What is an e-commerce license?

An e-commerce license in Dubai is a legal permit that allows businesses to conduct online trading and other digital commercial activities, subject to regulations based on the licensing authority.

E-commerce company in the UAE is a company that sells its products or services online. In the current market, literally any company can be considered as e-commerce. Everyone has some kind of online presence and the trend is growing dramatically.

But even if your license does not relate to e-commerce as such, it does not mean you cannot sell online in the UAE. You can open a company in Dubai with any business activity and conduct it online. While the online format does not change the base type of your trade or service license, you must comply with the requirements of Federal Decree-Law No. 14/2023 on trade through modern means of technology, as well as regulations from DET, free zone authorities, and the Central Bank of the UAE.

Then why do people go for e-commerce license in Dubai? Usually because it’s a requirement from their partners or vendors, or even UAE payment gateway providers.

How to get an e-commerce license in the UAE?

  1. Choose a jurisdiction - mainland or a free zone
    On the mainland e-commerce licenses are issued by the Department of Economic Development (DED). In UAE free zones - by the relevant registering authority.
  2. Submit the required documents
    1. Passport copies of all shareholders.
    2. Proof of residence (e.g., utility bill).
    3. Emirates ID (if applicable).
    4. Trade Name Reservation Certificate
  3. Get your e-commerce license
    Remember that it should be renewed annually.
  4. Obtain UAE residency
    As a business owner, you are eligible to apply for a 2-year residence visa in the UAE and sponsor your family members. 
  5. Open a corporate bank account
    Mind that as a personal account holder you cannot receive money for business transactions. That’s why you need to set up a corporate bank account.

MFZ company formation process

The timeframe of business setup at the Meydan Free Zone can vary from 6 to 8 work days starting from the date of submission of all the required documents. MFZ business setup can be done remotely, visitation to the free zone for the visa process is not required.

  1. Determine the business activities of your future company and the corresponding license type. This is a key aspect of business setup, as choosing the wrong activity and license can lead to errors during company registration, creating problems with opening a bank account or even making such opening impossible. Note that MFZ allows for up to 10 activities under a single license, 3 of them for free.

  2. Specify the legal status of your business in the Meydan Free Zone. Available company formation types at MFZ include FZ LLC (Free Zone Limited Liability Company) or a branch of an already existing company registered in another free zone, in the Dubai mainland, or abroad.

  3. Prepare and submit the documents required by the free zone authority together with a filled-out application, and pay the fees. MFZ requires the following document set:

    • Your passport with 6 months validity
    • Visa copy (if applicable)
    • Passport and visa copies of shareholders
    • 3 company name options according to preference
    • Confirmation of business activity
    • E-mail
    • Residential address
    • Mobile number

    Registration can be completed remotely without your physical presence and typically takes 6-8 days. Note that individual shareholders, corporate shareholders, and company branches require different sets of documents.

  4. Receive the license and registration documents for the company, including:

    • Certificate of Incorporation
    • Trade license
    • Articles of Association
    • Memorandum of Association
    • Lease agreement
  5. Receive the Establishment Card containing information about your company and visa quotes.

  6. Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.

  7. Undergo a medical checkup and submit documents for a residence visa. Different registration packages may provide for a varying number of visas available for owners and employees of the company. Note that at MFZ, your presence is required for visa-related procedures.

  8. Once your visa is issued, secure your Emirates ID card.

  9. Apply to a UAE bank to open a corporate bank account. In some cases, the bank’s approval may take a month. Once you receive your account details, you are free to start running your business.

Expert

With us you can navigate this process quickly and effortlessly. You don`t even have to arrive in Dubai — the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.

MFZ license costs

The cost of a Meydan Free Zone license depends on the number of business activities and visa quotas and starts from AED 12,520. This license package includes 3 business activities, company registration fees, and a flexi-desk.

TYPE OF LICENSECOST
Zero-visa license. This package suits those who either don't need UAE residency or already have one. The price includes a license with 3 business activities, setup costs, and a flexi-desk.12,520 AED
1-visa license. This package includes a license with 3 business activities, setup costs, a flexi-desk, and 1 visa quota.14,370 AED
3-visa license. This package is suitable for a small team, as it allows for 3 visa quotas for your partners or employees. A great fit for a startup or family business.18,070 AED

Naturally, other company formation options with increased office space, more business activities and more visa quotas will come at a higher price. The license package with the visa fees includes:

  • MFZ license fees
  • MFZ Establishment Card
  • MFZ visa fee
  • Medical checkup
  • Emirates ID

Elena O.

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