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Legal Requirement for Online Selling in UAE
The United Arab Emirates (UAE) is a thriving hub for ecommerce, with a growing number of consumers turning to online shopping. Entrepreneurs have a considerable opportunity to capture the UAE market by developing their ecommerce stores as 58% of online purchases by UAE shoppers are made through foreign vendors. This trend suggests that redirecting this spending to the domestic market is possible by developing competing e-commerce stores based in the UAE. To capitalize on this trend, many entrepreneurs and businesses are setting up ecommerce businesses in the UAE. However, before launching an ecommerce business in the UAE, it is essential to understand the legal requirements for obtaining an ecommerce trade license in free zones.
UAE free zone business formation is the most suitable option for an ecommerce business, getting a trade license in a free zone allows the holder to have 100% foreign business ownership, customs benefits, and more.
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Legal Requirement for Online Selling in UAE
To obtain an ecommerce trade license in a free zone, businesses must meet certain criteria and requirements set by the relevant free zone authority. Generally, you would need to submit a passport copy is one of the requirements needed for UAE business formation. It is a mandatory document that serves as proof of identification and is required to be submitted with the company formation application. In addition to a valid passport copy, there are other documents that are also necessary to complete the registration process. As well as two passport-size photographs, trade name (with three possible options), and proof of residence address (either in the UAE or home country) are among the other required documents. For residents of the UAE, a visa copy is also required. If you are on a tourist visa, the entry stamp will suffice. Additionally, if you are a UAE resident, you need to submit a copy of your Emirates ID (front and back). However, it is not necessary if you are not a UAE resident. Lastly, it is essential to provide payment proof for the company formation process. With all the necessary documents and payments, entrepreneurs can complete the registration process and obtain their trade license to start operating their business in the UAE.
Cost of Online Selling License in UAE
It’s important to note that the cost of setting up a business in a free zone can vary depending on the chosen location. Each free zone has its unique fee structure, some zones may have lower setup costs, while others may be more expensive due to their location, facilities, or additional services. Therefore, it’s best to contact us to discuss your specific business needs and requirements. Our team of experts will provide you with all the necessary information and guidance to help you select the most suitable free zone and navigate the business formation process smoothly, or use our cost calculator.
Conclusion
To sell online legally in UAE, you would need an ecommerce trade license from a free zone. Trade license is a must-have, and you have to follow certain rules set by UAE government and authorities. On the other side, you get enjoy benefits such as 100% foreign ownership, tax exemptions, and customs benefits. Just make sure you follow the regulations, and you’ll be good to go for a successful ecommerce business or contact Choose UAE for a free professional business formation advisory.
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How Can Choose UAE Help
Choose UAE is composed of well-versed business formation and growth experts, with this being said we can not only guide you but make you experience an ecommerce business licensing like no other. Get in touch with us to get started.
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