Benefits of Setting up an Online Business in Dubai

by Zaara 28, Nov 2019

This era is devoted mostly to advancements in technology. Technology is helping the world grow more and more, and due to this, we are witnessing a shrinking world. Now a day, a person sitting in one part of the world can interact in the market on the other side of the world. This has been possible only due to the advancements in technology and e-commerce.

The growth in the e-commerce sector is unprecedented. The growth of the e-commerce market is slowly removing the traditional brick and mortar stores, and now all the shops can be accessed via the internet. Moving from a conventional store to an online store is a cost-effective way and also reaches the number of people as the audience of the store is not limited to a temporal region.

One of the places that get the most advantage of an e-commerce business is the United Arab Emirates. The increasing population of the area, along with the advancements in technology, is an excellent reason for the growth of the e-commerce sector in the country. The availability of the internet to the people is also an issue, and the internet is available to almost 90% of people in the country. Thus the reach of the e-commerce business is quite high in the country, and this has opened up a new avenue of opportunity.


Advantages of E-commerce Business in Dubai

Dubai provides excellent opportunities for setting up an e-commerce business in the area. With access to markets of three continents and also having various free zones, Dubai is one of the best places to set up an e-commerce business. Some of the significant advantages of setting up an e-commerce company in Dubai are:

  • Lessor no taxes
  • Low operating income required
  • 100% repatriation of profits and capital
  • No requirement of paying import/export duties
  • 100% ownership of a company
  • No type of currency restrictions

These are some of the significant benefits that a company can avail in Dubai. This is not an exhaustive list of the benefits and can be extended more.

Process of Starting an E-Commerce Business

Some steps need to be followed while setting up a business in Dubai. These steps are:

Selecting the type of Legal Entity

You will have to choose the legal entity based on the plans of the company. This is a significant decision as deciding the structure of the company can affect the future of the company very drastically. There are many types of legal entities to choose from. The most common of them available are Limited Liability Company (LLC) and subsidiary company.

Choosing the place for the Registration of the Company

There are a plethora of regions to choose from for setting up your business. You can always go for setting up your business in the mainland, but you should also look into the various free zones that are available. Dubai alone consists of more than 20 free zones. They offer their own set of benefits and some of them specifically focus on a particular industry. The decision of choosing a place must be taken after considering every factor.

Renting an Office

It is required even for an online to have a physical office also though an e-commerce company usually does not have a traditional physical store.

Getting a License

Getting a license is very important for a company to set up itself in the United Arab Emirates. The type of licence acquired is an essential factor in deciding the future of the company. There are various licenses available for a company and according to the free zones that a business can avail. After the completion of the points mentioned above, you need to apply for a license. It may take up to seven days to obtain the license from the concerned authority.

Opening a Bank Account

After getting a license, your business has set up in the country, and you can commence your business. One of the significant thing that everyone should do after setting up your business in Dubai is to open up a corporate bank account. A bank account will provide a separate identity to the business and will also help while filing for taxes or when conducting regular audits.

The steps mentioned above will allow you to set up your online business in Dubai, but many times, business setup can be a very hectic and complicated process. To navigate the situation correctly, you will require the services of a business setup consultancy. One such management consultancy which will help set up your business in Dubai is "Commitbiz". We will not only help to set up your company in the mainland but will also assist you in company formation in free zones. For more details, contact us – we will be glad to help.


What are the best online businesses in Dubai?

  • Digital marketing agency
  • Delivery company
  • Clothes and accessories

Etc are some of the best businesses to start online.



To sell via online websites and portals in Dubai, do I need a license?

Yes, you would need a trade license.

Is any further approval required for an E-trader license?

Telecommunications and Digital Government Regulatory Authority’s approval is required.

Can products be sold through social media platforms in Dubai with e-trader license?


What are the advantages of opening online business in Dubai?

  • Fast-reach
  • Wider opportunities
  • Full repatriation of profits and capital
  • Freedom with currency
  • Free from import/export duty and much more