Dubai has to turn out to be one of the most optimum places to start your E-commerce license and one of the core phases of Dubai stardom is because of its tax-free rules. The UAE has attracted a lot of investors, entrepreneurs and factory owner from across the world as it is constantly emerging. Institutions in Dubai also advantage hugely due to the quick development of the economy. With nearly half of the world’s population is likely to become web users by 2016 the internet economy is set to provide companies with a significant source of growth.
Dubai has made dominant efforts to enact itself as an e-commerce nerve center, and according to a study carried out by Dubai Media City in late 2002 was at that time on equivalency with top European Union states in basic online services. This trend is being further fired by the rise of the emerging markets and the growth of social media. SMEs are also increasingly moving and shaking the Internet, using it for marketing, sales, and collaboration with customers and suppliers.
In the Middle East region, the web outcome is no less thrilling. For example, 42 percent of UAE consumers accessed the internet for online window-shopping in 2012, up from 33 percent in 2010 according to an analysis by MasterCard. The e-commerce trends here are no peculiar. New players are setting a brilliant trail for e-tailing. PayPal is coming on huge in the GCC region, according to the top Arab Advisors Group, the value of e-commerce allied transactions is about $11 billion a year in the Middle East.
With the rise of broadband in the region and improvements in logistics, security of transactions, payment execution and technology speed, we expect the online space to continue to succeed. Piling and sizing an on the top and up the brand in the Internet era is about acknowledging the new actions of an evolving customer base.
Looking at the time to come, the debate has to shift from e-commerce vs. offline commerce to a consolidated model. For the prospects, some things remain the same no matter the talk is about online or offline retail purchasing. Customers still want to buy fashionable products at great prices, they still value good services, and they continue to fancy brands that come in line with their daily life interests. Progressively, consumers are making the final purchase through a series of online and offline experiences. Online, they share information, support their friend’s choice, research, learn and develop a point of view. Offline they often look at and feel the product, stack up with some brands and associating it with others. It is a combination of these experiences that drives the end-user to his or her final purchase decision and brands of the future must take both into regard.
Finding the right tactic for this online versus offline dynamic will be the key to the success of future brands and e-tailors.
- To form a web-based firm/company, you will need a license from the Department of Economic Development (DED).
- If you are looking to incorporate a company within a free zone, the license will have to be obtained from the respected free zone authority.
- The type/kind of license issued will depend on the nature of your online business.
Office space: Subjected to the nature of the business, you should also hold an opinion of setting up a physical office. Dubai based middle-eastern company must have a physical office space to be treated legal/lawful.
To set up an online business, you simply need to prepare your website; the following steps need to be taken when establishing your web presence:
Registering a domain name:
- You will be required to choose and register a domain name.
- This is the name or addresses you will use for your website (Suggested; The company name)
- A horde of companies in the UAE offer domain name registration services. In order to obtain, you can search it out on Google which is the best one available.
If you are an online shopping portal, there are a few additional components to keep in mind:
Online payment gateways: If you are in the mainstream of selling products online (whether tangible or intangible) you need to set a Secure Payment Gateway with Options including credit card payment, cash on delivery and pre-paid card systems such as PayPal.
Import/export requirements: If you are shipping in goods from outside the country and selling them online to the UAE market, the business has to be registered with the respected emirate’s ports and customs/tax authority, and acquire an importer’s code from the government. A customs/tax duty (often 5%) is applicable to goods being imported from outside the country.
Businesses incorporated within a free zone are exempt from customs duties if they are selling their products/services within the free zone or outside the country. On the other hand, if they are selling to the UAE market (outside the free zone), the customs duty has to be paid and a local commercial agent has to be appointed.
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