User blog: izrar ulhaq
The Dubai Department of Economic Development (DED) has recently introduced a number of E trading License in Dubai efforts to establish itself as an E-Commerce hub. Traders will have the opportunity to obtain a license for their online trading platform. This new E-Commerce initiative has sparked some questions in relation to whether or not an E-Trading license is necessary, and if so, what an E-Trading license can allow you to do.
Is an E-Trading license necessary?
When activities are conducted via an online platform, it generates a lot of confusion in terms of whether or not these activities constitute conducting commercial activities within the UAE, given that they are online.
Article 6 of Law no. 13 of 2011 regulates the conduct of economic activity within the Emirate of Dubai and Article 328 of the Commercial Companies Law of 2015 (“CCL”) states that a foreign company should not conduct activities inside the UAE without obtaining a licence.
Article 355 of the CCL prescribes a penalty between AED 100,000 and AED 500,000 on a foreign company if it does not register itself with the Registrar.
Therefore the strict application of law requires a foreign company to be fully incorporated and hold a valid license to conduct activity in the UAE. Failure to do so, risks a penalty between AED 100,000 to AED 500,000.
Some may argue that an online business does not need to have a registered office nor does it need to employ staff in the UAE to carry out any activity on the ground, thus, Article 328 and Article 355 do not apply. However, it is difficult to predict how the Authorities will address this argument given their discretion is not structured by statute or practice. The strict approach is that in order to conduct any commercial activity within the UAE, the appropriate license must be obtained. A prerequisite to obtaining a license is to obtain and maintain a registered office. Therefore, the Authorities can in their discretion apply the strict approach to a company seeking an E-Trading license in the UAE.
In practice, there may be many unlicensed online platforms trading across the UAE. However it cannot be guaranteed that the regulator will not identify these unlicensed online traders and impose a penalty between AED 100,000 to AED 500,00.
The DED has recently introduced the following E-Commerce activities:
- Jewellery and precious stones E-Trading;
- Garments, Textiles and Gifts E-Trading;
- Publications and Media Materials E-Trading;
- Household, Professional and Personal Goods E-Trading;
- Vehicles and Transport means E-Trading;
- Equipment E-Trading;
- Sport and Recreational Events Tickets E-Trading.
An E-Trading license provides traders the opportunity to sell to the general public over the internet without needing any human interaction, using any of the applications that rely on the internet. It involves co-ordinating with payment service providers which offer online electronic payments by a variety of payment methods including credit card, smart cards and digital money E-cash.
At present there is no general E-Trading activity available, however the activity ‘General Trading’ will allow a company to perform and undertake all types of trading whether physically or via an online platform. Typically, if a company is licensed to trade in a particular industry, that trading license will qualify the company to also trade online.
E-Trading activity in the free zone
Unlike Dubai mainland which is subject to the CCL, free zones have their own set of regulations when it comes to licensing business activities. Free zone companies cannot conduct commercial activities outside of the free zone. Therefore, for a trader to freely trade and sell its products online, into the wider UAE, the trader must also obtain a license to do so from the DED. Some free zones do offer E-Commerce activities, but the scope of a free zone E-Commerce activity is limited to facilitating a sale through an electronic medium, rather than directly conducting retailing activities. In short, a free zone company with an E-Commerce activity can only act as a middleman, unless it also obtains a license from the DED to allow the free zone company to trade freely across the UAE. You also need an Import Code in Dubai.
Introduction of the DED’s E-Trader Scheme
Another development by the DED is the introduction of the ‘e-trader’ scheme whereby online business established via various social media applications such as Instagram, Snap Chat, Whatsapp, Facebook etc can now be licensed by the DED. The conditions are that the license holder must be a UAE national, over the age of 18 and the license cannot be used to open a physical store, nor can it issue visas. This development was introduced with a view to “promote consumer confidence when shopping for products and services on social networking sites” said Omar Bushahab, Chief Executive of the DED’s Business Registration and Licensing Department.
Hamriyah Free Zone (HFA) Authority was installed in 1995. It is situated in Sharjah, United Arab Emirates, which offers the free area a completely unique geographic and strategic vicinity. It is backed via a secure and completely convertible currency and a multi-get entry to to neighboring and worldwide international locations via land, sea and air. Hamriyah Free Zone is on a fast track of turning into the keystones of the United Arab Emirates commercial development. Hamriyah Free Zone is the subsequent Generation Free Zone and its control is flexible and dynamic. Its mild and liberal enterprise guidelines make Hamriyah unfastened sector an investor oriented free zone. Procedures for business enterprise formation and commercial Company formation in Hamriyah free zone, Sharjah, (UAE) is very smooth and simplified. The simplified techniques and formalities make it viable to reap a license inside one hour of submitting all require documents.
Industrial License lets in a commercial enterprise to import raw material for manufacturing, processing or assembly of the products specified in the license. Finished products can both be re-exported to different countries or offered in UAE market through a distributor or agent Commercial License shall we a business enterprise to import, export, distribute and promote objects which can be allowed within the license Service License lets in agency to offer different sorts of services to clients consistent with the agreement Benefits 100% tax loose, 100% organisation ownership, entire repatriation of profits and all other loose region benefits Located at a strategic location with get admission to to deep water port and proximity of Sharjah International airport and three sea ports to easily join neighboring markets Affordable value of dwelling and recruitment of least expensive workforce Availability of furnished executive offices along side pre-constructed warehouses and workplace units (to be had on lease also). Land hire for 25 years and can also be renewed for equal period Highly evolved infrastructure, reliable telecommunication system and cheaper energy
Documents Required: Both organisation and branch of a local/foreign agency should publish important files earlier than their registration. Few important documents for registration of branch workplace are: Original bank reference letter regarding credit fee and top status of business enterprise Notarized replica of Memorandum and Articles of Association of the company, Notarized replica of Board Resolution for starting a department in Meydan free zone company formation to hire the manager/ director for the Free Zone operations along with his passport replica and Power of Attorney.
Why Use US for Hamriyah company formation
We will provide complete help in getting registration of FZE/FZC or department workplace in Company formation in Hamriyah free zone. We are well privy to the whole manner due to years of experience in Dubai and huge range of satisfied clients. We guarantee you to finish the whole method with no trouble and in minimum possible time. We are committed to accomplish all of your requirements with the aid of offering legal, documentation (translation, attestation etc.) and other offerings
Corporate PRO services in Dubai play an important role when you want passport clearance, immigration, business licenses, trademarks, copyrights and certification. Our PRO services of ensure that clients are given end to end support for their business setup in Dubai. We facilitate quicker document clearances, labor contract creation, license renewal, immigration card for our clients. The product registration means to register a product and its details with the Dubai Municipality. The legislature chamber of the Dubai, UAE is required to manage and operate the import and export of products including manufacturing and supplying of those products. All the products are required to be checked and examined by the authority before dispatching them for the domestic market of Dubai, UAE. The Health supplement registration in Dubai is a necessary process in the UAE so that harmful and bad products are not supplied to the community. It is required to ensure the quality of each product along with the safety of consumers. Forex trading essentially means the buying or selling of currencies simultaneously. The exchange of currencies between different countries is inevitable and the main reason why the forex market is the largest and most liquid financial market in the world. There is no designated centralized marketplace for How to Trade in Financial Markets in Dubai but is rather executed electronically over-the-counter (OTC), which means that all transactions are carried out via computer networks between investors worldwide. Also the forex market remains open 24 hours a day and five days a week with the starting of the Asian session till the closing of the US session. Hence the market remains highly volatile at all times with fluctuations in prices within no time.
We are professional Business setup consultants in Dubai. Our main office is in Dubai. Our firm is established in the year of 2014, we are offering integrated business setup explanations for entrepreneur to form a business in Dubai and as well as in Sharjah. As one of the top business setup consultants in Dubai, we have successfully got variations of expert services such as business setup in Dubai free zone; business setup in Dubai mainland and offshore company registration in Dubai. Business setup in Dubai is also topic to a number of rules and regulations. This wanted to be succeeding correctly. We Shams consultant suggest our service area to make the setup of the commercial process. We also support in discovery the right local sponsor or local agent; our service area also contain of buying as well as selling an existing companies in UAE, PRO & document clearance services in Dubai and across the UAE. At shams we are takings the worry out of your LLC company formation in Dubai procedure by taking the full charge of the procedures involved, such as given that wide-ranging help on what lawful and industry arrangement greatest suits your present and future business necessities.
Offshore or on-shore company in Dubai
The procedure for opening an offshore company in Dubai differs very much from the one necessary for incorporating an on-shore company. If you're not sure at this stage which one you need, please consider the following: A) An offshore company ( Ajman offshore company formation ) does not have any special requirements or limitations regarding the owners/shareholders of the company while. b) An onshore company does not allow full foreign ownership (the company requires a local "sponsor").
DWC company formation (Dubai World Central), is one of the strategic business hubs developed by the Government of Dubai. Today, the Dubai South Free Zone (prev. Dubai World Central Free Zone) is the largest and leading global trade, business and aviation hub. The Dubai World Central (DWC) was renamed to Dubai South not too long ago and to reflect the strategic location of the free zone. The Dubai World Central (DWC), now Dubai South, is located on 140 square kilometres of multipurpose area right next to the Jebel Ali Sea Port.
The Dubai South Free Zone headquarters is closely located to Al Maktoum International Airport, Logistics District, Business Park, Aviation District, Commercial District, Residential District, Golf District, Exhibition District, and Humanitarian District. The Dubai South Free Zone international airport is strategically located to provide convenient logistics and shipment around the GCC, Middle East, and the entire world. A company formation in Dubai is great choice because Dubai is a land of many opportunities. With llc company formation in Dubai you can take your business to a new height. Starting a new business in Dubai is now easier than ever especially with the help of a professional business consultant. B2B Document Clearing is a trusted company for llc company formation in Dubai and UAE by many clients. As our mission is to provide efficient, cost effective and personalized service with the highest quality service possible. If you are planning to open a new business, Dubai Limited Liability Company (LLC) is the ideal business set up for new entrepreneurs.