Are you looking to start an e-commerce business? Do you want to sell online? Do you have an eye for fashion and a passion for entrepreneurship? Dubai is one of the most popular destinations for foreign entrepreneurs and investors. It has a fashion-forward and burgeoning population that loves online shopping. With an in-depth knowledge of the local marketplace, which you can learn, you can launch your company and become a successful business.
In this article, we’ll cover how to start an online clothing business in Dubai:
- Online clothing business in Dubai – the benefits
- Steps to start an online clothing business in Dubai
- Cost of starting an online clothing business in Dubai
- Working with Trade License Zone
Online clothing business in Dubai – the benefits
Opening an e-commerce business in Dubai, especially one that sells clothing, is a gateway to a lucrative market. Online transactions are increasing by the minute as people adopt online shopping for ever more of their needs.
As a hub for entrepreneurs, Dubai’s online business formation, registration, and management is now a streamlined process to encourage more foreign nationals and investors to set up shop in the United Arab Emirates (UAE) to cater to the region’s growing number of online shoppers.
The UAE presents a 0% tax rate on personal and corporate earnings and a 5% VAT rate. It has also simplified its business laws to make it easier for foreign nationals to enter the local marketplace in Dubai. Dubai is also centrally located in the Middle East for a dream East-meets-West position for international business and tourist opportunities. The population comprises more than 95% foreign nationals.
Contact the business setup experts at Trade License Zone to help you make your online business ideas a reality. We will help you with your e-commerce license process, registration, visas, and more.
Steps to start an online clothing business in Dubai
Here are the six steps to starting an online clothing business in Dubai.
Step 1: Partner with Trade License Zone
The first step when you’re finding out how to start an e-commerce business in Dubai is to partner with Trade License Zone. Our professional team will manage all aspects of your company registration, trade license application, and setup process to guide you on all the documentation required for the various governing authorities and obtain external approvals on your behalf.
Step 2: Choose a company name
Trade License Zone will help you choose and register your online clothing business’s name with the UAE’s Registry Office. You can use your name in the company’s trade name, but you must use it in full instead of just your surname or initials. The online business’s name must adhere to the UAE’s naming policies, including that a business name cannot include any offensive or profane language, nor any references to Allah or Islam.
Step 3: Choose the company’s legal structure
All businesses in the UAE are required to have a business license in order to trade legally. For an online clothing business, you need an e-commerce license type. There are various e-commerce license types available, from Mainland and Free Zone company jurisdiction locations. Each jurisdiction type has specific regulations, business structure types, and business activities that must be followed.
Mainland businesses can trade across the UAE. The UAE laws determine that a UAE national must serve as a local sponsor and own 51% of such foreigner-owned Mainland businesses. Foreign nationals are limited to holding a 49% stake in their companies.
The UAE’s Free Zone company structure offers foreign investors and entrepreneurs unique benefits, such as business startup incubation services. A Free Zone company gives 100% ownership to the foreign entrepreneur or investor. There are over 40 Free Zones in the UAE. It is also the most cost-effective business type.
If you are unsure whether to choose between a Mainland or a Free Zone company structure, seek expert advice from Trade License Zone to help you decide.
Step 4: Choosing your business activities
Outlining your online business in Dubai’s business activities is essential for your business license in the UAE. Your business license enables you to carry out several activities, and you can select the business activities you wish to pursue in the UAE. Failure to list all your business activities on your business license application may result in penalties. That’s why it is best to partner with a company formation expert such as Trade License Zone to make sure that your license application and business activities are aligned.
Step 5: Submit your license application
When you submit your e-commerce license application, you will need to attach the following documentation:
- Business plan for your online store
- Approval from the Free Zone or Mainland jurisdiction’s governing body
- Proof of ID and addresses for directors and shareholders (as well as local sponsors)
- Passport copies of shareholders and directors
- Copy of the company name certificate from the UAE’s Registry Office
- Completed e-commerce business license application
Step 6: Apply for your visa
After applying for your e-commerce business license for starting an online business in Dubai, you can apply for your visa and open your corporate bank account. Your visa may enable you to sponsor the visas of family and staff, depending on your license’s conditions. Contact Trade License Zone’s expert team to help you with this critical step.
Cost of starting an online clothing business in Dubai
The cost of starting an online clothing business in Dubai is AED 11,900. It is important to take into consideration that this cost is only for the online company trading license, and for the exact cost of starting an online clothing business in Dubai, you will need to consider other factors, such as office space, advertising on social media channels and search engines, website development for your e-commerce market, and other professional services.
If you’d like an accurate quote, contact Trade License Zone’s dedicated team.
Working with Trade License Zone
Business setup in the UAE is straightforward when you partner with a team of experts such as Trade License Zone. Starting a business in Dubai, such as an online clothing business, can be tricky when ti comes to applying for a trade license, company structure, and visa regulations. When you partner with Trade License Zone, we will save you from unnecessary delays or rejections and streamline the entire process.
The specialists at Trade License Zone can get started once you provide us with some basic documentation and a little information about the nature of your company and business activities. Then, please sit back and let our team take care of the rest. We’ll manage your online clothing business’s trade license and visa applications, communicate with all relevant local departments and authorities and report when you’re ready to trade. It really is that simple.