Starting your own E-commerce business in the UAE

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UAE, GCC, and foreign nationals can apply for an e-commerce license in the UAE. Here’s a guide to starting your own E-commerce business in the UAE: E-commerce (electronic commerce) refers to all online activity that involves the buying and selling…

by | Sep 14, 2022 | 0 comments

UAE, GCC, and foreign nationals can apply for an e-commerce license in the UAE. Here’s a guide to starting your own E-commerce business in the UAE:

E-commerce (electronic commerce) refers to all online activity that involves the buying and selling of products and services. In other words, e-commerce is a process for conducting transactions online.

Setting up a company in the UAE can be done in person while visiting the country or online in the case of some Free Zones.

1. Decide on your license type and business activities

The type of legal entity you choose will depend on your own circumstances, even though the majority of SMEs opt to register as Limited Liability Companies (LLCs).

What is your preferred business structure?
What type of business activities you will provide?
What is your current residency status?

Consider these questions when making your decision.

Ultimately, this will determine what documents and licenses you need to get to legally operate your e-commerce business in the UAE. The activity relating to the product or service being offered will also need to be mentioned on the license.

2. Choose the right jurisdiction to set up your online business

You can register your company in a free zone or on the mainland.

A mainland license will allow you to trade or sell your products and services directly to the local market while registering your company in a free zone will require you to work with a local distributor.

Among the benefits of operating in a Free Zone are 0% income taxes, 100% repatriation of business profits, 0% corporate taxes, and negligible customs duties.

If you decide to set up a company on the mainland, you will be licensed to operate both internationally and locally.

3. Submit your application

Complete all relevant forms, pay the required application fees, sign the relevant documents and submit them to the government authority (to the selected jurisdiction, Free Zone, or Mainland).

4. Open a bank account

When your business is fully established, you should open a bank account. This will make it easier to manage your company’s finances and tax filing in the future.

IMPORTANT:

As per the law, it is illegal to trade or do any business in the UAE without a business license. The penalty for doing business without a license can reach up to 500,000 AED (137,000 USD). Online business also includes selling through social media.

To learn more, contact us

📧 hello@bizzmosis.com ☎️ +971 4 568 6522 📞 +971 52 979 8169

👍Follow our blog to stay informed on the latest and most reliable updates from the UAE government. We regularly discuss company incorporation and structuring, visas, product registration, and other topics related to conducting business in UAE.

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