How to start online business in UAE - Prospr

Online business setup in UAE explained

Digital world unlocks a world of business opportunities for everyone. Lucrative market of UAE allows you to try many different online ventures. These ventures require less capital to begin with and offer you a chance to expand as much as you like. But you can’t kick start any business idea, unless you know how to start an online business in UAE. 

So, Prospr is here to offer you complete guidance regarding:

How to start online business in UAE-ultimate guide

Here are some steps you need to follow:

#1 Pick an online business idea

It’s the first step you need to take for setting up a business in the Dubai. There are tons of online business ideas available but if we talk about what working great in UAE, then here are some options:

  • Virtual fitness training
  • Mental health support
  • Wellness coaching
  • Influencers
  • IT Solution 
  • Social media management
  • Recruitment
  • Consulting services 
  • Digital marketing agency
  • Online food trading
  • Food and bakery delivery
  • Online tutoring
  • E-commerce platform
  • Affiliate marketing 

#2 Choose Jurisdiction 

Once you finalize your business idea, you need to pick the right jurisdiction for your online business setup in Dubai. You have two options to choose from: Mainland and free zone. Difference between Mainland and Free Zone companies is explained

Mainland online business

If you choose Mainland then you may pay more but it allows you to run your business operation all across the UAE and international market. The benefit of Mainland companies is that you can issue unlimited visas depending on your size of project. You can get involved with government projects. 

You need to hire a UAE national as your agent in this jurisdiction as you can’t set up an ecommerce store as a Limited Liability Company (LLC). 

Free zone online business

In case you are planning to get involved in online trading then you can get exemption from custom duties and taxes within your free zone. An online  Import and export business can make the most of a free zone. You don’t need an agent in setting up a company in UAE Free zone and it means you can set up your e-commerce business as a Limited Liability Company (LLC).

How to start online business in UAE - Prospr 2

#3 Choose the perfect company name

The next step in your online business setup in UAE is to choose a specific business name. There are certain rules and guidelines set up by the UAE Government for business names. You need to follow them and get approval on your trade name from the authorities. 

Here are some things you can’t use in your business name in UAE

  • Reference to Allah is prohibited
  • You are not allowed to use offensive language or profanity
  • Name must not show any affiliation to sectarian or political groups
  • Abbreviations and initials can’t be used.
  •  and obtain your initial approval certificate 

Read about 15 successful online business ideas in Dubai

#4 Apply for online business license in UAE

Although you don’t need to have a physical location to get a trade license in Dubai, it’s always a good idea to set up an official online business website alongside social handles. You need to provide details of your social media account and official website during online business license application in the UAE. 

If you have decided mainland as your main jurisdiction in UAE, then you need to draft a Memorandum of Association MoA and submit it with your application.

The whole application process is pretty simple, you will fill out the application form, provide required documents and then wait for approval, which usually takes a week.

#5 Apply for visa

You don’t need a physical office online but you need to have a legal address in the UAE to conduct any business. So, you need to get an address, you must have a visa to get an entry in Dubai. You and your employee must have a valid visa in Dubai. 

When you set up an online business in UAE, you need to apply for a visa that should be valid for 3-years.  You can issue visas of your dependents such as employees and family members through an online business license.

#6 Open a bank account in Dubai

The last step of setting up an online business in Dubai is to open a bank account. You will provide documents such as Emirates ID, Visa copy, passport copy, and business license to the bank.

What is the Cost of Starting an Online Business in UAE?

Overall cost of starting an online business in UAE completely depends on:

  • Business nature
  • Business location
  • Cost of online business license
  • Web hosting fees
  • Additional approval
  • Visa cost.

Online business can be started in the UAE for as low as AED 12,000 but you need to consider all the factors and keep in mind that the cost ranges from AED 15,000 to AED 20,000.

Wrap up-Start online business with Prospr

Prospr is there to offer you guidance, assistance, and help every step of your online business journey. It’s indeed quite challenging to apply for a visa and get approval from authorities. Let our business consultants tackle all the changes, while you can sit back, relax, and enjoy hassle-free online business formation in Dubai.

Just tell us what your online business idea is and we will take it from there.

Book a consultation session now!

FAQs

Is online business legal in the UAE?

Yes, it is 100 percent legal to conduct online business activities in UAE as long as you fulfill required rules and regulations. And also get necessary license and permit from UAE authorities

What license is required to sell online in the UAE?

In case you want to sell products online in Dubai then you need to get an E-trader license in Dubai. This license allows you to sell products through online platforms.

Do I need a business permit for online business in Dubai?

No matter what kind of online business you want to run in Dubai, you need to get a business permit for it.

Can I sell online without a license in UAE?

No, it is against law to sell online without a license. In case you want to sell products online, you need an e-commerce license in Dubai.

How to open an online shop in the UAE?

Here are some steps you need to follow

  • Choose and get company trade name
  • Apply for e-commerce business permit
  • Develop your e-commerce website
  • Setup payment gateway 
  • Set up customer support and logistic
  • Get trade license

What are the rules for online business in UAE?

Before you start an online business in the UAE, you must know that all the goods or services you provide must be legally approved to trade. If Any product or service is special or not allowed, you need to get special approval from authority and then to conduct its online business.

Do I need a license to sell on Amazon in the UAE?

Yes, you need a business trade license for this purpose. 

Picture of Samad Ahmed

Samad Ahmed

Samad is a tech enthusiast dedicated to delivering socially responsible, ethical, and transparent products in the MENA region. With over a decade of business experience, he continues to support the entrepreneurial community as the owner of Prospr, a company specializing in business setup services across the UAE, particularly in Dubai.

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