The rise of online businesses came as a surprise for many in 2020 at a time when the traditionally powerful sectors were reeling under pandemic uncertainties. One year after, in 2021, most businesses have started pivoting to the online space, recognising the unstoppable growth trajectory of online businesses. The drastic change in consumer behaviour has forced entrepreneurs to initiate business setup in Dubai with a focus on sunrise sectors such as e-commerce.
Related: 10 Sunrise Sectors Post COVID-19 Series | Dawn of E-Commerce Business in the UAE
Setting up an online business in Dubai is a profitable idea, but many foreign entrepreneurs are unaware of the types of licenses they should apply for. The choice of license entirely depends upon the nature of the business activity. Proper guidance on the various licenses can be gleaned from business setup consultants in Dubai. In the meantime, this blog serves as an essential guide to various licenses available for setting up an online business in Dubai. Read ahead.
E-Commerce License from Free Zones & DED
As per UNCTAD’s Business-to-consumer E-Commerce Index 2020, the UAE is the most prepared country in the Middle East for B2C e-commerce. Entrepreneurs seeking to take advantage of the UAE’s e-commerce preparedness should obtain an e-commerce license from the Department of Economic Development (DED) or the thirty-plus free zones in Dubai. An e-commerce license enables the investors to set up a company in Dubai and sell consumer products such as electronics, home appliances, food items etc., through a dedicated online platform.
Free zones such as DMCC, Dubai CommerCity, EZ Dubai, JAFZA etc., issues e-commerce licensees. A DED license allows investors to sell the products anywhere in the UAE. With a free zone license, you can sell the products only within the free zone, but selling across the UAE is possible by tying up with a logistics company. Consult with the best business setup consultants in Dubai to find out which license suits your business better.
E-Trader License Issued by the DED
Aspiring entrepreneurs often confuse an e-trader license with an e-commerce license while raising business queries with business setup consultants in Dubai. An e-trader license is a permit given to UAE citizens and GCC nationals living in Dubai to sell products through social media platforms. The license is being issued by the DED and is not available in any of the free zones.
An E-trade license is registered only under the name of a single owner. Unlike an e-commerce licence, you cannot open a shop or issue visas with an e-trader license. An e-trader license is issued for home-based businesses. In contrast, an e-commerce license allows you to set up a company under any legal structure, including a Limited Liability Company (LLC).
License for Social Media Influencers
The rise of social media influencers has drastically enhanced branding and marketing strategies across the world, including in Dubai. Individuals with millions of followers can successfully endorse brands to make their followers buy the product or services. Since the influencers are making money out of their social media brand endorsement, they need to obtain an influencer permit issued by the National Media Council (NMC).
The influencer license can be obtained as an individual or by forming a company in Dubai, UAE. A group of influencers can partner together and register a company in Dubai for getting an influencer license. In Dubai, free zones like Dubai Media City is offering influencer licenses. You can also get an influencer license from northern emirates free zones such as Sharjah Media City (Shams) and Ras Al Khaimah Economic Zone (RAKEZ). Consult with business setup consultants in Dubai to obtain an influencer license without any hassle.
Online Education Licenses
The demand for online education services in Dubai skyrocketed after the COVID-induced lockdowns. Many learning centres, schools and training institutes have opened up in Dubai, providing lessons through virtual platforms. As restrictions in social interactions continue across the world, setting up an online education business in Dubai is a lucrative business idea.
Many free zones in Dubai and some free zones in the northern emirates provide online education licenses. DMCC free zone provides a license for ‘Internet University’ activity, and RAKEZ offers Virtual Education License. However, the online education activities need approval from concerned authorities (KHDA approval for entities registered in Dubai) to commence business operations. Company set up consultants in Dubai can advise you on the requirements and procedures of obtaining an online education license.
Set up A Successful Online Business with Jitendra Business Consultants
The demand for setting up an online business in Dubai has surged post the COVID-19 pandemic on the back of a sudden shift in consumer behaviour. Free zones and DED offers a wide range of licenses to facilitate business setup in Dubai in the digital space. However, new entrepreneurs might be clueless about the nature, cost and procedure for obtaining each license. This is where the assistance of the best business setup consultants in Dubai, such as Jitendra Business Consultants (JBC), will come in handy for the entrepreneurs.
JBC’s business setup consultants would analyse your business activities and advice which license is best for your online business in Dubai. Our company formation specialists would provide consultation to help you to decide whether a DED license or free zone license is better for your proposed company. JBC can help you with processing visas, opening a bank account and drafting the documents in compliance with the laws. Consult with JBC today to ensure your business ambitions take wings without any hassle.