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How to Start an E-commerce Business in Dubai?

E-commerce Business in Dubai

How to Start an E-commerce Business in Dubai?

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In the UAE, 68% of online buyers favour retail websites, while 17% favour brand websites for their purchases which favours e-commerce business in Dubai. With such a sizable market in mind, Dubai has been implementing the most recent technological advances in its trade zones. These technological changes would also expedite the establishment of new e-commerce businesses.

Considering the scope and facilities in UAE, entrepreneurs are turning to e-commerce, reaching out to more markets. Thus, an e-commerce business in the UAE offers ample opportunities for UK entrepreneurs. This blog will walk you through how to start an e-commerce business.

Benefits of Starting an E-commerce Business in Dubai

The E-commerce industry in the UAE is ushering in the next wave of transformation. If you’ve been thinking of venturing into it, here are some of the benefits of starting an e-commerce business in Dubai:

1. Minimal Paperwork and Government Support

There have been many technological reforms and government initiatives to start a company in Dubai, significantly reducing the required paperwork and making the process more streamlined.

2. Growing E-commerce Market

Based on the global e-commerce accelerator Pattern’s survey, 74% of the UAE population would spend more on online shopping in 2022. This indicates a strong demand and a considerable scope for e-commerce businesses to flourish.

3. 100% Ownership and Tax Benefits

You can have 100% ownership over your e-commerce business in the UAE. Additionally, you can repatriate all the capital you’ve invested and earned profits. Thanks to Dubai’s tax-free environment, you may not need to pay taxes on your e-commerce business either.

4. Multiple Currency Transactions

The UAE allows multiple currency transactions, making it easier for international businesses and customers to engage with your e-commerce platform.

5. Strategic Location for Global Trade

Dubai serves as a strategic location that connects the four corners of the globe by land, air, and sea. The city’s world-class logistics facilities make it a profitable location for businesses, particularly for UK-based e-commerce ventures.

6. Access to Advanced Technology

Dubai is one of the world’s most technologically advanced emirates. You can leverage these cutting-edge facilities to enhance your e-commerce business activities, improving everything from website functionality to customer experience.

7. Cost-Effective Growth and Storage

As your e-commerce business grows, you’ll likely need more inventory and storage space. These requirements are far less costly than setting up and maintaining a physical store, and Dubai is well-equipped to support such needs with affordable and efficient logistics.

8. Access to Potential Suppliers

Several businesses in Dubai deal with a wide range of products and services. These companies could serve as potential manufacturers or suppliers for your e-commerce business, allowing you to build a strong supply chain.

9. Cost-Effective Marketing and Accurate Targeting

Marketing an e-commerce company is more cost-effective than traditional offline promotion. Additionally, through your e-commerce platform, you can access valuable customer data, enabling you to target your marketing more accurately and effectively.

What Documents Do You Need to Start an E-commerce Business in Dubai?

You’ll have to submit some documents before you start an e-commerce business in Dubai. Correct and valid documentation will wind up the company formation process quickly. The documents mentioned below are just a peek of what’s needed:

  • Copies of passports and visas 
  • Two passport-size photographs 
  • Entry visa and stamp pages

Experts at Shuraa can help you with the detailed list of the required documents. 

The Process of Starting an E-commerce Business in Dubai from the UK

Once you have all the mandatory documents, you can begin setting up your e-commerce business in Dubai. We’ve broken down the process into seven steps. Read on to know better.

1. Decide the Business Activity

The first step in starting an ecomm business is to choose a business activity. Investigate the e-commerce spaces you’re interested in. Accordingly, pick a business activity that you can carry out confidently. 

2. Register Your Company’s Name

Your e-commerce company’s name is an important aspect of your business. So, come up with a distinctive, memorable and authentic name. Then, register that name with the concerned authorities. 

Note: The UAE authorities have stipulated some rules for naming a business. Make sure that you abide by those rules while choosing your company’s name.

3. Decide Your Company Structure

An e-commerce business with the right corporate structure would function more efficiently. So, select an appropriate structure for your e-commerce company. The structure could be a sole proprietorship, a Limited Liability Company (LLC) or a foreign company’s branch office.

4. Apply for the Licence 

Obtaining an e-commerce licence is a legal requirement. Moreover, opening a corporate bank account eases when you have an e-trader licence for your e-commerce business. To apply for an e-trader licence, submit the required documents and pay the licence fees.

Shuraa’s experts can help you with the e-commerce licence cost in Dubai and the type of licence required. Based on your company’s business activities, they can also help you get additional approvals if required. 

5. Choose Your Business Location

Every location in Dubai has its own benefits and provides distinct amenities. So, consider the needs of your e-commerce business before you select a business location in Dubai. You can choose from the mainland or one of the free zones

Consider the size of your staff, the digital infrastructure required and, most importantly, your budget. Apart from this, you’ll have to decide whether to rent or lease the office space.

6. Get Your Licence

You can get your e-commerce company licence after you’ve successfully concluded all the above steps. The licence will not only legitimise your e-commerce company but also promote your stature as an e-commerce business owner in the UAE. 

You can also mention being licensed on your e-commerce website. Hence, you’ll earn an image of being trustworthy and safe in the e-commerce market.

7. Launch Your E-commerce Company

Once you get your e-commerce licence, register your desired domain name as soon as possible. Note that domain names are subject to availability. Thus, it is advised to be prepared with a few alternatives for your e-commerce company’s name. Further, look for manufacturers or suppliers offering high-quality products. Also, you may opt for some eye-catching marketing campaigns for your e-commerce business.

What Is the Cost of Starting an E-commerce Business in Dubai?

The cost of Starting an E-commerce Business in Dubai is approximately AED 10,000 to AED 30,000 ( around USD 2,700 to USD 8,100). For instance, the licence and approvals required, the e-commerce platform for your website, marketing efforts and so on. So, determining a precise number is not possible. Shuraa UK’s professionals will help you start your e-commerce company. They will also ensure you don’t overspend.

Start Your E-commerce Business With Shuraa UK

With Shuraa UK, setting up and launching your e-commerce business is more attainable than ever. We can smoothen your journey of establishing your e-commerce business in UAE from start to finish. We’ll provide you with every resource you need to start a successful e-commerce company. We can also provide custom-made business setup packages if your e-commerce company has specific needs. So, let’s get started!

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