Are you looking to kickstart a company and be your own boss? An e-commerce license enables you to create an online business and fulfil your dreams as an entrepreneur.
The process is simple when you opt for the cheapest e-commerce license in the United Arab Emirates (UAE) today. To get you started on your journey to opening your own business in the UAE, this article looks at these subjects:
- Factors to consider when choosing an e-commerce license in the UAE
- Cheapest e-commerce licenses in the UAE
- How to obtain the cheapest e-commerce license in the UAE
- Benefits of having a cheap e-commerce license in the UAE
- Why work with Trade License Zone?
Factors to consider when choosing an e-commerce license in the UAE
Online businesses – and online shopping in particular – have flourished since the outbreak of the COVID-19 pandemic in 2020, and the growth has not slowed down. The convenience of online shopping for products and services saves shoppers time and allows them to shop from the comfort of their homes.
Demand for cheap e-commerce licenses in Dubai and the UAE is increasing. There are several factors to consider when choosing an e-commerce license here.
There are three methods for starting an e-commerce business in the UAE:
- Selling through an established marketplace, such as Amazon, Noon, Namshi, and others.
- Build your own website to sell your products or services.
- Sell products or services via social media platforms.
Most online businesses in the UAE use a combination of these three methods when trading.
There are six types of e-commerce licenses you can apply for in the UAE:
- E-Commerce license: for companies that want to sell their products through their website.
- E-Trader license: for businesses that look to sell their products or services online, although this license type is only for UAE and GCC nationals who have residency in the UAE.
- Commercial/Service license: for businesses that provide training or consulting, sell food or clothes, or trade through other online trading platforms, such as Amazon or Noon.
- Virtual Company License: for foreigners seeking to launch their companies and perform business activities in the UAE, even if they are not physically present here. This license only allows business activities in three sectors: computer programming, designing, and advertising.
- Portal License: for businesses that want to link buyers to sellers and perform business activities.
- Freelance License: this license enables IT, media, and education professionals to sell their services in the UAE.
Other important considerations when choosing an e-commerce license in the UAE are payment gateway service providers and delivery service companies. There are several of each in the UAE to choose from.
Cheapest e-commerce licenses in the UAE
The cheapest e-commerce license in the UAE is AED 6,500 to AED 12,500. The cost varies due to the nature of the business, company formation, visas, government fees, and other factors.
The highly experienced staff at Trade License Zone can help with every step of the e-commerce license application, company formation, and more, ensuring that your applications are accurate, correct, and error-free.
How to obtain the cheapest e-commerce license in the UAE
These are the six steps to obtaining the cheapest e-commerce license in the UAE:
Step #1: Partner with Trade License Zone
When launching an e-commerce business in the UAE and applying for the cheapest e-commerce license, partner with a company formation expert such as Trade License Zone. We’ll guide you through the required government steps and inform you when you can start trading.
Step #2: Register a company name
Trade License Zone offers support in selecting a suitable business name. As per the guidelines set by the UAE’s Registry Office, it is important that your chosen business name is free of any offensive or disrespectful language and does not make any reference to Islam or Allah. If you plan to incorporate your name in the company’s name, it should be spelt out in its entirety rather than using initials or surnames. You need to provide three preferred names, and the Registry Office will verify their availability and confirm the final choice.
Step #3: Select a business jurisdiction
Dubai has established business and financial regulations that provide a favourable environment for businesses to thrive. With more than 40 Free Zones, each specialising in specific industries and offering tax benefits, support services, and other advantages, these zones provide a particularly attractive option for foreign investors.
In contrast, Mainland business jurisdiction allows businesses to trade directly within the UAE without requiring a branch office, unlike Free Zone companies, which require more steps to be eligible to trade within the UAE.
It is important to understand both types of setup before deciding which is best for your e-commerce business, as each has unique benefits.
While choosing the most appropriate setup for your company may be challenging, the experts at Trade License Zone can assist and guide you through the process.
Step #4: Choose your business activities
There are more than 2,000 business activities to choose from, so selecting the ones you will carry out when trading is essential. A company may only conduct business activities as selected for its trade license. Failure to do so may result in severe penalties from UAE authorities.
Consult a trade license expert, such as Trade License Zone, to choose the right business activities for your e-commerce company.
Step #5: Apply for Initial Approval
Before completing the following stages of your e-commerce business setup, you must apply for Initial Approval from the government’s Department of Economic Development (DED). This enables you to apply for your e-commerce license.
Step #6: Submit your e-commerce trade license application
Once you’ve completed the Initial Approval stage, you can apply for the cheapest e-commerce license in the UAE.
Benefits of having a cheap e-commerce license in the UAE
An e-commerce license in the UAE has many benefits for business owners:
- You can own 100% of your business – there is no requirement for a local sponsor to hold shares in your company if your business is set up with a Free Zone structure.
- Owners can apply for a UAE residency visa.
- No physical office space is required to launch an e-commerce business.
- There is no personal or capital gains tax.
- The country has highly experienced logistics service providers.
- There are excellent road, sea and air networks for fast delivery.
- The UAE offers high-quality payment services for easy online shopping for customers.
Why work with Trade License Zone?
When you partner with Trade License Zone, license applications and business setup in the UAE are streamlined. We help with trade license applications, company registration, and more to save you time and money and avoid unnecessary delays or rejections when getting the cheapest e-commerce license in the UAE.
Getting started is simple: just send us basic information about your e-commerce business, and our expert team will take care of the rest for you. We’ll manage business setup, communicate with all relevant government departments and authorities, handle visa amendments and applications, open corporate bank accounts, and report back to you when you’re ready to start trading. It really is that straightforward.