Online business is booming in Dubai. The current e-commerce market size in the UAE is estimated at over $12bn with many projecting that it reach $21bn by 2030. So there’s never been a better time to set up an online business. With a favourable business environment, and a number of strong government initiatives, more and more people are expanding their businesses into e-commerce or starting an online business from scratch.
But first you need the right license. So in this article we will look at what these online business licenses are, how to get an online trading license in Dubai, types of online business licenses available, costs, selling online in the UAE, benefits, FAQs, and more. Let’s get started.
Online business license Dubai
An online business license in Dubai is an official permit issued by Dubai authorities to allow individuals or companies to legally operate a business selling products or providing services online. This type of trade license is needed for a wide range of digital commerce activities, including e-commerce stores, online service providers (think of digital marketers, consultants, or online coaching), software-as-a-service (SaaS) platforms, social media sales, content creation, and app/web development.
What does this license mean for holders? It links your online activity to a registered legal entity so that you can open a corporate bank account, sponsor visas, and work with suppliers and partners legally in the UAE.
Who needs it? Anyone selling or offering services online based in Dubai. If you’re a freelancer, home-based entrepreneur, a startup, or an established company conducting business over the internet, it’s for you. Also, people selling via social media, websites, or digital platforms, foreigners and non-residents targeting the Dubai or UAE market, and consultants and creatives working online. Companies holding inventory but not conducting face-to-face sales that only sell through digital channels need a digital business license Dubai.
In Dubai, the terms “online business license” and “e-commerce license Dubai” are often used interchangeably, but they actually refer to different types of trade licenses with distinct scopes and eligibility criteria:
- E-commerce license: This allows companies and individuals to sell goods or services online through dedicated websites, mobile apps, or online marketplaces (such as Amazon or Noon) – and even run platforms or portals.
- Online business license (also called a DED trader license): It’s a form of online business license specifically intended for UAE and GCC nationals residing in Dubai, and typically used for home-based businesses, freelancers, and individuals selling products or services via social media platforms such as Facebook or Instagram.
How to get an online business license in Dubai
To get an online business license in Dubai you will need guidance from the experts, outline your business activity and select a legal structure, choose a jurisdiction, reserve your business’s name, sign an office lease, apply for initial approval and then your trade license, sort your visa out, open a corporate bank account, and launch your business.
Step 1: Partner with Trade License Zone
Even though Dubai has streamlined the process to start online business UAE, it still demands a lot of paperwork and dealing with several government agencies. Our teams at Trade License Zone know exactly what to do: we’ve been doing it for over 30 years and have helped tens of thousands of businesses set up across the UAE. We simplify everything for you – in just a few clicks.
Step 2: Choose your business activity
Choose the business activity you wish to undertake, such as e-commerce, online consultancy, digital marketing, or content creation, and other relevant subcategories. Your chosen activities need to align with the activities as outlined by the Dubai Department of Economic Development (DED). It’s imperative you get this spot on: it determines your trade license, business jurisdiction, and the scope of operations.
Step 3: Select a legal structure
Legal structures you can choose from include a Limited Liability Company (LLC), a sole proprietorship, a civil company (CC), a branch office of a foreign company, a free zone company, and more.
Step 4: Choose between mainland or free zone
In Dubai, you can choose from a mainland or free zone jurisdiction for your online business license (that is, if you haven’t chosen your legal structure as a free zone company already, wherein you’ll be set up in a free zone).
- Mainland setup: Allows you to trade directly within Dubai (and across the UAE), but the setup process is slightly longer and not as streamlined as a free zone.
- Free zone setup: Offers tax benefits, 100% foreign ownership, but with trading limited to specific free zones and international markets – no direct local market access.
Step 5: Reserve your trade name
Choose a unique name that reflects your business and meets Dubai’s strict naming regulations, then reserve it with the DED (for mainland setups) or your free zone authority. You’ll need to avoid references to religion, government, or political groups – and other brand names, of course. Once reserved, the DED will issue you a trade name reservation certificate.
Step 6: Secure an office location
Depending on your selected jurisdiction and business activity, you’ll need either a physical or virtual office. If you choose a mainland setup, you’ll need a physical office; on the other hand, a flexi-desk or virtual office is all you need with free zone setups. At Trade License Zone, we offer virtual office, flexi-desk, and other office types – we’ll help you select the perfect package for your business goals and budget.
Step 7: Get initial approval
What is initial approval? It’s the Dubai government’s green light for your business setup and license application. You’ll need to send the following paperwork to the DED (for mainland setups) or free zone authority:
- Copies of shareholders’ passports and visas (if applicable)
- Detailed business and selected business activities
- No Objection Certificate (NOC) if you’re already a UAE resident employed by a company
Once approved, you’ll be issued an initial approval certificate to use for the remainder of your business registration and trade license application process.
Trade License Zone simplifies online business setup Dubai. From the first step of business formation to post-setup support and compliance, we walk beside you.
Step 8: Apply for your trade license and submit documents
Now you can apply for your trade license through the DED for mainland businesses or through your chosen free zone authority. For this, you’ll need to submit the following docs:
- Copies of shareholders’ passports and visas
- Completed application form
- Memorandum of Association
- Trade name reservation certificate
- Tenancy contract or proof of address
- Initial approval certificate
The approval takes a few business days. Once approved, you’ll be asked to pay the licensing and registration fees to wrap up that portion of the process.
Step 9: Apply for your residence visa (if applicable)
With an online business license, you can apply for a residence visa for yourself and your staff. This includes Emirates ID processing, mandatory medical tests, and visa stamping.
Step 10: Open your corporate bank account
Finally, you can open a business bank account in Dubai. We’ll introduce you to the banks best suited to your line of work and industry. With your corporate bank account opened, you can legally begin trading – and wrapping up your business setup.
Types of licenses available for online businesses
The types of licenses available for online businesses cover every business activity. They include e-commerce license, DED trader license, freelance permit, portal and service license, Eitimad license, and Tajer license.
1. E-commerce license
It’s available in Dubai and UAE-wide, and allows businesses to conduct trade over the internet, selling goods or offering services – this is the ticket to sell on Amazon UAE license.
2. DED trader license (Dubai)
It’s designed for solo entrepreneurs (such as freelancers) and home-based business owners operating digitally, especially via social media platforms. This is considered the license for selling on social media UAE.
3. Freelance permit
The freelance license UAE online business enables individuals to work independently in a specified field or occupation, such as media professionals, designers, IT pros, engineers, and writers.
4. Portal and service license
It allows businesses to operate digital platforms or online portals (think: property marketplaces, travel booking websites, etc) that connect buyers and sellers without directly handling goods.
5. Eitimad license (Sharjah)
This specialized e-commerce license is for home-based and digital businesses residing in Sharjah.
6. Tajer Abu Dhabi license
It’s the most flexible trading license in Abu Dhabi, and suits small business owners, freelancers, and those wishing to avoid fixed costs initially. It allows Emiratis, GCC nationals, and UAE residents to launch a business with only their Emirates ID – although foreigners and expats must partner with an Emirati.
Cost of getting an online business license in Dubai
Cost of getting an online business license? Ballpark figures start at AED 10,500 to AED 25,000, depending on the free zone and package chosen.
The cheapest license options by free zone are Umm Al Quwain Free Trade Zone (UAQ FTZ), Sharjah Media City (SHAMS), and International Free Zone Authority (IFZA). Let’s break this down:
- IFZA: Basic license cost (excluding visas) is AED 11,000. This is the best free zone for online business UAE.
- SHAMS: Costs start from AED 10,500 to AED 12,000 for the basic license. Best for: freelancers and cost-conscious startups.
- Meydan Free Zone: Costs range from AED 15,000 to AED 25,000. Best for: Meydan offers premium offices and infrastructure for SMEs.
- Dubai South: Basic license costs (without visas) range between AED 10,000 and AED 15,000, depending on business activities.
- UAQ Free Zone: Costs start at AED 11,900 to AED 13,900. Best for: cost-sensitive entrepreneurs who aim to keep setup costs low and benefit from free zone perks.
Selling online in the UAE: Your platform options
Your platform options for selling online in the UAE include your own website, using social media platforms, dedicated marketplaces like Amazon or Noon, and creating your own digital marketplace.
1. Selling via your own website
Launch your own branded website. This gives you full control over the store, customer experience, and pricing. You can use e-commerce platforms like Shopify or WooCommerce for the backend of your online store – no coding experience needed.
2. Using social media (Instagram, TikTok Shop)
Platforms like Instagram, Facebook Marketplace, and TikTok Shop have become wildly popular among solo entrepreneurs. They’re ideal for selling handmade goods, fashion, and lifestyle products.
3. Marketplaces like Amazon.ae and Noon
These marketplaces give you instant access to millions of potential customers. They have trusted payment systems, fulfilment services, and more – making it easy to launch and grow.
4. Starting your own marketplace platform
If you have the tech know-how, building your own marketplace as a business is excellent for long-term potential. It could be a niche B2B platform, services aggregator, or a custom e-commerce mall. You can collect commissions and scale regionally.
What to consider when building your online store in Dubai
Apart from the UAE e-commerce license cost, considerations when building your own online store in Dubai include domain and hosting, choosing a CMS, selecting payment gateways, and setting up delivery logistics for the UAE market.
- Domain and hosting: Your domain is your digital address – so choose wisely. Hosting providers like GoDaddy or AEserver offer scalable options depending on your traffic and storage needs.
- Choosing a CMS: A content management system (CMS) determines how your website looks, works, and scales. You can choose from Shopify, WooCommerce, Wix, Squarespace, and many more.
- Payment gateways: Selecting smooth and secure payments methods is crucial. In the UAE, the most popular are Telr, PayTabs, Network International, and Stripe. You’ll need a corporate bank account and a valid trade license to integrate these payment gateways into your online store.
- Delivery logistics in the UAE: Fast and reliable delivery can make or break your online business. Companies like Aramex, Fetchr, and Shipa Delivery offer warehousing, last-mile delivery, and Cash On Demand (COD) services. And, if you’re using Amazon, Fulfilment by Amazon (FBA) takes care of logistics on your behalf.
Benefits of holding an online business license in Dubai
The advantages of securing an online business license in Dubai are plenty.
100% foreign ownership
Setting up an online business in Dubai means 100% foreign ownership rights in most free zones and in mainland activities. It gives you complete control of your business, meaning you have 100% flexibility on operations, too – no need to run anything by a partner or shareholders.
Access to UAE’s world-class infrastructure
Your business might be digital-based, but it needs to operate with high-speed logistics, advanced ports and road networks, and offices. Well, the UAE excels in this regard thanks to its world-renowned infrastructure that helps – not hinders – business growth.
No personal or corporate tax (in many cases)
Operating in a free zone setup offers 0% personal tax. UAE does have a 9% corporate tax threshold (for businesses that exceed AED 375,000 annually), which is still one of the lowest anywhere in the world.
Residence visa eligibility
Freelancers and entrepreneurs can sponsor themselves and their families to join them in the UAE. This is a fantastic opportunity to access Dubai’s excellent education and healthcare systems.
FAQs about online business licenses in the UAE
Can I sell online in the UAE without a license?
Short answer: No. It’s a legal requirement.
Which license do I need for selling on Amazon?
Any e-commerce or trading license with the relevant business activity code.
Can I sell home-made products online legally?
Yes, with an e-trader license or freelance license.
Is a freelance license enough for e-commerce?
It depends on the scope of the business activities. If you’re selling physical goods, you’ll need to get an e-commerce or trader license.
How long does the application process take?
Often 3-5 business days with Trade License Zone.
Why work with Trade License Zone
With three decades of experience in UAE business setup, Trade License Zone can walk you through the entire process – saving you time, money, and headaches.
We are specialists in online business setup in Dubai, providing step-by-step support for licensing, banking, visa, and office setup. Fast and reliable – and just as responsive as your website. Our services are tailored to your specific needs, whether you’re a first-time founder, freelancer, digital nomad, or seasoned entrepreneur.
How to start? Simple. Contact Trade License Zone for a quote and solid business advice.
