How to start an online business in Dubai?

Starting an online business in Dubai
January 30, 2024

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Modern technology is continuously transforming the world into a global village. Business hubs like UAE are bringing people closer to the companies due to mutual rewards in 2024. So, start an online business in Dubai to sell products to high-end customers onshore and internationally.

The dawn of this millennium has brought with it the winds of change that are evident in many ways. However, one of the most significant changes seen by us in this century, are advancements in technology. They aptly dub this as the era of science and technology.

The rapid advancements in the electronic-commerce sector are entirely changing the way we register business and sell products. Thus, the shift in the way people shop, is making businesses to rethink their strategies to reach a broader audience. Among a plethora of advantages of e-commerce, most vital one is an online store is cheaper than the conventional store.

Reasons to incorporate an online business in Dubai

Why you need to register an online business in Dubai?

Thanks to quick, easy and precise communication channels; the world we live in is getting closer. Presently, distances have no real meaning. People living in a country can interact, talk, and do business with people globally and in the UAE.

The evolution of technology has brought a new kind of business, i.e., eCommerce. It is gradually removing the need for traditional stores, with people preferring to shop online. However, brick-and-mortar stores can also start online business in Dubai to expand their customer-base.

For setting up an online store all you need is a website domain, good internet access and a PC/laptop. After all an online store has a broad audience. Due to the rising access to the internet and computer/mobile, users are also not limited to a particular region.

Insight: UAE to clock 4% GDP growth in 2024

Benefits of setting up an online business in Dubai

Which are advantages of forming online business in Dubai?

Because of its geo-strategic location, the United Arab Emirates is reaping the benefits of the boom in the e-commerce business. Another reason is that UAE has state-of-the-art infrastructure and top-tier connectivity services. Investment in online business is a viable option for entrepreneurs as 90% the Emirati population has internet access.

Dubai has a remarkable position in the UAE and the Gulf region. After all, it provides numerous business opportunities to business owners for setting up an e-commerce business. The UAE has easy access to the markets of three continents. Dubai has multiple free zones making it a prime spot to set up an online business.

There are several rewards that entrepreneurs can reap from venturing into the UAE. So, establishing an eCommerce company in Dubai is the way forward. The notable benefits you get as you start online business in Dubai are given below.

  • Minimal taxation on capital investment and income
  • Low operating cost
  • 100% ownership of the company
  • Duty-free import-export
  • Full repatriation of the profits
Benefits of setting up an online business in Dubai
Benefits of setting up an online business in Dubai

Read more: Bank account opening in Dubai

Procedure for beginning an online business in Dubai

What is process of opening an online business in Dubai?

The following is the step-by-step process to start an online business in Dubai.

Next, we take a look on this step-by-step procedure of setting up a business in Dubai.

The single most important decision you will have to make is this. What type of structure will your company have? Therefore, deeply think before making a decision as it will decide the fate of your enterprise.

You must weigh all the pros and cons before making this monumental decision. Various types of legal entities are available for picking. Nonetheless, the most favorable among SMEs is the limited liability company (LLC).

Choosing the jurisdiction for the company

A wide variety of suitable locations are available for setting up of business in Dubai. Thus, from the Dubai mainland to myriad free zones, there is a place for any business setup in Dubai. We suggest that you opt for a free trade zone as the site for the registration of the company. Because, every free zone has unique plus points that are exclusive to a particular industry.

Getting an office space

Even though you are opening an online business, you still must have a physical location. This company office is mostly acquired to fulfill the requirements mandated by the licensing authorities. However, you may get a cheaper place, as an e-commerce company typically does not have a conventional store.

Acquiring a license

To start a business in the United Arab Emirates, getting a license for company formation is essential. Nevertheless, the type of the business license depends upon various factors. Some of the key pointers in this regard are these.

  • Type of business activity
  • Place of company registration
  • Scope of the user/client dealings

In the case of free zones, you have to gather additional licenses. Basically, the license application takes a week to two weeks for processing. So, after successfully obtaining a license, your business is ready to begin its operations.

Opening a bank account

You must open up a bank account as you set up your business in Dubai. Since, a bank account provides ease in doing business in the UAE. It will help in giving an individual, utterly separate identity to your business venture. Furthermore, the bank account will also aid in while you are filing for taxes or doing regular audits.

Idea: Start an eCommerce business in Dubai


The above steps help you in setting up an online business in Dubai. Sometimes, you may become fed up while forming a company, because it is a long and hectic process. To guide you through the treacherous path, you will need the help of business setup advisors.

We at KWS Middle East take pride in serving you throughout the entirety of the business setup process. So, get in touch with us for a brainstorming free discussion today. Do not hesitate and make your Dubai dream happen.

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