Guide
E-commerce licence guide
If you sell online, you need a licence in the UAE. Which one depends on who you're selling to and where you're selling from.
What is an e-commerce licence?
An e-commerce licence is a trade licence permitting the sale of goods and services through digital channels. Whether you sell through your own website, a marketplace or social media makes no difference — commercial activity requires a licence.
Free zone or mainland?
- Free zone: suits you if you sell outside the UAE or to business customers. 100% ownership, lower set-up cost and, in most zones, no office requirement. There is a restriction on selling and delivering directly to end customers on the mainland.
- Mainland: required if you will sell and deliver directly to consumers inside the UAE. Running a warehouse, taking cash on delivery and working with local logistics is easier here.
eTrader versus an e-commerce licence
Some emirates offer a simplified permit for individuals selling from home and through social media (known in Dubai as eTrader). It is generally low cost but carries real limits:
- It is usually open only to UAE and GCC nationals; scope varies by emirate.
- It carries no visa entitlement.
- You cannot open a physical shop.
- It does not lend itself to growing at corporate scale.
If you want a company structure, a visa entitlement or a corporate bank account, you need a full e-commerce licence.
VAT obligations
E-commerce companies are subject to the same VAT rules. Registration is mandatory once taxable turnover passes AED 375,000 and voluntary above AED 187,500. Sales abroad may be zero-rated; even then, registration and filing obligations continue.
See the VAT and tax page for detail.
Warehousing, delivery and payments
- Storage: renting a warehouse in a free zone is possible, but moving goods out to the mainland triggers a customs process.
- Delivery: to deliver to mainland consumers your licence structure has to support it.
- Payment infrastructure: local payment providers require a trade licence and a corporate bank account before contracting. So the order matters: licence first, then account, then payments.
E-commerce — frequently asked
What does it cost to set up an e-commerce company?
Total cost varies with the zone chosen, the number of activities, the visa allocation and whether you need an office. Starting with a structure needing no office and one visa is markedly cheaper than one with a warehouse and several visas. In the consultation we put two or three zones side by side with their costs.
Do I need to rent an office?
In most free zones, no — a flexi-desk arrangement is enough. On the mainland a registered tenancy contract is required, and your visa allocation is linked to your office space.
How long does incorporation take?
Where documents are in order and the activity needs no additional approval, free zone incorporation can complete in seven working days. The corporate bank account is a separate process and takes longer, depending on the bank's compliance review.
Which free zone is best?
There's no single right answer. The choice depends on what you sell, your warehousing needs, your visa count and your budget. Some zones license e-commerce under an IT activity while others define a separate e-commerce activity — that difference matters too.
What happens if I sell online without a licence?
Unlicensed commercial activity is subject to administrative penalties; fines and suspension of the activity are both possible. And without a licence you cannot set up a corporate bank account or payment infrastructure — so in practice you cannot grow.
Can I run two businesses on one licence?
In most cases yes: more than one activity can be added to the same licence. Where the activities fall into different categories (trading and professional, for example) a separate licence may be needed. Describe both and we'll see whether they combine.
Can I only sell inside the UAE?
No. Selling abroad is the most natural use of a free zone licence. The restriction arises on selling directly to end customers on the UAE mainland, which needs a mainland licence or a distributor.
Let's build your e-commerce structure.
Tell us what you sell and who you sell it to — the right licence follows from that.