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Major differences between an E-commerce and Trading, free zone license, and why you should consider investing in UAE?

An E-commerce platform allows online business (buying and selling) from suppliers whose commodities are already registered in UAE, whereas trading, involves import and export of commodities in the country.

The following flexibilities from the free zones make UAE a perfect business hub!

E-Commerce in Free zone Trading in Free zone
Local Distributor No local distributor or agent is required under this license. A local distributor or an agent is required to trade your products in the local market of UAE, under this type of license.

 

Office Requirement There is no requirement of office space, with this type of license commodities will be stored by the suppliers. Making it a cost-effective solution. Here you might have to lease an office or warehouse for storing the commodities.
Business Operations An agreement with suppliers is made for trading their products which are already available in the local market through an online website. Under Trading License, you can sell your commodities in the local market through local distributor or agent. But you cannot sell products directly to customers in the mainland.
Payment Gateway You will have an added advantage of payment gateway facility directly by the banks. Under this license type payment gateway facility is not provided by the banks directly.
Custom Duty You don’t have to pay 5% customs duty as it’s already paid by the supplier. You are eligible to pay 5% customs duty for importing commodities if taken out of the free zone.
Product Registration No Need to register products as it is already registered and traded in the local market. The supplier has to have product registration. If imported, product/s need to be registered with the concerned municipality.