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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Dec 23, 2025
The e-commerce market in the UAE has reached $8.8 billion in 2024 and is projected to continue growing, reaching $13 billion by 2029. This makes it an attractive opportunity for entrepreneurs looking to start a new business.
The first step to entering this market is obtaining an e-commerce license. This article will discuss the details of the licensing process, including costs and timeframes.
The first step to entering this market is obtaining an e-commerce license. This article will discuss the details of the licensing process, including costs and timeframes.
- What is an e-commerce license in Dubai?
- Difference between e-commerce license and e-trader license
- Benefits of starting an e-commerce business in Dubai
- Types of licenses for e-commerce business
- How to get an e-commerce license in the UAE
- Complete support services for e-commerce businesses
- How much does an e-commerce license cost?
- Cheapest e-commerce license in UAE
- Documents required to get an e-commerce license
- How to start an online business in UAE with movingo
- E-commerce license in Dubai FAQ
What is an e-commerce license in Dubai?
An e-commerce license in Dubai is a legal permit issued by the Department of Economy and Tourism (DET) to Mainland companies or by the relevant Free Zone authority that officially authorizes businesses to sell goods and services online.
Why is it important?
Why is it important?
- Legal compliance: It ensures your business adheres to all federal and emirate-specific commercial regulations.
- Business operations: Typically, it is a mandatory requirement to open a corporate bank account, integrate with local payment gateways, and establish relationships with logistics providers.
Difference between e-commerce license and e-trader license
These two concepts are often confused, but there are important differences between them. Both of them allow for online sales, but they're designed for different types of businesses. Choosing the wrong platform can seriously limit your growth.
Not sure which jurisdiction is right for your business? This is an important question, and if you choose incorrectly, you could lose a lot of money in fines and business re-registration (read our client's story). To avoid this situation, consult professionals who know the market inside and out.
Benefits of starting an e-commerce business in Dubai
Dubai’s government has actively positioned the emirate as a global e-commerce hub, making it one of the most attractive markets for digital entrepreneurs.
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Low taxes:
Enjoy a 0% income tax on personal income and 0% Corporate Tax for businesses with low income. -
100% foreign ownership:
Most Free Zones, and now many Mainland activities, allow 100% foreign ownership, giving you complete control over your business. -
Gateway to global markets:
Dubai's strategic location and advanced logistics infrastructure, including ports, airports and courier services, make it an ideal hub for accessing consumers across the Gulf Cooperation Council (GCC), Middle East and North Africa (MENA), Asia and Europe. -
Legal compliance:
Operating under UAE laws and English common law in some cases, as well as using International Financial Reporting Standards (IFRS), enables seamless international business operations. -
E-commerce market growth:
Some forecasts predict that the e-commerce market could reach $17.5 billion by 2030.
We've done a deep dive into the possibilities for launching an e-commerce venture in the UAE. We'll talk about the pros and cons of different locations for startups, how much investment you'll need, and some other helpful tips: How to start an e-commerce business in Dubai
Types of licenses for e-commerce business
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Mainland e-commerce license:
- Jurisdiction: Department of Economy and Tourism (DET).
- Best for: Businesses that plan to trade directly with the local market and government entities without restrictions.
- Requirements: You'll need to lease a physical office (or a co-working space with a contract) and get approval from the TDRA (Telecommunications and Digital Government Regulatory Authority).
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Free Zone e-commerce license:
- Jurisdiction: Free Zones (e.g., Sharjah Media City (Shams), RAKEZ, IFZA, Dubai CommerCity, Dubai South).
- Best for: This is ideal for businesses focused on international trade, as well as those seeking 100% foreign ownership and an easier setup process.
- Benefits: Can offer flexible desk options or virtual offices, which can help reduce overhead costs. It's often possible to trade in the Mainland, but you typically need to appoint a local distributor for that.
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Portal license (E-marketplace):
- Jurisdiction: Typically available in Free Zones like DMCC or IFZA.
- Best for: Businesses that create a platform where buyers and sellers can meet (a marketplace), instead of selling their own products directly (like Amazon or Noon).
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E-trader license:
- Jurisdiction: Dubai DED.
- Best for: UAE/GCC nationals who operate small, social-media-based businesses from home. (Not available to foreign expats).
How to get an e-commerce license in the UAE
- Step 1: Determine your business model and jurisdiction
- Activity: What exactly will you sell? (E.g., "E-commerce for electronics," "Online trading of fashion," "Digital services").
- Jurisdiction: Mainland (DED) or Free Zone? This determines your cost, ownership structure, and ability to trade directly within Dubai.
- Step 2: Choose and reserve a trade nameThe name must be unique, follow the UAE’s naming conventions (no blasphemous or offensive language), and be approved by the licensing authority.
- Step 3: Apply for initial approval and NOC.
- Submit your application to the relevant authority (DED or Free Zone) along with your passport copies and proposed business plan for Initial Approval.
- You will also need to secure a No Objection Certificate (NOC) from the Telecommunications and Digital Government Regulatory Authority (TDRA) for your e-commerce activity.
- Step 4: Secure office space, if applicable.
- Mainland: You must submit a signed Tenancy Contract (Ejari) for your physical office space.
- Free Zone: You will typically submit a lease agreement for a flexi-desk or virtual office package.
- Step 5: Final submission and license issuance
- Submit all final documents, including the attested tenancy contract (if needed) and initial approval.
- Pay the final licensing fees. Your official e-commerce trade license will be issued.
- Step 6: Open a corporate bank account and apply for visas.
- Use your new trade license and Memorandum of Association (MOA) to open your corporate bank account.
- Apply for your investor visa and any employee visas under your new company.
Complete support services for e-commerce businesses
Instead of going through the entire process yourself and wasting time and energy filling out paperwork, contact us. We have helped more than 400 companies start businesses in the UAE. Here's what the process looks like with us:
1
Create a business description
Write a detailed business description or business plan for your future company and send it to us by email.
Write a detailed business description or business plan for your future company and send it to us by email.
2
We’ll schedule a call
Our expert consultants will review your business plan and schedule a meeting with you. We understand your needs and will create the best possible solution for your e-commerce business. Our goal is to help you save time and money during the setup process. We always provide you with at least two viable options, so you can choose what works best for your business goals and budget.
Our expert consultants will review your business plan and schedule a meeting with you. We understand your needs and will create the best possible solution for your e-commerce business. Our goal is to help you save time and money during the setup process. We always provide you with at least two viable options, so you can choose what works best for your business goals and budget.
3
You’re license will be ready within a week
We'll get you registered for a CT. Now you can go about your business without wasting time filling out forms.
We'll get you registered for a CT. Now you can go about your business without wasting time filling out forms.
How much does an e-commerce license cost?
The cost varies significantly based on your chosen jurisdiction (Free Zone vs. Mainland) and whether you require visa eligibility.
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Basic, no-visa Free Zone license
Starts from approximately AED 5,750 – AED 6,500. This is the most affordable entry point. -
Free Zone license with 1 visa allocation
Prices typically start from around AED 9,000 to AED 15,000 or more, depending on the specific Free Zone package and services. -
Dubai Mainland (DET) license
This is usually the priciest option, often starting at AED 20,000 for a professional license and more for a commercial one, since a physical office contract is required.
💡 Note: These are estimated costs and are subject to change based on government fees, jurisdiction, and additional services, such as multi-activity add-ons or warehousing.
Cheapest e-commerce license in UAE
If your goal is the absolute lowest entry cost for a license available to foreign investors, your best bet is to look at the Free Zones offering basic, no-visa packages.
The cheapest options are typically found in the Sharjah or Ras Al Khaimah free zones:
The cheapest options are typically found in the Sharjah or Ras Al Khaimah free zones:
- Sharjah Media City (Shams): Offers packages starting from approximately AED 5,750 (license-only, no visa).
- Sharjah Publishing City Free Zone (SPC Free Zone): Offers comparable entry-level pricing around the AED 5,000 – AED 6,000 mark.
- RAKEZ (Ras Al Khaimah Economic Zone): Also known for competitive packages starting in the AED 5,000 – AED 6,000 range.
Documents required to get an e-commerce license
The exact requirements depend on the jurisdiction (Mainland vs. Free Zone) and the structure (individual vs. corporate shareholder), but common required documents include:
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Passport copies of all shareholders and managers. - Digital passport photos.
- Proof of residence (Emirates ID and Visa copy for existing UAE residents).
- Proposed trade names.
- A concise Business Plan detailing your e-commerce activity.
- Initial Approval Certificate from the relevant authority.
- TDRA No Objection Certificate (NOC).
- Signed Tenancy Contract (Ejari) for Mainland or Free Zone Lease Agreement (Flexi-desk/Virtual Office).
- Memorandum of Association (MOA) or Articles of Association (AOA) if setting up a Limited Liability Company (LLC).
How to start an online business in UAE with movingo
Starting something new can be tough. Doesn't matter if it's a little store or a big corporation, it's not always easy taking that first step. Filling out paperwork, obtaining licenses, registrations, and visas, etc. all take energy and resources. It's always easier when you have a reliable partner who knows the ins and outs of the local market.
movingo is a comprehensive platform that provides company formation, visa services, and daily legal assistance in the UAE. Our goal is to ensure that you have a smooth and hassle-free experience throughout the process. Check this out:
E-commerce license in Dubai FAQ
Yes, selling online without a license is illegal and can result in fines starting at AED 50,000.
First, select your jurisdiction (Free Zone or Mainland). Then, reserve your trade name and submit your passport copies and business plans for approval. Finally, pay the licensing fees.
In most cases, a commercial license for selling physical goods is the best option.
Yes, foreign investors can enjoy 100% ownership in Free Zones and Mainland activities.
No, the E-trader license is for home-based solo entrepreneurs and does not offer residency visa eligibility.
Professional license is required for e-commerce activities involving digital goods, such as software, e-books, and online courses.
No, it's a legal requirement to have a license.
B2C (Business to Consumer), B2B (Business to Business), C2C (Consumer to Consumer), C2B (Consumer to Business).
Free Zones like IFZA, Meydan, and Dubai CommerCity are, in fact, specialized hubs for e-commerce.
Yes, a physical office is mandatory for Mainland. However, most Free Zones offer virtual office or flexi-desk packages.
Free Zone: 2–5 working days, Mainland: 7–10 working days.
The most affordable "license-only" packages (which do not include a visa) start at around AED 5,500–6,000 in Northern Emirates Free Zones such as SPC, RAKEZ, and Shams.
