E-commerce Licence in Dubai and the UAE

E-commerce Licence in Dubai and the UAE
Options, Costs and Steps

If you sell anything online in the UAE, through your own website, Amazon, Noon, Instagram or an app, you need a licence that covers e-commerce activity. Selling without one isn't a grey area. The UAE has a dedicated law for online trade, and online businesses are treated much like any other business.

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Guide

The law behind e-commerce in the UAE

This page explains which licence fits which kind of seller, what the extra digital approval is, what documents you'll need, and where the prices start.

Online trade in the UAE is regulated by Federal Decree by Law No. 14 of 2023 on Modern Technology-Based Trade. According to the UAE government portal, it covers buying and selling goods, services and related data online, and brings online businesses under a legal framework similar to traditional businesses. Electronic transactions are also covered by Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services.

The government portal lists a few basic duties for anyone selling online:

  • Sell only permitted products and services, and get extra approvals for regulated or restricted items.
  • Give accurate product information and avoid misleading practices.
  • Follow data privacy, marketing and promotion rules.
  • Provide customers with a clear digital invoice for every transaction.
Guide

Mainland or free zone: which e-commerce licence do you need?

There are two main routes, and the right one depends on who your customers are.

Mainland e-commerce licence

To sell online on the mainland, the UAE portal says you need a commercial licence that includes e-commerce activity from your emirate's economic department. In Dubai that is the Department of Economy and Tourism (DET). Some emirates issue a standalone individual e-commerce licence, while others add e-commerce activity to a regular commercial licence.

A mainland licence suits you if you plan to sell and deliver directly to customers across the UAE, run a local warehouse, or later open a physical shop.

Free zone e-commerce licence

Free zone licences can also cover online selling, locally and internationally. The UAE portal names Dubai CommerCity, EZDubai, RAKEZ, Sharjah Media City (Shams), Ajman Free Zone and Masdar City Free Zone among those that issue them. It also notes that free zone companies can operate within the free zone and internationally, and that selling directly on the mainland may need a local distributor or additional approvals.

A free zone licence often suits online sellers who ship internationally, sell through marketplaces, or want a lower starting cost.

Sharjah Media City (Shams) is one of the free zones that issues e-commerce licences. Our Shams company formation guide covers its licence types, packages and setup steps.

Quick comparison

Mainland (e.g. DET Dubai) Free zone
Who issues it Emirate economic department The free zone authority
Selling to UAE customers Direct May need a distributor or extra approvals
Selling internationally Yes Yes
Starting cost Varies by activity and office Often lower, see examples below
Guide

The TDRA approval every e-commerce licence needs

This is the step many people miss. The UAE portal states that all e-commerce licences require approval from the Telecommunications and Digital Government Regulatory Authority (TDRA), which regulates e-commerce in the UAE.

TDRA's own service page for the "no-objection certificate for an online activity" says:

  • You apply with UAE Pass and attach your commercial licence, plus any NOCs needed for restricted activities.
  • A website must use a .ae domain.
  • For social media selling, you list the account names and links. If you change the account name later, you need a new application.
  • For apps, you give the app name and link, or a website link, description and screenshots if the app is still in development.
  • The service is listed as free of charge, with a processing time of 2 working days.
Guide

Starting prices from official free zone pages

Prices change often and depend on activities, visas and office type, so treat these as starting points only. Check current pricing before you decide.

  • SPC Free Zone says its e-commerce licence starts from AED 5,750. Check current pricing.
  • RAKEZ says its e-commerce setup package starts from AED 6,000 and lists one UAE residence visa among the package benefits (visa subject to authority approval). Check current pricing and terms.
  • Meydan Free Zone shows company formation starting from AED 12,500 on its e-commerce licence page. Check current pricing.
  • Dubai CommerCity lists an e-commerce licence among its licence types but asks you to enquire for pricing.

On top of the licence, budget for visas, Emirates ID, medical tests, and any office or warehouse space. Our cost calculator gives a rough total.

Guide

Documents you'll usually need

Requirements vary by authority, but free zone pages commonly list:

  • Passport copies of shareholders and directors
  • Emirates ID copies, if you already live in the UAE
  • A short business plan or activity description
  • Trade name options
  • Proof of address for some licence types

If a shareholder is a company, expect attested corporate documents as well. Our document checklist goes through this in more detail.

Guide

Step by step: how the process works

  1. Pick your route. Mainland if you sell and deliver across the UAE, free zone if you mostly sell internationally or through marketplaces.
  2. Choose activities. E-commerce plus any product categories you'll sell. The UAE portal says regulated or restricted products need extra approvals, so check current requirements for your category.
  3. Reserve a trade name and apply. Submit documents to the licensing authority.
  4. Get the licence. Timelines depend on the authority. Meydan Free Zone, for example, says a regular licence takes 1 to 3 working days depending on activity approvals.
  5. Apply for the TDRA NOC. Have your .ae domain or social accounts ready.
  6. Visas and bank account. Investor visa subject to authority approval. Business bank account subject to bank approval.
  7. Tax registration. Corporate tax registration, and VAT if you cross the mandatory threshold. Check current FTA requirements.
Guide

Tax basics for online sellers

  • Corporate tax. The UAE portal lists 0% on taxable income up to AED 375,000 and 9% on taxable income above that. Existing free zone incentives continue only for businesses that comply with all regulatory requirements and don't conduct business on the UAE mainland.
  • VAT. Registration is mandatory when taxable supplies and imports exceed AED 375,000 a year, and optional above AED 187,500.

See our corporate tax and VAT registration pages for more.

Guide

How XILLION helps

We compare the mainland and free zone routes for your actual sales channels, handle the licence application, prepare the TDRA NOC request, and guide you through visa and bank account steps. Imran Mirza, Founder & CEO, was born and raised in the UAE, with 18+ years of professional working experience, including nearly seven years at Barclays and ADCB and 12 years in UAE business setup.

Talk to us: WhatsApp +971 50 158 5088 or book a free call.

Common Questions

FAQ

Do I need a licence to sell on Instagram or TikTok in the UAE?

Yes. Selling online in the UAE requires a licence that covers e-commerce activity, and the UAE portal says all e-commerce licences need TDRA approval, which for social media includes listing your account names and links.

Free zone packages are usually the lowest entry point. SPC Free Zone says its e-commerce licence starts from AED 5,750 and RAKEZ says its package starts from AED 6,000, but prices change, so check current pricing.

Free zone companies can operate in the free zone and internationally. The UAE portal says selling directly on the mainland may need a local distributor or additional approvals.

It is a no-objection certificate from the Telecommunications and Digital Government Regulatory Authority for running an online activity. TDRA lists it as free of charge with a processing time of 2 working days.

For the TDRA online activity NOC, TDRA states that websites must use a .ae domain. The website you list on the application must use a .ae domain.

You must register when your taxable supplies and imports exceed AED 375,000 a year. Registration is optional once they exceed AED 187,500.

Sources

Sources

Ready to Begin

Talk It Through
Before You Commit.

Book a free 30 minute consultation with Imran Mirza, Founder & CEO. We look at your plans and set out the right route, the documents and the costs in plain words. Licences, visas and bank accounts remain subject to authority and bank approval.

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Please note: Government fees, regulations and processing timelines are subject to change by the relevant authorities without prior notice. Please contact us for the latest requirements applicable to your case.