The UAE has established itself as a significant worldwide economic center, particularly in the e-commerce sector. Entrepreneurs and startups from all over the world are drawn to the UAE’s expanding potential. Obtaining an e-commerce license in the UAE is critical for individuals interested in participating in this thriving business.
According to today’s market research, the United Arab Emirates ranks 28th in the worldwide marketplace of e-commerce website development.
As the e-commerce industry grows, more and more merchants are starting their own businesses to meet the growing expectations of their customers around the world. Businesses interested in promoting their e-commerce website development in Dubai (UAE) should be aware of the major future trends.
But how do you set up an ecommerce business in the UAE? Here is the ultimate guide, where you learn the entire process of starting a business and staying relevant with modern ways of business in UAE.
What is the UAE eCommerce License? And How to Get One?
Before starting your own startup, you need to be legal!
An e-commerce license is legal documentation that permits you to operate a business in the UAE. To start an eCommerce business, obtaining a license is mandatory by the rules and regulations set by the government of UAE. They set up a department called the Department of Economic Development (DED), which is responsible for issuing these licenses.
But seven steps of UAE’s DED eCommerce License need to be followed:
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Company Type
The most important thing is to determine the legal entity type for your company, such as LLC, branch, or privately owned.
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Jurisdiction
You have to choose between setting up in a free zone or on the mainland of the city for your eCommerce business.
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Name of the Trade
Choose a unique name, and register a memorable business name and secure a suitable domain for your online store.
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Apply for a DED eCommerce License
Once you register your name you have to move to the next step, which is applying for an e-commerce license from the Department of Economic Development (DED).
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Certificate for Initial Approvals
Next, get the initial approval certificate to work across UAE, and this certificate is valid for six months.
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Choose an Ideal Office Space
Then you need to find a suitable physical office space to meet the UAE government’s requirement for registering your company as a legal entity.
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Get an Official License
Once you have completed all formalities, then obtain your e-commerce license within one week (approx.).
Types of eCommerce Licenses
The government of UAE allows eCommerce websites with three types of licenses.
- E-trader License: Online stores on social media platforms can receive an eCommerce license, but only UAE citizens are eligible, and physical storefronts are not permitted.
- Portal License: Non-UAE citizens can receive this license, which permits buyers and sellers to connect via listing websites.
- Virtual Company License: This license is restricted to three industries: computer and technology, design-related enterprises, and printing and advertising-related services.
You must be thinking about how and where, to begin with e-commerce website development in Dubai, UAE.
How to Start a Successful Modern eCommerce Website Development in UAE?
Dubai is considered today as the best place to start your own e-commerce business. And all you have to do is follow the steps, which are as follows:
- Step: 1 – Market Research
- Step: 2 – Create an eCommerce Business Plan
- Step: 3 – Get your Website up and Running
- Step: 4 – Market your Brand
- Step: 5 – Obtain eCommerce License
- Step: 6 – Start Selling
Get a free consultation on your next e-commerce website by contacting our web agency in Dubai. We will be by your side throughout the process to help ensure its success.
Role of the UAE Government in E-commerce Businesses Growth
The UAE Government plays a crucial role in fostering the growth of e-commerce businesses within the country. Recognizing the enormous potential of the digital economy, the government has put in place several programs and legislation to assist and stimulate the growth of e-commerce. These include the creation of specialized free zones that provide a favorable climate for e-commerce businesses to thrive.
Furthermore, the government has introduced e-commerce licenses, which have made it easier for entrepreneurs to launch and operate e-commerce enterprises. With these efforts, the UAE Government aims to stimulate innovation, attract investment, and position the country as a regional hub for e-commerce and digital trade.
So, if you plan to start your eCommerce business in Dubai, UAE, then read out this ultimate guide and reach out to us by calling +971 50 569 0792.
