10 Factors To Consider When Setting Up an E-Commerce Company in Dubai

Online shopping has become a popular trend among millions of consumers around the world.

It has become a new way of conducting business and an important source of growth for companies. The e-commerce trend in the Middle East is no different. With Dubai fast becoming an e-commerce hub, there has never been a better time to start an e-commerce business than now. To incorporate an e-commerce company in Dubai, you need to go through a set of processes and know all the laws and regulations while doing so. Here are ten factors to consider when setting up an e-commerce company in Dubai.

1. E-Commerce License:

• To set up an e-commerce company, you will need to get a license from the Department of Economic Development (DED).
• If you are considering a free zone company set up, then you will need to procure the license from the relevant free zone authority.
• The type of license issued will be based on the nature of your online business.

2. Office Space:

• Depending on the nature of the business, Dubai-based e-commerce companies must have a physical office space to be considered legal.
• You may require the help of a local sponsor or a UAE resident to help you buy a place, in cases where foreign nationals are not allowed to buy a property in Dubai.

3. Website Development:

• To set up an online business, you need to develop a robust e-commerce platform that is user-friendly and provides a seamless shopping experience.

4. Domain Name Registration & Hosting:

• You need to register a domain name for your website. It is typically your company’s name.
• Your website domain name should be easy to remember and search by online users.

5. Online Payment Gateway Integration:

• Payment gateway integration is critical to an online business. If you are selling products or services online, then you need a stable and secure payment gateway option that guarantees a higher transaction success rate.
• Online payment options include credit card payment, cash on delivery, and PayPal.

6. Import-Export Requirements:

• If you are importing products and selling them online to the UAE market, then your business must be registered with the ports and customs authority in the relevant Emirate, and obtain an importer’s code. A local commercial agent should also be appointed.
• Goods imported are subject to customs duty (often 5%). But free zone businesses are exempt from customs duties if they sell their products within the free zone or outside the country.

7. Logistics Support:

• E-commerce businesses need an efficient logistics support system to have a successful online business.
• You can either build your in-house logistics or outsource to a third-party logistics support partner.

8. Warehousing:

• Warehousing is required for consumer goods businesses to ensure on-time availability.
• It helps in managing the supply chain successfully.
• You can either lease warehouse space or choose to own one.

9. Online Marketing:

• Once you launch your business successfully, you need to focus on the online marketing of your business.
• You need to align your online marketing strategy with the interests of the local population.

10. Customer Retention:

• The future of your online business is dependent on the number of loyal customers.
• After successfully acquiring a large number of customers in the initial phases, you need to take measures to retain those customers.

If you are looking to set up your fully-operational e-commerce platform in Dubai, then contact Creative Zone. We are the leading business setup advisories in the UAE who can help you obtain an e-commerce license in Dubai in no time. Call us on 800 LICENSE (5423673) to know more about our ‘Exclusive E-commerce License Package’ and schedule a free consultation today!