Dubai is one of the fastest-growing digital economies in the world, and it’s no surprise that the e-commerce industry here is booming. With almost everyone using the internet and smartphones, more people are shopping online than ever before. In fact, the UAE’s online retail market is expected to grow from AED 32.3 billion in 2024 to over AED 50.6 billion by 2029. The government is also aiming to double the digital economy’s contribution to the country’s GDP by 2031, which means now is a great time to be part of this exciting growth.
If you’re thinking about starting an online business in Dubai – whether selling products, offering services, or running a marketplace- you’ll need an e-commerce license. This license gives you the legal permission to sell online through websites, apps, or even platforms like Amazon and Noon. Without it, your business could face fines, shutdowns, or restrictions like blocked payment gateways.
Having a valid e-commerce license in Dubai comes with major benefits, like opening a business bank account, applying for visas, building customer trust, and joining government programs that support digital businesses.
What is an E-commerce License in Dubai?
An e-commerce license in Dubai is a legal permit that allows individuals and businesses to sell products or services online. Whether you’re selling through a website, mobile app, or social media platforms, this license makes your online business official and compliant with UAE laws.
Why Do You Need It?
The main purpose of the e-commerce license is to ensure that your online business runs legally and securely. It helps you:
- Open a business bank account
- Get access to payment gateways
- Gain customer trust
- Apply for residence visas
- Avoid penalties for operating without a valid license
E-commerce licenses in Dubai are issued by:
- Dubai Department of Economic Development (DED) – for Mainland businesses, which lets you sell directly to customers in the UAE.
- Free Zone Authorities – for Free Zone businesses, which often offer cheaper and faster setup, but may require using a local distributor to sell in the UAE market.
Popular Free Zones for e-commerce include Dubai CommerCity, IFZA, Shams, and RAKEZ.
What are the Types of E-commerce Activities You Can Choose From in Dubai?
When applying for an e-commerce license in Dubai, you’ll need to select the specific activity or activities your business will carry out. The good news? There’s a wide range of options depending on your business model.
Here are some of the most common e-commerce activities you can choose from:
1. Selling Physical Products Online (B2C or B2B)
You can sell goods like clothing, electronics, accessories, beauty products, or any physical items through your own website or third-party platforms like Amazon, Noon, or Shopify.
2. Drop-shipping
This is perfect if you want to sell products without holding inventory. You take customer orders through your site or store, and the supplier ships products directly to the customer.
3. Online Services
If you’re offering services like digital marketing, content writing, online coaching, graphic design, or consulting, you can do that under an e-commerce service activity.
4. Subscription-based Platforms
From monthly boxes to exclusive online memberships, businesses offering subscription products or services can also be licensed under e-commerce.
5. Social Media Selling
If you promote and sell products directly via Instagram, TikTok, Facebook, or WhatsApp, you still need an e-commerce license to operate legally in Dubai.
6. Online Marketplaces or Portals
Planning to launch a platform where buyers and sellers can connect – like a mini Amazon or Etsy? You can register for a portal or marketplace activity, allowing others to list their products on your site.
7. Mobile App-based E-commerce
If your business operates mainly through a mobile app, for food delivery, fashion sales, or online bookings, you can choose this as your core activity.
Mainland vs Free Zone E-commerce License in Dubai
Choosing between a Mainland and Free Zone e-commerce license in Dubai depends on your business goals, target market, and budget. Here’s the quick comparison:
| Feature | Mainland E-commerce License | Free Zone E-commerce License |
| Issuing Authority | Dubai Department of Economy and Tourism (DET/DED) | Specific Free Zone Authorities (e.g., IFZA, Shams, CommerCity) |
| Market Access | Can sell directly to the UAE market | Can sell internationally; need a local agent to sell in UAE |
| Ownership | 100% foreign ownership allowed | 100% foreign ownership allowed |
| Office Requirement | Mandatory physical office (Ejari) | Flexi-desk or virtual office options are available |
| Cost | Generally higher due to office and government fees | More affordable packages for startups |
| Visa Eligibility | Eligible for investor/partner visas | Visa options depend on the Free Zone and office size |
| Bank Account Opening | Easier and more widely accepted | Available |
| Regulatory Control | More government oversight and compliance | Free Zone-specific rules and support |
| Ideal For | Businesses targeting the local UAE market directly | Startups, freelancers, and international sellers |
What are the Documents Required for an E-commerce License in Dubai?
Here’s a list of the common requirements to obtain an E-commerce license in Dubai:
- A passport copy of the owner/shareholders
- Recent passport-size photograph (white background)
- Emirates ID (if applicable)
- UAE residence visa copy (if applicable)
- No Objection Certificate (NOC) from current sponsor (if on a visa)
- Trade name reservation certificate
- Initial approval certificate
- Business plan (for some Free Zones)
- Tenancy contract/Ejari (for Mainland setups)
How to Obtain an E-commerce License in Dubai, UAE?
Here’s a simple breakdown of the steps you need to follow to get your e-commerce license and start selling legally.
Step 1: Choose Your Jurisdiction
Decide between a Mainland license (via DED/DET) for direct sales in the UAE or a Free Zone license (e.g., IFZA, SHAMS, CommerCity) for international reach and flexible office options
Step 2: Select Your Business Activity & Legal Structure
Define the specific e-commerce activities (e.g., trading, drop-shipping, digital services) and choose whether you’ll register as an LLC, sole proprietorship, or FZCO.
Step 3: Reserve Trade Name
Choose and reserve a unique business name following UAE naming rules via the DED portal (Mainland) or Free Zone portal.
Step 4: Apply for Initial Approval
Submit your application to DED or the Free Zone authority along with basic documents (passport copies, photos, business plan). You’ll receive initial approval to proceed.
Step 5: Secure Office Space
- Mainland: Requires physical office space to obtain an Ejari tenancy.
- Free Zone: Flexi-desk or virtual office often suffices.
Step 6: Prepare & Submit Final Documents
Provide required documents like a signed MOA (Mainland), lease agreement, passport copies, and NOC (if applicable).
Step 7: Pay Fees & Receive E-commerce License
Pay license and setup fees (ranges vary by jurisdiction), then receive your e-commerce trade license in Dubai, typically within days.
Step 8: Open a Business Bank Account
Use your license to open a corporate bank account in Dubai. Some banks may require additional tenancy proof.
Step 9: Set Up Payment Gateway & Online Presence
Register for a Central Bank–approved payment gateway, register your domain (.ae), and ensure your site meets regulatory standards.
Step 10: Apply for Visas (Optional)
If needed, apply for investor or employee visas based on your office and license setup.
Note: Requirements may vary slightly depending on the jurisdiction (Mainland or Free Zone) and your business activity. At All Emirates Setup, we help you prepare and organise all the required documents so your application goes through smoothly and quickly.
What is the E-commerce License Cost in Dubai?
The e-commerce license cost in Dubai depends on whether you choose a Free Zone or Mainland setup, as well as the type of business activities, office space, and visa requirements. Mainland e-commerce licenses through Dubai Economy (DED) usually cost between AED 12,000 and AED 18,000. Adding office rent, visa, and other setup fees, the overall cost can range from AED 30,000 to AED 50,000. UAE and GCC nationals can also opt for the e-Trader license, which starts from AED 1,070, but with limited use.
Free Zone licenses are generally more affordable, starting from around AED 8,000 to AED 15,000 for basic packages. If you need visa allocation and other services, the total cost can go up to AED 20,000–40,000, depending on the Free Zone.
Looking for a cost-effective setup? AE Setup offers customised e-commerce license packages with no hidden costs.
E-commerce Regulations and Compliance in the UAE
To run your e-commerce business legally in the UAE, you must follow certain rules and regulations. Here are the key ones to keep in mind:
Valid Trade License
A trade or e-commerce license is mandatory to sell online in the UAE, whether through a website, app, or social media.
Consumer Protection Laws
The UAE has strong consumer protection laws to ensure transparency, honesty, and fair dealings. You must clearly display product details, pricing, return/refund policies, and delivery terms on your platform.
Data Privacy & Cybersecurity
If you collect customer information (names, emails, payment details), you must protect it as per the UAE’s cybersecurity and data protection regulations.
VAT Registration
If your business revenue exceeds AED 375,000 annually, you must register for Value Added Tax (VAT) with the Federal Tax Authority (FTA). Once registered, you’ll need to charge 5% VAT on eligible goods and services.
Advertising & Content Rules
Any promotions or advertising done on your e-commerce platform (or social media) must follow UAE advertising laws. Avoid false claims, misleading offers, or offensive content.
Set Up Smart. Go Digital with AE Setup!
Dubai’s e-commerce market is growing quickly, and it’s a great time to start your online business here. With more people shopping online and strong government support, there’s a big chance to grow and succeed if you act now.
If you’re ready to start, AE Setup is here to help you every step of the way. From getting your e-commerce license in Dubai and visa to opening a bank account and more, we make the whole process smooth and hassle-free. Book a free consultation with our team today, and let’s get your online business up and running in no time.
