The eCommerce market in UAE is transforming significantly with the latest technological advancements. The country has an internet penetration of 91%. eCommerce License in UAE is becoming a popular business license category.
The digital advancements and infrastructure available in UAE are driving the growth in the eCommerce License in UAE. Also, there is evolving customer demand and shopping experience in the online channels.
The eCommerce sector in UAE is estimated to be USD 8 Billion by 2025. The sector is in a development stage and more technology and platforms are getting added to the eCommerce ecosystem in the country.
Scope of E-commerce License in the UAE Market
There is a wide range of business activities that the company conducts under its eCommerce License in UAE. Ranging from food delivery, digital financing, online pharmacy, and retail, there are numerous options for investors to venture into the eCommerce sector.
UAE has a diverse audience base and it is a great advantage for investors in the eCommerce sector. eCommerce License in UAE also covers a range of business activities. Also, there are a host of support services for eCommerce such as order management, customer services, online delivery, and more.
Also, UAE has a well-connected road network making it perfect for scheduling delivery at a minimum time across the region. The eCommerce companies can partner with an experienced delivery service provider to seamlessly fulfill customer orders quickly and efficiently.
There is growing competition in the field of eCommerce in UAE. Large players as well as a bunch of startups make up the eCommerce landscape in UAE. Hence, there are immense opportunities in the eCommerce sector for investors to tap.
The eCommerce License in UAE is becoming one of the most preferred among investors as it is a prospective business opportunity.
How to obtain an eCommerce License in Dubai Mainland?
Setting up an eCommerce License in Dubai Mainland follows a few steps. The licensing authority for the mainland of Dubai is the Dubai Economy (Department of Economic Development).
For other emirates, there are respective DEDs that issue the eCommerce License for the investors depending on their requirements. Following are the steps to follow for obtaining an eCommerce License in Dubai Mainland.
- Choose the right Company Structure – Limited Liability / Professional License for the Business
- Select the location for the office and warehouse in the respective Emirate
- Register the Tradename with the DED of the emirate
- Prepare the application for obtaining the eCommerce license in UAE
- Submit the required documents – Passport Copy, Entry Stamp details, Photograph
- Obtain the Initial Approval Certificate from the Dubai Economy
- Prepare the Memorandum of Association (MOA) and other side agreements as per requirements
- Pay the fee to authorities for the eCommerce license in UAE and office rental.
- Complete the Physical Office Registration and prepare the tenancy agreement
- Obtain the Trade License
- Clear the Import/Export Requirements
- Finally, Open a Corporate Bank Account
The mainland of Dubai, UAE is the perfect choice for eCommerce companies. They can also easily schedule the logistics, delivery, and distribution of the goods and services by being present on the mainland of UAE.
Also, the proximity to the international Seaports and Airports, makes UAE a perfect destination for setting up an eCommerce company.
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
1. Study the Market Thoroughly
Identify the market scenario by conducting market research. It is important to learn the audience behavior and analyze the competition. Also, the new business must track the social activities of their competitors, website performance, and more.
Thus, market research will help in enhancing the efficiency of the marketing team in initiating promotions and brand awareness of the new company or brand in the market.
E-Commerce Businesses in UAE must consider market research as an important component to gain a competitive advantage and gain new customers at a faster pace.
2. Website Development
For an eCommerce business in UAE, having a website is very essential for the success of the business. A user-friendly website with easy navigation and a simple interface is a win for eCommerce businesses in UAE.
A well-developed website is a must-have for an eCommerce business in UAE. The website must be capable of listing the products, enabling online payment, search options, products recommendation, and more.
3. Payment Gateway
The eCommerce business must integrate a secure online payment network with the eCommerce portal/website to receive authentic Credit/Debit Card or PayPal payments.
Also, having a robust and secure Payment Gateway is a critical component to your overall success and credibility as an E-commerce service provider. In UAE, there are numerous service providers, banks, and third-party companies that provide payment gateway solutions for eCommerce companies in UAE.
The investors must spend their time and research to find out the best payment gateway for their business and service offering as per their requirements.
Expert business consultants at AURION will guide you through choosing the best Payment Gateway based on your business requirements, connect with us today!
The eCommerce license and business activities must be chosen depending on the items that the investors plan to sell through their eCommerce website. Import/Export are a very essential element for an eCommerce company.
Along with the eCommerce License in UAE the investor to coordinate import/export must obtain customs clearance and import-export code for the company. The investor must get all the pre-approvals to avoid any fines from the authorities.
The eCommerce company must ensure its suppliers are genuine and trustworthy. All legal agreements must be in place for seamlessly shipping the goods to be sold in the UAE market. It will also help to enable a smooth business operation for the eCommerce company.
Warehousing, Logistics Support, and Delivery
There is an extensive support system required for an eCommerce company. There is a need for warehouses, logistics support, delivery, marketing, website management, and more.
The investor must ensure they have a robust logistics support system. They must conduct a cost-benefit analysis on the outsourcing of certain sections or owning the whole support system.
For E-commerce companies without a robust logistics strategy, it 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
Gaining new customers and enhancing customer retention is very essential for eCommerce companies to succeed. Repeat purchases along with new users have to be constantly monitored for enhancing revenue.
Providing a positive customer experience in every stage starting from the website navigation to the checkout process, order management, delivery, customer service support & post-sales services is vital for the success of any E-commerce business.
Ecommerce License in UAE from Free Zones
For a foreign investor to start an eCommerce business in UAE and also coordinate the international markets, the Free Zones are the ideal choice.
Obtaining an eCommerce License from the UAE Free Zones will help investors seamlessly start operating their eCommerce store in the region and coordinate their trade operations in a hassle-free way.
To know more read: Cheapest Free Zones 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