How to Start an Online Business in the UAE

The world is transforming at a fast pace, with every adult getting indulged in online purchases. It is estimated that about 95% of the sales by the year 2040 will be online, bringing the online business to the fore of all the other markets. While this was about how the world is evolving, you will find Dubai to be a great choice throughout the world to establish business. If you are also planning to start a new business in Dubai, then here is how you can initiate the company formation for an online business in Dubai. But before that, let us understand the online business market in Dubai.

Understanding online business in Dubai

Any company that operates online is considered an online business in Dubai. It may entail marketing goods or providing services like yoga, teaching, consulting, or training. Many firms are prospering in Dubai’s tech-savvy environment due to the rising need for online markets.

Dubai is a great place for online enterprises because of its sophisticated infrastructure and extensive internet connectivity. The city provides businesses with a significant market to target because of its large, digitally connected audience. Since real office space is not required, starting an internet business in Dubai has several benefits, one of which is the lower startup costs.

However, you need to have a business license appropriate for your operations if you want to lawfully run an online business in Dubai. With proper process and adherence to the regulation, one can enjoy the various benefits of Dubai’s thriving digital economy.

Related Post: Online Business Ideas in the UAE

Benefits of online business in UAE

Starting an online business in the UAE offers you a wide range of benefits. Here are some of them listed for your understanding.

• Repatriation of All Profits: To maximize their financial gains, business owners are free to send all of their revenues back to their home nation.
• Complete Business Ownership: Particularly in Dubai’s free zones, foreign investors are able to wholly own their companies, giving them more operational and decision-making authority.
• Quick and Simple Setup: Entrepreneurs may launch their businesses fast and easily thanks to the simplified and effective business license application process.
• Reasonably Running Expenses: Online firms have reduced beginning and operating costs because they don’t require physical office space and have more economical licensing choices.
• Business Conducting Ease: Operating an online business is made easy by Dubai’s sophisticated infrastructure, benevolent regulatory environment, and thriving digital ecosystem.
• Help with Bank Accounts: In order to facilitate seamless financial transactions, authorities help entrepreneurs open corporate bank accounts.

Documents needed for starting online business in Dubai

To set up an online business in Dubai, there is a set process which requires you to have some documents ready. Before indulging in the process, let us understand the list of documents that you will be requiring for it.

• Passport copies (investor and sponsor)
• NOC (if working in a UAE company)
• Emirates ID copy
• Registration form from DED
• Tenancy contract (if applicable)
• Attested Memorandum of Association

The list of documents may vary based on specific cases, please contact us for more details.

How to set up online business in Dubai?

Now, here is the step-by-step process for starting an online business in Dubai:

1. Select a Name for Your Company:

Choose a distinctive name for your company. Make sure it conforms with UAE laws by staying away from derogatory terminology or titles that are currently being used by other groups.

2. Choose the Type of License:

Choose between a mainland license and a free zone license. Although a free zone license restricts you to foreign markets, it offers advantages like 100% ownership and no corporate tax. Both domestic and foreign markets are accessible with a mainland license.

3. Apply for a License in E-Commerce:

Get an e-commerce license after deciding on a location. Apply to the Department of Economic Development (DED) if you are a mainland business. Businesses in the selected free zone may apply to the respective freezone authority.

4. Application for Visa:

Following license approval, you can apply for a UAE residence visa as well as visas for your family members or staff.

5. Open a Business Bank Account:

To begin operations as soon as your license is prepared, create a business bank account.

Applying for online business license Dubai

Starting an online business in Dubai will require having a particular license to give you the legal right. Here are the major three types of online business licenses that you can apply for:

1. E-trader License: E-trader license enables you to sell goods and provide services online without requiring a real office location. It is intended for UAE or GCC nationals who live in Dubai. Foreign expats living in UAE on residence visa may also apply for an e-trader license. However, there are some restrictions they may be subject to.
2. Portal License: Portal license permits you to lawfully run an e-marketplace and provide goods and services in Dubai.
3. License for Virtual Companies: This license permits remote company operations in Dubai, making it ideal for international investors and businesses. It includes tasks pertaining to programming, promotion, and design.

Online business in Dubai license cost

You are required to have an e-commerce license if you are planning for a company formation in UAE dealing with the sale of products and services through the Internet. Online business license cost starts from AED 5,750* (RAKEZ freezone, e-commerce license).

However, the cost will vary depending on a number of factors, including the jurisdiction, the size of the business, type of license, the location of the office, the business structure, the services and goods you plan to sell, and many more. For a personalised quote, you can get in touch with Dubiz Business Setup.

Start your online business with Dubiz

Company formation in Dubai, and in fact in the UAE, is what Dubiz Business Setup has expertise in. From helping you with company registration in UAE to assisting you in acquiring a Dubai business visa, we have a team of experts ready to help you at every single step.

If you have queries related to any such issue, feel free to get in touch with us at: +971563695485, WhatsApp: at +971563695485, or email at info@dubiz.co

Frequently Asked Questions (FAQs)

1. How to register online business in UAE?

Choose a business activity, pick a jurisdiction (free zone or mainland), register a trade name, get preliminary permission, and apply for a trade license from the appropriate authorities in order to create an internet business in the United Arab Emirates. For registration to be successful, all paperwork must be completed, fees must be paid, and legal criteria must be met.

2. What are the top 5 online business ideas in UAE?

A few low-budget online business ideas in the UAE are as follows:

• Social media management
• Cleaning services
• Event organization
• App and website development
• Freelancing

3. Can I start an online business in Dubai from home?

Yes, you can start an online business in Dubai from home, both as an Emirati and expat. For example, you can get e-trader license that allows home based operations in Dubai.

4. Where to register online business in Dubai?

If you need to establish online business in Dubai mainland, you have to apply for its registration with the Department of Economic Development. In case of freezone, business needs to be registered with relevant freezone authority.

5. Is online business in Dubai profitable?

Yes, an online business in Dubai is profitable with a wide range of products and services to choose from. But having new business ideas in Dubai can be more beneficial, while a unique idea can be a game-changer.