Online retail in UAE - legal issues
 

We are just about to launch our website www.murano-lite.com selling Italian blown glass chandeliers in the UAE. I am wondering if anyone knows or can refer an expert on the legal side of this.

In particular I am not sure if we need to register a business in the UAE in order to be able to import the chandeliers from Italy or if online businesses around the world are exempt.

Clearly not every business in the world is registered in UAE but if we want to handle the import as part of the service does this change?

Any info or referrals would be much appreciated.

Re: Online retail in UAE - legal issues
 

To clear shipments, open bank account, hire staff etc you'd certainly need to be registered (either LLC with a local partner or a Freezone entity).

You can try The Rights Lawyers perhaps www.therightslawyers.com

If your customers order from a site located elsewhere and the payment and shipping doesn't require a local presence I don't see why you'd need be registered here - except for your own visa of course...

Re: Online retail in UAE - legal issues
 

Thanks for the info. It makes sense. However, my wife is sponsored by me of course. I have a FZC in Hamriyah for the visa. But this is of no use to the chandelier business whatsoever.

She will be selling to designers around the Gulf including here but all transactions will be made through the site. Maybe the key question is whether she needs to be selling around the Gulf under a trade licence or whether this is irrelevant since all sales go through the site anyway?

Also is it legal to sell using a .ae domain without a trade licence?

Also as part of the service we would like to take delivery of all products at the airport and deliver them personally by hand. Won't customs get suspicious of maybe 10 lamps a month arriving for my wife and demand to see a trade licence for what is obviously trade activity?

I'll check the site you mentioned.

Thanks again for your input. It's much appreciated.

Re: Online retail in UAE - legal issues
 

Why is the Free Zone thingy useless? I thought they exist primarily to encourage new businesses like yours?

Re: Online retail in UAE - legal issues
 

Free zone company works great for businesses where there are no physical goods. But you can only import goods into the FZ.

Re: Online retail in UAE - legal issues
 

Sorry - not quite correct - look at Jebel Ali or Dubai Airport Freezone - huge import / export businesses. You can import and export without getting 5% customs tax as well. You do pay import tax when the goods leave the freezone and enter the UAE side.

Both of these would be good locations for your suggested business...

http://www.dafz.ae/typeofcompanies.html

Re: Online retail in UAE - legal issues
 

It sounds to me as if you're effectively operating a representative office. Marketing can be done for the products but orders are fulfilled from the 'head office' abroad.

This does mean though that you need a trade license as a representative office and you'll need a local to act as a 'service agent'. It would also seem reasonable that a representative office could support the last stage of delivery.

All of the above definitely worth checking with a lawyer!

Re: Online retail in UAE - legal issues
 

Once again thanks for the info. All the time proving what a valuable resource this forum is (no i'm not on commission). :D