Website, app, Instagram shop or marketplace store: every one of them needs a licence that covers online trade. PROXPAT sets up e-commerce companies on the Dubai mainland and in UAE free zones.
Page last updated: . Requirements, government fees and processing times are set by the relevant UAE authority and can change.
E-Commerce License in Dubai and the UAE
Selling online in the UAE is regulated trade, not a side activity. Under Federal Decree-Law No. 14 of 2023 on Modern Technology-Based Trade, websites, mobile apps, social media platforms and digital marketplaces are all treated as trading channels, and the law applies to physical goods sold online as well as digital products such as subscriptions and services.
In Dubai there are three ways to hold that licence: a mainland commercial licence that includes e-commerce activity, a free zone licence, or, for eligible UAE and GCC nationals, the eTrader licence. The right one depends less on what you sell and more on where your customers are, where your stock sits and whether you need residence visas.
PROXPAT helps founders choose the route, select activities that actually cover the business model, obtain the digital-activity approval and set the company up with the documents banks, payment gateways and marketplaces usually ask for. See our wider business setup services in Dubai.
Three Licensing Routes Compared
| Mainland licence with e-commerce activity | Free zone e-commerce licence | eTrader licence | |
|---|---|---|---|
| Issued by | Dubai Department of Economy and Tourism (DET) | The relevant free zone authority | Invest in Dubai (DET) |
| Who can apply | Foreign and local investors; full foreign ownership for most commercial activities | Foreign and local investors | UAE and GCC nationals resident in Dubai; single owner |
| Selling to UAE customers | Directly | Within the zone and internationally; mainland sales usually need a local distributor or additional arrangements | Online and social media only |
| Residence visas | Yes, linked to premises and quota | Yes, linked to the package | No |
| Shop or warehouse | Possible with suitable premises | Depends on the zone's facilities | No physical shop |
| Typically suits | Brands selling to UAE consumers from local stock | International sellers, digital products, lean teams | National entrepreneurs selling from home |
Please note: the eTrader licence's eligibility and conditions are set by Dubai authorities and have changed before. We confirm the current position before recommending it.
Which Route Fits Your Business Model
You sell your own products to customers in the UAE and hold stock here
A Dubai mainland company with e-commerce activity is usually the cleanest fit. You can invoice UAE customers directly, lease a warehouse, run a pickup point and sponsor staff.
Your customers are mostly outside the UAE, or you sell digital products
A free zone company is often more economical. The UAE Government lists free zone authorities such as Dubai CommerCity, Masdar City Free Zone, Sharjah Media City, Ras Al Khaimah Economic Zone and Ajman Free Zone among those issuing online business licences, and many other zones, including Meydan and IFZA, offer e-commerce activities.
You import stock and sell through a UAE marketplace
The licence must cover the trading activity, and you will need a customs code to import. Marketplaces set their own seller onboarding requirements, so we check them against the licence before activities are finalised rather than after.
You sell or promote through social media
The licence covers the trading. If you also advertise or promote on social media, the UAE Media Council's advertiser permit rules may apply in addition, particularly where individuals promote products for payment.
Approvals You Need Beyond the Licence
| Approval | Why it matters | When |
|---|---|---|
| TDRA approval | The UAE Government states that all eCommerce licences require the approval of the Telecommunications and Digital Government Regulatory Authority, which regulates the eCommerce framework | During licensing |
| Product approvals | Regulated goods such as cosmetics, food, supplements and medical devices need registration before sale. See product registration | Before listing |
| Customs code | Needed to import or export stock through UAE customs | Before the first shipment |
| Social media advertiser permit | May be required for paid promotion on social platforms under UAE Media Council rules | Before paid promotion |
| VAT registration | Mandatory once taxable supplies exceed the Federal Tax Authority threshold of AED 375,000 | When the threshold is crossed |
| Trademark registration | Protects the brand name or logo nationally with the Ministry of Economy and Tourism; the trade name on your licence does not. See trademark registration in the UAE | Before launch, ideally before branding is printed |
Your Legal Obligations as an Online Seller
The 2023 law puts online businesses under the same legal footing as physical trade. The UAE Government summarises a seller's responsibilities along these lines:
- Sell only permitted goods and services, and obtain approvals for anything regulated or restricted.
- Describe products and services accurately, without misleading or deceptive practices.
- Protect customer data and follow the rules on privacy and data sharing.
- Follow marketing and promotion rules.
- Issue a clear digital invoice for every transaction.
- Run a secure platform that meets cybersecurity standards.
Electronic contracts, signatures and trust services are covered separately by Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services.
Step-by-Step: Setting Up an E-Commerce Company in Dubai
Step 1: Map where customers, stock and staff will be
Step 2: Choose mainland, free zone or eTrader
Step 3: Select e-commerce and any trading activities
Step 4: Reserve a trade name
Step 5: Obtain initial approval and digital-activity approval
Step 6: Arrange premises or the free zone package
Step 7: Issue the licence and establishment card
Step 8: Open the bank account, set up the payment gateway and apply for visas
Activity selection is where most avoidable problems start. Our business activity consultation checks the activity wording against how you will actually sell.
Documents Required
Passport copy of each shareholder and manager
Passport-style photograph
UAE visa or Emirates ID copy if resident
Up to three proposed trade names
Description of products, sales channels and target markets
Website or app domain details, if already registered
Tenancy contract or free zone package details
Corporate documents for company shareholders, attested where required
What Drives the Cost
We do not publish a single package price because two online businesses rarely cost the same to license. These are the factors that move the number:
| Factor | Effect on cost |
|---|---|
| Route | Mainland premises versus a free zone package versus eTrader |
| Activities | Adding trading, logistics or regulated categories can add activity fees and approvals |
| Workspace | Flexi-desk, office or warehouse, and whether it must support visas |
| Visas | Each residence visa adds visa, medical, Emirates ID and insurance costs |
| Product approvals | Regulated products need registration fees per product or category |
| Ongoing compliance | Licence renewal, VAT filing once registered, and corporate tax registration |
For a wider comparison of licence costs, see the cheapest business licence options in the UAE.
Mistakes That Cost Online Sellers Months
Licensing "general trading" and assuming it covers online sales
An online business needs e-commerce activity on the licence. Without it, payment gateways and banks often reject the application because the licence does not match the website.
Selling to Dubai customers from a free zone entity with no arrangement
Free zone companies operate within their zone and internationally. Direct sales on the mainland usually need a local distributor or additional approvals, a restriction that is often discovered only after the first large UAE order. Since October 2025, Dubai free zone companies in eligible sectors, including trading, can also apply for the Free Zone Mainland Operating Permit.
Importing stock before the customs code and product approvals exist
Goods can be held at the port while registrations are completed, with storage costs accumulating daily.
Choosing the cheapest zone for a business that needs a warehouse
Some zones are built for consultancies and digital businesses, not physical inventory. The saving on the licence disappears when you need separate storage elsewhere.
Frequently Asked Questions
Plan the rest of your online business setup.
Explore connected PROXPAT services that support the same client journey.
The licence is the start of the government work, not the end of it
Once the trade licence is issued, the sequence that actually lets you operate begins: the establishment card, the MOHRE and immigration files, your employee quota, then employee visas and work permits. After that it repeats every year — renewals, cancellations when people leave, and licence renewal and amendments.
Companies that would rather not build that function in-house put it on a monthly PRO retainer from AED 700, or use it per transaction. Government fees stay separate and itemised either way.
The first six months after incorporation
- Establishment card issued through immigration
- MOHRE file opened and e-signature completed
- Employee quota checked before hiring
- Offer letters, work permits and entry permits
- Medical, Emirates ID and visa stamping
- Corporate tax and VAT registration where they apply
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Start Your E-Commerce Company in Dubai
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