Studies by Dubai Economy and Visa predict that between 2018 and 2022, e-commerce transactions will expand by an average of 23% every year. 144 dollars was the average amount spent on E-commerce in the UAE in 2018-2019. Even though the Mena area has a 1.9 % e-commerce penetration rate and the GCC has a 3 % e-commerce penetration rate, the UAE has the highest e-commerce penetration rate in the region at 4.2 % cent of total sales.
Specifically, we are going to address the subject of whether or not an e-commerce firm in the UAE requires online business license. Also, we want to point out the distinction between e-commerce and e-trading, two distinct ideas.
To begin, the answer is yes. A online business license is required to operate a business in the United Arab Emirates, and this includes using an e-commerce site, sometimes known as an online store. According to the notion, e-commerce is a marketplace where buyers and sellers transact directly, with the supplier of e-commerce receiving some set or adjustable compensation in exchange. The e-trading notion, on the other hand, is a little different in that you only sell items that you possess.
Amazon.com is a well-known example of an e-commerce website.
As you can see, the website’s many merchants are critical to its overall success. In contrast, the seller in an e-commerce transaction is a single business with a collection of items. Online, you’ll find lots of good examples of e-trading. Brands for Less, a local retailer, is the one we’ll be looking at in this situation. It is not uncommon for an online business to have physical retail or wholesale location, whether in a strip mall or a street. The costs, needs, and timelines for implementing these models may be discussed now that the differences have been clarified. We’ll begin with electronic trading.
In most cases, e-trading organisations will send your order within three or more working days for a fee of at least $4,500. For e-commerce, the price tag is slightly higher at around USD 8.300+. Simply a copy of your passport, a copy of your most recent utility bill, a copy of your curriculum vitae, and a letter from your bank is all that’s needed to get started.
Our discussion on whether or not you need a online business license has come to an end. Questions about needs, expenses, and timeframe have been addressed. UAE Freezone permits may now be obtained without ever setting foot in the country. An online bank account is another option for collecting payments from your customers. There are several options to get started in the United Arab Emirates, even if you have never set foot in the country.