The growing popularity of smartphones, combined with easy access to the internet, has benefited the growth of the e-commerce industry. Clothing, furniture, and other accessories can all be purchased online these days. It should come as no surprise that the e-commerce industry is booming all over the globe. E-commerce makes it simpler for individuals as it saves time and allows anyone with internet access to shop for something online with a single click of a button. The business in Dubai is as lucrative as any other. However, if you want to start an e-commerce company in Dubai, you must go through a series of steps, starting with deciding on a website layout and ending with having your license approved.
ABOUT E-COMMERCE LICENSE IN DUBAI
It's easy to set up an e-commerce business in Dubai, but you can't ignore the laws and regulations. The Dubai government forbids anybody from opening an e-commerce platform and selling goods. You must apply for an e-commerce license if you want to start an online business in Dubai. It is issued by the Department of Economic Development (DED) and many free zones. If you do not have a license for your company, it is not considered legal. When applying for this license, you must follow a specific procedure.
HOW TO GET AN E-COMMERCE LICENSE IN DUBAI?
Most of the UAE's population has access to the internet. As a result of factors such as rising internet use, a favorable tax climate, and so on, getting an e-commerce company in Dubai can be lucrative. To obtain an e-commerce license in Dubai, you must first complete the following steps:
Decide a Legal Structure for the Business: The first step in obtaining an e-commerce license in UAE is to determine your company's legal framework. To put it simply, whether to form an LLC (Limited Liability Company), a one-person business, a branch of a parent company, a representative office, a Free zone establishment, and so on. The incorporation of limited liability companies (LLCs) and branch offices are the most common because they offer several benefits.
Choose a Location: The location refers to the geographical from which you will obtain your license, not the location where you will open . There are two groups of zones in Dubai: the Free Zone and the Mainland. Both zones have their own set of benefits and drawbacks. You must weigh all of the factors before deciding where to start your online company.
Register A Trade Name: Since your company has no physical location, choose a name that people can remember quickly. People would be able to easily access your business online if you use the trade name as your domain name. Make sure your domain name does not sound similar to that of another corporation, as this may lead to legal issues.
Apply for License: After you've decided on a spot, you'll need to get an e-commerce license. Since this authorization is issued by the Department of Economic Development or Free Zone, it is important to contact a consultant first. The type of license issued depends on the nature of your online business.
Apply for Initial Approval Certificate: A NOC from the authority to start your e-commerce company in Dubai is known as an Initial Approval Certificate. It is only valid for Limited time and cannot be renewed. When submitting a trade name approval application, one may also apply for an initial approval certificate.
Opening a Corporate Bank Account: You will be able to open a corporate bank account once you have successfully applied for an e-commerce trade license and developed your company. Since the application process is fast and easy, all you have to do now is decide which bank best fits your needs.
ADVANTAGES OF AN E-COMMERCE LICENSE
Autonomy to repatriate capital and income
No currency restrictions
Full foreign ownership in free zones
No corporate and personal tax
Low operating costs
No import duties on e-commerce license
Resident visa granted for 3 years
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