The international market is seeing the move from brick to click, which has paved several business possibilities for the e-commerce industry to grow. The future is digital, and Dubai has been taking the creations quickly, with a vision to turn and embrace the digital world. From restaurants and hotels to airports, the country is continuously transforming into a digital world, with e-commerce playing a vital part in its future.
The positive development of the emirate in the e-commerce sector as well as its modern e-commerce marketing amenities creates it suitable for operating a business online. Cooperating with the business setup consultants at Start Any Business UAE will make it easy for you to start your e-commerce business in Dubai.
The Steps for Opening an E-commerce Business in Dubai
1. Find the Market Potential
You have to select the appropriate business model, remembering the market trends, customers’ needs, and the remarkable value proposition of your business. Based on market potential, you can go from business to business, client to business, or business to client.
2. Choose a Suitable Location
Location is a highly vital aspect to be deemed when considering how to initiate an e-commerce enterprise in this emirate. Though, you don’t require a physical office formation to run your e-commerce business in Dubai.
A free zone or a mainland are the two sorts of lawful locations that you can seek a business license from. The benefits of running from the free zone are 0% income tax, 100% repatriation of business profits, 0% corporate tax, 100% business ownership, and a few customs obligations. In case you decide on a mainland business setup in Dubai, you will get the official approval to conduct local and international companies.
3. Register Your Company’s Trade Name
You can just register your business name in Dubai by making an application given by the Department of Economic Development. The name you have chosen to use must be legal in the emirate. Ensure not to utilize any controversial and religious works in your business name. In addition, you should not utilize a name similar to already running corporations in the emirate.
4. Obtain an E-commerce License
Once you have chosen the right location, then you have to make an application for a business license to run an e-commerce business in Dubai. The Economic Department is the government authority that gives an e-commerce license.
An e-commerce license in the emirate permits you to run many business activities through distinct social media networks. With a business license in the free zone, you can serve with a local distributor, while you can start the procedure of trading products and services directly to the domestic market in case you hold a mainland business license.
5. Develop Your E-commerce Website
If you’re making a plan to begin an e-commerce business in Dubai, this is very crucial to have a sustainable, optimized, protected, and user-friendly for your customers. You have to register a domain for your e-commerce website. Once you are done with this, you can effortlessly make your website through different website makers accessible online. With the aid of these, you can make your website without any coding.
6. Establish a Payment Gateway
In order to incorporate a gateway into your website, you require a merchant account from a Dubai bank. As the telecommunications in the country, you should have optimized payment gateways in place to manage the user traffic according to the TRA policies. In addition, ensure your website make gives 24/7 client support features in case of payment failure.
7. Customer and Logistic Support
Giving support to your customers, and managing technical factors, database, and export-import amenities are the most crucial components for the survival of a company. In the emirate, you can either make logistics at your own cost or go for outside logistics support.
How To Get an E-commerce License in Dubai
The business license for e-commerce business setup in Dubai is obtainable for GCC, UAE, and overseas citizens. You should complete the following needs to get an e-commerce license –
- The owner should be aged 21 or above.
- You should hold a legal Emirates ID.
- The company name should be registered.
- Make the payment of the required fees.
- Should complete the business registration procedure.
- Annual renewal of the business license is compulsory.
Benefits of Getting an E-commerce License in Dubai
- This provides you the possibility to form an affordable office if you hold a mainland business license.
- It is possible to operate an e-commerce business without a physical office if you have an e-commerce license.
- customized warehouse amenities will be obtainable for your in case you have a free zone e-commerce business license.
- You’re relieved from the taxes and duties of import and export.
- In case you hold an e-commerce business license, you’re permitted to make many currency transitions.
- You’re just charged 5% VAT on the transaction made within the country.
- An e-commerce license gives you more adaptability when it comes to extending your business.