Did you know that businesses with an online presence tend to outperform those without? With just a good laptop, relevant software, and a high-speed internet connection, businesses can offer their services to customers worldwide.
If you’re considering obtaining an online business license in Dubai, you’re on the path to success. Dubai boasts excellent internet penetration and is a thriving B2C eCommerce market.
With the right guidance, setting up an e-commerce license in Dubai can be a quick and straightforward process. Discover the costs and requirements for obtaining an online business license in Dubai with this comprehensive guide.
In this article , we ll guide you step by step process to start an Online Business in Dubai, UAE
Table of Contents
What is an Online Business in Dubai?
Any commercial business organization using the internet to run its business operation can be referred to as an online business in Dubai. An online business does not necessarily need to only trade goods on the internet but can also choose to offer online services like teaching, consultation, training, and yoga, among many others. There has been a massive surge in online goods and markets which resulted in a surplus of online business organizations.
Read More: How to Start Ecommerce Business in Dubai
You will have access to a huge market in Dubai by starting an online business, as the majority of the people in Dubai have access to the internet. Thanks to the advanced infrastructure of Dubai, you can set up your online business very easily. Additionally, you will not need to acquire physical office space to start an online business in Dubai which will significantly reduce your initial investment. However, you will need to acquire a business license based on the business activities you are planning on performing to run your business operation legally in Dubai.
Company Setup consultants will assist you through the whole process to make your dream come true without any hassle. With the help of our expert consultants, you can easily acquire a business license and enjoy the profit from your investment.
Benefits of Starting an Online Business in Dubai, UAE
Starting an online business in Dubai comes with numerous benefits. Here are some of the benefits of starting an online business in Dubai:
- Full profit repatriation
- Full ownership of business
- Fast and easy setup process for acquiring a business license
- Economical setup and operating costs
- No personal tax
- Ease of conducting business
- Bank account assistance
- Residence visa granted for 3 years
Steps to Start an Online Business in Dubai, UAE
Company formation in Dubai may seem complex, but by following a simple step-by-step process, it can be much easier than you think. Working with Company Setup Consultants can make obtaining your online business license effortless. Here are the five easy steps:
Step 1: Choose Name to Start Online Business in UAE
Ensure that your company name complies with the UAE’s naming regulations, avoiding offensive language or names already in use by well-known organizations.
Step 2: Decide between a free zone or mainland license
Choose whether you want to obtain your business license from a free zone or the mainland. Free zone companies enjoy benefits like 100% business profit repatriation, no corporate tax, 100% business ownership, and no customs fees. Mainland companies have the advantage of accessing both international and local markets.
Step 3: Apply for an e-commerce license
Depending on your license type (mainland or free zone), apply for an e-commerce license with the appropriate authority. Mainland license applications are submitted to the Department of Economic Development (DED), while free zone applications are submitted directly to the chosen free zone.
Here are the online business licenses available in Dubai:
a). E-trader License: If you are a UAE or GCC national residing in Dubai, this might be the option for you. With an E-trader License, you can trade your products and offer your services online without even having a physical office space for your company.
b). Portal License: A portal license is specially tailored for a non-UAE national who wants to start an online business in Dubai. With a portal license, you are legally permitted to offer your products and services online.
c). Virtual Company License: This type of online business license is specially designed for foreign entrepreneurs and investors who want to run their companies remotely. A Virtual Company License only covers business activities concerning designing, advertising, and programming.
Step 4: Apply for visas
Once your license is approved, apply for UAE visas for yourself, your staff, and your family members if needed. This step allows you to legally reside and work in the UAE.
Step 5: Open a business bank account
After obtaining your license, it’s essential to open a business bank account. A bank account is necessary for conducting financial transactions and operating your business in the UAE.
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How much does it cost to start an online business in UAE?
Several factors will determine the cost of starting an online business in UAE. You must consider factors like the types of business activities you want to perform, the location of your business, the cost of hosting a website, the cost of acquiring an online business license, etc., when calculating the cost of launching your online business in Dubai. The cost might rise if you need to get additional approvals. A general portal license will cost you around AED 12,000 in Dubai. Overall, cost of start an online business in Dubai around AED 15,500 to AED 30,000 to .
Documents Required to Start an Online Business in Dubai
The documentation process is there to mainly verify your authenticity. Be careful when submitting documents, as submitting older or wrong documents may result in immediate rejection of your application.
Here are the documents you will need to submit to start an online business in Dubai:
- Name for your online business (minimum three trade name choices)
- Passport-size photographs of the shareholders
- Photocopy of the shareholders’ passport
- Photocopy of shareholders’ visa
Top 7 Online Business ideas in Dubai Worth Considering:
Here are 7 promising online business ideas in Dubai to consider:
1. Virtual Fitness Training – With the rise in online workouts, yoga, and meditation, becoming a virtual fitness instructor is a rewarding option.
2. Wellness Coaching – Certified nutritionists and wellness experts can provide their services virtually to support people’s well-being.
3.Mental Health Support – The changing times and the impact of Covid-19 have created a growing demand for online counseling services.
4.Social Media Management – As businesses shift online, there’s a high demand for managing social media platforms for brand visibility and advertising.
5.Dropshipping – A straightforward approach for entering the e-commerce world, where you sell products without holding inventory.
6. IT Solutions – The increasing reliance on technology has opened opportunities for IT services and solutions.
7. Consulting Services – From education to finance and recruitment, various consultation services can be provided digitally to cater to diverse needs.
10 online business ideas in UAE
You can perform a wide range of business activities by starting an online business in Dubai, UAE. However, you should choose an idea for your online business that compliments your skill, knowledge, and experience.
Here are some of the online business ideas in UAE, you can choose :
- Consultancy Services
- Clothing Store
- Food and bakery
- Affiliate marketing
- Educational services
- E-commerce store
- Tutoring
- Social media marketing
- Fitness instructor
- Trading
How much does it cost to start an online business in Dubai?
Several factors will determine the cost of starting an online business in Dubai. You should expect to incur a cost of around AED 15,500 to AED 30,000 to start an online business in Dubai. The cost might rise if you are required to obtain additional approvals or use a foreign trading name.
Is it legal to do online business in UAE?
Yes, conducting online business in the UAE is legal, but it is subject to certain regulations and requirements. To operate an online business, you generally need to obtain the appropriate licenses and permits from the relevant authorities. The UAE government supports and promotes eCommerce activities, but it’s essential to comply with the laws and policies that regulate online business operations. It’s advisable to research and understand the specific legal framework and guidelines governing eCommerce in the UAE to ensure that your online business operates within the legal boundaries.
What license do I need to sell online in UAE?
There are several types of online business licenses available in Dubai. The type of license you will need to obtain will be determined by the business activities you will be performing. If you are planning on promoting or selling your products online through a personal website or social media, you will need an E-trader license in Dubai.
Do I need a business permit for an online business?
Every kind of registered business will need a business permit to run its business operations legally in Dubai. This also includes online shops. The business permit works as proof of the legitimacy of your business and allows you to run your business operations legally.
Can I sell online without a business license in UAE?
Operating any business in Dubai without a license is against the law, including online ventures. If you intend to sell products on the internet, you must obtain an e-commerce license.
Start your Online Business in Dubai with company setup
If you’re looking to start an online business in Dubai but need guidance, you’re in the right spot. Company Setup Consultants have aided 25,000+ brands in the UAE. Our experts will address your queries. Connect today to get your business going strong.
Click here to book a free consultation with our experts and know more on how to register an online business in Dubai. Call +971582595164. You can also send a WhatsApp message at +971582595164. For email assistance, mail your query at [email protected]
