The world has become a global village and the majority of the trades take place online. This process of exchanging goods and services online is called e-commerce. The UAE offers strong growth potential in this sector because the UAE is home to world trade and another reason is its constantly innovating culture. The hassle-free and welcoming environment of the UAE is another reason to start an E-commerce business in the UAE. This blog aims to educate you on how to start an ecommerce business in the UAE.
Benefits of Starting an E-commerce Business in the UAE:
After reading the heading many of you would be wondering why UAE? Here are all the reasons why you might want to consider UAE as your next e-commerce destination:
Rich Culture:
Culture in the UAE is very diverse. Every year the UAE welcomes thousands of foreigners who temporarily and permanently settle in the UAE. Of course, they have different needs and as everyone shops online these days, demand for e-commerce grows by many percent. This is one of the reasons why you should consider the UAE as your e-commerce business destination.
Low to No Taxes:
Another reason why most businesses want to shift or expand their businesses to the UAE is the tax-friendly environment of the UAE. You don’t have to pay any profit or income taxes. This allows entrepreneurs to experiment, take risks and expand their businesses even further.
Hassle Free Process:
Unlike other countries where you have to be physically present to get trade licence, and business registration certificates and fulfil other formalities the UAE allows you to complete all the processes from the comfort of your home via an online portal designed by DED and many banks are giving you the option to open a corporate account online.
Plus, it is quick, you don’t have to wait for months or several weeks for the licence and registration.
Documents Required to Start an E-commerce Business in the UAE:
Here are the documents you need to apply for E-commerce business registration and trade licence:
- Copy of owners and shareholders(if any) passport
- EJARI licence copy
- Identification proofs copy
- Bank statements
- Detailed business plan including name and logo of the business
- UAE residence permit and proof
- Any other permits if required or mentioned on the official portal of DED
Steps to Follow:
Here is you go to guide to start an e-commerce business in the UAE:
Choose a Domain:
As I mentioned before, the UAE is a diversely cultured country where you can be successful in various e-commerce domains as different people living there have different preferences and needs so should the supply.
Well research your domain and choose the one where you are interested and it is easier for you to scale your business.
Choose a Location:
By trade, the UAE is divided into three parts:
- Mainland
- Offshore
- Freezone
Each of the areas has its benefits for example freezone offers high tax compensations along with other benefits as do the mainland and offshores with few restrictions and modifications. You have to choose a location that closely aligns with your business goals.
Structure of the Company:
The next step practically puts you on the path of starting an e-commerce business in the UAE. In this step, you decide how many shareholders you will keep, and collect their documents as mentioned above, your mission statement, where and how your company will function, how many employees you can afford and how you would recruit them, salaries etc, name and logo of the company which should be aligned with the recommendations laid by the government of the UAE.
Applying for Trade Licence and E-Commerce Business Registration Certificate:
After you have everything sorted, the next step is applying for a trade and e-commerce business registration certificate.
You can do so by signing up on the official portal of DED, filling in the details, attaching the documents, paying the processing fees and within a few days you have your registration done and trade licence in hand.
Developing an E-Commerce Website:
As your business will function online, one of the most important aspects of your business is to get a user-friendly interface website, where you will trade. Keep a few things in mind:
- The website colour palette should not be too dull or too vibrant
- It should provide a user-friendly interface
- All the products should be updated
- It should be easy to use across the devices
- It should be glitch-free
Partner with Logistics:
Find a logistics partner here are a few things that can help you decide on a better partner:
- Reviews of the company
- Your budget
- Time and delivery routes and mediums
- Your customer’s preferences
Before choosing a partner make sure to thoroughly research the market.
Import–Export Code:
An Import-Export Code (IEC) issued by the relevant customs department in the United Arab Emirates is required to export goods made in the country, import goods into the country from abroad, or even re-export goods that have already been imported into the country. UAE offers a favourable import and export environment by using a single customs procedure across all Emirates. We can assist you in obtaining the UAE Import-Export Code (IEC) as soon as your legitimate trade license with pertinent trade activity has been issued by the UAE licensing authority.
I tried to cover all the steps thoroughly but it can be exhausting sometimes to carry out all the steps smoothly especially if you are a first-timer so in that case Gatestone Group is there to assist you and take care of your business needs. We are just a call away!
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