E Commerce License in Dubai, UAE –
Every E-commerce business Needs e commerce License in Dubai to operate in Dubai and The Electronic Commerce (E-commerce) market has only risen through the years. This is thanks to the ever-growing usage of phones, computers, and other devices. Shopping online has become a trend recently thanks to that. A company can benefit from E-commerce, since they can set up online shops, reaching an audience from any part of the world. E-commerce license allows clients to buy anything from any part of the world with just a click of a button. This makes it convenient for both the company and its customers. UAE companies are no exception to this. With a shop in your local market, your reach is limited, but with an online shop, you can reach larger audiences. In Dubai is estimated that the e-commerce market´s value is $10 billion (Dh36.7 billion), meaning it´s lucrative. However, if you are looking forward to setting up an online store in Dubai, you will need a license for it. If you´re interested in getting an Ecommerce license in Dubai this article is for you. In this article we´ll talk about: 1-What is Ecommerce License? Before learning about E-commerce licenses in Dubai, you need to know the basics of E-commerce. When we talk about Electronic commerce (E-commerce) we refer to a business model. Said business model allows the purchase of goods and services over the internet. They can be conducted over computers, phones, tablets, and other devices. Almost all services and products can be related to E-commerce. Books, music, furniture, plane tickets, and even financial services are available. Those are just some of the services available through E-commerce causing it to be considered as a disruptive technology. Furthermore, E-commerce business is an organization/company that practices this type of business model, seeking the benefits it brings. They offer goods, products, and services through the internet, allowing customers to buy at the push of a button and with various types of payment. There are many types of E-commerce companies; their formation depends on the model chosen. As said before, there are numerous types of models companies can choose for their E-commerce business. The main types are: Business-to-Business Ecommerce license (B2B) As implied by its name, this type of model involves two businesses or companies trading between them. Such trades usually have conventional wholesalers and producers that deal with retailers. Business-to-Consumer (B2C) Secondly, we have this type of model that deals with the retail aspects of E-commerce. One example of this is the sales of goods and services to the consumer through the internet. This facility makes the customer able to see in detail their proposed procurements before placing an order. After said order is placed, the company or business delivers them. We already mentioned before that this kind of model is better for customers in comparison to traditional shopping. This is because they gain access to content that guides their purchases appropriately. Consumer-to-Consumer (C2C) Thirdly, we have C2C. In this model type, a consumer sells used goods or services to other consumers through online means. The transactions are provided by a 3rd party. Consumer-to-Business (C2B) Following C2C we have C2B. This type of model is the exact opposite of the 2nd type (Business-to-Consumer) we mentioned. As implied by its name, this type of model involves end consumers with an opportunity for them to sell their products/services to a company or business. This method is popular for crowdsourcing-based projects. Business-to-Administration (B2A) Second-to-last, we have B2A. This type of model allows businesses and companies to negotiate with public administration (Like the government for example). They enable the exchange of information through a central website. It offers a business a platform to bid on government opportunities such as auctions, tenders, application submission, etc. Consumer-to-Administration (C2A) Lastly, we have this type of model. A C2A platform is meant for consumers that request information or post feedbacks concerning public sectors. The requests and feedbacks posted are sent directly to the government authorities/administration. The areas you apply them are: Information dissemination. Distance learning. Remittance of statutory payments. Tax returns filing. Appointments seeking, information about illnesses, payment of health services, etc. Here you will find out all you need to know about your company formation in Dubai mainland. 2- E Commerce License in Dubai Building an E-commerce company in Dubai is not complicated, but you need to follow the law and its regulations. If you want to have an E-commerce company, you´ll need to apply for an ecommerce license in Dubai. The Department of Economic Development (DED) in Dubai gives this license. You have to follow a procedure if you want to get this kind of license. According to research conducted by GMI, the UAE has 9.89 Million active internet users (99% of the population). Therefore, this factor combined with others like a favorable tax environment makes Dubai a good place for you to build an E-commerce company. The steps necessary for an E-commerce license in Dubai are: Apply for a Ecommerce License in Dubai After the previous steps, the next step for an E-commerce license in Dubai is applying for it. As mentioned before, the Department of Economic Development (DED) issues this license. For a mainland company´s setup, you´ll pay around AED 10,000 ($2,722) to the DED. You pay this for trade name registration, the initial approval, and the issuance of the license. On the other hand, for a free zone, you will need to look for the license with the relevant authorities. The license you get will depend on the nature of your company´s activities. Decide your company´s legal structure: First, you have to decide which type of structure your company will follow. To put it simply, you´ll decide if you want to set up an LLC, one-person company, branch of a parent company, representative office, etc. The most common of them in Dubai are LLC formation and branch offices thanks to their advantages. Choose your location Secondly, you need to choose your location. With this, we don´t mean
