Terms of licensing an online store in the UAE

Terms of licensing an online store in the UAE

With the increasing trend of many Emiratis and expatriates towards practicing e-commerce business to provide an appropriate and encouraging environment in the UAE, the need arose to regulate e-commerce activity in the UAE from a legal and procedural point of view, which was manifested in 2006 in the issuance of the e-commerce law in the UAE, so obtaining a license An online store in the UAE is very important and will give you privileges that we will mention.

And because the project of an Emirati online store is very easy, we note the large number of e-commerce sites in the Emirates, such as the “Salm and Receive” sites, and the UAE is considered one of the first Arab countries in issuing e-commerce laws and in providing electronic platforms that facilitate the process of licensing the electronic store.

Before embarking on programming and design work, you must first know what is the e-commerce law in the UAE? What are the terms of licensing an online store in the UAE? What is a virtual merchant license? How to get an online store license in the UAE? And other questions that we will answer in this exclusive article, which is based on official Emirati sources.

note! If you want to create an electronic project in the UAE, we advise you to first take specific steps to turn your idea into a successful reality, and then apply a business model to your project idea.

Information about e-commerce in UAE

  • E-commerce law in the UAE differs slightly from one emirate to another due to the country’s confederal political system. It is similar to Saudi law.
  • Half of the UAE’s population shop electronically, especially at “Salm and Pickup” sites in the UAE, and 60% of them prefer electronic payment by electronic wallet and credit cards.
  • E-commerce in the United Arab Emirates is a very promising market, with the average financial transaction exceeding $120 in 2020.
  • The UAE has an advanced legislative and digital infrastructure, high-speed internet and government support for electronic innovation, such as the “Mohammed bin Rashid Fund for Innovation Accelerator” project, which is considered one of the most comprehensive business accelerators in the UAE.
  • Notice of electronic authentication and signatures foreign mutual For electronic certification service providers DocuSign, Inc. Adobe Systems Software.
  • my provider Local electronic certification services in the UAE they First Abu Dhabi Bank. a company Digital Trust LLC.
  • The Telecommunications Regulatory Authority is responsible for licensing services, monitoring and supervising the activities of electronic certification service providers.

The authority’s toll-free number 80012 and e-mail [email protected] You can download their UAE TRA mobile app at Android or Apple

E-Commerce Law in the UAE

The UAE Ministry of Economy and Planning issued the following laws and decrees:

  • year 2006 Federal Law Regulating Transactions and E-Commerce Signed by the President of the State, Khalifa bin Zayed Al Nahyan, and published in the Official Gazette, page 31, issue 442.
  • Federal Law No. (5) of 2012 to combat cybercrime.
  • Decree-Law No. 2 of 2015 regarding combating discrimination and hatred and the electronic media system.
  • Federal Law No. (12) of 2016 for Combating Information Technology Crimes.
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Why do you have to get E-commerce license in the UAE?

You must obtain an e-commerce license to benefit from:

  • Legal protection for your business by the Department of Economic Development of the emirate in which you are registered, including the trade name of your online store in the UAE
  • The possibility of benefiting from loans through these banks or opening an account with Abu Dhabi Commercial Bank, opening an account with Dubai Islamic Bank, opening a company account with Mashreq Bank.
  • Building trust between your online store and consumers and attracting more permanent customers, allowing for future expansion.
  • Participation in the trade and economic fairs of the UAE without restrictions.

Required licenses for online stores in the UAE (e-store licensing in the UAE)

  • After obtaining a virtual merchant license from the local authority of each emirate, the approval of the National Telecommunications Regulatory Authority must be obtained.
  • E-commerce license in the UAE There are 4 licenses that regulate the practice of e-commerce through electronic stores or social media pages. Which:

Note: All four licenses are issued electronically through the smart entry system on the official website of the Department of Economic Development for each emirate.

a- license Abu Dhabi Merchant: Includes all Emirates. ask for it from here.

  • Available for UAE nationals and GCC nationals and Abu Dhabi merchant license for expatriate investors residing within the UAE is also available.
  • The Abu Dhabi e-commerce license includes 1057 specializations of economic activities, including the Abu Dhabi home business license.
  • There is no Abu Dhabi trade license issuance fee for the Abu Dhabi e-commerce license.
  • The online merchant license in Abu Dhabi does not require the submission of a lease and articles of association.
  • You can find Abu Dhabi dealer license for sale in certain sites to sell these licenses as well, search for it on Google.
  • find here Activities List Abu Dhabi merchant pdf
  • The legal forms allowed in the Abu Dhabi e-stores license are to create:
    • LLC (a limited liability company) for foreign investors residing in the UAE.
    • Or create a sole proprietorship. Or a one-person limited liability company for citizens of the UAE and GCC countries.

B- Dubai Commercity Dubai CommerCity: A virtual e-commerce zone program launched by the Government of Dubai, with the aim of providing an opportunity to establish an electronic virtual trading company in Dubai to reduce costs for entrepreneurs, and is divided into three complexes: the logistics complex, the business complex, and the social complex.

It was designed according to modern standards to encourage investment and meet the requirements of e-commerce companies looking to establish a branch headquarters in the region or establish an online store in the UAE. Its most important features:

  • An integrated system for various e-commerce companies from all over the world that want to be active in the region, with the possibility of storage in modern and equipped warehouses for shipment.
  • Access to service providers from within the free zone itself such as payment gateways, marketing services agencies, call centers, etc…
  • If you are a foreigner, you will have 100% ownership of your company with no tax on your company or income, unlike outside the free zone.
  • The cost of a business license in the Dubai Free Zone for companies is 10 to 15 thousand dirhams By type of company or organization.
  • It provides all e-commerce related processes through electronic registration in a smart and modern way.
  • The first free zone in the Middle East and North Africa in the field of e-commerce.

c- Dubai e-merchant license for expats and citizens: It was launched by the Dubai Economy and includes residents of the Emirate of Dubai only. The duration of the Dubai e-commerce license is two years, subject to renewal, and its details:

  • Some businesses require the approval of other bodies within Dubai, such as the municipality’s departments, or the Health and Safety Department if you will be active in the medical field, for example.
  • It allows the granting of a Dubai home business license, freelance business and trade via online stores or social media.
  • Available to UAE nationals and GCC nationals Residents of Dubai.
  • Dubai Trader License activities include 400 majors.
  • You must have a physical address in Dubai along with the place number of the property.
  • The inability to issue a work visa through the license.
  • 10 activities can be practiced per license.
  • It is forbidden to register more than one person in the license.
  • Dubai Chamber of Commerce membership fee of 300 dirhams annually.
  • Dubai Merchant License fee of AED 1070 is non-refundable, to be paid within one day from the date of issuance of the payment authorization.
  • You can buy a Dubai business license for sale from some websites on the Internet, search for it on Google.
  • Renewing a Dubai trade license is done through either inquiring about a Dubai trade license with the following steps:
    1. dealer portalVia the Dubai Economy website.
    2. Send a text message to the number 6969 to receive a confirmation message for the renewal with an electronic link to complete the payment process.
    3. The delay in renewing the e-merchant’s license in Dubai does not entail any fines. However, your trade name will be canceled until you renew the license.
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D- Sharjah Accreditation License:

  • It allows the granting of a Sharjah home business license, entrepreneurship and trade via online stores or social media.
  • Available to UAE nationals residing in Sharjah. It requires that the e-merchant be over the age of 18.
  • It is not possible to issue a work visa through this license.

E- Virtual Merchant License in Ras Al Khaimah:

  • It allows the practice of home commerce, self-employment and e-commerce via e-stores or social media.
  • Available to citizens and residents of Ras Al Khaimah, Ajman merchant license and other UAE nationals are accepted.

Request No objection to engaging in an electronic activity In the Emirates

To obtain an e-commerce license in the UAE, including an online store license in the UAE, you need the NOC program for related electronic facilities and infrastructure.

  • The service delivery time is two days. And it’s free.
  • The electronic NOC service provider for facilities and infrastructure is the website of the UAE Telecommunications Regulatory Authority (TRA).
  • Available payment channels: e-payment gates, e-dirham, bank transfer, or depositing a check in the authority’s account.
  • Steps to submit a no-objection request to practice an electronic activity in the UAE:

Or not: fill electronic form After opening an account on the authority’s website.

secondly: Then provide these following documents:

  • A copy of the identity.
  • Website link.
  • A copy of the trade license (in certain cases).

Third: Compliance with these terms and conditions:

  • Reserving a website within the national domain.ae and providing a link to the website or online store.
  • If the online activity is on a social media platform such as Twitter, Facebook. The name and link of the account must be provided, and when changing the name of the account a new application is submitted.
  • If the activity is related to an electronic application available in an application store such as Apple or Google Play Store, you must provide: The name and link of the application, if any, and if the application is under development, you must provide the website link, a description of the application and pictures of the main interface.

Fourthly: The authority will review the application.

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Fifth: You will be delivered a “No Objection” message in your email, and the authority’s branches outlets at the Customer Happiness Center in Dubai or the Customer Happiness Center in Abu Dhabi, according to the emirate in which you submitted your application.

Read also How to design and create a professional online store from scratch – a comprehensive guide

Dubai online store Dubaistore.com

The first shopping initiative in the UAE to support e-commerce practitioners or those who intend to start an online store in the UAE. It was established by Digital Economy Solutions, a joint stock company between the Department of Economic Development of the Emirate of Dubai and Emirates Information Technology Company. Its main features:

  • It guarantees the Emirati shopper to shop online with confidence and security by ensuring that counterfeit or counterfeit goods are not sold.
  • It facilitates the licensed e-commerce sites in the emerging and middle Emirates to sell their products and services, thus giving them a fair competition with the big stores.
  • The store does not own or sell anything because it is a non-profit e-commerce platform that contributes to the development of e-commerce in the UAE. Here’s the difference between an e-commerce platform and an online store.
  • The shopper must register his data with the Dubai store, then choose a reliable online store, order a product and pay with the electronic wallet “My Money” or with credit cards or upon delivery in cash.
  • One day after completing the purchase process through the electronic payment gateway, the Dubai e-store will receive and then deliver the goods and products through its express mail for shipment.
  • Through the store, the customer can get his money back and return the goods within 15 days for free.

Violation penalties Doing an e-commerce activity without license Virtual Merchant in UAE

  • Loss of the trade name due to not being officially and legally registered.
  • The sale is considered illegal with fines starting from AED 25,000.
  • In the event of repeated violations, the account or website will be immediately closed by the Department of Economic Development in the Emirate.

Accessories that will help you if you are thinking of setting up an online store in the UAE

Enter over here You will find links to download PDF files:

  • guide manual for e-participation and social networking practices.
  • Internet Access Management (IAM) Policy.
  • Guidelines for website owners.
  • The official advertising guide for the UAE.

Months Online shopping sites in the UAE

  • Amazon UAE Market.
  • Namshi UAE shoes and clothing website.
  • Ali Express UAE, AliExpress
  • doduae clothing website.
  • Jumbo Emirates Electronics website.
  • Ubuy Emirates website.

Finally We hope that the information that we have collected from the official sources concerned with the field of e-commerce in the United Arab Emirates has benefited you and given you a more comprehensive view of what you should do if you intend to create an online store outside the UAE and sell within it, or you want to license an online store within the UAE and sell inside and outside the UAE.

Although we have talked about all the details of the e-commerce license in the UAE, we also invite you to look through the links we provided to you yourself on the texts of the e-commerce law in the UAE because it may be updated at any time. Also, after completing the activation of your online store legally, do not forget to In these errors when creating it, I wish you all the best.

The other option available is to establish a US tax-exempt company and get electronic payment gates for $379 without the need to travel from the comfort of your home.

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