The growing effect of e-commerce has been facilitated by people becoming more prone to using the internet all around the world, the availability of internet and gadgets everywhere, and the continuous development in internet tools and courier services. Online shopping, or the e-commerce segments, are replacing the traditional shopping culture, which was strolling in stores. This can be seen specifically in the online trading trend of furniture, clothing, electronics and household goods. What attracts people all around the world to e-commerce stores is the easy accessibility to any brand or shop from any part of the world and that online stores are a lot less expensive compared to the traditional style store shopping.
The same is the case within the UAE, the e-commerce market and businesses are bringing in as many profits as they are in any other part of the world. As for now, the e-commerce sector has exceeded $10 billion, and more growth and revenue are anticipated in the future looking at the fact that over 90% of the people have access to the internet in the country. Another reason that makes the UAE a favorable location to set up an e-commerce business is the fact that e-commerce businesses are subjected to preferential tax treatment conditions that are practiced in the free zones of UAE. Other than that the UAE holds well-developed logistics systems with its airports, ports, and ground communication networks that further supports the statement that UAE can prove to be a heaven for setting up an e-commerce business.
So, if you are planning to set up a profitable business entity in the UAE, e-commerce business might just be the right option for you. In order to set up an e-commerce store in the region, you will have to go through several processes ranging from obtaining an e-commerce business license to developing a website for your business.
Online Business In Dubai
Every business in Dubai starts with obtaining a trading license for the type of services or goods you wish to produce and trade in the region. The same is the case in setting up an e-commerce business. The process of registering any business and obtaining a license for it depends on the type of business, the type of trading you wish to be involved with and the free zone you are opting for in the region. The easiest and the fastest is to obtain a general trading license and an e-commerce trading license in Dubai. Over 80% of companies in the UAE possess such licenses. All in all, the trading begins with obtaining a license for it and makes conducting a business possible.
The process of starting a business is as follows:
- Selection of type of business
- Choosing the place of registration
- Registering a legal entity
- Choose a site and rent an office
- Obtain a license
- Obtain a bank account
Advantages Of An Online Business
Without any doubt, no one will want to be left behind in trying their luck in an industry that is growing at such speed and offering profitable opportunities, especially entrepreneurs looking to use their skills and motivation to set on a path of success. If you are one of them, then you will be needing to look at the advantages you will be setting up for opening an e-commerce business in Dubai. Down below is the list of everything you may need to know:
- Super easy to set up
While Dubai has been making a conscious effort to minimize and simplify the procedures of acquiring a license and setting up a business in the region, the same is the case with setting up an e-commerce business. If you wish your business to be established in the mainland Dubai, it would take you about 90 minutes to apply for a trading license online to the Department of Economic Development – given you match the eligibility criteria for obtaining a license. That’s how easy and instant applying for a business is now in the region. For all I know, acquiring an e-commerce trading license through any free zone in Dubai is the most advantageous, quickest and easiest way. Setting up a business in free zones will provide you with a lot of tax exemptions and benefits. Even before you will know, you can obtain a trading license in just two working days at often times.
- Low-cost set up
With being quick and simple, setting up an e-commerce business in Dubai is affordable as well. The cost of an e-commerce trading license is a low as AED 15,500 as it does not necessarily require a physical office space and you can work from anywhere you want. As well as, the total cost of setting up e-commerce businesses is incredibly low as you are not needed to give paid-up share capital.
- Various options for office space
While it is true when said that acquiring an e-commerce trading license does not require you to possess a physical office space, here is a heads-up for you. It is required to obtain physical office space for running business activities in case you need seven or more visas. Usually, the rule is to acquire 100 sq. feet of office space for every visa obtained. However, this rule is exempted in case you already own large remote office space. On the other hand, if your business does not necessarily need seven or more visas, you will have a lot of open options. You can work without an office space at all then. To make your business activities and work easier, like always, free zones have another option. You can opt for a flexi-desk package in a free zone authority of your choice and work in a professional surrounding like a workplace. You will be provided with every office space necessity such as WiFi, call handling, desk space, and a reception cover on an ad-hoc basis.
- More than one visa options
Setting an e-commerce business in Dubai with an e-commerce trading license, there are a lot of other visa options that are available. Actually, it is even possible to apply for multiple visas for your employees as well, of course, given you meet the requirement of owning an office space if needed. You can also set up an e-commerce business in a free zone of the region while abroad, acquiring no visa and even without the requirement of having a UAE entry stamp.
- Sponsoring dependents for their visas
Other than acquiring multiple visas for your employees, you can also sponsor your family for a visa process easily. Either requiring a visa for your spouse, parents, child, or a maid or driver, the process only includes four easy steps: entry permit, status adjustment, a medical fitness test, and then Emirates ID registration and visa stamping.
- Can be set up with more than one shareholders
It is totally up to you to run and share your profits solely with an e-commerce trading license, however, you have another option of involving a shareholder in your business profits, investment, and activities. Setting up an e-commerce business in Dubai allows having up to 50 shareholders for your business. The shareholders can either be corporate entities, individuals or even a mix of both.