Author: Ayushi Doegar

Amazon is an internationally recognized company that provides its users with a host of products and services on its website. Moreover, Amazon also provides a platform to individuals who wish to sell their products. The Middle East is a region that has seen exponential growth in the interest and use of online services. Amazon recognized this as a lucrative opportunity and acquired souq.com, entering the Middle Eastern market as amazon.ae.

The UAE in particular has been quite receptive to the online market boom, with over $10 billion in online sales revenue in 2018. The high sales can be attributed to the average spending budget of online shoppers as well as a lack of apprehension toward the online mode of purchasing items. Over 63% of UAE’s internet users engage in online purchases. Moreover, the pandemic has further increased online sales. Such a lucrative market is hard to come by, which is why many are setting up online stores on sites like Amazon. In this article, we explore how you can set up your own online store and sell your products on Amazon successfully.

Things to consider before selling on Amazon

Before you start selling on Amazon you need to set up your Amazon seller account. The registration process to set up your Amazon seller account is simple; all you really need to do is enter your business’s details and select a seller plan. There are two types of seller plans, which are as follows:
a. Individual Plan: This is for those who do not require additional selling tools or other add-on programs.
b. Professional Plan: This is for those who plan to sell in large quantities and require the selling tools Amazon has in order to conduct business.

One of the benefits of the Professional Plan is that you do not have to pay anything upfront to avail this service. Once you make a sale through the program, a small percentage will go to paying the Professional Plan. This pay-as-you-go program eases the financial burden on the entrepreneur due to its conditional-installment-based payment system.

You need to fulfill the following requirements to complete your registration:

• Trade License (for businesses) if you are the owner and a Power of Attorney only if you are a legal representative “or an account manager”.
• For Individuals: a recent bank account statement (less than 3 months old), credit card statement, or utility bill.
• National ID.
• A bank account for the proceeds of your sales.
• Business email address or Amazon customer account.
• Phone number.

Before you dive into the world of online selling, it’s important for you to select a line of business you can engage in that is profitable in the online space. Some of the top categories of products users purchase include the following:
a. Apparel and textiles
b. Handmade products
c. Electronics
Moreover, the UAE’s shopping preferences also indicate overwhelming favor towards cash on delivery, with nearly half of all purchases being paid through this mode of payment. Enabling this mode of payment can help your business see a significant boost in sales.

Is Amazon the right platform for your business?

With the above benefits in mind, selling on Amazon seems to be a warranted tool for success. But is Amazon really the right choice for every business?

To know the answer, you need to closely examine some factors. Your products need to meet certain criteria to be eligible for selling on Amazon. there is a list of restricted items that cannot be sold on Amazon or require certain permissions, and other products can only be shipped locally. On the other hand, some products need to be customized to meet the different preferences of customers. While this feature is provided by Amazon for some products, some listings don’t enjoy this benefit. Lastly, if your product is large, fragile, or has a short shelf-life these conditions pose certain challenges in terms of storing and shipping. Another factor to consider is the high rate of competitiveness on the platform. If your product doesn’t have the advantage to make it stand out from the crowd of similar products, you may face some issues in securing a front place for your product. However, Amazon provides some smart marketing solutions to give your products a more recognizable voice.

Benefits of selling on Amazon UAE

The benefits of selling on Amazon UAE are numerous. As one of the world’s leading global retailers, the site boasts unrivaled traffic. And while competition is increasing on Amazon, demand for online shopping is rocketing. In fact, around 65% of UAE residents cite Amazon as their preferred retail outlet. Other benefits and advantages include:

Easy entry and low upfront investment

Amazon offers an easy access point for aspiring entrepreneurs who don’t have much capital from the outset. Listing fees are comparatively low and you won’t need to start paying until something sells. Plus, Amazon also has an active market for second-hand and refurbished items.

Immediate access to millions of customers

When it comes to online shopping, Amazon is most people’s first port of call. That means millions of potential customers – and sales. 

Leverage Amazon’s reputation

One of the hardest things about starting a new business is establishing a reputation for yourself. Without testimonials, it’s hard to get the products to speak for themselves. Amazon is a highly trusted global brand. You can tap into this reputation and reap the rewards for your own business.

Visibility for your brand and products

Amazon’s global reach can help you ramp up your brand identity. You can get millions of eyes on your products, without having to pour capital and resources into marketing strategies. 

Scalable

With Amazon, your business can grow without soaring infrastructure costs.

First-rate shipping

When you set up an Amazon business, you can benefit from Fulfilment By Amazon (FBA) too. That means Amazon picks, packs, and ships your products directly from their warehouse. That saves you the hassle of shipping logistics and it also means you can offer Prime shipping to higher spenders.

Higher sales

The website is visited by millions of users each month from around the world, with a significant percentage of users residing in the UAE, thanks to the increased global preference for online shopping. You can also derive more credibility for your new brand by choosing Amazon as a platform to launch your e-commerce business. Amazon enjoys a great reputation and is trusted by millions of shoppers around the world as a safe and reliable shopping website.

Low investment costs

Amazon is the right choice for new sellers with a limited budget. Amazon listing fees are relatively low, and you don’t need to pay until you start selling.

Practical Shipping solutions

Amazon offers you several shipping and delivery options. You can store and ship your products yourself, store your products, and leave the shipping mission to Amazon, or entirely rely on Amazon to store, pack, and deliver your products.

Multiple pay options

Payment options include credit cards, bank transfers, e-wallets, direct debit, and more. Plus, Amazon offers fraud protection.

Legal requirements for selling on Amazon UAE

To open an Amazon UAE seller account, you’ll need to ensure you’ve completed the required documents required by both Amazon and your free zone. These include:

• A business name

One of the first things you will need to do when opening an Amazon UAE account is to decide on a name. Remember that the UAE has strict company naming criteria, with restrictions on blasphemous, offensive and obscene language.

• Contact information

Amazon requires all sellers to provide their contact details, including their legal names. This won’t be made public, though your contact information will be used by customers and Amazon to reach you directly.

• An e-commerce license

To operate an e-commerce business in the UAE, you are required to obtain an e-commerce license.

• A valid visa

Foreigners living in the UAE need a valid visa to sell on Amazon.

• A corporate bank account

Amazon will use this bank account to send you the proceeds of your sales, usually every 14 days. Once you have a valid e-commerce license and visa, you can open a corporate bank account in the UAE.

• A billing address

Amazon requires a valid address as proof of identity. They will need to verify this to set up your account.

• A phone number

Amazon also requires a valid phone number as proof of identity. You can sign up for a phone contract once you have a national ID in the UAE.

• A national ID

You will need to provide legal proof of identity issued by your government.

Cost of an e-commerce license to sell on Amazon UAE

The cost of an e-commerce license to sell on Amazon UAE starts at AED 6,875. However, you’ll need to take into account a variety of different factors too, such as whether you’ll need office space, resident visas, and other facility requirements. For a free and accurate quote tailored to your specific circumstances, reach out to our team at SPC Free Zone.

• How to open an Amazon UAE seller account

Once you’ve got your documents in order, setting up an Amazon UAE seller account is simple. We’ve broken the process down into five simple steps:

Step 1: Visit www.services.amazon.ae

Step 2: Sign up

Step 3: Enter your name, email, and password, then submit

Step 4: Add your business information

Step 5: Upload the required documents for verification

Once you’ve submitted your application, you’ll need to wait for Amazon UAE to approve your account. This can take between 24 hours and several weeks. Once Amazon approves your account, you can start selling.

•  Selling Costs

When selling on Amazon, there are a few types of selling fees you’ll have to pay that depend on the products sold and the fulfillment of the order. This includes referral fees, which are fees that sellers have to pay for each item sold. This amount varies depending on the category of the product and is deducted by Amazon.

• Seller Central access

Once all your documents have been registered, you will have full access to your Seller Central account. This account is your one-stop shop for everything related to your seller account, including making inventory updates, adding product information, managing payments, and so much more.

Steps to get an e-commerce license in the UAE

The steps to getting an e-commerce license in the UAE are relatively simple, providing you have the right documents in order. At SPC Free Zone, our business advisors can guide you through each of the steps below:

Step 1: Submit documents and wait for approval

Once approved, you’ll receive your e-commerce license in less than two hours

Step 2: Immigration card and e-channel application are issued

You’ll receive a temporary visa, which is usually valid for 60 days

Step 3: Entry permit and status change

Authorities will activate your status change once you’ve received your entry permit.

Leveraging Amazon Advertising for growing your business

In addition to being a platform for showcasing your products to the world, Amazon provides the tools to boost the visibility of your brand, to increase your sales while decreasing your costs.

One of the advertising solutions Amazon offers is sponsored ads that include:

• Sponsored Products: this type of sponsored ads is for individual product listing, and they appear on shopping results and product detail pages.
• Sponsored Brands: this type of sponsored ads features your brand logo, a custom headline, and a selection of your products, and they appear on shopping results pages.
• Sponsored Display: a self-service advertising solution to reach relevant audiences, with ads appearing on and off Amazon.
• Stores: custom multipage shopping destinations for individual brands that have a wide range of easy-to-create content templates and tiles to easily create professional-looking websites with no need for website design experience.

Frequently Asked Questions about Selling on Amazon in the UAE

• Is it legal to sell on Amazon in the UAE?

Yes, in most cases it is legal to sell on Amazon in the UAE. However, in order to trade online in the region, you will need to obtain an e-commerce license. You can apply for both mainland and free zone e-commerce licenses, though free zone licenses are often better suited due to tax incentives and fewer currency restrictions.

• Can you sell on Amazon without a license?

No, you cannot sell on Amazon in the UAE without a valid e-commerce license. Failing to obtain one could result in administrative and financial penalties, as laid out in Article 335 of the Commercial Companies Law (CCL).

• How to list my products on Amazon?

To start selling on Amazon you need to list your products, either in a previously existing listing or create a new one if you’re the first to sell a specific product.

In general, all products on Amazon need to have a Global Trade Item Number (GTIN) to be identified by Amazon. However, you only need to provide a product ID If you’re adding a product that’s new to Amazon with no existing listing to fall under, otherwise, you may need to purchase a UPC code or request an exemption.

Other information that goes into each product listing:

• Product name.
• Product Description
• Product images.
• Stock Keeping Unit (SKU); an identification code used to track a product for inventory purposes.
• Search terms and relevant keywords.

• How to ship and deliver my products on Amazon?

As an Amazon seller, you can deliver your products to customers in three ways:

• Merchant-fulfillment: where you maintain your own inventory and pack and ship the products to the customers yourself.
• Amazon Fulfilment: where Amazon takes responsibility for packaging, labeling, and shipping products.
• Amazon-easy-ship: in this model, you store and pack your products while Amazon handles the delivery.

• How to measure your performance on Amazon

Registering on Amazon and creating your account is just the first step in your venture. monitoring your performance after you start to sell on the website is a key step in leading a successful e-commerce business.

To measure your performance, you need to keep things in mind:

• Performance metrics

As an Amazon seller, you need to watch out for the following metrics:

• Order defect rate (a measure of a seller’s customer service standards): < 1%
• Pre-fulfillment cancel rate (initiated by the seller before shipment): < 2.5%
• Late shipment rate (orders that ship after the expected date): < 4%
• Customer reviews: reviews are an indicator of the quality of your products and services.

Why choose SPC Free Zone?

Located in the heart of Sharjah with immigration services onsite, SPC Free Zone offers convenient, competitive, and flexible business setup in the UAE. Choose from over 1,500 business activities and get your license issued in just 45 minutes. You’ll also benefit from a whole string of benefits, including up to 20 visas under one trade license, 100% foreign ownership with zero-paid-up capital, and a dual license option that offers both mainland and free zones on the same license.

To expand your Amazon e-commerce business in the UAE, get in touch with our market-leading experts to learn more.

Want to pave your way to success with Business Ideas in Dubai?

Uncover the secrets of success where innovation and opportunity converge in this global business playground. Explore the possibilities of Business Setup in Dubai today!

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In an era where employee well-being is becoming central to organizational success, the significance of a positive work environment cannot be overstated. A workplace that nurtures collaboration, respect, and open communication attracts top talent and retains it, resulting in higher productivity and lower turnover rates.

SPC Free Zone, a dynamic organization committed to excellence, recently achieved a significant milestone by earning the prestigious “Great Place to Work” certificate, underscoring its dedication to cultivating a workplace beyond the ordinary.

The “Great Place to Work” Certificate: A Symbol of Excellence

The “Great Place to Work” Certificate is a prestigious recognition awarded to organizations that demonstrate an exceptional commitment to creating and maintaining an outstanding workplace culture. This certification is granted by the Great Place to Work Institute, a global research and consulting firm specializing in employee engagement, organizational culture, and workplace excellence.

To qualify for the “Great Place to Work” certification, organizations must meet specific criteria and attain a high overall score in The Great Place To Work® Trust Model©.

SPC Free Zone proved to be an exemplary workplace, with impressive scores in all aspects of the Survey. SPC Free Zone has achieved a 94% score for workplace hospitality, 90% for leadership behavior, 86% for innovation, and 87% for engagement, evidence of the free zone’s robust workplace culture. Moreover, equity achieved a 72% score, impartiality 76%, fairness 79%, and collaboration 83%, showcasing a strong commitment to inclusivity and teamwork.

Moreover, the Survey has shown an overwhelming sentiment of safety within the organization, with an outstanding 99% of employees expressing that they feel physically secure at work. Similarly, an equal percentage feels warmly welcomed upon joining the company. Significantly, 96% affirm experiencing fair treatment regardless of gender, and an equal percentage finds management approachable. Furthermore, an impressive 95% express a profound sense of pride in their colleagues’ accomplishments.

These statistics collectively underscore SPC Free Zone’s unwavering dedication to fostering a welcoming workplace environment that values diversity, safety, and fairness.

SPC Free Zone: An Innovation Hub for Creative Industries

Since its establishment in 2017, SPC Free Zone has attracted significant players and businesses across the creative sector. It has created a unified platform for publishers to complete all translation, publishing, and distribution activities and provides world-class services and advanced infrastructure to assist publishers including storage, logistics, and printing.

While enjoying 100% ownership, zero personal income tax, and corporate tax incentives, investors at SPC Free Zone can choose from a host of over 1,500 business activities to launch their entrepreneurial journey. The tailored solutions further enable investors to combine up to five activities and receive up to 100 visas on one license.

With this being said, SPC Free Zone stands as a beacon of world-class services, and innovative solutions, and a great place to work for anyone seeking a healthy and supportive work environment.

Contact us today to start your business in the UAE!

In the ever-evolving landscape of business, time is of the essence. Understanding the crucial need for expediency in establishing your venture, SPC Free Zone unveils a groundbreaking solution: the Instant License. This innovative service is tailored to expedite the business setup process in the UAE, ensuring that your entrepreneurial dreams become a reality in the shortest possible time.

The Instant License isn’t just about speed; it’s a comprehensive package designed to streamline the entire setup journey.

Here’s what this game-changing service offers:

Quick and Efficient Setup

The most remarkable feature of this offering is the instant business license issuance, which saves applicants much waiting and the endurance of bureaucratic procedures. With the Instant License, your business is swiftly brought to life, allowing you to focus on what truly matters—nurturing and growing your enterprise.

Comprehensive Coverage

The package isn’t just about speed; it’s about comprehension. It covers up to 5 activities, combining diverse business interests under a single license. Additionally, it accommodates up to 7 shareholders, providing flexibility for collaborative ventures.

Visa Quotes and Essential Documents

Understanding the importance of seamless operations, the Instant License service offers unlimited visa quotes, making employee immigration procedures a breeze. Moreover, crucial documents like the Memorandum of Association, Lease Agreement, Share Certificate, Certificate of Formation, and Business Activity Certificate are included.

Empowering Entrepreneurship

This service is a catalyst for entrepreneurial empowerment. By simplifying the setup process, SPC Free Zone aims to encourage and support aspiring business owners, enabling them to materialize their visions without unnecessary delays.

Set up a company in UAE with SPC Free Zone

With its unique location, business-friendly regulatory environment, and immigration services available within its premises, SPC Free Zone provides the fastest and most hassle-free business setup services you can imagine. Enjoy the great benefits of setting up a business in UAE free zones, like 100% ownership of your business as a foreigner, import and export, and corporate tax incentives.

Moreover, the free zone provides a wide range of world-class infrastructure and storage spaces, as well as print-on-demand services.  

SPC Free Zone provides more than 2000+ business activities with the ability to combine up to 5 activities under one trade license.

Enjoy special discounts on multi-year packages and a unique chance to work from both the mainland and the free zone with the option of dual licensing.

Do you want to know more about business setup in Dubai, UAE, or interested in business setup in Sharjah? Contact our team of business setup experts today.

From a strategic location and a robust infrastructure to a supportive business ecosystem and a burgeoning demand for medical innovations, Dubai, UAE, stands as a beacon of opportunity for entrepreneurs in the healthcare industry. One of the most lucrative business ideas in Dubai, UAE is starting a medical device importing and exporting business.

In this article, we’ll go through the intricacies of establishing an import and export business of medical devices in Dubai, UAE.

Importing and Exporting Medical Devices in the UAE: the legalities

The import and export, as well as the distribution of Medical Devices in the UAE, is controlled by the Ministry of Health and Prevention.

Companies wishing to import and sell medical devices within the UAE must be established in the UAE and apply for registration of the devices and equipment with the Ministry of Health.

To import and sell Medical Devices and Equipment in the UAE, there are several requirements:

1. the company importing the equipment must be registered with the Ministry of Health with the related activities on the Trade License.
2. The importer must be a legal entity established in the UAE or a UAE national.
3. The medical equipment must be individually registered with the UAE Ministry of Health.

Alternatively, the company can be engaged with a local distribution or commercial agent, already registered with the Ministry of Health, for the importation and distribution of medical products, who can register the medical products for them.

The DED guidelines list two key activities linked to the importing, exporting, and trading of medical equipment and devices. These include the following:

• Surgical, Medical Articles, and Requisite Trading:

 This covers the resale of certain medical treatment instruments, including batteries for cardiac patients, earphones, pulse regulators, splints for fractures, walking sticks, artificial limbs, medical shoes, and surgical equipment like parts for damaged organ replacement, artificial organs, heart valves, bone joints, and suture bandages or plasters.

• Surgical and Medical Equipment along with Instruments Trading:

This activity includes the reselling of equipment and instruments used in clinics and hospitals for treatment, surgical activity, medicine, diagnosis, blood preservation, waste disposal, X-raying, physical therapy, sterilization, and rehabilitation. This activity also includes covers manual kits, medical check-up instruments, bandaging, surgical operations, and electronic devices with communication technologies.

How to start your importing and exporting medical devices business in Dubai, UAE

1.  Obtain a commercial license

You will need to obtain a commercial license from the Department of Economic Development (DED) in the Emirate where you plan to operate, or get a free zone commercial license.

• Register with the UAE Ministry of Health and Prevention (MOHAP)

To import and sell medical devices in the UAE, you have to register with the MOHAP, which needs detailed information about your company and the medical devices you intend to import and sell.

• Get a device marketing authorization

You need to obtain medical device marketing authorization from the MOHAP to market your goods.

• Get the necessary certifications

The medical devices you want to import, export, and sell must meet specific regulatory requirements in the UAE, including having certain certifications such as CE or FDA clearance, which prove that these medical devices meet international safety and quality standards.

• Collaborate with a distributor

Work with a distributor with good experience in importing and selling medical devices in the UAE.

• Comply with regulations

To avoid legal complications, make sure to follow the specific regulations and standards for importing and selling medical devices in the UAE.

How SPC Free Zone can help you?
SPC Free Zone promotes entrepreneurship and offers simple and value-added business support services. Whether you need an e-commerce license in UAE, a general trading license, or a professional license, we have it all covered. Additionally, you can apply for a dual-licensing option that provides mainland and free zone on the same license and up to 20 visas. Furthermore, the on-site immigration services allow you to get your license in just 45 minutes, and your UAE residency in 5 working days. Do you want to know how to start your business of importing and exporting medical devices in Dubai, UAE? Contact our team!

Consistently ranked as one of the world’s best places to do business, and home to one of the fastest growing and most diverse economies in the world, the UAE is fast becoming a most popular destination for aspiring entrepreneurs to set up their companies.

Business owners in Dubai, UAE, and all other emirates are required to have the proper license to run their businesses. One of the most sought business licenses in Dubai, UAE is the trade license, which encompasses a wide range of business activities.

What is a Trade License in Dubai, UAE?

A business license in Dubai, UAE is a document that specifies the nature of business activities that a company is allowed to undertake, whether it’s commercial, industrial, or professional services.

A trade license is an official document issued by the Department of Economic Development (DED) or other relevant authorities, like a Dubai free zone or Sharjah Free Zone, that permits a company or an individual to conduct business activities within the UAE. It’s a legal requirement for all businesses to obtain a trade license before starting their operations.

Types of Trade Licenses in Dubai, UAE

For those who want to set up a company in Dubai, UAE, there are many types of trade licenses to choose from to operate the business. Here we introduce the four most common Dubai, UAE trade license types available for Free Zone companies:

1. Commercial License for general trading businesses:
   Based on the nature of trading activities, this license may have other classifications. This license is basically for companies engaged in trading activities. It allows for buying, selling, and distributing goods.
2. Professional License for service-related businesses:
   This license is specific to service-oriented individuals or firms providing professional services like consultancy, accounting, legal services, and healthcare.
3. Industrial License for manufacturing goods:
   This license is for businesses involved in manufacturing or industrial activities, and it permits the production, manufacturing, packaging, and exporting of goods.
4. Tourism License for travel and tourism:
   This license is designed for businesses operating in the tourism and travel sector, including travel agencies, tour operators, and related activities.

How to Get a Trade License in Dubai, UAE

To obtain your trade license in Dubai, UAE you need to complete the following steps:

1. Select your business activity

The first step to getting a business license in Dubai, UAE is to choose your business activities, you can select from a wide range of business activities and join several activities under your business license. SPC Free Zone offers more than 2000+ business activities, and you can combine up to 5 activities under one trade license.

2. Choose a trade name for your business

Choosing a trade name is crucial for setting up your company in Dubai, UAE, for brand presence and identity. As part of the business setup in Dubai, UAE, it is recommended to verify the name’s validity with the DED, Department of Economic Development, or the relevant free zone authority.   

You also need to check the name’s compliance with trade name protocols and avoid duplication with registered names.

3. Choose your business location

Choosing a business location is an important step in setting up a company in Dubai, UAE. Many companies choose to set up business in UAE Free Zones as they are cost-effective, offer 100% foreign ownership, 100% profit repatriation, and tax incentives.

4. Submit your application and pay fees

You will need to submit your application form and provide several documents and paperwork. This step also involves paying the fees associated with your business license in Dubai, UAE.

5. Receive your license and open a business bank account

After completing the above steps successfully, expect to receive your business license shortly; as fast as 45 minutes if you choose to set up your business in UAE with SPC Free Zone.

Why choose SPC Free Zone?

SPC Free Zone offers a hassle-free and convenient business setup in the UAE. With a central location in the emirate of Sharjah, minutes away from major airports in the region, and immigration services on-site, you can receive your trade license in UAE in just 45 minutes. Choose from over 1,500 business activities, get up to 20 visas under one trade license, and enjoy special discounts with multi-year licenses. Expand your business with the dual-license option that offers both mainland and free zone on the same license.

Ready to launch your business in UAE? Get in touch with SPC Free Zone today.

What Is an FZE LLC?

Free Zone Establishments Limited Liability Companies (FZEs) are limited liability entities created in UAE free zones and regulated by the laws and regulations of that same.

There are two types of companies established in UAE free zones:

1. Free Zone Establishment Limited Liability Companies (FZE LLCs)
2. Free Zone Corporation Limited Liability Companies (FZCO LLCs).

Free Zone Establishments (FZE) have one shareholder. Whereas a Free Zone Company (FZC) has 2 or more shareholders.

Benefits of Forming a FZE Limited Liability Company in Dubai, UAE

Setting up a Free Zone Establishment (FZE) Limited Liability Company (LLC) in Dubai, UAE, within a designated UAE free zone, offers several benefits:

• 100% Foreign Ownership: One of the most appealing aspects is that foreign investors can retain complete ownership of their company without the need for a local partner or sponsor.
• Tax Incentives: free zones in the UAE offer attractive tax benefits, including zero personal income tax.
• Repatriation of Profits and Capital: Companies operating in free zones are typically allowed to repatriate all profits and capital without restrictions.
• Exemption from Import and Export Duties: Free zones often provide exemptions from import and export duties on goods and services.
• No Currency Restrictions: Free zones typically allow businesses to transact in any currency without restrictions.
• Ease of Doing Business: Streamlined processes for company registration, licensing, and permits, reducing bureaucracy and facilitating a faster setup.
• Infrastructure and Facilities: Access to world-class infrastructure, office spaces, warehouses, and other facilities that are often tailored to specific industries, promoting efficiency and growth.
• Networking Opportunities: Free zones often foster a collaborative environment by bringing together businesses from various industries, offering networking opportunities and potential partnerships.
• Full Range of Business Activities: Depending on the free zone, a wide array of business activities and industries are permitted, allowing flexibility in choosing the type of business to operate.

Steps of setting up an FZC LLC

Obtaining a business License and forming a company in Dubai free zones, and other UAE free zones involves several steps.

Here’s a step-by-step guide to FZC LLC setup in Sharjah Publishing City Free Zone (SPC Free Zone):

Step 1: Initial Research and Planning

Before you begin the process, conduct thorough research and planning for your business. Understand the market, competition, and legal requirements specific to your industry.

Step 2: Choose Your Business Structure

Determine the legal structure of your business. Options in the Sharjah Free Zones typically include Free Zone Company (FZC), Free Zone Establishment (FZE), or Branch of an existing company.

Step 3: Select Business Activities

Identify the specific activities your business will engage in.

Step 4: Name Reservation

Choose a unique name for your business and submit the name reservation application to the free zone authority. Once approved, you’ll receive a name reservation certificate.

Step 5: License Application

Complete the license application form and gather all necessary documentation, that include:

• Application form.
• Passport copies of shareholders and managers.
• Other relevant documents.

Step 6: Lease Office Space

Find suitable office space within the free zone. Sign a lease agreement and obtain a tenancy contract or choose to work out a coworking space.

Step 7: Open a Bank Account

Open a corporate bank account in the UAE with a local bank. Provide the necessary documents, including your business license.

Documents Required for FZE LLC Formation

Here is a general list of essential documents typically required for company formation in SPC Free Zone and other UAE Free Zones:

• Passport copy of Shareholders in the Parent company.
• Emirates ID copy of Shareholders in the Parent company (if applicable).
• Certificate of Formation.
• Board/Shareholder’s Resolution Attested license (if applicable).
• Memorandum and Articles of Association.
• Ultimate Beneficial Owner Declaration.
• KYC (Know Your Customer) video.

Why set up your company in the UAE with SPC Free Zone?

SPC Free Zone offers a hassle-free and convenient business setup in the UAE. With a central location in the emirate of Sharjah, minutes away from major airports in the region, and immigration services on-site, you can receive your business license in UAE in just 45 minutes. Choose from over 1,500 business activities, get up to 20 visas under one trade license, and enjoy special discounts with multi-year licenses. Expand your business with the dual-license option that offers both mainland and free zone on the same license.

Ready to launch your FZE LLC in the UAE? Get in touch with SPC Free Zone today.

The e-commerce market has seen a huge leap in the UAE in the past few years. Combining an unrivaled location, world-class infrastructure, and a whole host of tax incentives for businesses, it’s little wonder why the region is becoming a destination of choice for retail businesses, not the least remarkable of them is dropshipping.

What Is Dropshipping?

Dropshipping is a model of retail fulfillment where a retailer doesn’t keep the products it sells in a store. Instead, when a store sells a product, it purchases the item from a third party—usually a manufacturer, wholesaler, or another retailer—and has it shipped directly to the customer.

Essentially, the retailer (or the drop shipper) acts as a middleman. He markets and sells products without needing to handle the inventory directly.

How Does It Work?

The process of dropshipping typically works like this:

1. Placing the Order: A customer purchases a product from a retailer’s online store.
2. Forwarding the order to Supplier: The retailer forwards the order details and shipment information to a third-party supplier, often a wholesaler or manufacturer.
3. Shipping the Product: The supplier packages and ships the product directly to the customer.

The Advantages Of Dropshipping For Retailers In The UAE

Here are the advantages of dropshipping for retailers looking to set up a business in Dubai, UAE:

• Low Startup Costs: Dropshipping requires minimal upfront investment as retailers don’t need to purchase inventory in bulk, reducing the initial financial burden of setting up a business in Dubai, UAE. This makes it an appealing option for entrepreneurs setting up a company in Dubai, UAE on a limited budget.
• Reduced Overhead Expenses: dropshipping minimizes overhead costs associated with storage, maintenance, and warehouse management. This allows retailers to focus resources on marketing, customer service, and expanding their setup business in Dubai, UAE.
• Wider Product Range: Dropshipping enables retailers to offer a broad variety of products without physically stocking them. This flexibility allows dealing with different product lines, which is advantageous for businesses setting up in Dubai, UAE to test markets and adapt to changing trends and preferences.
• Flexibility and Scalability: Dropshipping offers scalability without the hassle of managing inventory. As retailers plan to scale their companies in Dubai, UAE, they can easily do so without worrying about inventory management.
• Location Independence: The nature of dropshipping allows businesses to operate from anywhere with an internet connection, a significant advantage for entrepreneurs setting up a business in Dubai, UAE.
• Reduced Risks: In dropshipping, retailers only purchase items once they’re sold and paid for by the customer, mitigating potential losses and excess stock concerns.
• Focus on Marketing and Customer Service: With inventory management outsourced to suppliers, retailers can allocate more time and resources to marketing strategies, enhancing customer experience, building relationships, and ensuring satisfaction for customers.
• Access to Global Markets: Dropshipping facilitates access to global markets without the complexities of international logistics. Retailers in Dubai, UAE can reach customers worldwide, enabling international sales without the need for extensive warehousing or logistical setups.

For retailers considering setting up a business in Dubai, UAE, dropshipping offers these advantages, but success hinges on selecting reliable suppliers, maintaining quality service, and implementing effective marketing strategies within the competitive landscape of Dubai’s business environment.

Dropshipping In The UAE: Market Opportunity

Those looking to set up a dropshipping business in the UAE are poised to capture the many market opportunities the country offers. There are many reasons why setting up a company in UAE is  a valuable opportunity:

• A fast-growing e-commerce market

The pandemic increased the reliance on e-commerce across the globe, including the UAE. The UAE e-commerce market is expected to grow to USD 8 billion by 2025, which offers great growth opportunities for dropshipping businesses.

• A business-friendly eco-system

The UAE offers a range of tax incentives and tax holidays that can help dropshipping entrepreneurs increase their profit margins.

• A digital-friendly environment

The UAE is one of the most digital-friendly countries in the world. Almost 100% of the population is online and uses the internet for e-shopping.

• Advanced logistics network

Boasting a strategic location between Asia and Europe, the UAE is the ideal base for conducting business between East and West. Home to the world’s busiest airport (Dubai International Airport), a highly efficient railway network, and an array of highway interchanges, you can ensure products are delivered to customers in ease and on time.

Why choose SPC Free Zone?

SPC Free Zone offers quick and flexible business setup in the UAE. Located in the heart of Sharjah with immigration services onsite, entrepreneurs can receive their e-commerce license UAE in just 45 minutes. Choose from over 1,500 business activities with up to 20 visas under one trade license. Expand your business with competitive incentives such as 100% foreign ownership with zero paid-up capital and a dual license option that offers both mainland and free zone on the same license. Build a business that thrives, with help from our business advisors.

Interested in starting and expanding your dropshipping business in the UAE? Get in touch with SPC Free Zone to find out more.

However, there are also challenges associated with dropshipping:

• Lower Profit Margins: As the retailer doesn’t buy products in bulk, the profit margins per sale might be lower compared to traditional retail.
• Dependency on Suppliers: The dropshipper relies heavily on the suppliers’ stock availability, shipping times, and quality of service, which can affect customer satisfaction.
• Control Over Inventory and Shipping: Since the dropshipper doesn’t handle the inventory directly, they have less control over product quality, shipping times, and packaging.
• Dropshipping has gained popularity, especially in e-commerce, due to its low barrier to entry and flexibility. Many online entrepreneurs use this model to start their businesses with minimal upfront investment, although success often hinges on effective marketing, finding reliable suppliers, and providing excellent customer service.

Want to get selling in the world of e-commerce but are lacking in inventory and capital? Dropshipping could be for you. In this article, we will explore everything you need to know about this simple and rewarding business model, including how to start dropshipping in UAE, what you will need, and how much it will cost. We will cover the following topics:

• Dropshipping in the UAE – market opportunity
• How dropshipping works
• How to start a dropshipping business in the UAE
• Do I need a license to start a dropshipping business in the UAE?
• How much does it cost to start dropshipping in UAE
• Is dropshipping legal in UAE?
• Why choose SPC Free Zone?

Dropshipping in the UAE – Market opportunity

It’s no secret that the e-commerce market has exploded in the UAE in the past few years. Combining an unrivalled location, unparalleled infrastructure and a whole host of tax incentives for burgeoning businesses, it’s little wonder why the region is becoming a destination of choice for dropshipping. Those looking to set up a dropshipping business are poised to capture the UAE’s many market opportunities, such as:

• A digital-first nation

The UAE is one of the most digital-friendly countries in the world. Almost 100% of the population is online and uses the internet for browsing, shopping and social media. What’s more, according to reports published by EZDubai and Euromonitor International, 75% of UAE consumers prefer e-commerce.

• A fast-growing e-commerce market

The pandemic accelerated e-commerce across the globe, and nowhere more so than in the UAE. The UAE e-commerce market is expected to grow to USD 8 billion by 2025. That’s a huge pool of captive customers for dropshipping businesses to tap into.

• A business-friendly eco-system

The UAE offers a string of tax incentives and tax holidays that can help dropshipping entrepreneurs increase their profit margins. Dropshipping businesses only need to worry about VAT.

• Impressive logistics network

Boasting a strategic location between Asia and Europe, the UAE is the ideal base for conducting business between East and West. Home to the world’s busiest airport (Dubai International Airport), a highly efficient railway network and an array of highway interchanges, you can ensure products are delivered to customers on time, every time.

How dropshipping works

Dropshipping is a retail strategy that enables entrepreneurs to capitalise on the booming e-commerce market with little to no upfront investment. Essentially, a dropshipping business purchases products from a third-party supplier or wholesaler as customers make an order. The third-party supplier takes care of shipping and logistics, while the dropseller only needs to worry about sourcing products for the best value, attracting customers and driving the highest profit margins.

The process can be broken down into the following simple steps:

Step 1: The shopper places an order on your dropshipping website

Step 2: You process the order and forward it to your supplier

Step 3: Your supplier receives the order

Step 4: Your supplier ships the order

Step 5: Your customer receives the products

Let’s dive into a few of the advantages of starting up a dropshipping business.

• Low barriers to entry

You don’t need business experience or capital to get going.

• No warehouse or office costs

The wholesaler takes care of inventory and you can run the business from anywhere.

• Scalable and flexible business model

Infrastructure costs don’t accelerate as you grow and you can adjust your strategy as you go.

• More marketing spend

Without soaring infrastructure costs, you can allocate more budget to attracting new customers, in turn growing your business.

How to start a dropshipping business in the UAE

Setting up a dropshipping business in the UAE is easier than you think, providing you’ve jumped through the right hoops. We’ve broken down the process of starting a dropshipping business in the UAE into four simple steps:

Step 1: Decide what you will sell

Pick your niche. To drive the biggest profit margins and ensure greater business success, sell unique products that target a specific demographic. This will require extensive research, but spending a little more time at this stage will pay off in the end. Explore the competition and work out what your customers are looking for. After all, if they can find it in a shopping mall, why would they come to you?

Step 2: Select your sources

Spend time researching wholesalers that offer the best value products. Making savings here can drive higher margins. You don’t need to limit yourself to one supplier either, as many dropshipping businesses work with multiple suppliers. As well as seeking out value, you should also make sure your suppliers are reliable. They are ultimately responsible for inventory and shipping, and if these are found lacking your reputation and customer base will suffer.

Step 3: Choose where to sell your products

When it comes to selling, you have two options: online and social media. There are a wide variety of e-commerce platforms available, such as Shopify and Alibaba. However, it’s important to choose one that aligns with your goals. How comprehensive are the platform’s capabilities? How much visibility will your platform get? Is the platform user-friendly? These are all questions that you should be asking throughout the process.

Step 4: Address legal requirements

To launch your business, you’ll need to settle up a few legal issues, such as business licenses and taxes. You should also ensure that your suppliers meet specific criteria to ensure you avoid common issues, such as counterfeit.

There’s no need to do it all alone, though. Our friendly business advisors can help you navigate setting up a dropshipping business in SPC Free Zone to ensure a seamless start to success.

Do I need a license to start a dropshipping business in the UAE?

Yes, all dropshipping businesses in the UAE require an e-trader license.

Cost of starting a dropshipping business in the UAE

The cost of starting a dropshipping business in the UAE starts from AED 6,875. However, there are numerous considerations you will need to take into account when starting your dropshipping business, such as visa requirements and office space.

At SPC Free Zone, you can start a dropshipping business in the UAE for as little as AED 6,875. This setup package includes coworking spaces with no visa. If you wish to add visas, the price rises to AED 9,250.

Is dropshipping legal in the UAE?

Yes, dropshipping is legal in the UAE but according to Article 6 of 2011, you will need to obtain a trade license to set up your business legally. Without this, you will be liable for financial (and administrative) penalties under Article 335 of the Commercial Companies Law (CCL).

Why choose SPC Free Zone?

SPC Free Zone offers quick and flexible business setup in the UAE. Located in the heart of Sharjah with immigration services onsite, entrepreneurs can receive their e-commerce license UAE in just two hours. Choose from over 1,500 business activities with up to 20 visas under one trade license. Expand your business with competitive incentives such as 100% foreign ownership with zero paid-up capital and a dual license option that offers both mainland and free zone on the same license. Build a business that thrives, with help from our business advisors.

Interested in starting and expanding your dropshipping business in the UAE? Get in touch with SPC Free Zone to find out more.

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