E Commerce License in Dubai

1. Choose your Business Type

The first thing you need to decide before applying for an e-commerce license is to choose an appropriate legal structure for your business. You are allowed to set up an LLC (Limited Liability Company), branch of a company, representative office, professional company, joint venture company, or single-person company (freelancing) for e-commerce business. The licensing process will differ slightly according to the type of business.

2. Select Business Location

You can start your e-commerce business in Dubai mainland as well as in free zones inside Dubai. There are certain free zones favoring e-commerce companies. These include Dubai Media City, Dubai Internet City, Dubai Science Park, and others.

Both mainland and free zones have their own advantages and shortcomings for e-commerce businesses. You can choose your business location that suits your type of business. The main licensing authority in Dubai mainland is DED (Department of Economic Development). Different free zones have their own respective licensing authorities.

3. Register Trade Name

The next step is to register the trade name of your business. This name must be unique and also attractive. This name can be used as your domain name. Therefore, it is important to use a name that people can easily pronounce and remember.

4. Apply for E-Commerce License

The primary step is to apply for an e-commerce license in your desired location. As stated above, you will approach DED for mainland company setup or the respective authority of your desired free zone. You will pay the fee according to your business type and location.

5. Initial Approval Certificate

In the next step, you will apply for Initial Approval Certificate. It is like a NOC from authorities after which you can start your e-commerce business in Dubai. It is valid for 6 months and can’t be renewed. You can apply for this certificate while submitting your trade name application.

6. Memorandum of Association

An important document for e-commerce license approval is the MoA (Memorandum of Association). You will draft MoA with a sponsor and submit it to DED. This step is mandatory only for the Dubai mainland.

7. Setting up a Physical Office

The authorities in Dubai have made it mandatory for a legal entity to set up a physical office. It is the next step for an e-commerce license in Dubai.

8. Obtain E-Commerce License

After completing all the above steps, you will get your e-commerce license within 7 days after its approval from the authorities.

9. Get Importer’s Code

You will require to register your business with one of the ports and customs authorities. After this, you will receive an importer’s code.

10. Open Corporate Bank Account

The last step is to open a corporate bank account in Dubai. You can easily do so after getting an e-commerce license.

Documents required for ECommerce license in Dubai

Following are important documents that must be submitted for the successful completion of the e-commerce license process in Dubai.

1. Duly filled license application
2. Passport copy of partners/shareholders
3. Memorandum of Association (in case of mainland company formation)
4. Company name approval letter from the relevant authority
5. Copy of business plan
6. Copy of fee payment receipt

Benefits of E-Commerce License

After obtaining an e-commerce license in Dubai, one can expect numerous benefits for his/her business. A few of these include:

1. You can freely handle international and local trade
2. You get exposure to international traders
3. The company incorporation process is simple and quick
4. Operational costs are low
5. You can trade multiple items with a single license
6. It becomes easier to apply for an employment visa
7. Availability of resident visa for 3 years
8. Import duty is low and there are other tax benefits also
9. You can easily recruit foreign employees
10. Free transfer of funds
11. No currency restrictions
12. Free zones provide 100% foreign ownership
13. Complete repatriation of profit and capital