E-Commerce License In Dubai

An e-commerce license in Dubai is highly sought after. This is because, due to its ease, many consumers in the UAE are switching from traditional to online purchasing. As a result of this transition, entrepreneurs, business owners, and dealers are considering starting an e-commerce business in Dubai. An e-commerce license is all you need to start with your company activities in Dubai.

Dubai’s market is as lucrative as any other. The UAE’s e-commerce industry is anticipated to be worth $10 billion by the end of 2018. (Dh36.7 billion). However, if you want to start an ecommerce business in Dubai, you must go through a series of steps, starting with deciding on a website style and ending with obtaining your license granted.

Steps To Obtain An E-Commerce License In Dubai

  • Choose a legal structure for your company.
The first stage in obtaining an e-commerce license in Dubai is to determine your company’s legal structure. To put it differently, deciding whether to organise an LLC, a one-person firm, a subsidiary of a parent corporation, a representative branch, and so on.
  • Select a Location
The location refers to the location from whence you will obtain your license, not the site where you will open a shop or office. Dubai is divided into two zones: the Free Zone and the Mainland. 
  • Make a Trade Name Registration
People will be able to readily find your firm online if you utilize the trade name as your domain name. Make absolutely sure your website address doesn’t sound too similar to another company’s, as this might result in legal complications.
  • Submit an Application for a License
After you’ve decided on a location, you’ll need to get an e-commerce license. Because this license is issued by the Department of Economic Development, it is critical to contact them first. For a corporation based on the mainland, the DED charges roughly AED 10,000 for trade name registration, first approval, and license issue. If you want to open a business in a free zone, you must first obtain a license from the applicable freezone authorities. The type of license you will receive is determined by the nature of your internet business.  
  • Request a Certificate of Initial Approval
An Initial Approval Certificate is a letter of authorization from the Dubai government to open an e-commerce business. It’s only good for six months and can’t be extended. An initial approval certificate can be requested when filing a registered trademark approval application.
  • Make a Memorandum of Understanding (MOU) and a Local Service Agent Agreement (LSA).
You must draft and submit a Memorandum of Association (MOA) with the sponsor to the DED. 
  • Open a Physical Office in Dubai
The next step would be to establish a physical presence in Dubai since the Dubai officials have made it mandatory for a company to have a real presence in order to be perceived as a legal organisation.
  • Final Approval of License
You will receive a business license within 1-7 days after completing all of the aforementioned steps, depending on the government.
  • Establishing a Business Bank Account
You will be able to open a corporate bank account once you have successfully applied for an e-commerce trade license and established your business.