Online selling is growing tremendously every year. After Covid 19, people became more cautious about going out and spending time in more crowded areas like shopping malls and other supermarkets.

So more and more companies are offering Online services to their customer, where they can buy their products. Today it became very easy to sell anything online.

Social media has become so much more powerful than you could ever imagine. Every small business born during this period is selling online just by using Instagram, Facebook & Tiktok.

If you are also a Seller, who wants to sell goods to online users in Dubai, then you need to keep reading this.

This article will cover all the questions that are frequently asked by Online Sellers.

Q1 – Do I need to have a License to sell Online in Dubai?

All the trade-related activities are monitored by Dubai Economic Development and it requires businesses to obtain an E-Commerce License to conduct Business online.

This includes activities like:

• Amazon Dropshipping
• Handmade items through Instagram, Facebook & Tiktok
• Selling through Noon or eBay

Q2 – Can we sell without E-Commerce?

No, you cannot sell without a license. Also, if you opt for a payment gateway company service, you need to submit your license as a mandatory document for verification.

In Dubai, if the government finds out that you are selling without an E-Commerce license then you will be fined up to AED 500000.

Q3 – Do I need to open an office or warehouse if I get an E-commerce License?

There is no requirement for you to have a Warehouse or Office to get this License. If you have inventory that you want to store then you can opt for a warehouse or godown. But DED doesn’t require you to show that.

For Warehouse setup, you need to opt for Dubai Mainland License and mention your Business activity with the Warehouse location and layout to be approved by the Dubai Municipality. For more details on the layout or procedure, you can connect with us at the below-given number.

Q4 – How much does it cost to get an E-Commerce License in Dubai?

The cost of an E-commerce license varies from Freezone to Freezone. Currently, SHAMS (one of the cheapest)Freezone is providing the License for AED 5750 and the rates are updated every month. For more details, you can contact our team who can guide you in choosing the right Freezone for your needs and requirements.

Q5- How do I apply and get an E-commerce License?

We have been helping Business owners like you set up their companies in Dubai.

Here are the step included in getting your E-Commerce License in Dubai

1. Choose a Freezone Location (which we will guide)
2. Choose a name for your Business
3. Get your Trade Name Approved
4. Apply for an E-Commerce license with DED (this takes around 3 weeks)
5. Apply for a Residence Visa (optional, ignore if you are already a resident)
6. Open a Corporate Bank account

This entire process of Trade name registration and Trade license takes up to 3 weeks. You can choose to open a bank account immediately or later within a year.

However, we advise you to open the corporate bank account immediately as it will take very less time. The longer the time gap between business setup and Bank account opening, the more issues and delays.

Hope we have answered all your questions regarding the E-Commerce License and selling goods online.

If you still have any doubts, you can WhatsApp us at +971508045640

or even write us at info@vr1global.com

At VR1 Global, we help business owners like you to set up their Businesses in Dubai and lead a very profitable life. We can guide you in any kind of Business setup by helping you to understand the rules, requirements, and challenges that you might face.

We will always take care of the end-to-end process so that you do need not to worry about Documentation, registration, and acquiring licenses.

Get on a Free consultation call today to know more, about how we can do business together.