No matter, whether you want to register your holding company, form an e-commerce company or need a branch license, things are possible in UAE. When it comes to the formation of an e-commerce company, there are few things you must know.
The convenient access of internet in addition to the use of smartphones, it has helped the industry of e-commerce to get great growth. One can shop for everything now online and it allows one to reach a wider audience as well.
Set up your E-Commerce Company
As you know the market in Dubai is very lucrative. You need to go through certain processes if you want to set up your company. With its best help, it is easy to set up your e commerce company formation in UAE.
Incorporating a company of e-commerce in Dubai is very easy but one cannot flout its regulations and laws at all. The UAE authorities here don’t allow any random person to launch their e-commerce store and sell their products.
For setting up an e-commerce business, you need to obtain a license that is issued by DED (department of economic development) in Dubai.
Things to remember while obtaining an e-commerce license
Soon after you decide your location where you will be setting your e-commerce business in UAE, you need to obtain a license. For setting up your company in the mainland, you need to pay an amount of AED10000 to the department of economic development for registration of trade name, initial approvals and issuing of your license.
In case you need setting up within your free zone, the license should be acquired from the relevant authorities of the free zone. The license type which is issued is based on the nature of your online business.
Open your branch in UAE
On the other hand, many people are opting for branch license registration in UAE it is because of the growing business activities which give birth to the expansion of companies. When any business entity performs well in their home market, they want to take a logical step which is branch expansion.
Setup of a branch office in UAE is now possible as you just need to obtain a license from the concerned authorities. There are some important documents that have to be submitted to the department of economic development for gaining a license.
As soon as the documents are submitted and then evaluated, the MOE issues your approval letter to the UAE department of economic development. After this, the client is required to submit additional documents which include,
- The receipt which is approved by MOE along with other approvals that applies to industry
- The copy of the proposed lease in UAE
- Copy of documents submitted to MOE
- Undertaking from foreign parent company
- Letter from UAE auditor which confirms their existence and summarizes 2 years of financial statement of the parent company
- Soon after the submission of these documents, the commercial license gets issued by DED with one-year validity and has to be renewed every year.
License registration for holding company
On the other hand, if you want to set up your holding company, then a holding company license registration in UAE is a must. There are some requirements that you need to fulfill for opening holding company in UAE which includes,
All the companies based in Dubai include holdings, should comply with regulations that are imposed by the law of the company. However, the holding company should also ensure the following things as,
- It should appoint a management board that will be in charge to create a policy for the subsidiary organization.
- The management board should supervise activities which are undertaken by a subsidiary or even subsidiaries
- The shareholder of holding company should appoint direct in a subsidiary company
- The holding company must ensure that the subsidiary holds necessary capital for carrying out its operations.
- Holding company should impose limits on risk which a subsidiary can take
- Holdings should take decisions concerning their arrangements and contracts made by a subsidiary
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So, no matter whether you have decided on setting up an e-commerce company in UAE or want to open up your new branch here, the UAE offers amazing opportunities for expanding your business in this lucrative place. You just need to follow the experts-mentioned steps for gaining a license without any hassle.