Q: I'm a Saudi National living in the UAE and want to issue a license for my e-commerce commission-based business website. What kind of license do we need for a business like this? A: An e-commerce license shall be good for the type business activity which you want to carry out in the UAE…

Ajman, UAE

3361

Requirements for the incorporation of an e-commerce company

I'm a Saudi National living in the UAE and want to issue a license for my e-commerce commission-based business website for Auto/Spare parts in Ajman.

We don’t stock products. We act as the middleman in the process. For example, a customer comes to our website and orders say "Brake Pads" for his/her car.

Our job is to go and look across shops in the UAE to find the best deal for the customer. Then, we go back to the customer and present the best deal for this specific requested spare part.

If the customer agrees to the offer, he/she then have to pay us the full amount, and then we go and get the product for him/her and take a cut percentage of 10% from the total amount paid, and then ship the product to the customer.

What kind of license do we need for a business like this? I would like the license to be issued in Ajman.

Also, I need to hire employees, therefore, I need a license that enables me to hire and rent an office space.

Thank you.

Aws M. Younis

AWS Legal Consultancy

Chat

Hire

Meet

3 Sep 2018, 06:22

Dear Sir,

I hope you are doing great.

Further to your enquiry, kindly be informed that an e-commerce license shall be good for the type business activity which you want to carry out in the UAE.

As you are a Saudi Arabia national, you can be the sole owner of the company.

Kindly be informed that for getting a license, you need to provide us with the tenancy contract which should be as per your visa requirements.

Therefore, considering all the above points, kindly provide us with the below preliminary information for our review:

1. Where are the majority of your clients based?

2. How many staff are you planning to employ in the first 12-24 months?

3. What do you plan for offices/warehouses...etc?

4. Will the shareholder be a company or private individuals?

5. How many shareholders will the entity have at the time of establishment?

3 Sep 2018, 08:50

1- The majority of our clients differ every month. The reason is that we did a marketing campaign in Saudi and the UAE. Depending on the orders, each month will be different.

2- ÷n the first 12 months, it will be from 4 to 6 employees. Therefore office space should be above 700 sq. ft., right?

3- Office, which will mainly be a call centre and sales employees.

4- It will be one owner.

5- One.

We have already a license in the UAE and Saudi for online business. In the UAE it's an e-trader license, which will allow GCC citizens do business officially online.

The e-trader licence can be registered under the name of a single owner only and the owner must be an Emirati or GCC citizen aged 18 or above. The licence fee is AED 1,070 per year.

This type of license was fine in the first year of our business, but now we need to hire employees.

However, with this license we have, we can’t hire /employ employees. We need a license that enables us to hire say 5 employees and rent office space.

Was this content helpful?

Fixed-fee services

3 • View all