Business setup · Trade & commerce
How to Start an E-commerce Business in Dubai & the UAE
Starting an e-commerce business in the UAE is a matter of choosing a licence that covers online selling: either Dubai’s eTrader licence for individuals selling from home or a company licence with an e-commerce activity on the mainland or in a free zone. The right choice depends on whether you hold stock, hire staff and sell to UAE consumers.
Fact-checked against official sources on · EH Management Consultancy LLC
At a glance
Key facts
- Licence options
- eTrader (individual, Dubai) or company licence with an e-commerce activity
- Selling to UAE consumers
- Simplest with a mainland licence
- Cross-border and B2B
- Free zone e-commerce licences
- VAT
- Register once taxable supplies exceed AED 375,000 in 12 months
- Payments
- Payment gateways require a licensed company and bank account
What do you need to know first?
Dubai’s Department of Economy and Tourism offers an eTrader licence for individual residents who sell online, for example through social media or a personal website. It is held by one person, cannot be used for a physical shop and cannot sponsor employee visas, so it suits testing an idea rather than building a team.
Once you hold inventory, hire staff or want a corporate bank account and payment gateway, a company licence is the usual route. Mainland companies can sell and deliver to UAE consumers directly; free zone companies, including digital-commerce zones such as Dubai CommerCity, suit cross-border and B2B sales and need a permitted route for mainland retail.
Regulators
Which approvals are needed?
Where to set up
Which jurisdictions suit this activity?
Visas: An eTrader licence does not sponsor employee visas. A company licence supports investor and employee visas in line with its premises and package.
Process
Step by step
-
01
Choose the model
Decide between eTrader and a company, and between mainland and free zone.
-
02
Select activities
Pick e-commerce and product activities that match what you sell.
-
03
License the business
Apply for the licence and register premises where required.
-
04
Open banking and payments
Open a corporate account and onboard a payment gateway.
-
05
Register for VAT
Monitor turnover and register when you reach the threshold.
Checklist
What should you prepare before applying?
Settle these before you pay any government fees.
- 01
Decide whether you will hold stock or dropship.
- 02
List the product categories and check any that need clearances.
- 03
Choose a payment gateway that accepts your licence type.
- 04
Plan delivery and returns for UAE customers.
- 05
Track turnover against the VAT registration threshold.
Frequently asked
Questions about e-commerce in the UAE
Do I need a licence to sell on Instagram in Dubai?
Yes. Selling goods or services online is a commercial activity. Individual residents can use Dubai’s eTrader licence; growing businesses usually need a company licence.
Can a free zone e-commerce company sell to UAE customers?
It can sell to free zone and international customers. Retail delivery to mainland consumers generally needs a mainland presence or a permitted arrangement, so check before you launch.
When must an online store register for VAT?
When taxable supplies exceed AED 375,000 in the previous 12 months or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500.
Which licence works for dropshipping?
Usually a company licence with an e-commerce or trading activity, because you need a bank account, payment gateway and supplier contracts. The jurisdiction depends on where your customers are.
Official sources
Verify it yourself
Regulators update their rules. These are the authoritative references behind this guide.
Related
Services and guides
Ready to license your e-commerce business?
We confirm the activity, approvals and best jurisdiction before you pay any government fees.