How To Start an Ecomยญmerce Busiยญness In Dubai?One of the many wonยญderยญful feaยญtures of the Interยญnet is that it allows everyยญone to do busiยญness in almost any locaยญtion, from almost anyยญwhere. An indiยญvidยญual can launch a comยญmerยญcial enterยญprise from the comยญfort of their own home office if they choose โ a brick-and-morยญtar buildยญing isnโt strictยญly required.In fact, many busiยญnessยญes thrive with nothยญing more than a well-proยญmotยญed online presยญence, servยญing cusยญtomers in all kinds of enterยญprisยญes withยญout ever meetยญing them. Dependยญing on the nature of your operยญaยญtion, a well-designed webยญsite is all you need to start doing busiยญness and servยญing clients.Is setยญting up an eโcommerce site in the Unitยญed Arab Emiยญrates (UAE) any difยญferยญent? Does it afford entreยญpreยญneurs the same potenยญtial for success?Both of these are excelยญlent questions!We did a deep dive into how you go about setยญting up an online busiยญness in one Emiยญrate, in parยญticยญuยญlar, Dubai. We researched the regยญuยญlaยญtions, searched busiยญness sites that deal with these issues, and conยญcludยญed that launchยญing an eโcommerce site in Dubai makes excelยญlent busiยญness sense. Conยญtinยญue readยญing and find out how you, too, can estabยญlish a busiยญness online in Dubai and make it a comยญmerยญcial sucยญcess story.
Details About Dubai: What You Need To Know
- Folks In Dubai Love The Internet
Did you know that Dubai (and the UAE overยญall) has one of the highยญest penยญeยญtraยญtion levยญels of the Interยญnet anyยญwhere in the world? In othยญer words, peoยญple in Dubai use the Interยญnet a lot! And thatโs good news for anyยญone wantยญiยญng to launch an eโcommerce site.There is virยญtuยญalยญly none of the usuยญal resisยญtance to online shopยญping, for examยญple, that you may find in othยญer parts of the world. Nor is there limยญitยญed reach because the Interยญnet is accesยญsiยญble almost everyยญwhere. Accordยญing to the Gulf Coopยญerยญaยญtion Counยญcil (GCC), more than 60 perยญcent of online shopยญpers in the region are based in Dubai, and that numยญber is conยญstantยญly growยญing. (For more inforยญmaยญtion about the Counยญcil and its role in the region, visยญit: Gulf Coopยญerยญaยญtion Counยญcil). Thatโs an appealยญing figยญure for resยญiยญdents or forยญeign entreยญpreยญneurs lookยญing to estabยญlish their presยญence in Dubai. Howยญevยญer, before jumpยญing in with both enthuยญsiยญasยญtic feet, itโs essenยญtial to know the marยญket and your potenยญtial role in it.
1- Know Which Business Model Is Best For Your Operation
In Dubai, there are difยญferยญent busiยญness modยญels to choose from busiยญness-to-busiยญness (B2B), busiยญness-to-client (B2C), and client-to-busiยญness (C2B). The one you select should be deterยญmined by sevยญerยญal facยญtors, includยญing your cusยญtomersโ requireยญments, marยญket trends, and your operยญaยญtionโs unique valยญue propoยญsiยญtion (UVP). Once this choice is made, you can get going on your eโcommerce webยญsite design and preยญpare to launch.
2- Decide On a Location
In Dubai, you need not have an actuยญal place โ a brick-and-morยญtar space at which you and your employยญees work. You can run things from afar, so to speak. Also, you need to decide in advance if you want to operยญate in the emiยญrateโs free zone or non-free zone โ in othยญer words, on or off the Mainland.These are the two types of legal areas in which you can apply for a busiยญness license. The benยญeยญfits of operยญatยญing in the free zone (which means not on the mainยญland) are many: there is
Zero perยญcent income tax.
Cusยญtoms duties are extremeยญly low.
All the comยญpaยญnyโs profยญits are kept by you, and you can retain total ownยญerยญship of the eโcommerce business.
Those comยญpaยญnies regยญisยญtered in the free zone are not allowed to operยญate outยญside the boundยญaries estabยญlished by the license unless they apply for and receive a Mainยญland license. Any comยญpaยญny in the free zone that wishยญes to do busiยญness in the Mainยญland zone must be grantยญed perยญmisยญsion from the Departยญment of Ecoยญnomยญic Develยญopยญment of Dubai (DED). For more inforยญmaยญtion on the guideยญlines, and the departยญment itself, visยญit the Departยญment of Dubai Ecoยญnomยญic Develยญopยญment.
3- Register Your EโCommerce Trade Name
When selectยญing a name, you must conยญsidยญer and respect the cusยญtoms and traยญdiยญtions of Dubai (and the UAE in genยญerยญal). Avoid cheeky or slangy names, and be sure there are no simยญiยญlar names already regยญisยญtered in Dubai. Stay away from names with any hint of conยญtroยญverยญsy or ties to a speยญcifยญic reliยญgion. And if you regยญisยญter it in your own name, be sure you use your full name. Abidยญing by these guideยญlines will make the regยญisยญtraยญtion go faster and more smoothยญly. Regยญisยญter the name with the DED.For any online busiยญness or serยญvice to sucยญceed, cerยญtain feaยญtures must be in place. Below are some key feaยญtures weโve idenยญtiยญfied for eโcommerce sites in Dubai and everyยญwhere! These are universal.
4- Most Importantly, Your Site Should Be Easy For Users To Navigate!
It also needs to be secure so cusยญtomers who may share perยญsonยญal details (like bankยญing details or conยญtact inforยญmaยญtion) feel conยญfiยญdent that their priยญvaยญcy is proยญtectยญed. Choosยญing an expeยญriยญenced webยญsite builder and designยญer will achieve these outcomes.
5- Decide On a Payment Plan, Known As Payment Gateways
To have a payยญment gateยญway on your site, you must first estabยญlish a merยญchant account with your finanยญcial instiยญtuยญtion โ a bank or othยญer serยญvice provider. In the UAE, the orgaยญniยญzaยญtion responยญsiยญble for elecยญtronยญic transยญacยญtions is called the Telecomยญmuยญniยญcaยญtions Regยญuยญlaยญtoยญry Authorยญiยญty (TRA).Check out their guideยญlines for payยญment gateยญways, and be sure your webยญsite builder meets them. For examยญple, cusยญtomers need access to 24/7 supยญport on your site in the event of a payยญment glitch. Thatโs one of the recยญomยญmenยญdaยญtions of the TRA. In order to meet TRA guideยญlines, you need at least one payยญment gateยญway โ Stripe, PayยญPal, etc. โ on your site.
6- Strong Customer Support Is Key
If there is one feaยญture of an eโcommerce site in Dubai or anyยญwhere else that conยญtributes to sucยญcess over the long term, it is cusยญtomer supยญport. Users must know that their conยญcerns (payยญment issues or tech probยญlems) will be hanยญdled promptยญly and effiยญcientยญly. Doing so builds a repeat cusยญtomer base. In Dubai, you can hanยญdle this all-imporยญtant feaยญture yourยญself in-house, or you can hire talยญent from outยญside your webยญsite builder to hanยญdle this for you.
How Do You Qualify For An EโCommerce License In Dubai?
Like all places, Dubai has eliยญgiยญbilยญiยญty requireยญments you must meet in order to be grantยญed an eโcommerce license. Forยญeign nationยญals are offered proยญfesยญsionยญal licensยญes, while UAE and GCC resยญiยญdents are grantยญed eโcommerce licenses.The Criยญteยญria Are:
Appliยญcants must be at least 21 years of age.
Must have valid UAE identification.
Your comยญpaยญny name must be regยญisยญtered with the DED.
You must pay the license fee withยญin one day of fillยญing out the paperwork.
Once grantยญed the license, it is renewed each year, and the fee is due annuยญalยญly as well.
Once you receive the license, itโs vital that you keep all relยญeยญvant docยญuยญments withยญin easy reach so they are handy at renewยญal time. A comยญplete list of all eโcommerce license criยญteยญria set out by the DED is on its website.
In Summary, Here Are The Benefits Of an EโCommerce Business In Dubai
You pay litยญtle or no income tax or cusยญtoms duties.
An eโcommerce busiยญness is flexยญiยญble and gives you plenยญty of expanยญsion opportunities.
Dubai has a very low VAT rate โ just five perยญcent. (Valยญue Added Tax).
Wareยญhouse facilยญiยญties are availยญable at reaยญsonยญable costs if your busiยญness requires them.
There is plenยญty of local talยญent availยญable for hire, whether itโs secuยญriยญty for your site or a builder to get it up and runยญning. Dubai is filled with expeยญriยญenced, knowlยญedgeยญable peoยญple who know techยญnolยญoยญgy and know the culยญture โ a win/win comยญbo for any busiยญness perยญson, parยญticยญuยญlarยญly those from outยญside the UAE.
What Does an EโCommerce License Cost?
That depends. Sevยญerยญal facยญtors impact price, includยญing which type you want (Mainยญland or free zone) and how large your busiยญness is. But genยญerยญalยญly speakยญing, licensยญes run between (AED) 15,000 to 50,000.
In Conclusion
Dubai is a modยญern, excitยญing and sophisยญtiยญcatยญed place with a popยญuยญlaยญtion that is not only comยญfortยญable using the Interยญnet but also embraces it. That means that there is no resisยญtance to doing almost everyยญthing online, from shopยญping to bankยญing to investยญing and so much more. As an eโcommerce busiยญness perยญson, you wonโt have to build a marยญket, proยญvidยญing you do your research before launchยญing to deterยญmine whether there is a genยญuine appetite for the goods and/or serยญvices youโre lookยญing to provide.Speakยญing of research: rememยญber to do yours! If you can, talk to peoยญple who run eโcommerce sites in Dubai. Read about the demoยญgraphยญics and cusยญtoms of the folks youโre hopยญing to serยญvice. In othยญer words, do your homework!Once your eโcommerce site is up and runยญning in Dubai, it will be a hit if you pay attenยญtion to the two most imporยญtant feaยญtures that users insist upon: secuยญriยญty and an easy payยญment gateยญway. Thatโs true for conยญsumers not just in Dubai but all around the world.
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