The concept of E-Commerce has brought a drastic shift in the world of business. Apart from the way of doing business, the sector had a significant impact on consumer behaviour and their purchasing pattern. The presence of online marketing has obliterated the offline marketing gradually. The business impact has been so intense at an international level that even the offline marketers had to introduce an online medium to capture the audience. The United Arab Emirates stands as one of the famous business podiums that are highly preferred by business owners and investors. Setting up a business in Dubai is a highly preferable option, especially when it comes to e-commerce. This guide will talk about the twelve benefits that you should start an e-commerce business.
E-Commerce Scenario in the UAE
When it comes to the UAE, it is regarded as a hub of different businesses. Be it a start-up or an established one; it has got a platform for all. On the E-Commerce front, the region has got a broad scope. According to research, 60 percent of the population in the UAE makes online purchases. After the World Expo 2020, the e-commerce sector is expected to hold a value of $17.8 Billion.
Recently, E-Commerce giant Amazon has replaced Souq.com, by spending an amount of five hundred million USD. The existing customers will be redirected to the new domain and will be getting the flexibility of COD (Cash on Delivery) upon purchasing any product. The strategy was built to give a platform to customers to access more than 30 million products at a national and international level. This massive strategy has opened up new routes to multiple business owners to enter into the e-commerce business. Moving on, let’s have a look at the advantages of establishing an e-commerce company in Dubai.
Advantages of Setting up an E-Commerce Company in Dubai
By setting up a business in Dubai, in the e-commerce segment, you will be able to avail the following benefits:
1.Free Ground of Operation
The region of UAE provides flexibilities for the business owners to establish their company. The different ground of operations like Mainland, Free Zones and Offshore has been built dedicated to different types of businesses depending upon their nature and size of the operation. Each of the zones has got their legal proceedings that are expected to be followed during the company setup process.
2.A Global Tech-Platform
Technology serves to be a dominant sector in the Middle East Region. The UAE leaves no stone unturned when it comes to technological setup. The Government of Emirates has been taking numerous steps to uplift and infuse technology in possible business sectors. This turns out to be a grabbing opportunity for business owners who want to start an e-commerce business as the region is well-versed to technology. Additionally, the UAE has got separate free zones named as Dubai Internet City and Dubai TechnoPark Free Zonededicated to deal with tech start-ups and well-established firms.
3.The flexibility of Global Hiring
The UAE serves as a universal umbrella embracing millions of foreign expats under the same roof. Business owners incorporating their business in the region has the flexibility to hire employees across the globe. Upon doing so, the company needs to provide an employment visa to the new employees as it stands as a part of legal proceedings.
4.Easy Company Formation Process
When it comes to the company formation process, you don’t have to face difficulties. The UAE has got easy proceedings for company establishment process as it aims to attract foreign investors and business persons who are looking for a platform to start a business. Moreover, the availability of local sponsorship becomes comfortable if the entire process is carried out with the help of business experts.
5.No Personal Taxes to be Paid
Non-payment of personal tax turns out to be one of the most attractive features to the business professionals as the UAE doesn’t demand any taxes from business owners. Business operations can take place without the involvement of extra taxes. Recently VAT Implementation of 5 per cent has been initiated by the UAE Government, that needs to abide by the business entities. The whole idea was to figure out an additional source of revenue, contributing to the growth of the nation.
You might end up questioning yourself, what if the business doesn’t gather enough profits? Do you need to pay additional tax regarding profits made? Well, the answer is no. The UAE provides 100 per cent flexibility to the business owners to repatriate the investments made and profits earned with themselves.
7.No Currency Restrictions
Dubai stands as a multi-cultural nation, and thus, it gives the flexibility to the business owners to deal with multi-currencies. You have the open option to transact the business services in any legal foreign currency.
8.Ease Availability of Business License
Certain business operations require specific business licenses to carry out the activities. When it comes to the e-commerce business, a permit needs to obtain. To know more about e-commerce license, click here.
The population of the Emirates has been increasing at a rapid speed, which demands more tech-friendly services. Starting an e-commerce firm will turn out to be a feasible option as you will be able to capture a mass audience with the help of online presence. Presenting your business services at an online platform will help your business to gain customers overseas as compared to a fix location.
10.Easy Availability of Visa
The Emirates has enabled all the possible flexibilities for a business owner to start a business. Obtaining a visa turns out to be a complicated process, but the Government of Emirates has figured an easy way out. Business investors can quickly get an investor visa, and the proceedings turn out to be more comfortable if carried out with the help of a business consultant.
11.Easy Availability of Office Space
The moment you decide to open a business, you might wonder where to set-up a physical office. Well, the nation has helped to solve this issue. Different office setup solutions are provided by the region to fit various types of business structures in the region. So, you don’t need to worry in order to gain a establish presence of your company. Easy office space can be easily acquired with the help of business consultants who are well-versed with business setup proceedings.
12.Wide Options for Business Expansion
The location of UAE turns out to be advantageous if you are looking for business expansion. It becomes effortless for owners to enter into the neighbouring countries and operate business activities. Being an e-commerce company, you might end up establishing a representative office in the other zones, that will turn out to be useful for your business to know the customer preferences and serve accordingly.
To conclude, E-Commerce turns the establishment out to be a preferable option when it comes to company formation options in Dubai. Once you have made your mind to incorporate, you need to make sure that the legal proceedings are followed accordingly during the setup process. Dealing with the process solely might affect business planning and other essential chores.
It is advised to take the help of business consultants who can help you in the company formation process. This option is widely accepted by the business investors to lessen their burden and initiate the task with a professional kick.
Commitbiz, a premier business consulting firm in the UAE, is here to help you. Experienced professionals in the team cater to the business needs and provide tailored-solutions accordingly. To have a word with our experts, do contact us-we’d be glad to assist.