The process of obtaining an e-commerce license in Dubai and UAE can be divided into six steps. To make the whole process simpler, you can hire a business set-up expert in the Emirates, who will guide you throughout the process till you establish a business there. 

These steps include:

1. Do Your Research:

Make use of various online tools to get access to what all the people of the UAE require or the problems they want to be resolved. This will help you select your business model and the products and services you can sell. You can also get help from business setup companies like Dubiz Business Setup. They will not only answer your queries but will also make the whole process easier and more efficient.

2. Choose the Business Location:

The locations are divided into two sections, mainland and freezones. While the mainland business setup gives you direct access to trade with UAE customers, there are more regulations as compared to free zones. Freezone businesses enjoy low taxes and easy setups but inhibit direct local trade.

3. Choose Your Company Name:  

Make sure the company name you choose adheres to the guidelines and regulations as per the UAE requirements. Contact experts for this.

4. Submit Your License Application:

This step involves filling out the application forms and submitting them to the local authority called DET for the mainland or directly to the selected free zone.

5. Process Visa Application: 

This step involves getting your business visa in Dubai. It involves application submission and approval.

6. Open A Corporate Bank Account:

Opening a business bank account can again be a complex process. You can use some help from the business setup companies. 

E-commerce License Cost in Dubai

The cost of an e-commerce license in Dubai starts from AED 5750* in the RAKEZ freezone. However, the price may differ depending on a number of variables, such as:

  • Type of business: The type of business you want and the products you will sell, will be an influential factor for deciding the cost. 
  • Location: The location (mainland/freezone) where you want to operate and the office you choose will be another contributing factor to the cost you’ll be paying.
  • Business structure: The business model and structure you plan on following will be another crucial aspect of cost determination. 

Other than license fees, you will need to bear additional expenses, including:

  • Office rent
  • Visa costs
  • Foreign name charges, if needed
  • Medical insurance fee, etc

For most details on costing, we advise you to contact our experts at Dubiz Business Setup.

Start your online business in Dubai today:     

In conclusion, we can say that obtaining a Dubai e-commerce license is not that big of a problem if you have all the requirements met. All you need is to have a trustworthy business setup expert who can guide you and help you resolve all the government regulations.

A business setup like ours, Dubiz, has the experts who have the required knowledge and guidance to help you set up your business in the UAE. We provide streamlined services to help you smoothly obtain the necessary government permits and licenses to start a business in the UAE. You can write to us or make a call to understand the requirements through the contact information given below.

Call or WhatsApp us at +971563695485 or mail us at info@dubiz.co for any inquiries. 

Frequently Asked Questions

1. What license do I need to sell online in the UAE?

For you to conduct online business in the UAE, you need to get an e-commerce license from the Department of Economic Development. This will allow sole business through the Internet, but if you need to sell in retail or through stores along with online channels, then you are recommended to get the trading permit along with this license.

2. What is the cheapest e-commerce license in the UAE? 

The cheapest e-commerce license in the UAE is offered by Ajman Freezone at AED 5,500* (zero visa). However, the cost can vary depending on various factors such as your business nature and structure, number of visas needed, etc. The best way to go about this procedure is to get quotations from business setup experts like Dubiz.

3. What all comes under the e-commerce license activities? 

Activities like online retail, selling products and services via digital platforms, and carrying out online transactions are usually covered by an e-commerce license. Certain activities, however, can need further rules or permissions.

4. Is the e-commerce license cost in the UAE different from Dubai?

Yes, there are slight differences in e-commerce licenses depending on where you are operating. A freezone license is comparatively cheaper as compared to the license for mainlands. Thus, there is no single amount that can be decided for an e-commerce license in the UAE.

5. What are DED e-commerce license fees?

When you register on the DED website, you will have to pay a fee of AED 1070* for your trading license or as we commonly call it, e-commerce license.

6. What is a portal license in the UAE?

A portal license in the UAE is a type of e-commerce license for businesses who act as an online intermediary between buyers and sellers. For example, if you want to run an e-marketplace like Amazon, then this license is what you will need to obtain from the respective government authority.

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