ecommerce license in uae

Three Main Types of eCommerce Licenses in Dubai

People all over the world are shifting from the traditional ways of shopping to online shopping because of the convenience it offers. People in UAE are no different. This has prompted many entrepreneurs, traders, and business owners to set up eCommerce business portals. However, to operate an eCommerce portal in the UAE, it is important to obtain a license.

If you are an entrepreneur looking to start and run an eCommerce portal in the Emirates, we at CIG Business Services can help you. This is because the process involved in setting up a business in Dubai could be confusing and tedious. If you are an expatriate investor, the advantages of setting up an eCommerce business portal include complete repatriation of profits, tax exemption, availability of resources without any hassles, and more. CIG Business Services has more than 15 years of experience in the UAE market and has helped over 60,000 entrepreneurs with business setup services in this region.

Types of eCommerce Licenses in Dubai

The UAE offers many different types of eCommerce licenses. However, the three main types that you can opt for depending on your business activity and nationality are:

An e-Trader license is provided for selling products or services online. This license is available only to GCC and UAE nationals who reside in Dubai. Furthermore, an e-trader license is provided only to a company owned by one individual. Besides, the eCommerce business cannot set up a physical office or open a shop.

Portal license is another type of eCommerce license which is available to non-UAE nationals. This license helps you to set up an eCommerce portal that links buyers and sellers. A portal license is the right option for a website that lists products, services, reservations, etc. If you apply for setting up a business on the mainland, the cost of obtaining a portal license will be minimal.

A virtual company license allows non-residents and overseas investors to involve in commercial activities in the UAE. However, this license is available only for setting up businesses in the following three sectors:

  • Printing and advertising services
  • Designing services
  • Computer programming and related services

Steps to obtain an eCommerce license in the Emirates

  • Choose a legal structure for your business
  • Identify a location for setting up your business
  • Register the trade name of your company
  • Apply for an eCommerce license of your choice
  • Apply for obtaining the initial approval certificate
  • Prepare the Memorandum of Association/local service agreement
  • Rent an office
  • If imports and exports are involved, register with Ports and Customs authorities
  • Obtain your license from the Department of Economic Development
  • Open a corporate bank account

Finally, the cost of obtaining an eCommerce license in Dubai depends on the type of activity you want to do: trading or professional activity. Furthermore, obtaining a license for starting an eCommerce business in a free zone is a cheaper option. It also comes with the added benefit of a 100 percent customs tax exemption. Depending on your activity, the cost of obtaining an eCommerce license for setting up a business in the mainland and free zone. Contact Capital International Group for free business consultation and the best quote in the market.