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How to Start a Dropshipping Business in Dubai?

dropshipping business in Dubai

How to Start a Dropshipping Business in Dubai?

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Brands are now using social media as a sales platform, which is redefining the role of social media. Entrepreneurs are increasingly turning to eCommerce to build high-profit, low-investment businesses as online shopping grows in popularity. One such opportunity is dropshipping. Thus, starting a dropshipping business in Dubai is an increasingly attractive alternative.

68% of online shoppers in the UAE prefer shopping from retail websites, whereas 17% prefer buying directly from brand websites; 9% prefer buying from social media platforms such as Facebook and Instagram. Around 65% of UAE citizens said they will buy from social media in the future.

Dropshipping in UAE is a retail technique in which companies do not manage or distribute their products. Rather, when an order is received, these companies send information like the product number, delivery address, and order date to a third party that will fulfill the order on the company's behalf. This blog will walk you through how to start a dropshipping business in Dubai.

What Are the Benefits of Starting a Dropshipping Business in Dubai?

You'll need a user-friendly and traffic-driving eCommerce website to launch your dropshipping business. You are, for the most, responsible for managing your eCommerce website once you've found suppliers for your dropshipping business. Opening a drop shipping business in Dubai comes with a host of other benefits:

  • According to global e-commerce accelerator Pattern’s poll of online shoppers, 74% said they would spend more online shopping in 2022. In addition, as per a YouGov survey,  almost 70% of UAE residents trust social media shopping. Thus, there is ample scope for dropshipping business in UAE.
  • The various companies in Dubai might be your dropshipping business prospects. Profits in a dropshipping business can be realised sooner once you have found the correct suppliers since you’re not liable for shipping or production costs.
  • You can have total control over your dropshipping business. Furthermore, all investment income and capital can be repatriated. Since Dubai has a tax-free environment, your dropshipping company will not have to pay taxes.
  • The initial costs of launching a dropshipping company are substantially lower than the price of building an inventory of products and selling them.
  • Dropshipping will necessitate daily effort in processing orders. But, the processing of most orders is automated. Dubai is one of the world's most technologically advanced cities. The advanced facilities in Dubai will allow you to integrate technology into your dropshipping operations. 
  • You don't need commercial space or equipment to run a dropshipping company. All you need is a good internet connection and a laptop or smartphone to work from anywhere.
  • With fast-growing technology and government initiatives, forming a company in Dubai is simple and involves less paperwork.

What Documents Do You Need to Start a Dropshipping Business in Dubai?

You’ll have to submit some documents before you set up your dropshipping business. Ensure that the documents are correct and valid. This is to make sure that the company formation process moves as quickly as possible. The documents listed below are just a peek of what's required:

  • Copies of passports and visas 
  • Two passport-size photographs 
  • Entry visa and stamp pages

Shuraa Business Setup professionals can help you with the entire list of required and supplemental documents that you’ve to submit to the concerned authorities. 

How to Start a Dropshipping Business in Dubai?

After you've gathered the required documents, you can start the process of establishing a dropshipping business in the UAE. The steps given below will help you understand how to go through it.

1. Register Your Name

Your company name will be a crucial aspect of your dropshipping business. So, take your time and come up with a name that resonates with your company, its specialty, and potential clients. Then, register the name of your dropshipping company with the appropriate authorities. 

2. Decide Your Company Structure

An appropriate company structure for your dropshipping business is as crucial as any other decision. If your dropshipping company has the right corporate structure in place, it will be able to run more efficiently and achieve its objectives. So, choose a suitable structure for your dropshipping business. The structure could be a sole proprietorship, a Limited Liability Company (LLC) or a foreign company's branch office.

3. Apply for the Licence 

Obtaining a trade license is both a legal requirement and a way of convenience for your company. Opening a corporate bank account becomes easy once you have a trade license. To apply for a dropshipping business license, submit the relevant documentation and pay the license fees.

Shuraa's experts can assist you in the best way possible to avoid any confusion about the type of license, fees and benefits included. They will ensure that you fulfill the required legal duties before you begin setting up your dropshipping business, allowing you to sail easily.

4. Get Your Trade Licence

Once you have completed all of the steps successfully, you'll get your dropshipping company license. The license will legitimize your dropshipping company and strengthen your position as a business owner in the UAE. You can even mention being licensed on your website so that potential buyers know you're trustworthy and safe.

5. Launch Your Business

You will have to build an eCommerce website to launch your dropshipping business. So, once you've obtained your trade license, make sure to choose and register your domain name as quickly as possible. Then, look for reliable and communicative dropshipping suppliers who offer high-quality products at reasonable shipping rates in less time. When you have sorted all these steps, along with effective marketing, you're good to go with your dropshipping business.

What Is the Cost of Starting a Dropshipping Business in Dubai?

The final cost of setting up your dropshipping company is determined by a range of factors. The license you choose, the activities you engage in, the eCommerce platform you work on, the suppliers you partner with, marketing efforts and more are all things to consider. So, presenting an exact figure is impossible. As for an estimate, the license can cost you anywhere near AED 15,000 and more. 

Shuraa Business Setup experts will assist you in starting your dropshipping company in Dubai. They will also make certain that you do not overspend.

Start Your Dropshipping Business With Shuraa

Shuraa Business Setup can make the process of establishing your dropshipping company straightforward from start to finish. We are here to help you at every step of the way and provide you with the resources you need to start a successful dropshipping business in Dubai. We can also create custom-made business setup solutions if your dropshipping company has specific requirements. So, let’s get started!

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