e commerce license Dubai

E-Commerce License in Dubai, UAE

If you are planning to establish an e-commerce business in Dubai, you will need an e commerce license Dubai. The e commerce license Dubai is a legal requirement for any company wishing to sell products or services online in the United Arab Emirates. There are three categories for this license. The first is the commercial license, the second is the professional license and the third is the industrial license.

In this article, we will discuss everything you need to know about the e commerce license Dubai. From requirements and costs to the application and approval process. We will be your guide through the entire application and approval process. In addition, we will provide you with information about the importance and advantages of obtaining an e commerce license Dubai. Finally, we will discuss how you can obtain an e-commerce license step by step.

Importance of E-Commerce License in Dubai

e commerce license Dubai

The UAE ecommerce license is a legal permit that allows companies or people to carry out electronic commerce activities in a specific jurisdiction. This is usually required by law so you can operate an e-commerce business or for online services or sell goods.

Additionally, the requirements and procedures for you to obtain your ecommerce license may change depending on the jurisdiction in which you apply. This way you can also change the e commerce license Dubai cost.

It is of utmost importance that you obtain your UAE ecommerce license if you want to start an online business in Dubai. For this reason, we will present these to you below.

Legal Compliance

An e-commerce license is generally a legal requirement in many jurisdictions. This way, by getting a license, e-commerce companies will be able to ensure that they comply with the law. Additionally, they can avoid any type of sanction or fine for operating without a license.

Consumer Trust

Owning an e-commerce license in Dubai can help you build trust in your business with consumers. In this way, it is demonstrated that the company is authorized to carry out electronic commerce activities.

Additionally, it is committed to maintaining all legal compliance. For this reason, if you want to start your business in Dubai electronically, this license is very helpful.

Business Credibility

The e commerce license Dubai also allows you to improve the credibility of the company. This is especially true when it comes to other companies or suppliers. Additionally, it demonstrates to others how your company takes legal operations seriously and is committed to following all ethical business practices.

What Are the Required Documents for an E-commerce License in Dubai?

You may find that IFZA currently has a simpler process and requirements for opening an e-commerce business in Dubai. For this reason, if you want to establish an e-commerce company with individual shareholders, you must present the following documents:

On the other hand, if you want to establish an e-commerce company that has corporate shareholders, you will need the following documents:

  • A copy of the passport of all the shareholders and the general manager that the shareholder company will have.
  • A passport photo that is in digital format of each shareholder and the general manager that the shareholder company will have.
  • The application form with UBO information which is provided by IFZA.
  • A copy of the Emirates ID and a copy of the visa of a shareholder who is a UAE resident.
  • The resolution of the Board of Directors.
  • A memorandum and articles of association of the corporate shareholder or the equivalent thereof.
  • A valid commercial license or its equivalent.
  • The certificate of incorporation or formation of the corporate shareholder.

Steps to get a Dubai ecommerce license

Currently, the e commerce license Dubai is very popular. The reason is that many people in the UAE are switching from traditional shopping to online shopping. This is thanks to the convenience it provides. This change is what has companies looking into setting up an e-commerce business in Dubai. In addition, the requirements are very few, in principle, you only need an e commerce license in Dubai. With this document, you can start your online commercial activities.

All investors can enjoy full profit repatriation, hassle-free resource availability, and various tax exemptions. Therefore, it is of great advantage to launch your digital company in the UAE and earn considerable income from the beginning.

Initially, setting up an online business in Dubai and operating it can be confusing and tedious. Even before selecting your online services or products, it is important to know how to obtain an e commerce license Dubai. If you want to apply for an e commerce license Dubai you just have to follow the following steps.

Understanding Dubai’s eCommerce Regulations

The United Arab Emirates has made significant progress in the regulation and promotion of electronic commerce. Thus, they can keep up with technological advances and promote digital transformation in the country. In essence, two key laws govern e-commerce in the UAE.

The first is Federal Law No. 15/2020, Consumer Protection Law. The second is Federal Decree-Law No. 46/2021, Electronic Transactions and Trust Services. Both regulations are intended to improve trust, protect consumer rights, and facilitate electronic transactions. Below, we will delve into some of the key provisions of these laws and their implications for e-commerce businesses in Dubai.

We will start with Federal Decree-Law No. 46/2021: Strengthening Trust and Facilitating Electronic Transactions.

Regulatory Authority and Responsibilities: According to the law, there is an authority responsible for regulating the activities of licensees, issuing rules, and establishing standards. This is for the Electronic Identification System and Digital Identity.

Regulation of Electronic Documents: The law emphasizes the legal validity and applicability of electronic documents. It does not force people to use electronic documents without consent. In addition, certain information may be exempt from the document retention requirement.

Now, to finish we will talk about some provisions of Federal Law No. 15/2020: Consumer Protection Law.

Consumer rights: In law, there are consumer rights to an adequate and safe environment for purchasing goods or receiving services. All consumers can access accurate information about the products they purchase, choose products according to their tastes, protect their data security and privacy, and receive fast and fair resolution of disputes.

On the other hand, consumers must receive fair compensation for damages as a result of the use of goods or services.

Business Structure and Ownership

In order to start your online business as a foreigner you have to choose the right jurisdiction. That is, you have to decide if you want to establish your business in a continental zone or free zone. By choosing the continental option you will be able to trade in the local market in the UAE directly without having a local agent.

On the other hand, if you decide to establish your business in an international free zone you can have access to different advantages. For instance, a low tax rate, absence of monetary restrictions, total exemption from customs taxes, and the possibility of repatriating 100% of capital and profits. While it is true, companies in the free zone may not be able to trade with the local market in the UAE. But there are several options available if this capability is necessary.

You have to know that there are two ways to start an e-business in the United Arab Emirates. The first is where you do not own shares, you just provide a platform for sellers and buyers to interact with each other. That is, sellers are responsible for preparing the merchandise for delivery. In other words, they have the obligation to prepare the delivery so that you do not have to. If you establish yourself in a free zone, this type of business model is perfect for you.

Finally, the other type of e-commerce business model is one in which you have a warehouse. That is, stocks are maintained and, in addition, the shipment of products to customers is organized. If you establish yourself in a continental area, this type of business model is ideal. The reason is that companies that are in the free zone cannot operate on the continent.

Choose a Trade Name

The next step in obtaining the Dubai e commerce license is to choose the company name. For this, you have to familiarize yourself with the naming regulations of the UAE. Below are some key points to keep in mind about the company name.

  • The commercial name cannot be translated; it has to be transliterated into Arabic or English.
  • It must include numbers and alphabets, but no special icons or characters are allowed.
  • You can include the owner’s first and last name, but you cannot use only the last name.
  • Trade names cannot contain blasphemous or offensive language. As well as, brand names and registered establishments.
  • Words like the name of Allah or its synonyms, countries, regions, areas, organizations, and sects are prohibited for business names.
  • Names starting with words like Middle East, International, and Universal and their Arabic translations are not allowed.
  • The database of trade names is essentially by pronunciation. This is why it is essential to identify duplicate names in both Arabic and English.
  • There are two Premium categories for business names, A and B. These will depend on the inclusion of some specific words. For example, abbreviations, gulf, foreign words, trademarks, Arabicized names or regions.
  • You can add the business activity to the business name, but they cannot be the same.
  • The commercial name cannot contain obscene words that contradict public decency or offend modesty.
  • You cannot use names of capitals, countries, or governments unless you have approval from the corresponding embassy.
  • The commercial name is only valid for six months, after which time you have to renew and pay the fees to make the reservation again.
  • Trademarks are not reserved at the Department of Economic Development and can be registered at the Trademark Department of the Ministry of Economy.

Registration and Licensing

If you already have your products to sell online, you will only need the Dubai e commerce license. In Dubai, if you decide to invest in the mainland, you have to go to the Department of Economic Development (DED). This is the entity that is responsible for issuing electronic commerce licenses in this emirate.

On the other hand, if you select a free zone, then the Free Zone Authority (FZA) is responsible for issuing the permit or license.

Subsequently, you have to apply for an Initial Approval Certificate, i.e. an NOC. For this, you have to go to the relevant authority to start an e-commerce business in Dubai. This document is valid for a maximum of 6 months and does not have the possibility of renewal. An initial approval certificate can be requested at the same time you begin the business name approval application process.

Finally, you will have to apply for a visa, for this, you will have to submit the e commerce license Dubai application. Once you meet this requirement, you can continue with the application for your residence visa in the UAE. Additionally, you can apply for visas for your family members, employees, or domestic staff. The number of visas you can apply for will depend on the size of your business and the location you select for setup.

Documentation and Paperwork

Once you complete all the previous steps and have all the requirements, you have to send your application. The type of application you will have to submit will depend on whether you establish yourself in a free zone or a continental zone. If you plan to establish your business on the mainland, you have to submit your application to the Department of Economy and Tourism (DET) of the corresponding area. You also have the option of making your request at the municipality.

On the other hand, if you plan to establish a business in a free zone you can only apply directly to the Free Zone of your choice.

Regardless of whether you choose a free zone or continental configuration, it is important to ensure that the application is complete and error-free. This will make it possible to avoid the chances of delays or rejections.

Open A Bank Account

If you want to start your business in the United Arab Emirates, it is essential to open a bank account. Specifically, a corporate bank account. The process of opening a bank account in the United Arab Emirates can be difficult. This is why it is recommended to seek professional assistance from a reputable business training company in Dubai. This way, you can guarantee compliance with all formalities.

Conclusion

e commerce license Dubai

Throughout this article, everything you need to know about the Dubai e-commerce license has been discussed. For this reason, if you are interested in establishing your e-commerce business in Dubai, you will need this license. This way, you can operate legally and avoid any type of sanction or fine.

In addition, you see the e commerce license UAE cost and the requirements that you must meet to obtain. In this way, you also find information about the entire application and approval process. For this reason, if you obtain your license, you will be able to continue with the process of applying for a residence visa and renting offices.

On the other hand, you see the advantages you have by having an e-commerce license in Dubai. In this way, it was possible to better understand the importance of this license and how it can help you gain the trust of your clients and other companies.

In this way, it was possible to learn much of what is included in an e-commerce license in Dubai. Additionally, many companies can help you carry out the entire process of applying for your e-commerce license. Thanks to this, you will be able to obtain your license in a faster and more reliable way.

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