Dubai is the best location for business setup if you are planning to start an online venture. Companies like Noon and Amazon have reaped the benefits of starting an e-commerce business in Dubai and tasted unprecedented success.
However, starting an online business in Dubai requires knowledge about the licensing authorities, company formation procedures and requirements, approvals required and activities permitted. Help can be availed from business setup consultants to navigate these challenges in Dubai.
In this blog, you can learn how to start an online business in Dubai:
Apply for an e-commerce license
You need to get an e-commerce license if you are planning to sell physical products or professional services like marketing or business consultancy through an online platform in Dubai. The e-commerce license is mandatory whether you are using a website or even a social media platform to do business.
Learn about UAE E-commerce Law
The Federal Decree-Law No. 14 of 2023 ‘Concerning the Modern Technology-based Trade’ is the law regulating e-commerce businesses in Dubai and the UAE. The law oversees and controls the sale and purchase of goods, services and relevant data through websites, e-Platforms, social media means and apps.
Free Zones Offering E-commerce Licenses
Since physical space is not a constraint for online businesses, free zone licenses are most suitable for e-commerce entrepreneurs. However, you need to partner with a logistics company for trading outside the free zone area. The following free zones offer e-commerce licenses in the UAE:
- Dubai Commercity Free Zone
- Dubai Multi Commodities Centre (DMCC)
- Dubai World Trade Centre (DWTC)
- EZ Dubai (Dubai South)
- Fujairah Creative City
- Ras Al Khaimah Economic Zone (RAKEZ)
- Sharjah Media City (SHAMS)
- Sharjah Research Technology and Innovation Park (SRTIP)
- Sharjah Publishing City
Can I start an online business on the mainland?
Mainland e-commerce licenses are available in Dubai, Abu Dhabi and Sharjah. However, some of them are restricted to UAE nationals and GCC nationals. The following are the e-commerce licenses available for doing business in the UAE mainland:
Tajer Abu Dhabi: Mainly offered to UAE nationals. UAE residents need to partner with an Emirati to start a business with this license.
E-trader License, Dubai: This license is for conducting business through social media channels like Facebook, Snapchat, Instagram, LinkedIn etc. This license is restricted to UAE nationals and GCC nationals residing in Dubai. The holder of this license is not allowed to open a shop and issue visas to employees. You can only open a single-owner business under this license.
Eitimad domestic licence, Sharjah: Eitimad licence is for home-based businesses and electronic businesses, operating through social media. The license is issued to UAE nationals residing in the emirate of Sharjah.
Conditions for E-commerce Trading in UAE
- Traders can only sell goods and services approved by the UAE government. If a competent authority’s approval is required, the sale should commence only after getting the approval.
- E-commerce traders should comply with conditions issued by the authorities regarding marketing and promotional campaigns and sharing of customer data.
- Traders should refrain from deceptive practices and providing false information about products or services.
- E-commerce companies should provide customers with detailed digital invoices for purchases made through online platforms.
- Traders should comply with the legal provisions regarding protection of consumer rights, return of goods and services, digital payment gateways and settlement of disputes.
Consult with the Best Business Setup Consultants in Dubai
Starting an online business in the UAE with an e-commerce licence can be a tough process. Jitendra Business Consultants (JBC) can help you obtain an e-commerce license in the UAE. We are one of the leading business setup consultants in Dubai with more than two decades of experience.
We can help you choose an e-commerce license in Dubai from the best free zones. Our business setup advisers can help you choose the right activity and get approvals in no time from the relevant authorities in Dubai. Call us for an insightful consultation.
