Online company setup in Dubai is more complicated than it seems. New entrepreneurs and investors should not embark on a journey without the right guidance about UAE’s laws and regulations.
An online business cannot be sidelined in this world where everything is going digital. The time has come for an online business. Online businesses, with minimal barriers to entry, do appear to be a good bet. Although, you still need to complete all company registration steps and comply.
In this article, we will talk about the benefits of online company formation in Dubai and some steps you will need to take to do that. So, let’s get into this:
Benefits of Starting an Online Business In Dubai
Statista stated that the UAE e-commerce market is expected to reach 17 billion U.S. dollars by 2025. As Dubai offers a business-friendly environment and a robust infrastructure, it helps new entrepreneurs to set up an online company easily. Here are some benefits of starting an online business in Dubai:
- No Personal Tax: Dubai is tax-friendly and doesn’t impose personal income tax on its residents. It gives the room for the entrepreneur to take as much earnings as possible with them.
- Ease of Conducting Business: Unlike others, Dubai has business-friendly laws and regulations. You can start a business without wasting time and easily incorporate it here.
- Full Profit Repatriation: Unlike most jurisdictions, Dubai allows business owners to repatriate all their profits to their home country.
- Economic Setup and Operating Costs: Dubai stands out from other business hubs around the world when it comes to setting up and running your online business, as it provides very competitive rates. It is a valuable investment for many investors because it is a large enough growth.
- Full Ownership of Business: A local is not involved in foreign investors’ businesses and can enjoy 100% ownership.
- Quick and Easy Setup Process: Setting up your operations and getting a Dubai business license has become easier. The government helps entrepreneurs to make the procedure quick and hassle-free.
- Bank Account Assistance: It is very simple to set up a corporate bank in Dubai and begin accepting or making payments. Moreover, if you need help regarding accounting services take advantage of Xpert Advisory bank account assistance.
- Residence Visa: Entrepreneurs can get 3 years’ residence visas to stabilise themselves, their families, and their employees.
How to Register an Online Company In Dubai?
Setting up an online business in Dubai needs a prior plan and an execution strategy. You can follow these steps to successfully register your online business in the UAE and get your business ready for the long run and expansion.
Step 1. Search Product or Idea for Your Company
Get a product or choose the best online business ideas in Dubai for your company. Research is needed to help find desired products that match the UAE market’s needs and preferences.
Step 2. Choosing a Jurisdiction
You can register your business on the free zone or the mainland. Usually, registering in free zones of the UAE comes with particular benefits, like 100% ownership.
Step 3. Company Name and Initial Approval
You have to put together a brandable name and stay true to that. Compliant with the UAE regulations. Second, you may require initial approvals and certificates according to your business activity.
Step 4. Obtain Online Business License
You’ll need the right business license in Dubai to operate. Also, the license should reflect your business activities and jurisdiction. Moreover, selling your products online will require an influencer or e-commerce license in Dubai.
You can get advice from Xpert Advisory to make sure you get the right license and fill out the license application correctly.
Step 5. Purchase a Domain and Open Social Media Handles
For online company formation in Dubai you need to show online presence. This means you have to buy a domain name for your e-commerce store. Then, you will also have to set up engaging profiles on numerous social media platforms.
Step 6. Set Up Your E-commerce Store
If you’re selling products, you need an ecommerce store. Reliable e-commerce platforms exist where you can host your online store and present products or services. You’ll have to customise your website to match your brand identity and give your customers the best experience possible.
Step 7. Applying for Relevant Visas
Learn what visas you need for yourself, your employees and your family. If you don’t meet these conditions, you can consult with Xpert Advisory to get an investor or remote work visa.
Step 8. Opening a Bank Account
Open your e-commerce business bank account with a reputable bank. Collect all the needed documents to be prepared yourself and submit them to banking representatives to finish the account opening process.
Documents Required for Online Business License In Dubai
To register your company online, you need to provide some basic details and documentation to the Department of Economic Development. You will have to provide the following documentation:
- Investor’s passport copy
- Passport copy of local sponsor (with permission, if any).
- A No Objection Certificate (NOC) for you or any other shareholder
- A copy of your Emirates ID
- The application form for registration from DED
- If any office premises, an attested tenancy contract for the same.
- A public notary attested Memorandum of Association if applicable
How Much Does Online Business in UAE Cost?
The cost of starting an online company in Dubai depends entirely on what you prefer and need. It will range from AED 5,500* to AED 30,000*. There are some perks to registering with a free zone company in Dubai. Moreover, the startup cost can be high depending on the size of your business and the number of visas you have applied for.
Final Words
Online company formation in Dubai is a sensible choice for entrepreneurs who want to tap into a thriving e-commerce market. Dubai offers a business-friendly environment, which provides benefits such as no personal tax, full ownership and profit repatriation. Apart from these advantages, operating costs are quite affordable, and residence visas are also offered.
Launching your business online in Dubai is not easy or simple. But with the right support and guidance, you can start your new venture in 3 or 4 weeks. So, contact Xpert Advisory today to make sure the entire business setup in Dubai goes smoothly and without errors.
FAQs
Can I Start A Business In Dubai Virtually?
Establishing a virtual business in Dubai can occur only in the pre-designated sectors. The prescribed sectors include service activities in printing and advertising; computer programming, consultancy, and other activities; and fashion, jewellery and interior design.
Can You Do Online Business In The UAE legally?
In the UAE, digital traders can only sell goods and services legally approved for trade. Under all circumstances, they shall refrain from selling goods or services, the sale of which constitutes a special approval on the part of the competent authority.
