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. As per the law, the mode of sales does not make any difference.

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 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.

Types of licenses for e-commerce business

E-commerce license cost in UAE

E-commerce license in IFZA (Dubai)

from 12,900 AED

E-commerce license in SHAMS (Sharjah)

from 5,770 AED

E-commerce license in Masdar (Abu Dhabi)

from 7,000 AED

E-commerce license in UAQ

from 8,000 AED

E-commerce license in RAKEZ

from 6,010 AED

Prices are for reference only and do not constitute an official offer. Insurance and agency fees are not included.

Cheapest e-commerce license in UAE

Setting up an e-commerce company in Dubai won’t be a problem. Almost all UAE free zones provide a business activity of e-commerce, e-marketplace, or portal. 

E-commerce license cost in the UAE depends on a few things:     

  • Registering authority
  • Eligibility of residence visas
  • Facilities (flexi-desk, office, warehouse)

The cheapest e-commerce licenses are offered by smaller Emirates, for example by RAKEZ. Its e-commerce license can be used for online trading in Dubai, too.

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How to start an online business in UAE

The UAE has a few options for licensing an online business. They depend on the type of e-commerce business you are planning to do.

  1. You can obtain a Portal license, which allows you to establish a platform connecting buyers and sellers. This type of license is ideal if you plan to act as an intermediary, similar to platforms like Amazon. Most free zones in the UAE offer this license, providing you with the opportunity to build and operate a digital marketplace.

  2. If you prefer to trade through an existing marketplace, you can register a trade company in the UAE and sign an agreement with the marketplace. This option is suitable for businesses that want to leverage a well-established platform while selling their own products. You'll need to comply with the marketplace’s terms and conditions while operating under your trade license.

  3. No commissions to marketplaces but higher expenses for advertising. Logistics is on you, too.

  4. Reach out to your targeted audience and locations.

The most effective way of online selling in the UAE is a combination of the above. The majority of online trading businesses in the UAE use all possible channels of internet presence.

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Online trading platforms in UAE

The importance of e-commerce in the UAE has never been greater than today. However, the market is still far from being saturated, with just a few big names on the list:

How to create your e-commerce website in Dubai

The first thing you need to have if you want to launch your own e-business is to set up an e-commerce website in Dubai.

The easiest way to do it is to use e-commerce platforms such as:

Using them will save your time and efforts and will help to launch your e-commerce website faster.

Payment gateway UAE

Needless to say, your website should have a payment gateway to enable your customers to pay by card. There are a few online payment providers in UAE that are friendly to new businesses:

Payments can also be received through PayPal UAE or cash on delivery method, which is always good for a start.

The most popular and easy to set up service is Stripe UAE. 

Don’t forget that all UAE payment gateway providers charge a commission from each purchase. It usually varies from 2% up to 3.1% depending on the type of goods and sales volumes. Some of them have subscription fees too.

Be ready with the following set of documents for your online payment gateway setup:

  1. Company incorporation documents: license and MoA
  2. Personal documents: passport, residency visa and Emirates ID
  3. Address proof: a recent utility bill 
  4. UAE corporate bank account

E-commerce delivery service Dubai

An important part that makes online business in Dubai work is delivery service. The majority of e-shops hire a third party for pickup and delivery service in UAE.

Here are some flexible and affordable delivery services in UAE:

Delivery service companies in the UAE mostly offer not only local but also regional and international packages. You also get dedicated managers and user-friendly apps to track and manage your shipments.

Benefits of an e-commerce license in UAE

  • Access to a growing digital market with a global customer base
  • Strategic location for reaching Middle Eastern, Asian, and international markets
  • Legal compliance, enhancing credibility and trust with customers
  • Tax advantages, including a low 9% corporate tax and tax reliefs in certain free zones
  • Quick and easy setup with affordable licensing options
  • Opportunity to scale your business in a thriving digital economy

Frequently Asked Questions

As per the Amazon regulations, a physical person without a trade license can be a merchant.

Learn more

As per the law, it is illegal to trade or do any business in the UAE without a business license. Penalties for doing business without a license reach up to 500,000 AED (137,000 USD). Selling through social media is also considered as doing online business.

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Yes, you can. You need to obtain a trade license. You also need to take approvals that your bakery products meet the hygiene requirements during preparation and that you (or your helpers) are not carrying any diseases.

Learn more

Just follow this step-by-step guide on getting a Dubai e-commerce license:

  • Decide what type of product you will be selling online: goods or services
  • If you will be selling goods, search for storage and delivery solutions
  • Register a license in a free zone or Department of Economic Development
  • Open a corporate bank account
  • Make a contract with an online payment gateway provider
  • Start promoting your business!
Learn more

Prices for e-commerce licenses in Dubai start from 1070 AED (295 USD) for the so-called E-trader license. That license is available only for UAE residents and GCC citizens. In case you are not a resident, you need to consider other solutions, which start from 11,500 AED (3,150 USD).

Learn more

Yes, as per the law in the UAE, you need to have a trade license in order to sell online. Your license can be obtained in a free zone or Department of Economic Development.

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