Online shopping has become a big part of our everyday lives. The way we buy things has changed drastically over the last decade or so. Visiting a brick and mortar shop is no longer a necessity as everything from kitchen appliances to clothes can be purchased just by a few clicks. This change has created a lot of opportunities in the E-Commerce sector worldwide.
The United Arab Emirates is not behind in this race. Almost a third of the UAE residents say they shop online every month. That figure increases to 36% for those aged between 18 and 24. [A2] The Middle East e-commerce market currently totals around USD 27bn and is expected to grow by approximately 16% over the next three years – up to USD 48.6bn in 2022. This growth is primarily driven by the UAE, along with Saudi Arabia.
Dubai is currently an E-commerce hub. In support, the Dubai Department of Economic Development (DED) introduced several E-Trading License activities. This guide will give you a comprehensive overview of how to obtain an eCommerce license to start your online business in Dubai.
But first, let us know the different types of eCommerce License available in Dubai.
- E-Trader License – This license is given to those who wish to provide services or sell products online. The E-traders license in Dubai is monitored by the Department of Economic Development and can only be obtained by UAE and GCC nationals residing in Dubai. An e-trader license can be obtained only under single ownership. You cannot have a physical office space or open a shop with this license.
- Portal License - Portal license is yet another eCommerce license in Dubai that can be obtained by non-UAE nationals. By obtaining this license you can start an online business in Dubai– to link buyers and sellers. A portal license is also best for a listing website that products, services, or reservations.
- Virtual Company License - The virtual company license was recently launched by the Dubai Economy and DIFC. The virtual company license permits overseas investors and non-residents of the UAE to undertake commercial activities in the region. Though, this license is limited to only three sectors – they are computer programming and related activities, designing activities, services related to printing, and advertising.
Procedure to Obtain the E-Commerce License in Dubai
Dubai supports online or e-business by providing an E-commerce license in Dubai. It also called the online business license Dubai. The license plays an essential role in the online promotion of your business. Here are the steps to get your license for online business in the UAE.
- Decide on the jurisdiction where you want to set up your business in Dubai. DED handles the business registration in Dubai Mainland, whereas, the free zone authority handles the registration in Dubai free zones.
- Decide on the type of business activity. If you want to sell your products online or if you want to create a platform where sellers sell their products
- Finalize the trade name of your online business
- Fill the application form for your business license and get the initial approval from the government authorities
- Pay the fees and obtain your E-Commerce trade license
The next important thing to do is create a user-friendly website and set a payment gateway for receiving payments online.
The documents required to obtain eCommerce License in Dubai are –
- Passport/visa copies of the shareholders
- Copy of sponsors passport/ Emirates ID
- Local service agreement/ Civil works agreement
- NOC from the relevant authority
- Draft an MOA
We at Commitbiz can help you choose the right jurisdiction, structure, and type for your business activity. There are many kinds of activities you can do online, and we can brief you about all the possibilities you have in the online business industry. This is a growing industry, and you can build your empire online with the right business setup guidance. We have solutions to all your queries related to licensing requirements for online businesses in the UAE. We can help you set up your business completely through online processes. Get in touch with us today!