UAE Mainland Company Formation

How to Start an E-Commerce Business in UAE

How to Start an Ecommerce Business in UAE

E-commerce has been the fastest growing business in the UAE. The E-commerce market in UAE has grown from 2.5Billion in 2014 to 10Billion in 2018. Dubai has made major efforts to establish itself as a leading platform for e-commerce hub. For this, they have formed an exclusive freezone, Dubai Commercity, dedicated for E-commerce market. The country’s many business-friendly policies, designed by a very progressive government, offer a fertile environment for new and young e-commerce businesses to flourish and grow.

Driven by consumer demand, all sectors in the business world are adopting online technology at an overwhelmingly fast pace. Online stores have evolved to meet an increasingly demanding consumer base. We can shop in the comfort of our homes, where, the point of going through products, comparing prices, consumer reviews, secure payments have become very convenient.

How to set up an E-commerce business in Dubai

  1. Decide DED or Freezone

It is better to look into the pros and cons of choosing Freezone or Mainland.

  1. Office Space

Mainland companies must have an office space while for freezones it is not mandatory to have one.

  1. Website Development

Since the main factor governing this business is the online platform, it is mandatory to set up a website. Following are the steps:

  1. Register a domain name

You will need to choose a domain or a company name, which will be used as in your website. There are a large number of companies offering domain name registration service in Dubai.

  1. Setting up a payment gateway

Since people will be purchasing products via your e-commerce websites, you need to set a payment gateway in your website. This allows people to make payment via their credit/debit card or via PayPal.

  1. Import/Export

It is required to register with the relevant emirate’s ports and customs authority. An Import/export code will be assigned. A customs duty of 5% will be applicable to goods being imported. Freezones are exempt from this customs duty if they are selling the products within the freezones or outside. But if they are planning to sell to the UAE markets, then the 5% customs duty is applicable and also have to appoint a local agent.

There are freezones that do not require the presence of the owners to start the E-commerce business and the process can be completed in 1-3 working days. To know more about how to start an e-commerce business please feel free to drop a message.

What are some of the cost involved in setting up a business in Mainland UAE?

Business setup in Dubai

 

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