Is Business License in Dubai Required to Sell Online?

Is Business License in Dubai Required to Sell Online?

A business license in Dubai is a permit given out by the government that enables organizations or people to conduct business within its purview. Operating your business without a license may be fined by government organizations to force it to close. 

Depending on the company’s location and type of operation, more than one business license in UAE could be required. Selling goods or services online is what is meant by e-commerce or e-business, which is essentially the act of earning money online.

Virtually anything you can think of is a part of the e-commerce industry, from online grocery stores to private aircraft reservations. It doesn’t matter if you work as a freelancer or for a large corporation—an online presence is essential. 

One of life’s greatest pleasures is shopping, and numerous changes have been brought about by online buying in several businesses. It has created countless fresh and exciting possibilities.

Why Must You Apply for an E-Commerce License in Dubai?

One must apply for an e-commerce license in Dubai because they are first seen as legal evidence that your company is in compliance with the law and that you, as the owner, are accountable for all occurrences and repercussions associated with business activity. 

While selling online, the rights and advantages of your workers, partners, and clients are also protected and guaranteed by means of these contracts. When you get an e-commerce license in Dubai, all of your debts are documented for tax purposes.

There are three ways to offer your goods or services online in the United Arab Emirates:

1. Make Sales on a Marketplace

Spend little on advertising to ensure that people see your products. Pay the marketplace’s commission and deliver the products on schedule.

2. Create a Website and Start Selling on It

There are no commissions paid to marketplaces, but advertising costs are higher. You are also responsible for logistics.

3. Market on Social Networks

Reach out to the people and places you’ve targeted.

Combining the aforementioned strategies is the most successful strategy to sell products online in the UAE. The majority of online trade companies in the UAE take advantage of all internet presence options.

How Much Is the E-Commerce Business License Cost in Dubai?

Fortunately, you won’t need to worry about an e-commerce business license cost in Dubai. Either there will be a small fee or the e-commerce license Dubai cost will set you back a few AED. 

Some licenses could be completely free. Remember that you will pay additional fees when you want to renew your licenses; some of these payments will be lower when you renew.

Not obtaining a business license in Dubai at all is the most expensive option. If you are found operating without the necessary licenses or with an expired license, you could be charged with hefty fines.

In the UAE, an e-Commerce bundle cost starts from AED 5,500. The services included in the bundle can be customized and chosen based on the needs of the business.

It takes around 1-2 working days for all the procedures to be complete regarding the e-commerce business license in Dubai. In general, the package includes:

An Incorporation Certificate

  • A Share Certificate
  • A Company Stamp
  • A Bank Introduction
  • A Lease Agreement.

Online Business Registration in Dubai

A hundred or more well-known stores conduct business online in Dubai, which has a population of 3,5 million people. The majority of the population consists of middle-aged working people who have access to mobile phones, laptops, and respectable pay.

People choose to shop online for a variety of reasons, not only the epidemic. Online retailers make it simple to get the greatest offer from the comfort of your home, are accessible around the clock, and save you time traveling.

There are many possibilities for starting an online store, thus, it makes sense that there is a growing need for an e-commerce license in Dubai. It is also mandatory to register your online business in the Emirate.

What is a Tax Registration Number for a Business Registration in Dubai?

After registering for VAT in the UAE, an entity receives a 15-digit unique number known as a TRN. The Authority is able to distinguish between various VAT-registered businesses thanks to the TRN supplied by the FTA. 

According to UAE VAT Law, the entity to which the TRN is assigned is referred to as a Registrant, and the Registrant is required to mention the TRN in numerous documents pertaining to VAT. When the FTA approves their application for UAE VAT registration, the businesses receive their TRN.

What are the Types of E-Commerce Business Licenses in Dubai that are Available?

The majority of nations create particular guidelines for online retailers. The primary business licenses in Dubai and permissions you may need to take into account for your online business in order to comply with regulations and tax laws are listed below. 

To obtain the proper licenses, check with the licensing boards. You require different types of business licenses to operate.

  1. Portal License

Your company’s business activity in the UAE will be referred to as a portal or e-marketplace if it serves as a middleman between the buyer and the vendor. The most well-known example of an online marketplace is Amazon.com, which provides a forum for both consumers and businesses to advertise their products.

If it describes your activity, Portal is what you require. Finding it won’t be difficult because most free zones contain this type of activity.

  1. E-Commerce License

Companies that want to sell their own products online can opt for an e-commerce system.

It could be a website that just sells a few different kinds of products or a large online retailer, like Mumzworld.com, for instance.

  1. Commercial or Service License

Even if your license does not specifically address e-commerce, this does not preclude you from conducting online business. Any commercial activity can be started as an internet firm. 

The manner of sale is irrelevant in terms of the law. You can conduct marketing audits, offer educational training, conduct online food and clothing sales, and conduct any other form of business using the Internet.

  1. E-Trader License

Those who seek to offer services or sell goods online are granted this license. Only UAE and GCC citizens resident in Dubai are eligible to apply for the E-traders license in the United Arab Emirates, which is regulated by the Department of Economic Development.

Only under a single owner’s ownership can an e-trader license be obtained. With this license, you cannot operate a physical business or open a store.

  1. Freelance License

Any freelancer in the UAE is now eligible to apply for a license since freelancing is now allowed there. With the license, you are able to promote and offer your services both locally and internationally online.

For designers, IT specialists, instructors, personal assistants, and other common freelancers, it’s the ideal answer.

  1. Virtual Company License

The Dubai Economy and DIFC have introduced the virtual firm license. The virtual company license enables foreign investors and non-citizens of the UAE to carry out business operations in the area.

However, only three industries are covered by this license: computer programming and related activities, designing activities, printing-related services, and advertising.

When Should You Apply for an Online Business License in Dubai?

When you should apply for an online business license in Dubai will depend on where you’re selling, just like with other steps in the procedure. You might need to apply in some cases before you start selling. 

In some places, you might have to reach a particular size before you need to apply for business permits and licenses. Again, you can estimate your precise deadline by checking your legal and local business resources.

Other Requirements to Obtain an Online Business License in Dubai

Keep in mind that an online business license in Dubai has expiration dates just like any other license. Even better, make a note of the dates on your calendar, so you don’t forget to renew them.

To determine exactly what you need to apply for a license to sell online, it’s vital to research the unique regulations of your local jurisdiction. However, you might prepare some documents in advance to make the procedure simpler.

Ascertain your business entity type, the name you’ll be operating under, any inspections or permits necessary for the products you’re selling, and, in certain situations, a TRN. The e-commerce license will be issued by the Dubai Department of Economic Development.

About Author:

Commitbiz can assist if you are considering obtaining an e-commerce business license in Dubai. We have liaisons who assist us in managing the full company formation process efficiently and on schedule.

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