E-commerce Is a Big Business
There are a lot of things to like about e-commerce. More shoppers are now buying online than ever before. And in addition to the burgeoning online traffic, another advantage for e-commerce business owners is that there’s no need to maintain a brick-and-mortar storefront. Your business isn’t just limited to being local; e-commerce can truly be a global enterprise that transcends all geographical borders. The sky is the limit! But where to choose as your center of e-commerce operations?
You’d be hard-pressed to find a better location for launching your business than in the Dubai CommerCity Free Zone. The prospect of business setup in Dubai is attractive for many e-commerce businesses, thanks to high internet penetration, a tech-savvy population, and the specific presence of some sector-specific Free Zones. Dubai CommerCity presents many unique e-commerce solutions for foreign business entrepreneurs and investors.
Free Zone Business Setup Dubai Makes Good Sense
Everyone knows that Dubai is a world-class destination for tourists, but hospitality isn’t the only industry that flourishes here. This progressive Emirate has built a superior infrastructure for supporting business development, and has worked just as hard to enact business-friendly policies to attract foreign investors. There’s honestly not a better location for launching your new business than right here in Dubai!
And business setup in Dubai doesn’t have to cost you an arm and a leg, either. UAE Free Zone business setup expenses are lower than you may realize, and some Free Zones are even more attractive than others, depending upon the specific nature of your business. And when it comes to e-commerce business in Dubai, there’s one Free Zone which clearly stands above the rest. Ready to learn more about business setup in Dubai CommerCity? You’ve landed on the right page, brought to you by your friends at MSZ Consultancy!
What Makes Dubai Commercity an Ideal E-commerce Business Location
Dubai CommerCity (DCC) was officially opened for business in August 2021. It operates under the auspices of the Dubai Airport Free Zone Authority (DAFZA), and Dubai CommerCity is both the first and the largest e-commerce Free Zone in the Middle East.
What makes DCC a perfect location for e-commerce businesses? The reasons are many:
1. Ideal infrastructure for supporting e-commerce
Dubai Commercity offers some features that other “general” Free Zones simply can’t. DCC is broken down into three primary clusters, each with its own innovative design and features. The Business Cluster is comprised of 12 office buildings totaling 240,000 square meters of premium space. The Logistics Cluster includes various dedicated fulfillment solutions tailored for e-commerce businesses, along with multi-client facilities featuring pay-as-you-go pricing models. And the Social Cluster is home to diverse food halls, restaurants, art galleries, and open spaces for gathering.
2. Dubai CommerCity is a VAT Designated Zone
Dubai CommerCity has been classified as a Designated Zone. This means it’s a special, fenced-in geographical area with special security measures and customs controls in place to foster both safety and efficiency for business operations and goods transport.
3. Tailored e-commerce services
Dubai CommerCity offers a full suite of specialized e-commerce business services as well. These services include fulfillment, warehousing, & last-mile delivery, e-commerce technology platforms & services, e-commerce strategy consulting, customs consulting, and more. Need help with digital marketing or customer analytics? Dubai CommerCity’s support network has you covered there, too.
4. Special incentives for early investors
As part of its initial commercial launch, the Free Zone also offered some early bird incentives for new investors looking to set up shop in Dubai CommerCity. Among other things, these incentives included deep discounts on office space leasing rates.
5. Dubai is committed to growing its digital economy
In fact, developing its digital economy is at the heart of Dubai’s future growth plans. The Dubai Metaverse Strategy looks to create 40,000 jobs and add $4 billion to the economy over the next five years. Not surprisingly, the UAE e-commerce market is also forecast to grow 60 percent by 2025.
6. Gateway to regional and international markets
Dubai CommerCity is designed to provide support to both new and existing digital commerce companies in the Middle East, North Africa, and South Asia. And the new Free Zone’s strategic location near the Dubai International Airport opens even further possibilities for e-commerce growth in other global markets.
7. Specific Free Zone benefits
And don’t forget about the other benefits that go along with setting up a Free Zone business. A business incorporated in the DCC offers the possibility of 100% foreign ownership. That means you get to keep all of your profits, with no restrictions. In most cases, not only are you exempt from personal income taxes, but you won’t have to worry about paying corporate taxes, either!
Business Setup in Dubai CommerCity Free Zone
While you have the option of seeking an e-commerce license in other UAE Free Zones, choosing to set up your business in an industry-specific Free Zone like Dubai CommerCity is much more advantageous. A local Dubai expert business services provider like MSZ Consultancy can guide you through the entire business setup process:
1. Decide on a legal structure for your business. Two primary options available in Dubai CommerCity are a branch office, or an LLC.
2. Choose a unique business trade name, making sure not to duplicate any existing UAE business names. The Department of Economic Development (DED) gives specific guidelines you must follow in choosing a business name.
3. Apply for an e-commerce license in UAE. You’ll also need to pay the necessary fees for obtaining a license, registering a trading name, and setting up a business in Dubai CommerCity. The different types of permits include:
1. Trade License
2. Service License
3. Commercial License
4. Ecommerce License
4. Obtain an initial approval certificate for starting a new business in DCC. There are several pieces of documentation you’ll need to provide, including a copy of your business plan, passport copies of your primary shareholders, financial reports, etc.
5. Choose an office space in Dubai CommerCity; you can either buy or lease space, depending on which option will work best for you. You should also decide which specific DCC cluster location (or locations) you’d like to leverage:
1. Business Cluster
2. Logistics Cluster
3. Social Cluster
6. Once your company license is approved, you’ll of course need to apply for any residency visas and work visas for you and your foreign national employees.
7. You will also be required to open a local corporate bank account for your business, and should set up an employee compensation plan under the auspices of the UAE Wages Protection System.
How MSZ Consultancy Can Help You Set Up Your DCC Free Zone E-commerce Business
We hope we’ve provided you with some helpful information regarding what it takes to set up an e-commerce business in the Dubai CommerCity Free Zone. But even so, you may still have some questions. If you’re serious about launching your own UAE e-commerce business, it’s really best not to try and tackle the business setup process by yourself.
Our experts at MSZ Consultancy are here to help! We’d be happy to come alongside and help you to make it happen. Our company headquarters is located right here in Dubai, and we know all the ins and outs for helping you to navigate the entire business formation process effectively and smoothly, without any unnecessary hiccups.
Reach out today to book your free consultation! You can just call us direct at +971 52 544 1248, or you can also get the conversation started by shooting us an email at info@mszconsultancy.com. There’s really no need to wait; let’s get started on turning your dreams of starting a business in Dubai into reality. Our team is standing by, and we’re ready to assist!
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