5 Things to Know before Starting an E-commerce Business in Dubai
In today’s age, you never can predict what really would bring you fame. A single post, or a single viral video can make you famous overnight! Likewise, opening an e-commerce business (like an online retail store) can be quite a riveting yet nerve-wracking experience.
However, before you carry out your new business setup in Dubai, especially when starting an e-commerce business, ensure that you are fully aware of these five things.
Starting a business of any kind requires extreme caution, as it might make or break your business. As for an e-commerce business, you must carefully scrutinize the initial aspects that go into creating your venture. Some of these aspects include but are not limited to the market analysis, the business plan you write, your marketing strategy, the products and services you offer, and customer acquisition strategies.
After you have prepared for these factors, you can commence your e-commerce business setup in Dubai.
- Choosing the business structure
When in UAE, it is imperative for you to choose your business structure, as that will dictate how your business will fare in the future. Choosing the right business structure depends on your business activities and preferences.
In the case of an online business, the preferable business structure would be either a Limited Liability Company or a Free Zone company. There are many caveats to both, and it ultimately depends on the business owner. However, that shouldn’t stop you from getting help from a business setup consultant.
- Choosing the right Jurisdiction
One of the main distinctions between a free zone and a mainland license is that the former requires you to sell your products and services through a local UAE distributor, while with a mainland license, you can directly trade or sell your products to your customers.
Note that there are more than 30 free zones in Dubai alone, each customized to suit some of the most common business activities. Hence, despite the inhibitions with free zone licenses, you have a lot of room for choice.
As far as setting up an e-commerce business is concerned, it is favourable to consider the factors that will benefit your business in terms of scalability and market reach.
- Trade name registration
This is another important step in the establishment of your e-commerce business.
It is common practice to keep a few extra names handy during the registration process, as the selected name might not be available. After selecting the available name, you will have to file for trademark protection.
Trademark protection, as the name implies, will secure your brand name and identity, and will prevent any other business from using your trade name. The Ministry of Economy oversees the trademark protection registration in the UAE.
- Creating an online presence
Your company website is a 24-hour virtual assistant to your customers, and is one of your biggest — if not the biggest — marketing tool for your business. Since it is an e-commerce business you’re starting, your online presence must be your priority at all times. CMS systems like WordPress are among the most-widely used resources when building a website.
After creating your website, you must decide on the online payment-processing gateway for your e-commerce website. Even if you’re starting out small, it is recommended to include an online payment portal, among other modes of payment like Cash on Delivery (COD).
- Opening a bank account
A business bank account will facilitate the tracking of finances of your business, and is mandatory for your business. A personal bank account might save you the charges of a business account, but it will be extremely tedious to compartmentalize your personal finances from your business revenues. Not only that, but it can be challenging to determine your tax liabilities, contributing to inaccurate bank records.
The above points are absolutely indispensable to carry out when it comes to carrying out a new business setup in Dubai. But starting your business in Dubai doesn’t always have to be a tedious process; not when you have top business setup consultants like Cross Link International at your disposal.
Cross Link International is one of the best business setup consultants in Dubai and will assist you in Trade Licenses, company formation, Business License renewal, PRO Services, Visa Services, free zone company formation, Golden Visa Procural, LLC company formation, Dubai Business Setup, 100% company mainland setup, and many more services that go into business setup. You can reach out to us through + 971 4321 6631 / + 971 55 744 6445 or fill-in this form to get a free consultation from us.
