Your Ultimate Guide to Thriving in UAE’s E-Commerce Market!

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The world of e-commerce is expanding all over the world and UAE is not an exception. UAE has seen continuous growth of E-Commerce business since COVID time and leading all the GCC states. The E-Commerce market all over GCC jumped by 53% by 2020 with a record of $3.9 billion sales in E-Commerce, which was 10% of the total retail sales. The Dubai Chamber of Commerce and Industry forecast E-Commerce to generate $8 billion in sales by 2025.

Flashback of E-Commerce in UAE

Traditional store based companies like Carrefour and Lulu group has created their online platform to increase their revenue. In 2017 Amazon bought Souq.com which was the largest online platform for products trading. Again in 2017 Mohamed Alabbar, the Chairman of EMAAR group launched NOON and tied up with e-bay in 2018 to import goods from US. Recently Chinese competitor TEMU has entered the market mostly with the day-to-day products.

But apart from all these giants on a regular basis UAE has seen many more E-Commerce companies who are continuously providing different products at a better price and also services online. The main trading sectors are Fashion and clothing, Electronics, Hobbies and DIY, Home and Kitchen appliances etc.

Let us see the main reasons entrepreneurs want to start an e-commerce business:

Flexibility of Location

This business can be started in UAE and still can do business from other countries without having any physical substance in those countries.

Initial Low Investment

An E-Commerce business doesn’t require a big investment for its working capital. E-commerce models like drop shipping can even sustain at a yearly budget of AED 50000 only depending on the nature of the business.

Be your own boss

It’s a dream for many working employees to start their own business and being a low barrier business E-Commerce provides the entrance to many of them easily.

UAE being located in a strategic place on the world map and also being one of the leading fashionable country in the world hits the jackpot for many E-Commerce entrepreneurs.

How to get the license of e-commerce in UAE?

UAE needs a legal document from an entrepreneur to run the E-Commerce business. Without having a license practicing a business can draw penalty. Hence, having a license is a must.

Different free zones all over the UAE provides E-Commercelicense. Let’s see the steps below for the license formation and operating the business:

Understanding the rules and regulations of the free zone and selecting the one as required
Providing all the required information about the shareholders, managers to the authority
Paying the fees to the authority
Applying for establishment card, e-channel for visa application
Applying visa for the shareholders and employees
Opening a bank account
Appointing a gateway on the online platform
Appointing Delivery services company
Registration with NOON and AMAZON
Checking for Amazon storage or other warehouses for storing of products
Understanding the rules and regulations of the license and other required documents renewals
Maintaining all the legalities for the operational use

And now your E-Commerce company is ready to start its operation. These steps all should be performed one after another following proper guidelines by the authority. For a new person it may be overwhelming to understand the rules and regulations of all the free zone and to select the right option. Also an experience business setup company like OneClik Business Setup Services LLC FZ does not only assist to find the right free zone as per the requirement but also assist to get the license and providing proper reminders to renew all the required documents and also extend their services for assisting to maintain the legalities.

Benefits of E-Commerce license from a Freezone

100% ownership
Office lease agreement for co-working space is provided by the license issuance authority
Bank partner support from different free zones
In built gateway with few banks
Freedom of doing business all over the world
Choices of different packaged based on visa to scale the company
Competitive prices

These license comes with even zero visa option making it easier for those who are already having a residential visa and just looking for a license to start their journey. Having an E-Commerce license is like a gate pass to deep dive and know more about the transactions in the digital world. UAE is relentlessly working to make E-Commerce platforms secure and safer to continuously do the transactions.

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