Indubitably, the e-commerce business in Dubai and the UAE is growing exponentially. According to the research paradigm, e-commerce sales in the UAE jumped from 53% in 2020 to 100% in 2024. So, if you are looking to start an e-commerce business in the UAE and want to obtain an e-commerce license in Dubai, read this article.
Here, you’ll find complete details of the application process, costs, benefits, and more that will definitely help you Start Your Business on the right foot.
Knowing all this is quite important because, before launching your e-commerce business in the UAE, you need the correct e-commerce license. This license allows owners to sell their goods through their own websites or dropshipping products.
So, let’s get started with how to obtain an e-commerce license in Dubai and the fantastic benefits of starting this business in a country that is a global business hub.
Benefits Of Dubai Ecommerce Business
As Dubai provides a lot of Opportunities for Business owners compared to other countries, most entrepreneurs prefer the UAE for setting up companies and businesses. Not only can you obtain a Golden Visa, Silver Visa, and Freelance Visa in the UAE, but you can also qualify for permanent residency in this country after a specific time frame and fulfilling the requirements, which doesn’t take as much time compared to the UK, Canada, and Australia.
Like other businesses, there are many benefits to starting an E-commerce Business in Dubai. Let’s take a bird’s-eye view of one of them:
- There is a very low tax that you will pay on capital investment and income after obtaining the ECommerce License in Dubai.
- Compared to starting a physical business, the operational costs are pretty low for ecommerce businesses. Moreover, renewal fees for the ecommerce license in Dubai are very reasonable.
- With a thriving business environment, you’ll have many other opportunities once you meet specific terms and conditions.
- Compared to a physical store, the process for an ecommerce store is speedy, which means after approval within 3 to 4 days, you can immediately start selling goods online.
- It offers you 100% foreign ownership without any personal income tax.
- There is a 0% VAT rate on product and service exports.
Process to Get E-Commerce License in Dubai, UAE
However, obtaining an e-commerce license in Dubai mainly involves a series of steps, and it may vary for each jurisdiction. The typical steps below are the same for all, so let’s look at the essential documents you need for the whole process. Here’s a complete process on how to get an e-commerce license in Dubai:
Choose the Right License Type
In the very first step, you need to choose the correct license type that is perfectly aligned and accepted for your business structure. If you’re new in the field, then it’s advisable to take guidance from Alriyady professionals by booking a free consultation.
Prepare Necessary Documents
Next, you need to ensure that you have all these documents ready. These mainly include a short plan of your business, a passport copy of the owner, proof of address, and working contact details like phone number and email. Depending on the business type, additional documents might be required, but these are all mandatory documents that you must have before application.
Submit Your Application to the Dubai Department of Economic Development (DED)
Now, once your documents are ready and you’ve selected your proper license according to your business need, then you can submit your application to the Dubai Department of Economic Development (DED) for approval. Sometimes, this process takes time to verify all the details, and you need to pay the amount as well mentioned in the application once it’s approved.
Receive Your E-commerce License
In the next stage, after processing the application, you’ll get your e-commerce license from DED within the next few working days or sometimes in a few days.
Comply with Laws and Regulations
After obtaining your Dubai e-commerce license, make sure you comply with all laws and regulations imposed by the government for online commerce in the UAE. This includes registering your business with the UAE Federal Tax Authority and obtaining any other mandatory licenses from different government agencies.
Open a Bank Account
In the final stage, you need to Open a Bank Account in the UAE so that your funds are secured and can be shown as a record by providing a bank statement at the time of renewing your e-commerce license in the UAE. Moreover, for receiving payments online for the products, it’s mandatory to have a payment account that can be attached to a trusted payment gateway for successful order processing from the online customers.
Since opening an account in the UAE can be a cumbersome process, it’s always recommended to get in touch with Alriyady, a company with 150+ 5-star reviews from verified customers on Google and Trustpilot.
Dubai E-commerce License Cost and Processing Time
Before starting an e-commerce business in Dubai, you might be thinking about the minimum cost for the E-commerce License that you need to pay, right? Well, the price differs for some businesses, but typically, the fee for the E-commerce license in UAE starts from AED 5,000 to AED 20,000 per year.
However, the cost is higher for ecommerce retail businesses compared to service-based ones. On the other hand, it can be lower depending on the location, like in free trade zones such as UAQ Free Trade Zone, but much higher for the main locations in Dubai.
Now let’s move towards the processing time usually taken by the UAE government to issue your E-Commerce License in Dubai. Well, mostly, the time to get an E-Commerce License in UAE is typically from 1 to 3 months.
But, if you quickly provide your business plan and process your application for the UAQ Free Trade Zone, then your process is very fast and usually done within 3 to 4 days maximum.
But, if you want to start your business in Dubai and want to complete your application process quicker, then reach out to consultants because they are experienced in the field. With an appropriately detailed application, you have a 100% chance of getting your E-commerce License in a short time.
Final Thoughts
In a nutshell, obtaining an E-Commerce License in Dubai is mandatory to start any online business because it offers a lot of lucrative benefits with an affordable fee and quicker processing timeframe.
With the right ecommerce license in hand, you can quickly start your online business, sell your products to customers, and access various government support services.
For a successful process, you can begin your journey with one of the trusted companies like Alriyady, where a team of experts ensures that your process is completed as quickly as possible and provides professional support in establishing your ecommerce business in UAE.
