Opening Online Business in the UAE: solutions and prospects
All over the world, the Emirates are considered a safe and promising platform to set up your online business - from a small-scale e-commerce site targeted at the Dubaian market to one serving a worldwide marketplace.
UAE law created highly favorable conditions to successfully set up your online business there. Protection of investors, tax exemption, well-developed IT infrastructure, cutting-edge logistics solutions, purchasing power of the populace are all factors that account for the explosive growth of internet-based services and retail. SORP Group’s specialists will assist you in getting through all the licensing procedures and provide full support for your online business in the UAE.
Types of activities that best fit your online business in the UAE
E-commerce websites
Selling wholesale and retail products via an online platform, providing order fulfilment and packing services, and engaging with delivery and logistics companies for a full service
Marketplaces and aggregators
Trading sites and catalogues that combine numerous offers from various sellers and connect them with an online audience willing to purchase their goods or services
Booking services
Platforms for booking airline tickets, for entertainment events, car hire, all types of accommodation and travel, or making medical and other appointments online
Education and training
Tutoring services, consulting and advice in various fields, business training and courses, online workshops, webinars, conferences, and coaching, online classrooms and more
Payment Service Providers
Payment Service Provider (PSPs) deal with processing card payments for third parties via merchant accounts as well as online money transfers and other mechanisms
Cloud services
Solutions based on cloud technologies that include SaaS - cloud software applications, PaaS - computing platforms, IaaS - remote servers and data storage, and many more
Choosing a location for setting up your online business in the UAE
Mainland company incorporation
- Unlimited opportunities for doing business in any field of activity in the UAE and abroad.
- Form of ownership is determined by the type of activities.
- In case of Sole Establishment (sole proprietorship), an agreement with a local agent is signed. The agent has no part in the company.
- Simplified visa procedures for shareholders and employees, possibility of tax resident status, a more favorable attitude on the part of UAE banks.
Free-Zone company incorporation
- Onshore company with the possibility of operating inside zone or in international markets.
- Free Zone Establishment (FZE) or Free Zone Company (FZC).
- 100% foreign ownership with no local ownership requirements, some limitations in regard to the types of activities permitted in the UAE market.
- Restricted to operate only within the Free Zone of incorporation but is free to conduct international operations on a global basis.
- Residency visas can be issued for shareholders and employees of the company. Obliged to confirm economic substance in the UAE.
Online business incorporation allows 100% foreign ownership
Incorporating companies with the involvement of a nominee local shareholder is a well-established business tradition in the UAE. This supports international activity too because it simplifies the mandatory requirements for proving Economic Substance.
Licenses available for doing online business in the UAE
Web portal
Trade license
Consulting license
Educational license
IT license
SMM license
Payment Services Provider
Remote service desks
SORP’s expert solutions for runing an online business in the UAE
Designing your business model
We’ll choose a suitable license and select the most appropriate type of legal entity to meet your objectives
Incorporating your company
Fast incorporation of your business due to our long-standing relations with the UAE licensing authorities
Fast incorporation of your business due to our long-standing relations with the UAE licensing authorities
Administrative, accounting, tax, PRO and legal support provided by SORP specialists tailored to your business
Dubai registered business address
An office in SORP’s Business Center as your company’s address so as to obtain the necessary licences
Opening bank accounts
Close cooperation with UAE banks, assistance for KYC procedures and banking compliance requirements
Local partner or agent
Nominee service provided by SORP Investment LLC, with surrender of rights granted by the Dubai court
Success factors for your online business in the UAE
A UAE business license allows your business to operate not only in the Emirates but also across the other 5 countries of the Gulf Cooperation Council. Due to GAFTA (Greater Arab Free Trade Area) this bloc operates a unified customs policy, exempt from customs duties, taxes and levies.
The UAE is a leader in the
fast-growing online sector
Online sales volume per year
$147.3 bn
Foreign investments in the UAE in 2019
Rank 24
Present position in the world’s welfare ranking
an online purchase
online store sales
total retail sales
Favorable development factors
Dubai 10x and Smart Dubai development strategies
The UAE’s fast-paced diversification is driving ever higher digital standards to match the speed of change in the social and economic environment.
Current plans include implementing artificial intelligence throughout state agencies and migrating all public institutions to use blockchain technology whereby the entire document workflow will be executed in a format of smart contracts.
Digital Protection and Get Dubai Businesses Online Programs
These strategies aim at improving the security of electronic payments and increase the public’s level of trust when shopping at online stores.
The Dubai Chamber of Commerce and Industry have joined with Google in initiatives to involve many more companies in going online. A new program launched within Digital Protection to “Get Dubai Businesses Online” will help progress the objectives.
Dubai is an important e-commerce platform
A joint project was launched between Dubai Airport Free Zone Authority (DAFZA) and Asset Management Group of Dubai with funding of 2.7 bn Dirhams (.75 bn Dollars) to provide advanced infrastructure in Dubai.
CommerCity aims to promote Dubai as an extremely important e-commerce environment and platform.
Small and medium business support
Abu Dhabi Department of Economic Development (ADDED) has allocated 50 bn Dirhams within the Emirate’s business development strategy to support small and medium enterprises.
It will contribute to SME sector development, raising foreign investments and increasing job opportunities.
SORP’s long-term experience is a guarantee of your online business success in the UAE
Get a free consultation with SORP experts
SORP Group’s specialists will help you choose most suitable license for your business activities and determine the best place and type for your company incorporation.
Contact SORP Group right now and take your first step to setting up a successful business in the UAE!