E-Commerce License in Dubai: The Complete Guide - IBG Consulting Dubai

E-Commerce License in Dubai: The Complete Guide

March 8, 2020by admin

Modern times require modern strategies. With the increasing popularity of the Internet-based services and products internet facility, the growth of the e-commerce industry has become abrupt and fast. With the profiting climate of the digital world, the pursuits of establishing e-commerce businesses are taking the international scene by great strength. Obtaining an e-commerce business license in Dubai has easy steps to follow that encourages many to join the profiting field. However, the laws and regulations are to be followed precisely.

It is not a lucky strike of randomness. Before rushing into sealing the deal with an e-commerce website development company in Dubai, every entrepreneur must make sure of applying for an e-commerce license and getting it. The Department of Economic Development (DED) in Dubai is the entitled authority to issue the license. Online businesses that do not have the authorized trade license for e-commerce is a violation status or rather say illegal. The procedure to follow to apply for the license is:

  • Settle for a legal structure for the business

The choices are multiple, like:

  • Limited Liability Company (LLC)
  • One-person company
  • A branch
  • A representative office

Decide on a location

Meaning where the license will be given from, a Free Zone, or a Mainland. A free zone entitles expats to enjoy 100% ownership of the business. However, the mainland requires having a local sponsor that would own at least 51% of the shares of the business.

Trade name registration

Due to the lack of the business physical presence, a unique name is a necessity. Moreover, the trade name could be used as the domain name so it could be easily reached and found online. It should not be an existing company or business name to avoid any future legal complications.

Get the license

Since the DED is the issuing authority, they should be approached first. Follows the company set up including trade name registration, initial approval, and issuance of the license for mainland incorporation. As for a free zone e-commerce trade license registration, it relies on the nature of the pursued online business.

Getting the initial approval certificate

It is the NOC acquired from the authority in order to start an e-commerce business in Dubai. Its validity is up to 6 months. It cannot be renewed. It could be applied in parallel to trade name approval application.

Preparing MOA plus local service agent agreement (Mainland step)

A Memorandum of Association (MOA) has to be drafted with the sponsor, in case this is the path pursued then it needs to be submitted to the DED for a mainland business incorporation. It must enlist any distinctive arrangements in addition to the percentages of ownership among the partners.

A physical office registration

The Dubai authorities stated that it is mandatory for a company to have an office in order to be a legal body.

The final approval

Based on the approached authority the license should be given after the completion of the listed steps within the period stated by the respective authority.

A corporate bank account

Setting up a corporate bank account would be the next logical step that follows the business incorporation. With the help of an expert, it should be the easiest item on the to-do list.

Upon the completion of all the requirements and receiving the license, the business can be launched and at this stage, a reliable e-commerce website development company in Dubai would be the best choice.

IBG experts have a complete comprehension of the UAE regulation and process. Catering several flexible possibilities for entrepreneurs is just one of the services provided. Guaranteeing protected personal, business credibility leaves no space for misconduct. We would accompany you on every step facilitating the requirements from the very first thought of getting a feasibility study and all the way to the actual launching of the business website and the bank account incorporation. IBG is a one-stop-shop for all wonders. Contact us for more; we will always give you the answer you are looking for!

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