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Benefits of Setting Up an Online Business in Dubai


The dawn of this Millennium brought with it the winds of change. Perhaps one of the most significant changes witnessed by us is advancements in technology. This era has been aptly dubbed by historians as the era of science and technology.

Technology is transforming the world into a global village, by providing quick, easy and precise communication channels the world we live in is getting smaller in is getting smaller and smaller.

Nowadays, distances have no real meaning. For example, a person living in Australia can interact, talk and even conduct business activities with a region in the other corner of the globe.

The advancements in technology have provided us with a new kind of business, i.e. E-commerce.

The rapid advancements in the e-commerce sector are entirely changing the way we do business. It is gradually removing the need for traditional stores, with people preferring to shop online. This shift in the way people shop has made business analysts to rethink their business strategies to reach a broader audience.

Among a plethora of advantages of e-commerce, most vital one is an online store is cheaper than the conventional store, as to set up an online store all you need is a website domain, good internet access and a laptop. An online store has a broad audience not limited to a particular region.

The United Arab Emirates, because of its geo-strategic location, is reaping the benefits of the boom in the e-commerce business.

The United Arab Emirates, because of its geo-strategic location, is reaping the benefits of the boom in the e-commerce business. Another reason is the UAE has state-of-the-art infrastructure and top-tier services. That means almost Ninety per cent of the Emirati population has access to the internet, making an online business a viable option for entrepreneurs to consider investing.

Benefits of E-commerce Business in Dubai:

As mentioned earlier, Dubai is blessed with a remarkable position in the region. Providing numerous business opportunities to business owners for setting up an e-commerce business in Dubai.

The UAE has easy access to the markets of three continents, not to mention it also has multiple free zones making it a prime spot to set up an online business.

The notable advantages of setting up an online business in Dubai are:

  • Minimal taxation on capital investment and income.
  • Low operating cost.
  • Hundred per cent ownership of the company.
  • Duty-free import-export.
  • Hundred percent repatriation.

These are some of the advantages an entrepreneur can reap if they were to set up an ecommerce company in Dubai. It should be mentioned here that this is not the complete list; these are just the highlights.

Steps of Starting an Ecommerce Business:

The process for setting up a business in Dubai are:

Selection of the kind of Legal Enterprise:

The single most important decision you will have to make is: what type of structure will your company have? Therefore, before making any hasty decision that will decide the fate of your enterprise. You should weigh all the pros and cons before making this monumental decision. Of the various kinds of legal entities available, the most favoured amongst SMEs is the Limited Liability Company (LLC).

Selecting the site for the Registration of the Company:

In Dubai, there is a wide variety of suitable locations that are available for setting up of business. From Dubai Mainland to myriad Free Zones, there is a place for any business setup in Dubai.

We suggest that you opt for a Free Zone as the site for the registration of the company as the Free Zones have unique benefits and advantages that are exclusive to a particular industry.

Getting an Office Space:

Even though you are opening an online business, you are still required to have a physical location. You should get a cheaper place as an e-commerce company typically does not have a conventional store. This office space is mostly acquired to fulfil the requirements mandated by the licensing authorities.

Obtaining a License:

To start a business in the United Arab Emirates, getting a license is essential for company formation. The type of license depends upon various factors such as:

  • The type of business activity.
  • The place of company registration.

In the case of Free Zones, additional licenses must be acquired accordingly. Usually, the license application takes a week to be processed.

Opening a Bank Account:

After successfully obtaining a license, your business has finished the setup process and is ready to begin its operations. One of the first things you should do as soon as you have set up your business in Dubai is: to open up a bank account. Since a bank account will provide ease in doing business. It will also help in giving an individual, utterly separate identity to your business venture.

Furthermore, the bank account will also aid in while you are filing for taxes or doing regular audits.

Related Article: Opening a Bank Account in Dubai for Non-Residents

The steps listed above will help you to set up your online business in Dubai. However, sometimes, you might become fed up while forming a company just because it is a long and hectic process. To guide you through the treacherous path, you will need the help of Business Setup Consultants. Such as KWS Middle East. We will be of service to you throughout the entirety of the Business setup process.

Contact Us Today and book our commitment-free consultation!

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Do not hesitate and make your Dubai dream happen!

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