Many people around the world have started shopping online. Since most people in the UAE have access to the internet, many of them have shifted from traditional to online shopping. This shift has made investors consider setting up an e-commerce business in Dubai. If you are interested in starting your e-commerce business, then this article is for you. Read on to know how to get an e commerce license in Dubai.
Types of Ecommerce Licenses in Dubai
There are three types of e-commerce licenses issued in Dubai. The choice of license is dependent on your business activity. The three types of e-commerce licenses in Dubai are mentioned below:
E Trader License
An e-trader license is issued to entrepreneurs who offer their services or sell products on social media. It is issued by the Department of Economic Development (DED) to UAE and GCC nationals residing in Dubai. You cannot have a physical office space or open a shop with this license as it is issued only to home-based sole owners.
A portal license enables you to start an online business in Dubai, to link buyers and sellers. It is also ideal for a listing website that lists products and services.
Virtual Company License
The virtual company license is a joint initiative of the DED and Dubai International Financial Centre (DIFC). With the virtual company license, you can undertake commercial activities in the UAE without having to reside in the country. This license is only issued to a non-resident of the UAE.
Steps to Start an E-Commerce Business
- Create a Website
It is mandatory to have a website to start an e-commerce business in Dubai. Register a simple and easy-to-remember domain name for your company. Hire a web designer to develop a catchy, creative, and a user-friendly website.
- Add a payment gateway
It is important to set up a payment gateway on your website when starting an e-commerce business. Integrating a payment gateway will improve customer service, reduce late payments, save time, and help analyse data efficiently.
- Support Centre
The customer support centre is important as it adds value to your business. It helps retain customers and improves their confidence in shopping online and engaging with your e commerce business. It also helps to prevent business losses. Therefore, make sure to have a good customer service team in place.
- Warehouse and Delivery
In the online business, it is important to ensure that products are in stock and that they always get delivered on time. Rent a suitable warehouse to store your inventory. It is important to have a proper storage space for your goods and an efficient transportation and delivery system to keep customers satisfied.
Steps to Get Your E-Commerce License
It is mandatory to have an e-commerce license before you start selling on your website. Follow the steps below to get an e commerce license in Dubai:
- Decide on a legal structure
- Choose a business location
- Register the company’s trade name
- Submit the application for the initial approval certificate
- Draft the MOA / Local Service Agent Agreement
- Rent an office
- Register with ports & customs authorities (in case of import/exports)
- Collect the license from the Department of Economic Development (DED)
- Open a corporate bank account
Cost of an E-commerce License in Dubai
The cost of an e-commerce license in Dubai starts from AED 1,370 for one year. You will have to renew the license each year within one month of expiry. Failure to do so could lead to cancellation of the license.