UAE is becoming more active in the e-commerce domain and over the last 3 years, a whopping 70%+ of users in the country have shifted towards online purchases already. If you are thinking of setting up your e-commerce business in UAE, you can consult for UAE VAT GCC Filings for help with company incorporation, VAT registration in UAE, return filling, accounting, auditing and a lot more.
Steps for Start your E-Commerce Business in UAE
- License– You will need a license from the Department of Economic Development (DED) for starting your e-commerce company. If you are setting up in a free zone, you will require a license from a suitable free zone authority. The license type will depend on the type of your online business.
- Office Space– E-commerce companies may function as online versions of any global retail chain or store or may double up as aggregators. You can consider physical office space in order to get legal validity for your business.
- Website– You will naturally have to set up your website and create the platform for interactions between consumers and yourself. You should first get your domain name registered and then set up the online payment gateway.
Other Key Regulations Start your E-Commerce Business in UAE
You should adhere to the import/export regulations in UAE. Businesses should possess registration with the relevant customs and ports authority in UAE, particularly if you are looking at importing products or items from foreign countries and selling it on your portal. Now, the code of the importer will naturally be assigned for the business and customs duty will be imposed on the goods which are imported.
Customs duties are not levied for free zone companies although they are limited to selling services or products outside the country or within the free zone. In case the company is selling products to the market in the UAE outside of the free zone, customs duties become payable and local commercial agents will have to be appointed as well. For establishing an e-commerce business in UAE, one of the key steps is importing offline products and segments to the online store. This basically depends on the type of product or service you are offering and the information that you want to share with customers. These are some aspects that you should be aware of, in order to setup your e-commerce business in the UAE.