How to Start an e-Commerce Business in Dubai, UAE

The UAE’s digital world is growing fast, and so is the e-commerce business in Dubai. More people are using the internet every day. With busy lives, a strong work culture, and the use of smart devices, more people are shopping online and looking for services on the internet.

E-commerce is growing quickly which makes it a brilliant business opportunity. Through a UAE ecommerce business setup, you can offer a variety of products online using social media, a website, or online marketplaces. The availability of tax incentives, advanced infrastructure, and a strategic location of Dubai makes it even more attractive.

So, let us look at how to start ecommerce business in Dubai, what license to get, and documents to keep ready in this guide.

What is an e-commerce business?

An e-commerce business is the one that conducts commercial operations visa the internet, particularly buying and selling products and services. Such businesses use various online platforms to reach out to customers such as websites, online marketplaces, social media, etc.

Example: Ms Rosy sells handmade candles in Dubai. She creates a website and uses social media platforms like Instagram and Facebook to promote and sell her products. Customers place their order through these platforms and products are delivered to them. Thus, Ms Rosy runs an ecommerce business setup in Dubai.

Remember, to start and run an e commerce business in Dubai, individuals require to get the appropriate license and permits. A professional consultant can make it easy for you!

Ecommerce market of Dubai

Dubai’s e-commerce market is very vibrant, diverse, and promising. As per an analysis conducted by the Dubai Chamber of Commerce, the UAE e-commerce market size could grow up to USD 9.2 billion by 2026.

Dubai is embracing technological advancements and there is a growing demand for products like:

• Home care products
• Food and beverages
• Beauty and personal care items
• Electronics and gadgets
• Apparel and fashion
• Furniture and home décor
• Baby products
• Pet supplies
• Health and wellness items

The reasons behind this growth are mostly the nation’s modern infrastructure, trends of quick delivery, green e-commerce, personalized experiences, and so on.

The population of the UAE is not only young but also has good access to technology. They simply like to purchase things online because of the convenience it brings and the massive range of choices available.

Therefore, starting an e-Commerce business in Dubai is a great opportunity for those looking to start something of their own in the city.

Types of e-commerce licenses in Dubai

There are various types of e-commerce business models for which business licenses are available in Dubai. Some of the key types of e-commerce licenses include:

1. General ecommerce license:

An e-commerce license allows you to sell products and services online via websites, social media platforms, and other digital channels. This license is issued to full-scale online businesses that may deal in a wide range of products and can also have a physical store, if needed.

2. E-trader license:

The e-trader license is the most cost-friendly option available for those who want to run a home-based business in Dubai. Issued by the Department of Economic Development (DED), this license is specifically meant for sole entrepreneurs who do not have a physical presence. It is available to UAE nationals, GCC citizens as well as UAE expats, and the eligibility and associated fees may vary.

3. Portal license:

A portal license allows its holder to operate an online marketplace, a platform where buyers and sellers can connect. For example, websites like Amazon operate under a similar model where multiple sellers list their products and customers buy directly from them. To run such a business model in Dubai, you would need a portal license.

4. Virtual company license:

Foreign investors or non-residents who want to establish a remote online business in Dubai can obtain a virtual company license without having a physical presence in the UAE. This license is limited to specific activities such as computer programming and tech services, design and creative services, advertising services, and similar fields.

Note: Each license type has its own legal requirements to be met.

How to start ecommerce business in Dubai?

Here are the steps through which you can start e-commerce business in Dubai, UAE:

Step 1. Decide the type of license:

There are basically three types of e-commerce licenses in Dubai, such as the e-trader license, portal license, and virtual company license. Decide the one that best matches your business goals.

Step 2. Choose desired jurisdiction:

Decide if you want to start your business on Dubai mainland or in one of its thriving free zones. Each jurisdiction has its own advantages and legal regulations. Your choice must depend on your business goals, target customers, operations, etc.

Step 3. Choose business structure:

Next, you must decide the legal structure of your business, which can be an LLC, a Sole Establishment, or other permitted types. Tax liability, ownership pattern, and control are some factors that can impact your choice.

Step 4. Register business name:

Choose a suitable and lawful name for your e-commerce business in Dubai. The selected name must be approved by the DED or the respective free zone authority. Follow the naming rules in the UAE to avoid rejections.

Step 5. Get the necessary approvals:

You will need to get initial approval for your business from the DED or free zone authority. Along with that, there may be additional approvals required from specific government departments based on your chosen activities.

Step 6. Choose office space:

If needed, you can get a suitable office space for your business or maybe a warehouse for your stock. Make sure to get the tenancy contract if required.

Step 7. Apply for the e-commerce license:

Finally, submit your e-commerce license application to the respective authority of your selected jurisdiction. For mainland business setup, the application is submitted to the DED. In case of free zone business setup, submit it directly to the free zone authority.

You will have to fill in the application form carefully, submit all the required documents, and pay the applicable fees.

Step 8. Open a business bank account:

For your business, you will need to have a separate corporate bank account. You must apply for one with a bank of your choice.

Step 9. Build your online store:

As we are talking about an e-commerce business, the main focus is, of course, having a strong online presence and a way to reach out to customers.

• In this step, you will focus on building your website, making it user-friendly, seamless, and attractive.
• Work on the SEO and content of your website to make it more visible on search engines.
• Also, create profiles and pages on social media platforms like Instagram and Facebook to reach a large number of potential customers.
• Post engaging content, run ads, and tell your product’s story.

Step 10. Logistics system:

For the movement of products, from you to the customer, or back to you in case of returns, you will need the help of a reliable logistics partner. Fast, efficient, and timely delivery is what keeps customers happy and satisfied. If you have a high enough budget, you can also set up your own logistics infrastructure.

Step 11. Integrate a payment system:

For online transactions, you must have a solid payment system in place. Having a secure and safe payment gateway is very important for customer trust and smooth checkout.

Step 12. Start selling!

Now that everything is ready, start selling to customers online. Promote your brand and products and focus on delivering exceptional service to your customers.

Benefits of starting ecommerce business in Dubai

Advantages of starting an e-commerce business in Dubai are as follows:

• Growing online shopping habits: 
  The demand for online availability of products and services is high in Dubai, making it a great time to tap into the market.
• Diverse customer demands: 
  From clothing and electronics to pet supplies and beauty services, you can choose from a wide variety of products to sell online.
• Modern infrastructure: 
  Dubai offers advanced infrastructure and a high-tech logistics system that makes product delivery efficient and reliable.
• Tax-friendly environment: 
  Dubai has zero personal income tax and offers significant corporate tax benefits that are hard to find elsewhere.
• Strategic geographical location: 
  As a global hub, Dubai provides access to massive markets across Europe, Africa, and Asia.
• Business-friendly regulations: 
  The government has simplified the process of obtaining licenses and permits for setting up an online business.
• Thriving tech economy: 
  Known as a city of innovation and technology, Dubai offers strong support and encouragement for e-commerce businesses to grow and thrive.

Cost of getting an ecommerce license in Dubai

The cost of getting an ecommerce license in Dubai freezone starts from around AED 5,750*. However, the cost can vary by the jurisdiction as well as the selected freezone.

Contact us at Dubiz Business Setup to know more about price.

Document requirements for starting ecommerce business

To get your e-commerce license in Dubai, you will need the following documents:

• Passport copies of shareholders
• Your business plan
• Trade name registration
• Visa and Emirates ID copy (if applicable)
• Office lease contract (if required)
• Memorandum and Articles of Association

There may be additional documents required depending on your business location (mainland or free zone). It is advisable to seek assistance from our experts, who can guide you better through the process.

Freezone vs mainland for ecommerce business setup in Dubai

While both freezone and mainland offer excellent environment for starting an ecommerce venture, here are some of the differences between the two jurisdictions that you must be aware of:

Summary

E-commerce business in Dubai is very profitable and a great idea to take up. You can run an online social media store, a personal website, or sell on online marketplaces.

You can choose from a variety of products and services: clothes, fashion, cosmetics, food products, electronics, or services like IT, marketing, and much more. If you are wondering how to start e-commerce business in UAE, just remember that following a clear process is the key.

Start step by step: choose your location, register your business name, get the necessary approvals, apply for the license, set up your business, and just like that, you are ready to launch!

How Dubiz can help with your online business setup in UAE?

Dubiz Business Setup can help you launch your online venture in Dubai in the most cost-effective and hassle-free manner. Whether you are looking to establish a mainland setup or a free zone business, our team of experts is equipped to assist with both.

From obtaining your trade license and necessary approvals to setting up your business bank account, we take care of all the paperwork and processes, so you do not have to.

Our expertise allows you to start your business in Dubai without worrying about legal complexities. Plus, we can customize company setup package to suit your specific business needs, ensuring every requirement is met under one roof.

Want to know more about how to register ecommerce business in Dubai? Call us today:

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. Is ecommerce profitable in Dubai?

Yes, ecommerce is highly profitable in Dubai due to the region’s massive growth in online shopping habits and trends.

2. Which ecommerce is best in Dubai?

Some of the best ecommerce business ideas in Dubai include:

• Beauty products
• Food and beverages
• Electronics
• Clothing and apparels
• Online tutoring
• Digital marketing 

3. What are some of the best online marketplaces in Dubai?

Some of the popular online marketplaces in Dubai include:

• Amazon.ae
• Noon.com
• Namshi.com
• Dubaistore.com
• Shein.com
• Ubuy.ae

4. Cheapest ecommerce license in UAE?

The cheapest e commerce license in UAE typically starts from AED 5,750 (available in SHAMS freezone), or AED 6,000 (available in RAKEZ freezone). To get the best quotation, contact us.

5. Can I sell products on Noon or Amazon in UAE?

Yes, you can sell your products on platforms like Amazon and Noon in UAE. However, to do so, you will need to have a valid UAE ecommerce license.

6. Marketing strategy for e-commerce businesses in the UAE?

A successful marketing strategy for an ecommerce business in UAE involves the use of both online and offline tactics, such as the use of social media, a website, influencer marketing, advertising campaigns, and a strong focus on customer experience and service.