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Ecommerce license in UAE

How to get an e-commerce License in UAE?

UAE is a country with the most internet penetration (91%) in the world. The digital environment and infrastructure support the growth of E-commerce License in UAE. Driven by the customer demand and change in their shopping behavior to online channels, there is a surge in demand for E-commerce License in UAE.

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 Business Penetration in the UAE Market

The E-commerce License in UAE covers a wide range of business activities ranging from food delivery, consumer goods, healthcare, automobile, real estate, travel, hospitality, etc.

There is a huge potential in the region for E-commerce service providers. The diverse target audience available is a great advantage for investors securing an E-commerce license in UAE. Also, the logistics infrastructure and connectivity by roads are add-ons for the success of E-commerce Service Providers in the 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 Ecommerce License in Dubai Mainland?

The E-commerce License in UAE follows the below basic steps. These steps are applicable for Ecommerce License from the Dubai Economy or the respective Department of Economic Development (DED) in other emirates of UAE :

  • Decide on your Legal Structure for your Business
  • Find out the Location for a Physical Office
  • Tradename Registration
  • Application Preparation for the Ecommerce license in UAE
  • 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 process of obtaining an E-commerce License in UAE Mainland is almost similar for all industry sectors.

To know more about the detailed steps read: How to get a Management Consultancy License in Dubai?

6 Key Things to look at before you set up an E-commerce Business in 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 Ecommerce license in UAE must be applied to avoid any fines from the authorities and 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 the 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 Options Available for Ecommerce License in 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 for obtaining an Ecommerce license in UAE.

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

To know more read:  4 Cost Effective Freezones in the UAE

For any assistance on obtaining an E-commerce License in UAE, feel free to reach out to us. Our expert Business Consultants are happy to help you anytime!

Contact: Aurion Business Consultants