DWTC’s New E-commerce license, Key points You Should Know

January 28, 2022
DWTC’s New E-commerce license, Key points You Should Know

An e-commerce licence in the UAE is one of the most in-demand licence categories that see positive growth. Many businesses are opting for an e-commerce licence to tap into the fast-paced online business spaces and to enhance their business growth strategies. The demand for e-commerce licences is also backed up by the growing internet adoption and the changing consumer purchasing patterns. Among all the e-commerce licences available, the DWTC e-commerce licence is relatively new, so understanding its components can be challenging. Here are points an investor needs to know about DWTC’s new e-commerce licence in Dubai. 

How To Obtain 

Generally, an e-commerce company set up in one of the UAE’s free zones is one of the most popular business activities, so it can be obtained at a relatively lower cost. Based on their specific requirements and future goals, investors can select the right free zone that can benefit their business. There are more than 40 free zones in the UAE that offers e-commerce licences for investors.

This licence can be obtained within two days of submitting the documents to the relevant authorities. Through a business centre in Dubai that offers business set-up services, this licence can be obtained easily in a hassle-free manner. 

To obtain any e-commerce licence from Dubai, the following steps need to be followed.

  • Decide on a legal structure
  • Choose a business location
  • Register the E-commerce company’s trade name
  • Submit the application to get the licence
  • Submit application for the initial approval certificate
  • Draft the MOA/local service agent agreement
  • Register a physical office space and get the approvals
  • register with ports and customs authorities (relevant in case of imports/exports)
  • collect the licence from the DED
  • open a corporate bank account

Once an e-commerce company obtains the licence and registers, they will have to partner with an online distributor or open a seller account using the online market portals. This requirement should be met in order to start the inventory transfer and register a sale in the local UAE market.

What It Allows

The new DWTC’s e-commerce licence allows selling and delivering goods outside the UAE via online channels and collecting online payments in return for the product sale. But the scope of a free zone E-Commerce activity using the DWTC’s new licence is limited to facilitating a sale through an electronic medium rather than directly conducting retailing activities.

 Depending on the company’s or investor’s business plans and the nature of the business, the scope of an e-commerce business can be expanded to international markets and other varied categories. However, if you’re planning to conduct commercial activities in the wider UAE (outside the free zones), then you must obtain a licence from the DED alongside registering a space like serviced offices.

Main Gains 

  • Can easily opt for a virtual licence without an office space.
  • Startups, freelancers, or entrepreneurs can test the market and start with their startup journey at a low-cost
  • Also, most of the free zones in the UAE offer customised warehouse facilities to store your imports and facilitate trade.
  • Eligible for the waiver of customs duties during imports into the free zone.
  • Some free zones have in-house customs checks and help faster clearance of goods into and out of the free zones.
  • 100% foreign ownership
  • 100% profit repatriation
  • No customs duty
  • Easy business set up.
  • Easy access to airports and seaports
  • Easy custom clearance
  • Low operating cost

 

As it’s clear the DWTC’s new E-commerce licence offers multiple opportunities for anyone looking to tap into the online business space. It also has facilitated a simplified licence obtaining process to make it more attractive to potential future businessmen in the UAE. 

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