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Set up an Amazon Store in Dubai

Set up an Amazon Store in Dubai

Dubai is a global business hub in the Middle East, a well-known destination preferred by entrepreneurs and companies looking to expand their portfolios and profits in this area. The e-commerce industry in Dubai is also part of the overall growth as there are many firms which generate money through varied sales on websites, among which we mention the most important one nowadays: Amazon. With around 300 million account owners and a net sale of about $316 billion registered in 2016, Amazon is considered the largest online retail shop, a big mall where you can sell your products and services as a company, and buy varied items as a final customer. The expansion of Amazon also implies the Middle East, where small, medium and large companies develop their potential with the Amazon Web Services or the cloud computing services for a better analysis of their business and future investments. Opening an Amazon store in Dubai involves, first of all, registering a company, in order to legally activate online and sell your goods or services. In matters of documents and legislation, entrepreneurs can solicit guidance and legal support from our lawyers in Dubai who can help them set up Amazon stores in the UAE.

Requirements for opening an Amazon store in Dubai

From a legal point of view, persons interested in opening an Amazon store in Dubai should first of all register a limited liability company one of the most popular and preferred business entities in the UAE. The incorporation process is simple if you consider and respect the main requirements in this area. For instance, there is no need of a minimum share capital, but the LLC must be set up by at least two shareholders and apply with the Department of Economic Development in Dubai. The registration process of an LLC in Dubai in order to open an Amazon store is supervised by the Commercial Register in Dubai, the institution which verifies and accepts the Articles of Association among several other documents. Selling your products whether on the local market or via Amazon involves special licenses and permits which can be easily obtained if the requirements are fulfilled.

The benefits of opening an Amazon store in Dubai

Investors in the UAE have numerous reasons why they decide to perform their activities here. One of them is the favorable taxation system where there are no taxes on profits, capital gains, interests, and royalties. Even if the VAT will be imposed starting with January 2018, for the first time in the Middle East, your company might not be affected by such tax, as there are only specific goods and services which are going to be levied with a 5% tax rate. We also mention that starting with October 2017, an excise tax has been implemented on products which are considered unhealthy: tobacco and carbonated drinks. 

Overall, your company can be easily and properly displayed on Amazon, keeping in mind that this important online retail platform offers to all entrepreneurs listed here varied tools and advertising management services in accordance with the purposes and targets set.  Amazon is present in numerous countries worldwide, therefore, your business can be seen and can expand rapidly not only on a local plan but also abroad. Having a store on Amazon offers young entrepreneurs the possibility of growing in a fast manner on the world’s famous online shop, and taking advantage of the satisfactory taxation system in Dubai. Our Dubai attorneys are at your disposal for complete details about the legislation in Dubai’s free trade zones, in order for you to legally start your business, including on Amazon.

Payment methods for your Amazon store in Dubai

Amazon stores can be set up easily by any kind of business person established in Dubai. As the main requirement, one should consider the payment methods offered for clients. Two of them and the most important ones are PayPal and the merchant accountPayPal is an online payment method which allows clients pay for their products and customers receive their money. With simple steps, your corporate or personal bank account can be linked to your PayPal account. Furthermore, clients have the possibility of paying products on your Amazonstore in Dubai by using the credit or the debit card. In this matter, the seller must set up a merchant account with the help of the chosen financial institution in the country. A merchant account is a preferred form of payment for online shops worldwide which involves only online transactions.

In addition to the rules and regulations connected to opening an Amazon store in Dubai, we suggest you get in touch with our law firm in Dubai for extra information.