Dubai is the commercial and cultural epicenter of the United Arab Emirates. A plethora of leading businesses from around the globe operates in the city. The rise in popularity of e-commerce has prompted the government to introduce Dubai CommerCity. It is one of a kind business ecosystem dedicated to e-commerce in UAE. The Middle East and UAE in particular have huge unopened e-commerce potential. This sector is still at the stage of development here and it’s the best time to occupy your niche in the Emirates’ online market.
Business Setup in Dubai CommerCity
In order to set up your company or business in DCC, you must follow the below-mentioned steps in the correct order.
Step 1 – Choose Your Type of Business Activity
There are three main types of business activities which can be carried out in Dubai CommerCity:
If your company will be acting as an intermediary between the buyer and the seller, your business activity in the UAE will be called Portal or E-marketplace. The most famous example of e-marketplace is Amazon.com the website serves as a platform for the merchants who advertise their goods, and the buyers. If your activity is similar to that, Portal is what you need. Most of the free zones have such activity, so it won’t be a problem to find it.
E-commerce setup is a choice of companies who want to sell their own goods through their own website. It can be a website selling only 1-2 types of goods or big online retailers such as Mumzworld.com for example.
- Commercial or Service
Even if your license does not relate to e-commerce as such, it does not mean you cannot sell your products or services online. You can open a company with any business activity and conduct it online. You can provide educational training, marketing consultations, sell food or clothes online or do any other type of business thought the Internet.
Step 2 – Choose Your License Type
Dubai CommerCity currently offers six types of licenses:
- Trade Licence
This type of license allows the holder to carry out trading activities, including import, export, re-export, distribution and storage of specific products.
- Service Licence
This license is suitable for service-oriented businesses. It enables entities to provide the services specified by their licence.
- Industrial Licence
This allows holders to undertake light manufacturing activities, packaging, and assembly.
- E-commerce Licence
With this type of license, holders are entitled to trade of goods and services online.
- General Trading Licence
This license allows the holder to trade in general activities, including import, export, re-export, storage, and distribution.
- Dual Licence with DED
This license allows DAFZA-registered companies to apply for a DED (Dubai Department of Economic Development) Licence without the need for physical office space on the mainland. Businesses possessing this license can operate out of DCC.
Step 3 – Choose Your Company Type
The following two types of companies can be formed in DCC:
- Free zone Company (FZCO/FZ-LLC)
It can have a minimum of one and up to 50 shareholders and can be individual or non-individual. The requirement of minimum share capital is USD273
- Branch Office
Another popular type of company is the branch office of an already existing company. There is no share capital requirement for this type of company set up.
Step 4 – Choose Your Space
You can choose either of the three types of spaces for your company set up in DCC:
- Office space
- Warehousing and industrial space
- Cold storage
How Can I Obtain a License in Dubai CommerCity?
Here are the main steps you need to follow in order to obtain a license for operating your business in Dubai CommerCity:
- Decide the legal structure of the business: Decide whether you want to set up your company as an LLC (Limited Liability Company) or a branch office.
- Location of getting the license: The place where you would want to get your license would come under this step. In your case, it is Dubai Airport Free Zone or DCC.
- Trade name: You must have a very appealing name in order to attract the people towards your business. Make sure that your name is not the same as that of any other business or else it would lead to some legal complications.
- License application: Apply for your selected license type from the list given above. Pay the fees for obtaining the license, registering trade name and business set up in CommerCity. The type of license issued to you would be dependent upon the nature of your business.
- Initial approval: Take the initial approval certificate for starting your business in DCC. Do remember it only lasts for 6 months.
- Additional Steps:
- Draft Memorandum of Association (MOA)
- Draft local service agent agreement
- Register an office in Dubai CommerCity
- Take the final approval
- Complete the import/export requirements
- Create a bank account
- It will only take you 1 to 7 days in order to get your business license and start your business activities.
Dubai CommerCity is one of a kind business ecosystem that has plenty to offer. The e-commerce industry is set to grow exponentially as a consequence of the virus. The country looks poised to adopt digitization and thereby opens up opportunities for entrepreneurs to provide smart solutions to the masses. For license registration, proper documentation, and setting up your business, Riz and Mona company formation experts will guide you with each step to make the process as smooth as possible. Call or email us today to hoist your business offering through Riz and Mona’s customized business set-up solutions.