Sell online legally from Dubai, through your own website, Amazon.ae, Noon, Instagram or TikTok. Dubai free zone e-commerce licenses start from AED 12,500 a year, and straightforward applications are often issued within days of submitting complete documents.
Momentum handles the full setup: choosing the jurisdiction and activities, the license, residence visas, your corporate bank account and payment gateway setup. We work on Dubai mainland and across free zones including Meydan, IFZA, Dubai South, SHAMS and SPC, so your structure fits your business model rather than a default zone.
What Is an E-commerce License in Dubai?
An e-commerce license is a trade license that lets a UAE-registered business sell goods or services online. The Department of Economy and Tourism (DET, formerly DED) issues it for mainland companies; free zone authorities issue it for companies registered in their zones.
It covers selling through your own website or app, marketplaces such as Amazon.ae and Noon, and social commerce on Instagram, TikTok and WhatsApp. The exact activity on your license (online retail, portal or e-commerce trading, for example) should match what you sell.
Types of E-commerce Licenses in Dubai
There are three types of e-commerce license: a mainland license from DET, a free zone license, or the DET eTrader license for home-based sellers. Which one fits depends on what you sell, where your customers are and how many visas you need.
Dubai Mainland E-commerce License (DET)
A mainland license gives direct access to the whole UAE market, including retailers, B2B buyers and government entities. Since 2021, most commercial activities on the mainland allow 100% foreign ownership.
It suits you if you:
- Want to combine online sales with a showroom, retail outlet or your own warehouse
- Sell to UAE businesses or government buyers that require a mainland supplier
- Plan to run your own delivery fleet or work with several logistics partners across Dubai
A mainland company usually needs an office with an Ejari-registered lease. DET’s Instant License is the exception: it comes with a virtual business address for the first 12 months. Learn more about mainland company formation in Dubai.
Free Zone E-commerce License
Free zones offer 100% foreign ownership, full profit repatriation and flexi-desk packages, which keep entry costs low for online businesses.
It suits you if you:
- Sell cross-border to the GCC, MENA, Europe or further afield
- Sell on Amazon.ae or Noon and need a compliant license and corporate bank account
- Run dropshipping, print-on-demand, digital products or SaaS with no shop in Dubai
Dubai free zone companies can now also get a DET permit to operate on the mainland (see below). For a broader comparison, see free zone business setup.
Dubai eTrader License
The eTrader license from DET is for home-based sellers using social media and online platforms. It costs AED 1,370 a year: an AED 1,070 license fee plus AED 300 Dubai Chamber membership.
- Eligibility: UAE and GCC nationals living in Dubai, aged 21 or over, with a Dubai address and Makani number. Expat eligibility is limited to certain service activities and published guidance varies, so confirm with DET before applying.
- Limits: no residence visas, no employees and no physical shop.
The eTrader license works for testing a product idea. Once you need visas, staff or a warehouse, move to a free zone or mainland company.
E-commerce License Cost in Dubai (2026)
A Dubai free zone e-commerce license costs from AED 12,500 a year without a visa, and roughly AED 16,500 to AED 21,500 in the first year with one residence visa. Mainland setups usually cost more because they need an office lease.
License option | Emirate | License only (AED/year) | With 1 visa, first year (AED) | Best for |
|---|---|---|---|---|
Meydan Free Zone | Dubai | 12,500 | about 20,700 to 21,100 | Fast digital setup, marketplace and social sellers |
IFZA | Dubai | from 12,900 | about 17,700 to 21,400 | Founders who need visas and room to scale |
Dubai South Business Hub | Dubai | from 12,500 | 1-visa package 16,350, plus visa processing | Logistics-led sellers near Al Maktoum Airport |
Dubai CommerCity | Dubai | Quoted on request | from about 27,500 (2-visa package) | Inventory, fulfilment and regional shipping |
DMCC | Dubai | from 7,500 (e-commerce license only) | about 35,000 to 50,000 with flexi-desk | Premium address, specialty and high-value goods |
Dubai mainland (DET) | Dubai | 9,500 to 15,000 | about 22,500 to 30,000 | B2B, government buyers, retail outlets |
SHAMS | Sharjah | 5,750 | about 11,500 to 13,500 | Lowest-cost, digital-only setups |
eTrader (DET) | Dubai | 1,370 | No visa available | UAE and GCC nationals testing an idea |
Prices are indicative 2026 government and partner package figures and change often. Momentum confirms current fees for your activity and visa count before you commit.
What adds to the cost
- Residence visas: each visa adds medical, Emirates ID and stamping fees on top of the package, and the per-visa amount varies by zone.
- Establishment card: the immigration file every company needs before sponsoring visas.
- Office space: a flexi-desk is often included in free zone packages; mainland companies pay for an Ejari-registered lease.
- Product approvals: registration fees for food, cosmetics, medical or telecom products where required.
E-commerce licenses are valid for one year and renew annually, along with your office, visas and any product registrations. Estimate your own setup with Momentum’s business setup cost calculator.
Free Zone vs Mainland: Which E-commerce License Is Right for You?
For most online-only sellers a free zone license is cheaper and faster; a mainland license is worth the extra cost when you trade directly with UAE businesses, government buyers or physical customers.
Factor | Free zone | Mainland (DET) |
|---|---|---|
Ownership | 100% foreign ownership | 100% for most commercial activities |
Office | Flexi-desk usually included | Ejari-registered lease, except the Instant License in year one |
Selling in the UAE | Online sales shipped to UAE customers; mainland operations need a DET permit | Unrestricted, including B2B, retail and government |
First-year cost with 1 visa | from about AED 16,500 | about AED 22,500 to 30,000 |
Corporate tax | 0% only on qualifying income; other income taxed at 9% | 0% up to AED 375,000 of taxable income, 9% above |
Best for | Cross-border, marketplace, dropshipping and digital sellers | B2B, government supply, showrooms and regulated products |
Dubai free zone companies can now operate on the mainland
Since 3 March 2025, Executive Council Resolution No. 11 of 2025 lets Dubai free zone companies (except DIFC) operate on Dubai mainland. They can apply to DET for a branch license at AED 10,000 a year or a temporary permit at AED 5,000, and must keep separate accounts for mainland activity.
This means you can start in a free zone to keep costs down, then add mainland reach later without setting up a second company.
When we usually recommend each route
- Mainland: regular B2B supply within the UAE, government tenders, or regulated products such as food and supplements that need local registrations.
- Free zone: global dropshipping or print-on-demand, SaaS and digital products, and marketplace-only sellers on Amazon.ae or Noon who want the lowest setup cost.
For a deeper comparison, read mainland vs free zone.
Documents Required For E-commerce License
DET and the free zones ask for the same core documents from each shareholder and manager; a company shareholder adds attested corporate paperwork.
Individual shareholders and managers
- Valid passport copy
- Passport-size photo
- UAE visa or entry stamp, plus Emirates ID if you live in the UAE
- Proof of residential address, such as a utility bill or bank statement
- No-objection letter from your current UAE employer, where the authority asks for one
- CV or business profile, for some activities and banks
Corporate shareholders
- Certificate of incorporation
- Memorandum and Articles of Association
- Board resolution approving the UAE company and appointing its manager
- Certificate of good standing or incumbency
- Legal attestation of all foreign documents, with Arabic translation where the authority requires it
Prepared during setup
- Trade name reservation and initial approval
- Memorandum of Association for the new company, signed in person or through a power of attorney
- Ultimate Beneficial Owner (UBO) declaration
- Mainland: Ejari-registered tenancy contract. Free zone: flexi-desk or facility agreement
For product approvals and banking
- Product registrations where your goods need them (see Product Approvals below)
- For the bank: business plan, projected turnover, supplier contracts or invoices, your website or store link, and proof of source of funds
Momentum checks every document before submission to cut back-and-forth with the authority. For a general checklist, see documents required to open a company in the UAE.
How to Apply for an E-commerce License in Dubai
- Define your business model: Decide what you sell (physical goods, digital products or services), where your buyers are (UAE, GCC or global), how you fulfil orders (own stock, 3PL, dropshipping or digital delivery) and how many visas you need. For first-time founders, our guide on how to start a business in Dubai as a foreigner covers the wider picture.
- Choose the jurisdiction, legal form and activities: Pick mainland or a specific free zone; a free zone company (FZ-LLC or FZE), a mainland LLC, a sole establishment or a branch; and activities that match what you sell. The wrong activity can block bank accounts, payment gateways and marketplace seller registration, so we check it before you apply.
- Reserve the trade name and get initial approval: Names cannot include offensive or religious terms or existing trademarks. Any external approvals your products need are identified here.
- Submit documents and sign the MOA: We prepare the Memorandum of Association, arrange signing in person or by power of attorney, and file the UBO declaration.
- Secure your office, flexi-desk or warehouse: A flexi-desk suits dropshipping, digital and marketplace-only sellers; a small office suits a local team; inventory needs a compliant warehouse.
- Receive the trade license and establishment card. You get a digital trade license showing your approved activities, your company documents and the establishment card needed for visas.
- Apply for residence visas and Emirates ID: Entry permit, status change if you are already in the UAE, medical test, biometrics and visa issuance. Family visas follow once the investor visa is active. See UAE residency through business.
- Open the bank account and connect payments: We prepare the bank file and follow up with compliance, then help you connect a payment gateway for cards, Apple Pay and digital wallets.
How long it takes
Route | Typical time after complete documents |
|---|---|
Meydan instant license (Fawri) | under 60 minutes |
Most free zones | a few working days |
Mainland, no external approvals | 3 to 5 working days once the lease is registered |
Mainland with product approvals | 1 to 3 weeks |
Visas, the establishment card and bank account opening come after the license and add to the overall timeline.
Product Approvals and Compliance for Online Sellers
Some products need approval before you can list them, whichever license you hold. Momentum flags these in step 1 so they are built into your timeline and budget.
What you sell | Approval needed from |
|---|---|
Food, beverages, cosmetics and many consumer products | Dubai Municipality (Montaji product registration) |
Medical devices, medicines and health products with medical claims | Emirates Drug Establishment (EDE), which took over these services from MOHAP |
Telecom and radio equipment, such as phones, routers and Bluetooth devices | TDRA type approval |
Regulated electrical and electronic goods | Ministry of Industry and Advanced Technology (MoIAT) conformity |
Alcohol, tobacco and certain financial products | Restricted; check before you plan the business |
Popular Free Zones for E-commerce in Dubai
The right free zone depends on your product, budget and visa needs. Here is how the zones we see most often for online businesses compare.
Meydan Free Zone
Meydan is a fully digital Dubai free zone with a standard license from AED 12,500 a year, including a flexi-desk and up to three activity groups. Its Fawri service can issue a license in under an hour. It suits marketplace sellers, social commerce brands and founders combining services with online sales. See Meydan Free Zone setup.
IFZA
IFZA, based in Dubai Silicon Oasis, starts from about AED 12,900 without a visa. Its lower per-visa cost makes it one of the cheaper Dubai options once you need residency, and it allows flexible activity combinations. See IFZA business setup.
Dubai South Business Hub
Dubai South sits on Dubai’s logistics corridor next to Al Maktoum International Airport, with access to Jebel Ali Port and Etihad Rail. Packages start from AED 12,500, and licensing is fully digital. It suits sellers shipping physical goods across the GCC and beyond. Momentum is an official channel partner of Dubai South Business Hub. See Dubai South.
Dubai CommerCity
Dubai CommerCity is a free zone built specifically for e-commerce, with business, logistics and fulfilment clusters in Umm Ramool. Pricing is quoted on request and is higher than leaner zones, but on-site warehousing and fulfilment can lower the cost of storing and shipping stock. It suits growing brands with regional distribution.
DMCC
DMCC is a premium Dubai free zone in Jumeirah Lakes Towers, strong for commodities, jewellery and specialty goods. An e-commerce license starts from about AED 7,500, but a typical first year with a flexi-desk runs AED 35,000 to AED 50,000.
Lower-cost options outside Dubai
If a Dubai address is not essential, zones in neighbouring emirates cost less. SHAMS (Sharjah) starts from AED 5,750 without a visa. SPC (Sharjah) and RAKEZ (Ras Al Khaimah) are other budget routes. See our guide to the cheapest free zone licenses in the UAE.
After Licensing: Getting Ready to Sell
Once the license is issued, four pieces need to be in place before your first order.
- Marketplace accounts. Amazon.ae, Noon and other marketplaces ask for a valid trade license showing an e-commerce or trading activity, a UAE corporate bank account and ID for the account owner. We prepare the documents for your seller applications.
- Website and payments. Choose a platform such as Shopify, WooCommerce or a custom build, and offer Arabic and English for UAE shoppers. Connect a local payment gateway that accepts cards, Apple Pay and digital wallets.
- Logistics. Decide between a free zone warehouse, a Dubai 3PL provider or dropshipping from overseas suppliers. The choice affects customs declarations, delivery times and returns.
- Accounting. Issue Arabic and English invoices and keep records from day one. If you register for VAT, invoices must be VAT-compliant. Our accounting team can handle bookkeeping and filings.
Corporate Tax, VAT and E-invoicing for E-commerce Businesses
The UAE has no personal income tax, and new companies with modest revenue can use the AED 375,000 zero band and Small Business Relief. The rules below are the ones online sellers ask about most.
Tax | How it applies to e-commerce businesses |
|---|---|
Corporate tax | 0% on taxable income up to AED 375,000 and 9% above it |
Free zone companies | 0% applies only to qualifying income; sales to UAE consumers generally do not qualify |
Small Business Relief | Businesses with revenue up to AED 3 million can elect relief for tax periods ending on or before 31 December 2029; registration and filing are still required |
VAT | 5%; registration is mandatory above AED 375,000 of taxable supplies and voluntary from AED 187,500 |
E-invoicing | Mandatory for B2B and B2G invoices from 1 January 2027 for revenue of AED 50 million or more, and from 1 July 2027 for everyone else; sales to consumers are excluded |
Exports and cross-border shipments may be zero-rated for VAT, depending on the destination, product and documents. Momentum’s tax and accounting team handles corporate tax and VAT registration, filings and bookkeeping for high-volume online sellers.
Get Your E-commerce License in Dubai with Momentum
Dubai gives online sellers 100% ownership, no personal income tax and fast access to customers across the GCC. Momentum turns that into a working company:
- We compare mainland and free zone options for your products, budget and visa needs.
- We manage the license, visas, product approvals and bank account from start to finish.
- We stay on for accounting, VAT and corporate tax once you are trading.
Share a short outline of what you want to sell and from where, and we will come back with the structures that fit, realistic timelines and indicative costs.
