Q: Hello I want to open an online store (e-commerce) in Dubai, it will be online clothing store and I will receive the clothes from China by courier and sell it in Dubai. Customers can complete the payment with Pay Pal. So I would like to know if I need to register this online store, and if yes, what's the procedure. Since the items will be shipped from overseas, then maybe I do not need even to register it. Please advise

Q: I'm planning to open a company here in Dubai, and I need an advice regarding the formation of a company, i.e. whether it can be registered in the free zone without any problem. The company will be an online platform that showcases goods available in Dubai and will connect OVERSEAS buyers with local (UAE-based) sellers. The company will make money by charging a commission for each sale. The company will receive the money from the buyer and release it to the seller. Shipping of goods will be managed by the seller. Since the company will not buy or sell goods in Dubai/UAE and will not stock goods, my understanding is that I can register this company in a free zone. However, not sure if holding money here in Dubai affects the form of the company. Does the money need to be held in Dubai at all? Can the money be held in an overseas account while it is registered in Dubai? If not, if the money is to be held in Dubai, is there a certain type of bank account required onshore/in a free zone? Thank you

Q: Hello, We are working on launching a start-up in the UAE and we have a couple of legal questions. We would be very grateful to receive feedback on. We would like to operate as "beta" for the first couple of months to test the market before taking up a license and launch the business officially. Is there any tolerance for this and what is the legal risk? Before getting full-time employees, we are thinking to give some missions to freelancers. Can freelancers operate any kind of job or there are some restrictions? Are we, as the business, responsible to check their legal status and what is the risk associated? Can they operate on the mainland even if we cannot (free zone license)? Thank you in advance. The UAE start-up to be launched.

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

Most entrepreneurs who have ideas for a startup seeking to implement it may face some difficulties in deciding the ideal location, activity, type of license, fees, taxes, among many others. Here are four reasons why the UAE’s thriving start-up scene is the right choice for your business.

The UAE government has announced important changes to the federal Commercial Companies Law, the most significant is related to the foreign ownership of mainland companies. This will grant foreign investors the full ownership of share capital in companies carrying out certain activities specified to that effect by the competent authorities. This means that foreign investors’ shares will not be limited anymore to a maximum of 49% like before, but can be up to 100% instead.

The different Emirates in the UAE have different requirements and procedures for obtaining business licenses. To register your entity, you need to follow steps and obtain approvals from the Department of Economic Development and other relevant authorities.

The UAE has had tremendous economic development over the last two decades, which can be attributed to the country’s expanding market and large inflow of investments. The demonstrated level of preparedness and equanimity is evident in the legislative framework, characterized by the ongoing and systematic updates of laws. This proactive approach aims to align the legal landscape with the dynamic trajectory of economic advancement, ensuring continual synchronization with the prevailing progress.

In terms of existing companies which include Emirati partner and its activities have been availed for full ownership by Foreign investors Dubai Department of Economic Development stated that those companies will remain as is without change.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.

The provisions of this Decree-Law, known as the "New E-commerce Law", govern E-commerce regulations in the United Arab Emirates. The New E-commerce Law repeals the previous UAE E-commerce Law (Federal Law No. (1) of 2006 Concerning Electronic Transactions & Commerce).

Cabinet Resolution No. (28) of 2023 on the Executive Regulations of Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services