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Start an E-commerce Business in Dubai

Start an E-commerce Business in Dubai

Dubai is one of the most popular shopping destinations in the world as tourists visit the emirate and enjoy the malls which host a great number of shops. Even if traditional retail shops are preferred by visitors, locals have started doing their shopping in online stores. With the UAE being one of the most advanced countries in the world from a technological point of view at the moment, setting up an e-commerce company in Dubai is a very good business idea. Also, Dubai will be the first emirate to have a state-sponsored digital coin. Our company formation agents in Dubai can offer information on how to create an e-commerce business in the emirate or one of its free zones. We can also help you obtain an e-commerce license in Dubai.

How to start an e-commerce company in Dubai

Research is the most important step when creating an online shop in Dubai. According to a recent report, the number of online shoppers has surpassed the 200 million-individual threshold, therefore finding a niche for selling one’s products is essential. Following that, creating an appealing website is very important. At the beginning of the year, the Ministry for Economy in Dubai has created the Digital Protection initiative which allows e-commerce businesses to become certified in relation to online transactions. This will significantly increase consumer confidence in e-commerce companies in Dubai. Interested in an online business license in Dubai? Get in touch with our specialists and see how you can be helped.

Our company incorporation consultants in Dubai can offer information on the legislation related to selling goods on e-commerce platforms.

Registering an e-commerce business in Dubai

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.

After these steps are completed, the businessman can start the Dubai company formation procedure. One can register a sole proprietorship or a limited liability company, depending on how large the e-commerce business is.

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.

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 and there is no corporate tax 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 is offered.

Therefore, Dubai CommerCity is more than advantageous for foreign investors who want to channel their resources on 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.

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, and 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 thresholds 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.

How to obtain an online business license in Dubai

We mention from the beginning that in order to obtain an online business license in Dubai, you must apply to the Dubai Department of Economic Development, the institution that verifies business entities before providing the necessary approvals. Furthermore, the e-commerce license in Dubai is approved by the Telecommunications and Digital Government Regulatory Authority, the institution that controls and verifies online business activities.
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. We invite you to discuss more about how to start an e-commerce business in Dubai with our local agents.

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 the card.

In other words, we present some statistics about the e-commerce market in Dubai:

  • A significant increase in the e-commerce field was the apparel and footwear sector, which recorded around USD 1.3 billion in 2020.
  • Approximately USD 1.2 billion worth of electronics were purchased online in the same year.
  • Also in 2020, e-commerce retail reached USD 3.9 billion.
  • The value of the e-commerce market is expected to reach approximately USD 8 billion by 2025.

For assistance with the registration of the company used for the 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.