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The UAE’s e-commerce market is booming! If you’re curious about the surge in demand for e-commerce licenses in Dubai, it’s because the market’s value soared to USD 3.9 billion in 2020, marking a 53% year-on-year increase. Market analysts predict this is only the beginning, with expectations that the UAE’s e-commerce sector will reach USD 8 billion by 2025—more than doubling its current value in just four years.
With such immense opportunities on the horizon, it’s no surprise that many entrepreneurs are eager to establish their online businesses and capitalize on this significant growth. This is likely why you’re here, ready to explore the potential of the UAE’s thriving e-commerce market.
The application process for an e-commerce licence varies across different jurisdictions in the UAE. Here’s a comprehensive guide to help you understand the documents you need to prepare and the steps involved in obtaining an e-commerce licence.
To begin your application, you’ll need to gather the following details and documents:
Submit the gathered documents to the free zone or mainland jurisdiction where you wish to register your business. Once the documents are received, your application will move to the initial approval stage. To initiate this process, you typically need to make a payment, which may start from AED 5,750, depending on the jurisdiction.
Most jurisdictions require pre-approval before issuing your licence. The processing time varies: in free zones, it usually takes 3 to 7 days, while in the mainland, the process can be completed on the same day or within 2 days.
After your licence is issued, digital copies of the documents will be sent to you. Some free zones may also require you to receive original documents, which will be dispatched at a later date.
If the e-commerce licence package includes visas, the visa application process will commence once the immigration card is issued.
Several free zones in the UAE provide e-commerce licences or alternatives that allow you to conduct e-commerce activities. Here are some of the top free zones:
Yes, mainland jurisdictions in the UAE also offer e-commerce licences. Here’s a look at the options available:
The Dubai Department of Economic Development (DED) issues the eTrader licence, which allows entrepreneurs to conduct business activities via social media channels. Currently, this licence is available only to UAE and GCC nationals living in Dubai. Note that the eTrader licence is restricted to a single owner, and it doesn’t permit setting up a physical shop or applying for visas.
Another option is the general trading licence in Dubai mainland, which allows for online commercial activities. The cost of this premium trading licence starts from AED 30,000.
The Abu Dhabi Department of Economic Development (ADDED) offers the Tajer Abu Dhabi licence for UAE nationals, residents, and GCC nationals. This licence allows holders to add online business activities to their existing trade licences or obtain a new licence for conducting business online through websites or social media channels. The Tajer Abu Dhabi licence supports three types of legal structures:
The Sharjah Economic Development Department (SEDD) issues the Eitimad licence for home-based and online businesses operating via social media channels. This licence is available to UAE nationals living in Sharjah, who must be at least 18 years old.
Ras Al Khaimah offers the Virtual Merchant Licence, which allows entrepreneurs to conduct business activities via social media platforms, websites, or smartphone applications. Available to UAE nationals living in Ras Al Khaimah, the Virtual Merchant Licence covers various business activities, including online retail, information technology, real estate brokerage, advisory/consultancy, and professional and information activities performed via technological channels.
By understanding these steps and options, you can better navigate the process of obtaining an e-commerce licence in the UAE and seize the tremendous opportunities in this rapidly growing market.
Existence in this spot, which was created for the bliss of souls like mine. I am so happy
Our time-tested process saves you time and money, while removing the headaches of beginning your journey. We know the game. We have the networks. We are the leaders in this space.
Business setup in Dubai (or anywhere in the UAE) can be complicated. Decisions need to be made which can affect your journey and shape your success. Jurisdiction? Free zone or mainland?
