What is a Jafza e-commerce license?
Over 1,180 companies from 95 countries play a pivotal role in Jafza’s Retail & General Trading sector, with the ability to trade using digital channels. The rise of e-commerce as a platform to conduct business and trade has been the catalyst for the creation of the E-commerce license from Jafza.
The E-commerce license allows a business to register a business under the selected formation type with the primary method of conducting business using digital channels only. This license will allow the business to trade in products when the channel of sale will be non-physical. This means that trading or sale of products using a physical storefront is not permitted.
The UAE’s Retail community can count on Jafza to support their end-to-end logistics needs through its digital innovations. Bringing together components needed to create a truly multimodal logistics connectivity underscores Dubai’s long-term commitment to facilitating the growth and development of regional and global commerce.
How much does an e-commerce license cost?
The cost of an e-commerce license at Jafza is similar to a general trading license, which is AED 15,000 per year irrespective of the number of activities and groups. **
** All mentioned costs are subject to change and a change in such cost will be communicated by Jafza.
When is an e-commerce license required?
- When the activity of conducting trade in the form of sale of products and services is via digital channels only.
- You may hold inventory of physical goods, but you may not conduct the activity of the sale in person or physically over a counter, in a showroom, at a retail outlet etc. Your method of sales is only through a digital channel.
- You may not hold inventory of physical products, and you conduct business by sale of products and services using digital channels where the supplier of the products ships directly to the consumer.
In the event that your business needs to also conduct sales in a retail outlet, in a showroom or physically through interaction between the business and the consumer further to selling using digital channels, you may opt in to issue a trading license along with an e-commerce license. This will provide the business to conduct operations and sales using digital and non digital mediums.
It is essential to note that the issuance of an e-commerce license with Jafza requires approval from the Telecommunication Digital Regulatory Authority of the United Arab Emirates.
Steps to get started with an e-commerce license
The creation of a company with an e-commerce license requires the following steps:
- You must complete the Jafza Application Form and the EHS Undertaking Form in their entirety and submit all required documents.
- You must select the type of company formation you would want to incorporate under. Refer to the company formation section on our website for more information.
- You must provide the necessary documentation to Jafza to confirm that all methods of sales will be conducted using a digital channel only. This also requires approval from the Telecommunication Digital Regulatory Authority (TDRA) of UAE.
- Once you have completed the steps of registration of your company based on the formation, you will be asked to select the license type – this is where you need to select E-Commerce License
Speak to our business development and sales team if you need help regarding your e-commerce license requirements. You can schedule a call or visit us at our sales centre in Jebel Ali Free Zone.