Things you should know before 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.