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Start an E-commerce Business in Dubai

Start an E-commerce Business in Dubai

Interested in an e-commerce license in Dubai? Our company formation agents in Dubai can offer information on how to obtain such a license and create an e-commerce business in the Emirates or one of its free zones. The same team can manage the entire process of company incorporation in Dubai in a fast and reliable manner, at affordable costs. Setting up an e-commerce company in Dubai is a very good business idea for international entrepreneurs looking to expand their portfolios, and below you can find information on this topic.

 Quick Facts  
Who can open an e-commerce business in Dubai?  Local and international entrepreneurs interested in expanding their business portfolio in Dubai 

Proper business structure 

Limited liability company, a flexible business structure 

Steps for opening an e-commerce business in Dubai  

– creating the incorporation documents after name verification,

– opening a bank account,

– applying for a business license,

– registering for taxation, etc. 

Minimum share capital   Not required 
Solicited documents for obtaining an e-commerce license in Dubai 

Presenting the company documents, such as Articles of Association, No Objection Certificate (NOC), visa, ID  copies, etc. 

Costs for an e-commerce license in Dubai (approx.) 

Ranging between AED 12,900 and AED 50,000 

Requirements to create a website for an e-commerce business in Dubai 

A domain name is needed, alongside an e-commerce business license, a safe integrated payment system, secure hosting, content, and optimization 

What is a merchant account? 

 Integrated payment system for e-commerce businesses

A special zone for opening an e-commerce business in Dubai 

CommerCity free zone in Dubai 

Business ownership   100% ownership in CommerCity free zone in Dubai 
Facilities for e-commerce businesses in Dubai  

– logistics,

– warehouse

– shipping services, etc. 

Taxes imposed  

– corporate tax of  9% for taxable income above AED 375,000,

– no import and export duties 

Age requirements 

At least 21 years for opening an e-commerce business in Dubai 

Most sold products through e-commerce businesses in UAE 

– electronics,

– fashion items,

– hobby&leisure,

– furniture, etc. 

Why choose our company formation agents in Dubai?  

– experience in business formation,

– dealing with local authorities to obtain specific approvals,

– professionalism,

– affordable costs 

How to start an e-commerce company in Dubai

Research is the most important step when creating an online shop in Dubai. Following that, creating an appealing website is very important. Here are other important steps for opening e-commerce companies in Dubai:

  • The right business structure must be chosen for opening an e-commerce business in Dubai. One can register a sole proprietorship or a limited liability company, depending on how large the e-commerce business is.
  • The Articles of Association are the main documents of the business, with information about the future activities, business owners, registered business address, representative, etc.
  • The business name of an online shop is one of the most important aspects when setting up an e-commerce platform in Dubai. Following that, buying and registering a domain name is necessary.
  • Once the documents are accepted, one must apply for an online business license in Dubai.
  • Setting up a merchant account for online payments to be processed is also important and when done together with the certification through the Digital Protection program, the success of the e-commerce business is almost secured.

One of our company formation agents in Dubai can take care of all these formalities and many others related to opening an e-commerce business in Dubai. Below you can find an infographic with details on this subject:

Simple steps for ecommerce business in Dubai

If you are wondering what are the correct and simple steps for opening and registering an e-commerce business in Dubai, we provide the following information:

  • Choose the right business structure, and in this case, you can opt for a limited liability company in Dubai.
  • Choosing an online business name is important. Make sure it is unique and that you will not be involved in infringement cases.
  • If you do not want to register an online business in mainland Dubai, then you can opt for the Dubai CommerCity free zone, dedicated to this type of business.
  • Apply for an online business license in Dubai and make sure you provide all the required documents.
  • Open a merchant account for your online business. This offers customers the opportunity to pay for the chosen products with a card.
  • Creating a website is also recommended for an e-commerce business in Dubai. The domain must be registered with the relevant authority, in this case, the Telecommunications and Digital Government Regulatory Authority in UAE.

Below is a video presentation about how to set up an e-commerce business in Dubai:

Documents required for obtaining an e-commerce license in Dubai

Applying for an e-commerce license in Dubai requires the preparation of documents such as:

  • passport copies of the business owners,
  • visa and ID copies,
  • civil works agreement or local service contract in Dubai,
  • No Objection Certificate (NOC) from the relevant authority in the UAE,
  • Draft of the Memorandum of Association.

We can help entrepreneurs in obtaining an e-commerce license in Dubai by managing the formalities implicated in the process.

Costs for obtaining an e-commerce License in Dubai

The price for an e-commerce license in Dubai can vary between AED 12,900 and AED 50,000 and depends on aspects such as:

  • the size of the company established in Dubai and the type of business;
  • type of license and the territory where it will be used (mainland Dubai or free zones);
  • office space required, etc.

The formalities of obtaining an e-commerce license in Dubai come under the attention of our specialists, so do not hesitate to contact us to receive the necessary support. With the eTrader license in Dubai, investors can grow their online business by accessing social media networks and tools dedicated to this type of promotion.

Advantages of an e-commerce license in Dubai

In the following lines you can discover some of the benefits of an e-commerce license in Dubai:

  • It allows you to establish a cost-efficient office if you own a mainland license in Dubai.
  • Having an e-commerce license allows foreign entrepreneurs in UAE to operate on the market without the need for physical office space.
  • Tailored warehouse facilities are available after obtaining a free zone e-commerce license in Dubai.
  • One can benefit from flexibility in terms of business expansion, once the e-commerce license in Dubai is issued.
  • There are no import or export taxes and duties.
  • There are no restrictions regarding trading in various currencies.

Why choose Dubai CommerCity free zone?

Dubai CommerCity or DCC free zone was created and implemented to support those who open their businesses online. Here we offer optimal business conditions, dedicated only to such activities so that foreign investors can easily register their business and develop in a relatively short time. Let’s review some of the facilities offered:

  • An e-commerce license in Dubai is obtained fairly quickly as soon as the company is registered.
  • Pre-configured e-commerce platforms, centralized customer relations, payment gateways, and services offered by web developers can be easily accessed.
  • 100% foreign ownership is accepted in this special free zone in Dubai.
  • Marketing management, support for talent acquisition, but also access to a series of networking events for better management of the online business are offered.

Therefore, Dubai CommerCity is more than advantageous for foreign investors who want to channel their resources into developing their online business. The simplicity with which you can obtain an e-commerce license in Dubai is another advantage that offers a quick start on the market. Discuss more about this topic with our company formation agents in Dubai.

On the other hand, if you want to relocate staff for your e-commerce business in Dubai, do not hesitate to get in touch with us. We can provide information and support on immigration to Dubai.

What is Dubai’s E-Commerce Strategy?

As more than 3.2 million online shoppers are part of the adult population, the Dubai authorities have recently implemented the Dubai E-Commerce Strategy which includes several benefits to facilitate the online market and attract as many foreign investors as possible. The program focuses on facilities such as customs fees, storage, warehouse, logistics, and transportation. The scheme also includes a reduction in VAT, so that the total cost of maintaining an e-commerce business in Dubai decreases by about 20%. It is hoped that Dubai will become a global logistics hub for the Middle East and even reach the USD 3.2 billion threshold of the local economy. If you want to operate in this profitable market and obtain an e-commerce license in Dubai, we invite you to talk to our team of local agents. We invite you to contact us for information about how to start a business in Dubai.

Economic situation of UAE

In other words, we present some statistics about the economic situation of UAE if you decide on an e-commerce business in Dubai:

  • The UAE’s GDP per capita has grown by 24.7% during the past 6 years, despite the increase in population.
  • The total GDP per capita registered in 2022 rose by approximately 21.1% compared to 2021. This growth was supported by the accomplishment of the economic policies enforced by the UAE government.
  • The pioneering economic projects in the UAE connected to non-oil sectors totaled around AED 1.632 trillion at persistent prices.
  • Starting this year, the 9% corporate tax rate is imposed for taxable income above AED 375,000.

For assistance with setting up a company in Dubai, especially an e-commerce platform, please feel free to contact our advisors in Dubai. We are here to tell you more about how to start an e-commerce business in Dubai.