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What the Business Owners Must Know Before Starting e-Commerce Business in Dubai

Starting an ecommerce business in Dubai is a great opportunity because you can enter one of the most thriving markets in the world.

However, it’s essential for you to have a thoughtful consideration of all the aspects involved in this process. You must take into account whether you’re going to sell a product or offer a service, define your business plan, carry out a market analysis and develop solid strategies to ensure your efforts will give amazing results.

Here we have a few recommendations so you can be sure you’re taking the right steps to have a flourishing business.

Choose the Right Business Structure

The first step when it comes to setting up a company in Dubai is defining the business structure. This is crucial because there are several factors that you must consider to define this matter.

In the UAE, there are several business structures you can choose from. If you want to have 100% ownership you have to choose one structure, but if you prefer to have a local agent, then you need to choose another one.

But when it comes to an ecommerce business, it’s better to choose between an LLC and a Free Zone Company. Each one of them has its own advantages and disadvantages; you just have to determine the right one that suits to your needs.

Set up in the Right Jurisdiction

Once you have defined your business structure, you must select the right jurisdiction. A jurisdiction is the preferred zone where you register your business. You can choose between a Free Zone and a Mainland company.

In this regard, the nature of your business will define the proper jurisdiction. If you opt for a Mainland license, you get access to the entire UAE market, i.e. you can conduct business anywhere.

But with a Free Zone license you can only sell your products and services within the said Free Zone. The advantage of a Free Zone Company is that you get to choose among the more than 30 Free Zones in Dubai and each one offers several benefits such as complete foreign ownership.

Register your Business Name

Your business name is what defines the identity of your company, therefore it’s important to register and trademark it. It’s important to choose a name that goes with your business nature and activity, so your customers can identify you.

In addition, you must provide several alternatives when you’re registering your business name in case another business has taken the name you’ve considered. Keep in mind that your trade name must be original.

Once you’ve registered, the next step is file for trademark protection. This is essential because you can protect your logo and brand name to prevent another business uses them.

Establish Your Online Presence

Since you’re planning on establishing an ecommerce business, it’s crucial to have a solid digital presence. In this regard, your company’s website will be the platform that you‘re going to use to show your products, offer your services, and have your customers to reach out to you easily.

In addition, your website is also part of your marketing strategy, so you should build one that offers a great experience and it’s attractive for your customers.

To build an outstanding website you have to consider several aspects such as user-experience, security, accessibility, optimization for devices and navigation. Keep in mind that you have to focus also on your website speed since Google has pointed out that mobile website visitors don’t wait longer than 3 seconds for a webpage to load.

Finally, you must decide the type of online payment you’re going to include in your website. Since you own an ecommerce business you must offer several options to your customers to pay for your products or services.

Open a Business Bank Account

Once you have carried out the steps we mentioned before and you’ve got your ecommerce license, you’re able to start conducting business in the UAE. But, you need to open a bank account so you can track and manage your finances.

Many ecommerce business owners make the mistake of using their personal bank account but this may not be advisable. Although your personal bank account may seem convenient, you may find harder to track your business finances since it’s combined with your personal finances.

In addition, it can lead to inaccurate bookkeeping and this could lead to difficulties when it comes to tax liabilities and cash flow.

Having knowledge about how to start your ecommerce business may help you be prepared so you can have everything ready to start. However, if you’d like to get additional assistance in this matter, you can always find a service provider that guides you through the entire process and ensures an excellent result.

Build your E-Commerce Business with Connect Group

Connect Group is the business setup partner you need to start your ecommerce in Dubai. We have assisted foreign entrepreneurs that want to establish their presence in the UAE so we guarantee we can understand your particular requirements.

Our team of company formation specialists can assist you on each step of the process such as helping you decide the suitable business structure and proper jurisdiction for your business.

Whether you’re thinking about setting up a business in a Free Zone or in Mainland, we can offer you a comprehensive business support service that ensure you get the results you expect.

The Complete Guide for LLC Company Formation in Dubai

Connect Group is here to help you at every step of your business journey in the UAE with ease.

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