Starting an e-commerce business in UAE Free Zone
In the Free Zone Authority of the respective free zones, the governing body issues business licenses to the e-commerce companies. After obtaining an e-commerce license, entrepreneurs have access to an online platform for buying and selling products. Before setting up an e-commerce business in UAE free zones, the following factors should be considered:
1. Selling the product
Firms are not allowed to sell goods
directly to consumers in free zones. Businesses have agreed with manufacturers
whose interests are already in the market. Companies in the free zone will list
such items for sale on their websites for customers to buy. A local distributor
or agent is not required under the free zone e-commerce license as they sell
the goods of the suppliers.
2. Requirements for the warehouse
The e-commerce license is obtained
through a Flexi desk facility in the free zone, so there is no need for a
godown or office room. If the company is in the business of selling consumer
goods, the manufacturers with whom it has agreements will store them. Because a
warehouse is not required, the operating cost for an e-commerce license will be
less.
3. Customs Duty & Product Registration
Municipalities and health authorities
are not liable for items reported to the relevant local authorities. Companies
must already deal with licensed products, and product registration is handled
by the retailer. Similarly, the manufacturer pays customs duty, and e-commerce
business is exempted from paying 5% customs duty.
Benefits of starting an e-commerce business in UAE Free Zones:
- Profits and able to reinvest capital.
- There are no warehouse specifications.
- The goods are not liable for registration (the
supplier will take care of this).
- There are no currency restrictions.
- There is no sponsorship requirement, and the
prizes are 100% owned.
- Corporate taxation is zero.
- Low operating cost.
- Exemption of import duty for e-commerce
license.
- Benefits of a three-year resident visa.
If you want to start
an e-commerce business in Dubai and need help with all the processes like paperwork, office space, tax,
legal, or any other such formality or practice. Our Desire Business Center is
an expert in the field of any type of business enterprise incorporation. Please
contact us at any time, and we will do our best to meet all your needs.
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