How much does it cost to start an e-commerce company?
A basic business setup package for an e-commerce company can start from AED 5,750. The cost, however, can change depending on your requirements, such as if you need an office space or more residence visas.
Do you need to rent an office space?
This will depend on the free zone where you are setting up, but most do not require an office space.
How long do you need to start an e-commerce company in the UAE?
Your trade licence can be issued in 24 hours, provided that you have all the required documents ready.
What is the best free zone for e-commerce?
The best free zone for your business is the one that meets your unique requirements. So consider your product, your target market and your target audience when looking at the different free zone options available to you.
You also need to consider that some free zones are sector-specific, which means they are specially designed to cater to specific sectors (e.g., media, education, finance, etc.), while some free zones are generalist and can therefore accommodate different types of businesses.
There are more than 50 free zones in the UAE. Choosing the wrong one can leave you with expensive mistakes, so make sure you select the right one to ensure you are set up for success.
What are the penalties for setting up an e-commerce shop without a licence?
Individuals and/or businesses that are trading illegally can be fined up to AED 50,000 per transaction.
Are e-commerce businesses required to register for VAT?
An e-commerce business must register for VAT if the value of its taxable supplies and imports goes above AED 375,000 per year. For businesses whose supplies and imports exceed AED 187,500 per year, then VAT registration is optional.
eTrader licence vs. e-commerce licence in Dubai
As we’ve mentioned above, an eTrader licence is primarily for UAE and GCC nationals living in Dubai who want to do business through their social media channels. So, if you are a non-UAE or non-GCC national, you may not be eligible to apply for an eTrader licence.
In addition, an eTrader licence only allows commerce activities via social media channels. If you wish to sell goods and accept payments through an e-commerce website, then you will need to secure an e-commerce licence.
When do I need a licence for an e-commerce website?
The answer is: Immediately! You need a valid trade licence to conduct any commercial activity in the UAE.
What is the difference between an e-commerce business licence and a business trade licence?
An e-commerce business licence is a type of trade licence that specifically permits you to sell physical goods in the UAE through an e-commerce website.
On the other hand, a business trade licence is the umbrella term for all types of trade licence, which could be a commercial, industrial or professional trade licence issued in a free zone or in the mainland.
Does an e-commerce licence allow me to sell to all of UAE or just within the free zone where I am registered?
Yes, you can sell to all of the UAE with your e-commerce licence. However, you will need a distributor in the mainland.
What fees do you have to pay for an e-commerce licence in Dubai?
As mentioned above, the rates start from AED 5,750.00.
Can I run two businesses under one e-commerce licence?
Yes! As long as the activities are related to e-commerce. What is not allowed is conducting business activities that are unrelated to each other. For example, you cannot conduct trading activities and then provide professional services under the same licence.
What products can I sell online without an e-commerce licence?
Nothing. To protect the interests of both businesses and consumers, the UAE e-commerce sector is strictly regulated. That is why all aspiring e-commerce entrepreneurs must secure an e-commerce licence to legally sell physical goods in the UAE.
