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Is it mandatory to get an E-Commerce license for selling products online in UAE?

The e-commerce industry is growing worldwide as the internet is easily accessible, usage of smartphones is increased across the world and the continuous development of international courier services. E-commerce platform provides online shopping for almost all products such as clothing, footwear, furniture, house-hold goods, electronics, etc. The online store is more economical than traditional stores and it is not geographically limited as anyone can order the product from any corner of the world.

The online market in the UAE is as lucrative as the e-commerce market in other countries. By 2018, the e-commerce sector already exceeds $10 billion (i.e., AED 36.7 billion) and as per statistics, over 90% of the population has access to the internet so there are fantastic opportunities to further grow e-commerce in UAE.

So, if you want to start your e-commerce business in UAE, you must go through a number of steps starting from website development to getting approval for an e-commerce activity license.

How to start an e-commerce business in the UAE?

There are numerous factors that need to be considered while forming a web-based company. These include the below steps:

  1. Licensing: For starting an online business in UAE mainland, you must need an e-commerce license from the Department of Economic Development (DED) but if you are planning to start up in a free zone then you have to get a license from the concerned free zone authority.
  2. Office space: As per the rules of the Dubai Authority, it is mandatory to have a physical office for a company to consider it a legal entity.
  3. Website Development: To start with an e-commerce business, one naturally needs to have a website and you also need to register a domain name for your website.
  4. Import / Export requirements: If you are importing goods from foreign countries and selling them online in the UAE, then your business has to be registered with the relevant emirate’s post and with customs authority to receive an importer’s code. Customs duty is applicable while importing goods. Whereas, businesses registered with free zones are exempt from customs duties if they are selling the products within the free zone or outside the country.
  5. Bank Account: Once you get your e-commerce trade license, you will be able to set-up your corporate bank account.

E-commerce business is connecting buyers and sellers globally so there will always be an opportunity to grow continuously. In upcoming years, the e-commerce sector will add more revenue to the economy. 

If you are dreaming of starting your online business in UAE then you should make it real. 

Want more information?

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If you are looking for company incorporation, click here: Company Registration In Dubai