Opening an online business set-up in Dubai has numerous advantages compared to traditional company formations. UAE’s pro-business policies, tax exemptions and international recognition and world class facilities are everything an e-commerce company desires. Here is a small guide to setup your own e-commerce company in Dubai.
- The Department of Economic Development (DED) issues licenses for web based companies, which are mandatory for registration.
- Authorities managing free zones issue licenses for operations within their territory, which can be obtained from them.
- The license is issued on the basis of the business niche of online company.
Confirming a physical location for the company is necessary for it to obtain a legal status in Dubai. The location of the company is largely influenced by the business type, its activities and the incentives it wants to avail.
Developing a website for online business set-up is a mandatory step to declare online presence, which can be achieved in the following manner:
Domain Name Registration
- Selecting and officially registering domain name.
- The domain name is the address which will lead to the website for your business. It is preferable for it to be the company name since it lends a direct linking to website and company.
- For registration in Dubai, consider searching domain registration companies which can facilitate this entire process.
- Register the Brand with UAE’s Ministry of Economy so it is protected by intellectual property laws. This will involve trademark registration cost.
There are some necessary elements to consider if the online business functions as an online shopping portal:
Online Payment Gateways
If the online store features products and services for purchase, regardless of being material or abstract, it is necessary to incorporate Secure Payment Gateway Options which cover prepaid, credit card and cash on delivery payments.
In case the online business purchases products from other countries and imports them for retail in UAE, it is necessary to acquire an importers code from the emirates ports and customs authority for the business operations to be considered legal. A standard customs duty of around 5 % is levied on products being imported in UAE.
The taxation for businesses in free zone is zero if they are retailing their merchandise within the jurisdiction or are exporting them. However, selling products within the UAE market requires clearance of taxes being imposes on them as well as a local agent.