Ecommerce Business Setup – E-commerce platforms are fast gaining popularity around the world. As a result, people have become accustomed to buying in a simple and convenient manner. Of course, advanced technology plays a significant role in this scenario. Furthermore, the broad popularity and accessibility of low-cost internet have aided the expansion.
Dubai is a fantastic place to establish a business and give your entrepreneurial ideas wings. Every type of business has a lot of potential for growth. Starting an online business in Dubai could lead to financial success. Select a jurisdiction, whether Mainland or Free Zone, establish a firm, and begin earning.
Are you trying to figure out how to start an ecommerce business setup in Dubai? Today’s post will go through a quick guide to starting a business in Dubai’s Shams free zone. As a business owner, this will make the e-commerce business establishment process easier for you.
What Is E-Commerce Business?
E-commerce, often known as e-business, refers to the process of making money online by selling goods or services through the internet. Starting with online grocery stores and finishing with private jet booking, company formation in Dubai encompasses almost everything you can think of. Having an internet presence is essential for everybody, whether they are a freelancer or a multinational organisations. Nowadays, every firm must be an online business.
Benefits Of Setting Up An Ecommerce Business
The following are some of the advantages offered by an e-commerce venture in the Shams free zone:
- There are no taxes, except for 5% VAT.
- There are no additional fees for founding or running a business.
- Authorised multiple currency transactions.
- Expats have permission to own 100% of their businesses.
- There are no restrictions on capital withdrawals.
- Low-cost operation
- E-commerce firm owners can apply for a residency visa in the UAE.
- No charges of import and export duties and taxes for company formation in Dubai.
Steps To Set Up An Ecommerce Business
Here are some steps to set up an ecommerce business in the Shams free zone:
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Discover The Market Potential and Choose a Proper Location
You must select the appropriate business model while considering industry developments, consumer needs, and your company’s unique value proposition (UVP). Then, you can choose between a business-to-business (B2B) module, a business-to-client (B2C) module, or a client-to-business (C2B) module, depending on the market potential.
When thinking about establishing an eCommerce business in Dubai, location is a critical issue to consider. However, you do not require a physical office in the UAE to run your eCommerce business.
The two categories of legal locations to which you can apply for a licence are a Shams business setup in the free zone and a non-free zone (Mainland zone). Zero percent income tax, 100 percent repatriation of business earnings, zero percent corporation tax, 100 percent business ownership, and low custom duties are all advantages of operating from a Free zone.
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Decide On Your Licence Type and Business Activities
Although most SMEs choose to form a Limited Liability Company (LLC), the legal entity you choose is determined by your specific circumstances.
Which business structure do you prefer? What types of business ventures do you want to pursue? What is your current status as a resident? These are some questions to think about before making a decision. Finally, you’ll need to figure out what documentation and licences you’ll need to run an e-commerce firm in Dubai lawfully.
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Design A Website for Shams business setup
Design and construct a flawless website with no technological flaws. The website’s performance is critical, and this may have an impact on your business. The e-commerce platform must be dynamic, easy to navigate, quick to reply to, and well-organised. In addition, it must be able to manage several consumers at once without crashing.
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Open A Bank Account
Although you have the option of choosing which bank to create an account with, ensure to open an account with a bank in Dubai. Local banks provide amazing deals to enterprises, which might be beneficial to you in various ways.
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Add Trusted Online Payment Gateways
When forming an ecommerce business setup, you must be prepared to offer as many payment alternatives as possible to your consumers. You must understand that while some customers still prefer to pay on delivery, most current consumers prefer to pay online using their credit cards or prepaid cards. This emphasises the need of including secure payment mechanisms on your website.
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Establish Payment Gateway
You must have a merchant account to connect to a payment gateway on your website. Because the Telecommunications Regulatory Authority (TRA) is responsible for electronic transactions in the UAE, you must have efficient payment gateways to handle user traffic according to TRA rules. Additionally, ensure that your website builder offers customer help 24 hours a day, seven days a week, in the event of a payment failure.
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Focus on Storage, Logistics, and Delivery
If your eCommerce site offers tangible things, you’ll need proper warehousing to secure all of your merchandise. Once you’ve secured office space and a warehouse in your chosen jurisdiction, you’ll need to focus on developing a reliable logistics system. This is a crucial step if you want to deliver your items to customers securely during Shams company formation.
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Import And Export of The Product
You can work with various items, including physical, digital, consumer goods, discounts, branded, unbranded, and deals. Import and export become a crucial component of your enterprise, depending on your business type. To conduct any type of business, the relevant licence must be obtained. A business setup firm understands the procedure of obtaining a trade licence. It is recommended that you consult with a professional team to help you through the import-export licence process, including the time-consuming documentation.
Since you’re interested in starting an eCommerce business, you should first focus on marketing your Shams company formation online. Email marketing, social media marketing, and website banner advertisements are just a few techniques you might use to catch your target audience’s attention. If you have a large enough budget, you can also place advertisements in newspapers and use electronic media to promote your products and services.
