eCommerce business is a profitable business in the UAE, which is the quickest developing eCommerce market in the MENA area. Various free zones in the UAE offer a cost-effective company formation environment to set up an eCommerce business. With an eCommerce license in UAE free zones, it does not permit the companies to trade directly with the customers in the mainland. Anyhow, eCommerce companies can sell the products of the suppliers effectively available in the market.
The digital-savvy population, high digital penetration, rise in mobile wallets as well as the pro-active authorities policies make the United Arab Emirates probably the best place to start an e-commerce business. Anyhow, because of the recent COVID-19 pandemic, many people had started an eCommerce business in UAE because of the lockdown.
The limitations to mitigate the COVID-19 spread have resulted in the major shift in consumers’ behavior in the United Arab Emirates, where individuals have started purchasing through eCommerce platforms and the vast majority of the offices are working from home and schools have begun an online class. There has been a growth in the quantity of online requests and the quantity of new clients has additionally increased. The new trend has added to the advantageousness of the eCommerce companies in the UAE, including e-training and e-learning.
Also read: work-from-home-during-covid-19/
The UAE has a dynamic eCommerce market that is forecast to reach $27.1 billion by 2022, according to an ongoing report in Gulf Today. Regarding size, the UAE’s e-commerce markets position 33 in worldwide. Over 80% of the UAE populace is likewise assessed to make dynamic online shopping. The development of e-commerce platforms like Namshi, Noon, and Amazon.ae (already Souq.com), Careem Cab shows the expanding significance of eCommerce firms as well as the growth in the competition in the market.
Why start an eCommerce business in the UAE?
- Worldwide Reach: eCommerce advantages a new brand to reach a greater number of audiences as well as provides products/services to the customers worldwide. The worldwide reach of the audience helps you build your brand quicker. It broadens the marketplace exponentially as well as allows gain advantages.
- Easily showcase best sellers: You can easily reach out to your target audience in your region when running an eCommerce business. Create a Facebook advertisement, re-target the audience who have viewed your site, sending customized emails.
- Personalized online experience: Website personalization is one of the major benefits as it enhances the online shopping experience. Creating a personalized landing page entices the customers for buying products/services. It will build trust amongst the customers. Also, target the website visitors who have just visited your site and send them personalized emails.
- Easily retarget the customers: You can easily reach out to the target audience in your region when running an eCommerce business. Create a Facebook advertisement, re-target the audience who have viewed your site, sending customized emails.
- Growing business organically: With the eCommerce business, you can grow your organization online organically as well as generate traffic with an eCommerce blogging. Create a video campaign, content creation, and more. This will not just increase your sale but also drive more traffic to your site.
How to start an eCommerce business in the UAE?
- Furnish required documents and fees
- Choose the type of business license
- Registration of a physical office
- File trade license and trade name
- Open a bank account
Advantages of Starting up an eCommerce Business in the UAE Free Zones:
- 100% ownership
- No requirement of sponsorship
- Ability to repatriate profits and capital
- No warehouse requirements
- The license issued within 24hrs
- Zero currency restrictions
- Zero corporate tax
- Set-up remotely from home
- Cost-effective and flexible options
- Operating costs are less
- No deposit or paid-up capital required
- Import duty exemption on e-commerce license
- First Free Business Consultation
What are the documents required to start an E-commerce Business in UAE free zones?
- Personal Profile (CV) of the shareholder(s)
- Passport Copy of the shareholder(s)
- Emirates ID copy of the shareholder(s)
- Visa copy of the shareholder(s)
- Proposed company name
Things You Must Know Before Starting up an eCommerce Business
The free zone authority in the UAE of the particular free zones is a competent authority that gives a business license for eCommerce companies. After getting an eCommerce business license, it provides the entrepreneurs with an online platform for buying and selling of the products.
a) Products selling
In the free zones, it does not allow the companies to sell the products directly with the customers. Anyhow, the companies agree with the providers whose products are as effectively available in the market. The companies in the free zone can list such products for sale on their shopping site. The requirement for an agent or a local distributor is not needed under the free zone eCommerce license because of the companies selling the products of the suppliers.
b) Warehouse Requirements
You can get an eCommerce license with the Flexi desk facility in the free zones, and the requirement of an office or warehouse is not compulsory. The suppliers with whom the organization has an agreement will store the goods if the organization is dealing with consumer products. Because there is no need for a warehouse, the operational expense for the eCommerce license will be less.
c) Product Registration and Customs Duty
An eCommerce company is not responsible for the products that are registered with the concerned authorities such as health authorities and municipalities. Because the company will deal with the products which are already registered and the supplier performs the product registration. Additionally, the supplier already pays the customs duty and an eCommerce firm does not have to pay 5% customs duty.
Free Zones for E-Commerce License in Dubai
Other Free Zones in the UAE for E-Commerce license are in the Northern Emirates
- Sharjah Media City
- Ajman Media City
- Ras Al Khaimah Media City
- Fujairah Creative City Free Zone
- International Free Zone Authority (IFZA)
- Umm-Al-Quwain Free Trade Zone
Planning to start an Ecommerce in the UAE?
The availability of the internet facility as well as the usage of smartphones has helped in the growth of the eCommerce industry. Shopping each necessity online is a trend now-a-day. Most of the individuals are moving from traditional shopping to online shopping. Starting an eCommerce business in UAE and getting the right business license makes it simpler when connected with the right Business consultants in Dubai.
Wait no more. Get a free consultation from our experts and get your eCommerce license today!
In this digital world, each company wants to start an eCommerce business. This can be done by hiring a business consultant in Dubai. MSZ corporate services provider is one of the leading business consulting services in Dubai UAE, we have assisted several clients to set up an eCommerce business in UAE as well as in business setup in Dubai UAE.
Getting a business license or company formation in Dubai is never an easy task, our team of experts will guide you in getting an eCommerce license in UAE. Contact us today +971562181007 or drop us a mail at email@example.com