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Online Business License in UAE – What Investors must know

How to get an Online Business License in UAE?

Many investors ask us about the steps to get an online business license in UAE. This article highlights the benefits of taking an online business license, the steps to obtain an online business license,  the cost associated with setting up an online business, and two major Free Trade Zones in UAE that are perfect choices for online businesses.

Online business in UAE is growing at an exponential pace. The advanced internet facilities and one of the world’s largest internet penetration makes UAE the right place for Online Business Services. Additionally, the younger population in UAE is tech-savvy and regular users of internet-based services. Thus, it further fuels the demand for Online Business licenses in the UAE.

Earning money online through online business is a growing trend. There are a lot of opportunities in the online business category that entrepreneurs can tap into by starting a business. In the world of eCommerce, online shopping, and online services, there are many opportunities to earn money online. Entrepreneurs can explore many online-based businesses with less investment.

Hence, there is immense opportunity for online business services in UAE. It is mandatory to take an online business license in UAE before conducting any sort of online business service in the region. In this blog let us discuss what investors must know about Online Business License in UAE.

So, it is the respective licensing authority in UAE that will issue the legal document which is the ‘Online Business License’. It contains details about the business activities that the investor is liable to conduct in the region.

The Online business license is an important document to prove the existence and validity of the business in UAE. It is also required for bank account opening, closing new sales contracts, and other business requirements.

What are the Steps to Obtain Online Business License in UAE?

When it comes to the steps in obtaining the online business license, it is a very straightforward process to follow. Each Free Zones have its licensing authority that will issue the online business license. There are numerous business activities that investors can choose from under the broad category of online business licenses in the UAE.

Depending on the chosen Free Zone Package, there is an option to add business activities to the trade license. Most Free Zones offer 3 to 5 business activities to be included under a specific trade license. However, investors can add more business activities by paying a fee to the Free Zone authority.

The steps in getting the Online business license in UAE start with, firstly, choosing the list of business activities. Then comes the name selection for the company and getting the initial approval for the new company from the respective Free Zone authority.

Online business in UAE

The investor must submit their identity documents – Passport, photographs, etc., along with the application form. Aurion will guide investors in all steps proactively to obtain the online business license in the most cost-effective and timely manner.

Once the initial approval is in place, the investor can choose an office space if required or continue to make the fee payment for the trade license without the office. Once the documents are reviewed, and payment is processed, the Free Zone authority will issue the Online Business License for the investor for one year, and it is renewable yearly.

After obtaining the Online business license, the investor can proceed to obtain the corporate bank account for the new company.

Why take an Online Business License in UAE?

There is immense potential for online business licenses in UAE. Numerous online business services are available to choose from. It ranges from e-commerce, online tutoring, online coaching, online education, virtual assistance, IT Services, Freelancing, Graphic Design, and more.

For investors who wish to start an online business service, UAE is the perfect choice for that. UAE has all the advanced digital infrastructure, technology, business support, lifestyle, logistics, safety, banking network, and more for any business to sustain profitably.

There are two major business jurisdictions where investors can open an online business services company. There is no requirement for a physical office for online business services as the service delivery is conducted online.  The mainland and Free Zones in UAE offer Online business licenses to investors. Depending on the scale and business requirements, the investor can choose the right business setup package in UAE.

The benefit of taking an Online Business License in UAE is the availability of a large addressable market. There is the local UAE audience, then the GCC, Asia and European countries within 5-7 hours of the flight. Online business Services can be provided anywhere in the world by setting up a company in UAE.

The top-class infrastructure, labour availability, technology, latest gadgets, internet speed, Internet connectivity and penetration is all high in UAE when compared to other Asian and European countries. Also, UAE is home to a multicultural community whose preferences and interests are changing rapidly with technology.

Hence, Online Business Services will have a perfect entry into the audience digital space through focused efforts of marketing and social reach. Consumer-based as well as the Business sector has a constant demand for online business services such as graphic designing, freelance consultants, e-commerce services, IT Services, and more.

Cost and Requirements for Setting up an Online Business in UAE?

The cost of setting up an online business in the UAE depends on the specific business requirements. The online business license in Dubai from the Free Trade Zones can be obtained from as low as AED 11,900.

Depending on the office space, visa requirements, and other operational parameters, the cost of the company setup will vary. In the mainland of UAE, the online business license will cost about AED 19,000 with a virtual office lease agreement for 1 year.

For starting an online business in UAE there are certain documents required by the respective licensing authority. The investor passport copy, entry stamp, photograph, 3 proposed company names, online application form, and a CV stating basic contact information is a requirement.

Where to set up an Online Business in UAE?

As an online business in UAE can be operated remotely and there is no physical movement of goods involved, taking a business license from Free Zone will be favorable for the investor to keep the company setup costs low.

Additionally, Free Zones have a growing business community and more networking opportunities. They have frequent events and networking hubs for startups.

Online Business in UAE

Also, the fully furnished office space, company setup packages, and business infrastructure is ideal for easily launching an online services company. Based on the specific business requirement the Free Zones offers a wide range of office space and business facilities to the investors.

Similarly, the Mainland of UAE also offers an online business license for investors. The advantage of a Mainland License is that there is no restriction in taking an office space anywhere in the respective emirate where the license is issued.

Therefore, the investor can keep their company setup cost low. However, in the mainland, the investor has to set up their own office if required and build a network themselves. Also, all operations and maintenance of the office space will be the entrepreneur’s responsibility on the mainland.

Low-Cost Free Zones for Online Business License in UAE?

All major Free Zones offer Online Business licenses in UAE. However, there are a few low-cost Free Zones in UAE that provides a cost-effective business license for your online business.

For online business services, there is no mandatory requirement for having a large office space. However, for opening a bank account in UAE there is a requirement of having a physical office space.

1. DSO – IFZA

The Dubai Silicon Oasis – IFZA offers one of the cost-effective Free Zone licenses for Online Business Services in Dubai. The license cost starts at AED 11,900 for a 1 visa quota business.

Online Free Zone Business License

IFZA offers a host of company packages for the investor to easily set up their online business company in the Dubai Free Zone. They have office spaces with varying dimensions for investors to customize to their needs.

2. DUQE Free Zone

The DUQE Free Zone is one of the latest addition to the growing list of Free Zones in Dubai. It is located on Queen Elizabeth 2 Ship which is docked permanently at Port Rashid, Dubai.

The Free Zone has company packages starting at AED 12,500 for zero visa quota. The Free Zone offers attractive business amenities and services to entrepreneurs to quickly launch their business establishments in Dubai.

Additionally, a few of the other Free Zones in UAE that offer low-cost business license is the Meydan Free Zone, Sharjah Media City, Sharjah Publishing City, Sharjah Research Technology and Innovation Park Free Zone, etc.

Hence, considering various factors such as cost, visa quotas, business activity, office space, bank account opening, and networking opportunities, the Free Zones  are the perfect choice for setting up an online business services company in UAE

Connect with our expert team to know more about the steps to obtain an online business service license in UAE and various low-cost company packages available for investors.

Contact Us: Aurion Business Consultants

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