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