How to get an E-commerce License in the UAE?

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UAE is a country with the most internet penetration (91%) in the world. The digital environment and infrastructure here in UAE support E-commerce growth.

It is estimated that the e-commerce sector in the UAE will be valued at USD 10 Billion by the end of 2018. The E-commerce sector in UAE is at a very infant stage and growing at a significant pace with more entrants into the market.

E-commerce Penetration in the UAE Market

The E-commerce based solutions are spreading its reach over multiple service sectors like food delivery, consumer goods, healthcare, automobile, real estate, travel, hospitality, etc.

There is a huge potential in the UAE for E-commerce service providers. The diverse target audience available in the UAE is a great advantage for E-commerce businesses.

Also, the logistics infrastructure and connectivity by roads are add-ons for the success of E-commerce services in this market.

Big players like Amazon, Zomato, Talabat, Careem, Noon, Namshi, and Online stores of retail giants like the Centrepoint, Home Center have established their strong presence in the region. There is still a lot of room for new entrants in the potential market of the UAE.

How to obtain an E-commerce License in the Mainland of Dubai?

The E-commerce License for the Mainland Business jurisdiction follows the below basic steps:

• Decide on your Legal Structure for your Business
• Find out the Location for a Physical Office
• Tradename Registration
• Application Preparation for a Trade License
• Issuance of the Initial Approval Certificate
• Memorandum of Association (MOA) and Local Service Agent Agreement (LSA)
• Physical Office Registration
• Issuance of Trade License
• Import/Export Requirements
• Opening of Corporate Bank Account

The E-commerce Business Registration in the Mainland of the UAE is almost similar for all industry sectors.

6 Key Things to look at before you Setup an E-commerce Business in the UAE

Marketing

Conduct market research, understand the market, learn your audience behavior, study your competition, track their social activities, websites, etc., and form an efficient marketing team for promotions and awareness of your brand

Website Development

Website development is very important for your e-commerce business. learn the current trends, find a robust hosting provider, create a user-friendly website that has an easy navigator and a simple interface.

Payment Gateway

You must ensure you set up a secure Online Payment Gateway to receive safe credit/ debit card or PayPal payments through your website.

A robust and secure Payment Gateway is a critical component to your overall success and credibility as an E-commerce service provider.

There are multiple service providers, banks, third-party companies who provide Payment Gateway services here in the UAE. Invest some time to do thorough research to find out the best fit for you based on your business scope and their service offering.

Our expert business consultants will guide you through choosing the best Payment Gateways based on your business requirements, connect with us today itself!

Import/Export

Depending on the items you plan to sell using your E-commerce website, the required license must be applied to streamline your business operations.

The import/export is the lifeline for your E-commerce business as the product availability depends on your import partner. Locate and form agreements with your supplier much before you start the business license process to enable a smooth business operation.

Warehousing, Logistics Support, and Delivery

Ensure you have a robust logistics support system, warehousing facility locally (if required) and delivery system. You can perform a cost-benefit analysis depending on the logistic costs, whether you must outsource your logistics support to a third party or do it in-house.

Without a robust logistics strategy, your E-commerce business will fall flat.

Reach out to our business consultants, to know about the various warehousing facilities across Freezones and mainland.

Customer Acquisition and Retention

A simple & efficient website, easy checkout process, timely & accurate delivery of products, and a 24/7 customer support service is the success of any E-commerce business.

Enhancing customer acquisition and retention by delivering exceptional customer experience is the key to success.

Alternate Business Licensing Options Available in the UAE

If you are a foreign investor looking to venture into the E-commerce market of the UAE or operate international business operations, the Freezones would be an ideal choice.

Getting an E-commerce license in one of the Freezones will enable you to leverage the benefits of Freezone business jurisdictions

For any assistance regarding E-commerce Company Registration in UAE, feel free to reach out to us. Our expert Business Consultants are happy to help you anytime!