Nowadays online shopping is an integral part of our daily lives. Some people do it frequently, while some only check out the latest products and services on various digital stores. Therefore, it’s safe to say that online shopping and e-commerce platforms are here to stay. The question now is, what do you need to get started with your online business venture?
Well, all you need is an online trading license in Dubai alongside any additional approvals, and you’re good to go. You have an additional advantage when you open your online business in the Emirates as more than 90% of the population are active internet users. You can connect with the legal advisors in Dubai, and they’ll guide you throughout the company formation process.
How to obtain a license for your online business in Dubai?
It’s mandatory for all legal business entities in the UAE to have a valid business license. This license provides them the allowance to carry out the approved business activities in the preferred region. Here’s how you can get one for your online business:
1. Finalize your company’s legal structure
You have several options in hand with regards to the type of business structure you choose for your company. It can be a limited liability company (LLC), sole proprietorship, branch or representative office, etc., depending upon your business requirements and aspirations. Furthermore, you’ll need to partner with a local sponsor or UAE national who’ll have 51% shareholding in your company in case you wish to open a branch office or shareholding company.
2. Select the business location
Where do you want to open your online e-commerce business in the UAE? Do you want it to be in the Dubai mainland, or you have a particular free zone in mind? Each of these locations come with their unique set of advantages and limitations. Business owners can enjoy 100% ownership of their company when they go for a free zone establishment. You can also apply for an online business permit in Dubai in the mainland region to explore the world-famous local market.
3. Trade name reservation
Be it an online business, an offline store, or traditional brick and mortar setup – all need to have a legal business name for their venture. You’ll need to reserve a trading name for your company to obtain an online business license in Dubai. Ensure that the name is unique and free of any offensive or derogatory terms. Refrain from using words that are insulting, misleading, or outright disrespectful. Always use the full name of a person if you want it to be the legal trading name of your online venture.
4. Rent an office space
Even though it’s an online business, you must have a legal address for your company. All the documents and approvals will have the same address mentioned on them, and you’ll receive posts for legal duties at your professional address only. The best approach is to rent an affordable office space where you can work with freedom and business consultants at Shuraa will help you find the same.
5. Obtain the license
Once you have completed the steps mentioned above, you need to file your application for an online business license in Dubai. The process typically takes around a week (7 days) to complete. However, it can vary depending on the registering authority and associated jurisdiction. You’ll need to submit a few documents like passport copies, receipt of trade name reservation, etc., alongside the license application.
6. Open a corporate bank account
You’ll need a reliable local bank to take care of the monetary transactions and cash flow management. You can open such an account after you receive the online business permit in Dubai from the concerned department. Choose a bank that offers hassle-free services and long-term benefits.
Always remember that your only means of engagement and interaction with your target audience is your company’s website. Therefore, craft an elegant business website optimized as per your product and services. Pay special attention to the website’s security too because users will be entering confidential details such as their credit card credentials on your e-commerce platform. Furthermore, try to provide flexible payment options to the customers to improve the overall user experience and satisfaction rates.
Benefits of launching an online business in the UAE
An online business is cost-efficient, and you can explore various ventures through an e-commerce platform. Here are some of the key benefits of having an online business license in Dubai:
1. 100% ownership
You can enjoy complete ownership of your online business if it’s a free zone formation. These zones have independent jurisdiction and provide various business-related benefits like easy resource availability, affordable office space, etc., to bolster your online business revenue. Moreover, even if it’s not a free zone establishment, you can still have 100% operational ownership of your business. All you need to do is collaborate with Shuraa Business Setup, and we’ll become your silent or sleeping partners, and you’ll have the liberty to make all the decisions.
2. Low barrier to entry
You don’t need hefty sums of money as an investment to start an online business in Emirates. There’s no need to buy a lavish office space as you’ll be needing warehouses and small office space for logistics and inventory management. Therefore, simply obtain an online business license in Dubai and get started with your business activities.
3. Various exemptions
Apart from the pocket-friendly nature of online businesses, you also enjoy several additional benefits in the UAE. E-commerce businesses don’t have to pay the import-export duties and also get complete exemption from various corporate taxes apart from the mandatory 5% VAT. Therefore, you can save a lot of money in the long run when you get an online business permit in Dubai alongside the other additional approvals depending on your business activities.
Connect with Shuraa
It’s time for the digital services to take over, and you can also become a part of this change by launching your online business in the UAE. The country offers business-friendly laws and a supportive government along with other work-related amenities. Shuraa Business Setup can help you obtain the online business license in Dubai at nominal costs, and it’s a partnership that will never expire. We have the highest regard for our clients, and our business experts leave no stone unturned in the quest to offer the best business formation services in the UAE. Get in touch with Shuraa today to discuss more about online businesses.
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