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Ecommerce trade license and vat reg. necessary?

Hi,

i have been planning of starting a small ecommerce website in uae, wondering if it is necessary to have a trade license and reg for vat? (especially when starting up and dont want to spend huge amounts on registration charges and all) i will be mainly operating it from outside the country and store the stock in a courier company's facility who will be fulfilling the orders, as orders comes in.

Thanks in advance for all you experts opinions.

Dubai | 👁 750 | Posted March 28, 2018 | Share on Facebook | Twitter | Google+

| Modified: March 28, 2018 | Author:

5 Comments

CantFindUsernamr 1 year ago

Trade license - necessary Vat registration - not eligible I speak from experience. Started my e-com gig 3 months ago. But I note unlike your setup my e-com doesn't require warehouse/inventory

Gsidej 1 year ago

How much is the visa and labor card in UAQ? And how many visas can you have under that license? I am about to go with Sharjah Media City Free Zone for an ecommerce license and they quoted me 11,500 License + 3500 each investor visa + 1500 immigration card so a total of about 16500 to start. Any additional visas are 3080 aed.

turan92 1 year ago

If you are selling products or services within the UAE, VAT applies, period. For that you need a trade license, hence a company. Just look for the cheapest free zone and base your company there.

Tray0101 1 year ago

Ive been looking at UAQ free zone for my business - cheapest I have found. 13,500 for micro business without a visa. Believe VAT isnt necessary unless you meet the threshold, unlikely for most smaller businesses.

doleep 1 year ago

That is tricky, for trade licenses yes you will need one and this the short answer, if you are shipping from UAE to UAE. VAT as the rules are not completely clear on that I have researched a little and it looks like you will need it as well, if your expenses or revenue (was or will ) exceed 180k . Now this is the rules, you can delay your registration for both points, to test your business model if you can, and when your business grow you have to have them.. Edit :This comment based on my limited knowledge of ur business and situation so ofc you need to research more!


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