E-Commerce Business License in UAE - Simple Steps one should Know
Online shopping has become an essential part of our lives specially since the present covid-19 situation. All the businesses that decided to go online, prospered and expanded even more.
An online company setup in UAE provides an entrepreneur with oceans of new possibilities. E- commerce is also amongst the various business set up in UAE that provides tremendous opportunities to people.
The availability of internet to everyone has made the E- Commerce sector expand and has been beneficial for both the customers and the service providers.
For getting a trade license in UAE , A person needs to follow a series of steps. A proper procedure needs to be followed to get a license for an e-commerce business.
Types of E- commerce license available in Dubai
There are three types of e commerce licenses-
1. E- trader license
2. Portal License
3. Virtual Company license
E- trader license
This permit is provided to people who want to sell their products or provide services online. It is provided by Economic Development Department.
It is the best for websites listing products, services and reservations. Non-EAU nationals can also obtain this license.
Virtual Company License
UAE and Non UAE residence can do business related activities in the area with the help of this license.
An E-commerce license in Dubai has no currency restrains. It provides 100 percent Dubai free zone ownership. One has to pay 0 percent corporate and personal taxes.
There are no duties on e commerce licenses and in addition to that the cost of operation is also minimal. One gets three years of approved resident visa as well.
Documents needed to get an E commerce license in UAE
· Copies of shareholders’ passports/visas
· Passport copy of partner / Emirates ID
· Local service contract / Civil work contract
· NOC by the authority concerned
· An MOA drawing up
Procedure to obtain an E commerce license in UAE
1. Choose your work zone- If your work zone is mainland then Department of Economic development issues the license however in case the work zone is free zone then the respective free zone authority issues the license to the person who needs to start the business.
2. Registering the name of the company- the name of the company is a company’s identity.
This name also needs to be approved in order to avoid issues such as the name being inappropriate or offensive for a particular community or group of people.
The name can be chosen with the help of business setup consultant in UAE.
3. Filling the application for E commerce license- A duly filled application form along with all the essential documents and papers mentioned above has to be deposited to get a license issued.
4. Apply for a NOC – an Initial approval certificate is issued by the concerned authorities. It is essential to have a no objection certificate from the concerned authority in order to obtain a license to practice business in e commerce sector.
5. Registering a virtual office- It is now essential for every mainland company setup in UAE to register a virtual office in order to work legally.
6. Following the steps completely in a correct order– if one follows these steps correctly, the business license is issued within one to seven working days.
7. Registering with ports and authorities – to practice trade by importing or/and exporting goods and services, one needs to get their business registered with ports and other concerned local authorities. There are no duties imposed on the activities taking place in the free zone.
8. Applying for visas– Applying for visas is an essential part of the process. It depends on the size of the business.
9. Opening a corporate bank account– A corporate bank account is essential to apply and obtain a license for e commerce business
In today’s world, e commerce has become a necessity. Many tasks that were difficult earlier are now done easily just because the world has gone online. The e commerce sector will continue to flourish in days to come as it promotes a digital world and is essential for better connectivity between various regions.
It provides entrepreneurs a wide range of opportunities to go global with a few easy steps. It is a great option specially now with ‘the new normal’.
We at Radiantbiz help you in getting your dream company registration in UAE with proper guidance. Several processes can be done without your physical presence, we will provide you with the solutions to all business set up related problems.
With our support, you can expand your empire in the ocean of endless opportunities provided by UAE. Contact us for assistance in setting up your company without any hassle.