Online shopping has become an essential part of our lives specially since the present covid-19 situation. All the businesses that decided to go online, prospered and expanded even more.

An online company setup in UAE provides an entrepreneur with oceans of new possibilities. E- commerce is also amongst the various business set up in UAE that provides tremendous opportunities to people.

The availability of internet to everyone has made the E- Commerce sector expand and has been beneficial for both the customers and the service providers.

For getting a trade license in UAE , A person needs to follow a series of steps. A proper procedure needs to be followed to get a license for an e-commerce business.

Types of E- commerce license available in Dubai

There are three types of e commerce licenses-

1. E- trader license

2. Portal License

3. Virtual Company license

E- trader license

This permit is provided to people who want to sell their products or provide services online. It is provided by Economic Development Department.

Portal License

It is the best for websites listing products, services and reservations. Non-EAU nationals can also obtain this license.

Virtual Company License

UAE and Non UAE residence can do business related activities in the area with the help of this license.

An E-commerce license in Dubai has no currency restrains. It provides 100 percent Dubai free zone ownership. One has to pay 0 percent corporate and personal taxes.

There are no duties on e commerce licenses and in addition to that the cost of operation is also minimal. One gets three years of approved resident visa as well.

Documents needed to get an E commerce license in UAE

· Copies of shareholders’ passports/visas

· Passport copy of partner / Emirates ID

· Local service contract / Civil work contract

· NOC by the authority concerned

· An MOA drawing up

Procedure to obtain an E commerce license in UAE

1. Choose your work zone- If your work zone is mainland then Department of Economic development issues the license however in case the work zone is free zone then the respective free zone authority issues the license to the person who needs to start the business.

2. Registering the name of the company- the name of the company is a company’s identity.

This name also needs to be approved in order to avoid issues such as the name being inappropriate or offensive for a particular community or group of people.

The name can be chosen with the help of business setup consultant in UAE.

3. Filling the application for E commerce license- A duly filled application form along with all the essential documents and papers mentioned above has to be deposited to get a license issued.

4. Apply for a NOC – an Initial approval certificate is issued by the concerned authorities. It is essential to have a no objection certificate from the concerned authority in order to obtain a license to practice business in e commerce sector.

5. Registering a virtual office- It is now essential for every mainland company setup in UAE to register a virtual office in order to work legally.

6. Following the steps completely in a correct order– if one follows these steps correctly, the business license is issued within one to seven working days.

7. Registering with ports and authorities – to practice trade by importing or/and exporting goods and services, one needs to get their business registered with ports and other concerned local authorities. There are no duties imposed on the activities taking place in the free zone.

8. Applying for visas– Applying for visas is an essential part of the process. It depends on the size of the business.

9. Opening a corporate bank account– A corporate bank account is essential to apply and obtain a license for e commerce business

In today’s world, e commerce has become a necessity. Many tasks that were difficult earlier are now done easily just because the world has gone online. The e commerce sector will continue to flourish in days to come as it promotes a digital world and is essential for better connectivity between various regions.

It provides entrepreneurs a wide range of opportunities to go global with a few easy steps. It is a great option specially now with ‘the new normal’.

We at Projectfrpjsc help you in getting your dream company registration in UAE with proper guidance. Several processes can be done without your physical presence, we will provide you with the solutions to all business set up related problems.

With our support, you can expand your empire in the ocean of endless opportunities provided by UAE. Contact us for assistance in setting up your company without any hassle.

Mainland companies are establishments licensed to run in mainland zones in the UAE. Mainland company setup in UAE has been a popular choice in the past few decades. This preference arises from the versatile market and great exposure that the UAE market has at its disposal.

Business setup in Dubai mainland have an upper hand as compared to others, such as the free zone or offshore zone. One of the biggest advantages of being flexible. The ease of flexibility allows companies to set forth with their ventures without having to worry about much. Here are a few reasons why mainland companies are recommended for most business settings.

Trading options with local and international investors

Trading is an important part of any business. You want your company to be able to expand and connect with traders and consumers across the world. Company registration in UAE is known for its exposure and setting base here has been fruitful for many companies.

Dubai mainland business setup companies enjoy restriction-free business as they can conduct business with local and international investors without any prohibition. Being readily adaptable to trading options gives your company an edge. It remains to be one of the most compelling options for companies.

Getting government contracts

Mainland companies get the benefit of taking up government contracts. Government projects are profitable and provide a great portfolio for your company. Taking up government tender bids can only be done by companies who have a mainland license. Thus, proving mainland business advantageous over other business licenses.

New company formation in Dubai cannot take up government tenders and projects due to jurisdiction which puts them at a disadvantage fairly. Government projects are lucrative and have millions of dollars invested in them every year.

If your company matches the criteria required for such projects, it will be highly beneficial and profitable for your business. Working on government contracts and gaining a good reputation for your effort gives you a long term blueprint for future networking and expansion.

Market presence

Choosing a company setup in UAE helps you get a footing in the local and international market. Mainland license allows companies to conduct trade with local and international investors without any objection. This allows companies to directly come in touch with their business partners and thus gain a personal connection with clients.

This further affects the company’s market presence. If you wish to build your presence through the Emirates, market presence will play a huge part. In the case of the UAE free zones, a distributor or an establishment of a third party might be required to conduct business with local investors.

This might affect in the long term as the third party might end up cutting off your profits through service charges. So, to opt-out of such intermediaries mainland business is preferred.

Financial gain

Free zones are known for their low tax and duty rates. But that doesn’t mean mainland doesn’t come with equally attractive stimulus. Mainland companies enjoy zero corporate tax and are exempt from minimum capital requirements. This makes the UAE company formation in mainland zone affordable and cost-effective. Also, unlike a few free zones, mainland companies are not subject to yearly auditing.

Scope of business

Having a mainland license for your company means you can easily expand your business far-and-wide throughout the UAE. Unlike the mainland, Dubai free zone companies cannot expand to other areas for trading activities.

It is a given that mainland license holders also a smoother, faster, and efficient administrative process. This always easy expansion and a larger scope for your business.

Office space and visas

Every mainland company is mandated to have an office. Here is the good news, you can set up your office anywhere in the UAE. Having a mainland license makes your company eligible for renting an office space. The rent can be negotiable with the DED. A rule of thumb – the larger your team is the more visas you can avail for.

There is no limit to the number of visas you can apply for under mainland zone. Not only that, foreign investors can choose to apply for an investment visa which allows them and their families to work and live in the UAE for up to three years. You can get your mainland trade license in the UAE issued by the DED.

These are some of the reasons why you should set up a mainland company. Identify your company needs and business activity and apply for a license.

Want to set up your mainland company in the UAE? Projectfrpjsc is at your service. We help clients with company registration in UAE  for the mainland, free zone, and offshore zones. We help you in every step of the way. Have questions? You can contact our team and we’ll get in touch with you.