In the last few decades, the trend of online shopping has increased a lot all over the world. Companies like Amazon and Alibaba are household names in many countries. Online shopping produced a strong impact in the whole Middle East region as well. This business activity has increased by 1500% in just a decade. People in Dubai are quick to replace manual shopping with online shopping. This directly increases the prospects for e-commerce business in Dubai and UAE.
Benefits of E-Commerce business in Dubai
Dubai presents one of the best opportunities for setting up an e-commerce company in the entire Middle East and its adjacent areas. Viewing the growth and future potential of this business in the modern world, one can expect a huge profit in Dubai.
The most important part is that the scope of eCommerce business is increasing with every passing year. Such business has special privileges in a few specific free zones like Dubai Media City (DMC), Dubai Science Park, Dubai Internet City, etc.
Steps to start an E-Commerce business in Dubai
In order to start an e-commerce business in any part of Dubai, whether in a free zone or in the mainland area, there is a complete procedure to follow. The following are important points to remember before starting an e-commerce business in Dubai.
1. Choose legal structure
The first step is to choose the right type of legal structure according to your requirements. You can set up an LLC (Limited Liability Company), branch of a company or can work as an individual. These legal structures must also be decided according to the location of your business. Dubai Mainland and different free zones have their own preferences for different company structures. You must know about the availability of your desired legal structure in your preferred location.
The most important step is to obtain an appropriate license for the e-commerce business in Dubai. In case of mainland, the main authority to contact is the Department of Economic Development (DED). If you want to set up this online business in any other free zones in Dubai, then the required license will be issued by the relevant authority. E-commerce license costs may vary according to the type of business structure and location.
3. Office Space
Despite being an online business, an e-commerce company needs an office in Dubai. This is a mandatory process in both mainland and free zones. Renting an office will fully legalize your business.
4. Initial Approval Certificate
An important document required before starting your e-commerce business is the Initial Approval Certificate. It is like a NOC by the relevant authority (that can be different in mainland and free zone) to start an e-commerce business. You can obtain this certificate while applying for a trading name. Initial Approval Certificate remains valid for 6 months and it can’t be renewed.
5. Online Presence
Another important step for establishing an e-commerce company in Dubai is its online presence as a website. For this purpose, the first step is to register the domain name. The website must be developed in a way that enables dynamic interaction between buyers and vendors. For this purpose, an online payment gateway is also necessary. The most important thing is the security of this gateway. A few possible options in this regard are cash on delivery, pre-paid card systems or credit card payment.
6. Import/export requirements
The e-commerce business is mostly related to the import and export of goods. Due to this, it is important to register your business with Dubai ports and customs. In the case of a free zone, there is no custom duty for export of products.
7. Opening a corporate bank account
The last step for starting an e-commerce business in Dubai is by opening a corporate bank account. You can do so after establishing your business. You can open this bank account in any bank inside Dubai according to your requirements.
These are the main steps that have to be taken for the establishment of an e-commerce business in Dubai. We at Riz & Mona Consultancy are available to complete the whole procedure of setting up your e-commerce related company. We can assist you from acquiring an e-commerce business license to building a website and renting office space. Our consultancy service is well known for providing services related to business setup in Dubai and other emirates of UAE.