Technology advancements, widespread smartphone usage, and internet speed have enabled the establishment of a virtual sector that has continued to grow at an exponential rate in recent years. As a result, it’s no surprise that the E-Commerce industry has piqued the interest of many investors in the United Arab Emirates, and that new companies are deciding to obtain an Ecommerce License Dubai on a daily basis. It is very important to note that securing Ecommerce license in Abu Dhabi or Ecommerce License in Sharjah is completely different to that of Dubai or any other Emirate.
This post will explain what a this license is, how to obtain one, how much it costs, what papers are required to obtain one, and how we can assist you in obtaining one.
What is a Ecommerce License Dubai?
How to Apply for an E-Trade License in Dubai
What is the cost of an Ecommerce License in Dubai?
What papers are required to acquire an Ecommerce License in Dubai?
The Benefits of Getting an Ecommerce License in Dubai
1. What is the definition of a Dubai Ecommerce License?
The Ecommerce License Dubai was created in 2017 and is an official document issued by the Department of Economic Development. This license is intended for entrepreneurs who operate their businesses from home and through internet platforms, making it easier for them to sell their goods and services in a market with limitless possibilities.
2. Different types of licenses
There are three primary categories of Ecommerce Licenses in the United Arab Emirates. Each of these licenses is tailored to your company’s productive operations as well as your nationality. The following are the three types:
2.1 License for the Portal
Only non-UAE nationals are allowed to use this license, which is issued by Dubai. This license will act as a conduit between sellers and buyers, making the process of starting your business easier.
2.2 License for a Virtual Company
The Virtual Company License was designed by the Ministry of Economy to allow foreign investors and non-residents of the United Arab Emirates to conduct agreements, transactions, and any other commercial activity in the UAE.
2.3 E-Trade Permit
The E-Trader License is ideal for those who want to trade things over the internet. Only GCC and UAE nationals are eligible to obtain his sort of license, which was developed by the DED.
Investors who choose the E-Trader License should be aware that this license does not allow for the establishment of physical offices in the region.
3. How to Apply for an E-Trade License in Dubai
The decision to establish a business in the UAE is the easy part. However, you must remember to follow all applicable rules and regulations.
The authorities in the United Arab Emirates forbid anybody from starting an E-Commerce business and selling any product.
3.1 Decide on a legal framework for your company.
The first step in obtaining this license is to decide on your company’s legal structure.
The following are some of the legal frameworks to consider:
Limited Liability Company (LLC) is a one-person company with limited liability (LLC)
A parent company’s representative office branch
Due to the numerous benefits that these legal structures provide, the establishment of Limited Liability Companies and Branch Offices are without a doubt the most popular solutions in Dubai.
3.2 Decide where you want to go
In this scenario, the location does not necessarily correspond to your company’s headquarters, but rather to the place from which you wish to receive the license. The Free Zones and the Mainland are the two primary zones of Dubai.
3.3 Obtain a Trade Name
Because your company will not have a physical address, it is essential that you use a name that will be readily remembered by your consumers. Your company’s trade name and domain name might be the same, making it easier for clients to discover you on the internet.
3.4 Submit an application for a license
It’s time to apply for your Ecommerce License when you’ve decided on a location. If you wish to start a business in Dubai Mainland, you’ll need to spend roughly AED 10,000 for the Trade Name registration, first approval, and delivery of the license.
Certificate of Initial Approval (3.5)
The Initial Approval Certificate is a government-issued No Objection Certificate that permits businesses to lawfully operate in Dubai. You can submit your application for approval at the same time as your trade name approval. This permission is only valid for six months and cannot be renewed.
3.6 Memorandum of Association (MoA) and Agreement with Local Agent
You must work with your Local Agent to complete the MoA and submit it to the DED. Any UAE law firm can draft the MoA, which must include the ownership percentages of all shareholders as well as the precise agreements between them.
4. What is the cost of an Ecommerce License in Dubai?
The cost of an Ecommerce License in Dubai is determined by a number of variables. Consider the following scenario:
The scale of your business
You’ll require a certain amount of visas.
The size of your office and the economic jurisdiction in which your firm is based.
However, depending on the needs, an estimated cost might range from AED 15,000 to AED 50,000. The following are some requirements:
Office Rent Department of Economic Development Registration Fees Investor Visa Costs
Government Fees for the UAE Local Agent Sponsorship
Charges for Using a Foreign Name (if any)
Cost of an Immigration Card
The owner’s medical insurance premium
The cost of the company’s stamp
Fees for additional partner Visas (if needed)
Fees for Emirates ID
5. What papers are required to acquire an Ecommerce License in Dubai?
The request for particular papers is part of the Department of Economic Development’s regulation procedure. If you want your firm to be recognized as a legal entity and be allowed to function in the United Arab Emirates, you’ll need these documents.
Depending on your company’s productive activities, you may be required to provide additional documentation.
The following are the conditions for obtaining an Ecommerce License:
Association Memorandum (MoA)
The appropriate authorities must provide a No Objection Certificate (NOC).
Copies of the Emirate ID Local Agent Agreement for local agents
duplicates of each partner’s visas
Copies of each partner’s passports.
6. Benefits of Getting an Ecommerce License in Dubai
E-commerce businesses have produced a considerable number of employment worldwide, not just in the United Arab Emirates. While there are certain advantages to trading items and services through digital platforms, such as lower manufacturing costs and a broader consumer base, there are also some disadvantages. There are additional advantages to having an Ecommerce License in Dubai.
The following are some of the advantages:
6.1 There Are No Currencies Restrictions
The local government provides unusual freedom while trading multi-currencies due to the worldwide character of Ecommerce Licenses. You have the option to conduct business in any lawful foreign currency.
6.2 Repatriation at 100 percent
One of the most appealing features of the Ecommerce License is the ability to repatriate revenues.