Starting an e-commerce business in Dubai: licences and options

To sell online in Dubai you need a trade licence, issued either by the Department of Economy and Tourism (DET) on the mainland or by a free zone authority, with activities that cover what you sell and how you sell it. There is no single e-commerce licence that suits every business. The right one depends on where your customers are, where your stock sits and which channels you sell through.

The licence is rarely the hardest part. Payment gateways, bank accounts and customs are where online businesses usually get stuck, so plan them at the same time as the licence, not after it.

Three questions that decide your setup

1. Who buys from you? If your customers are shoppers and businesses in the UAE, you need a licence that lets you sell on the mainland. If most of them are abroad, a free zone licence is often enough.
2. Where will the stock sit? Goods stored in a free zone for re-export do not attract customs duty. Goods that enter the UAE mainland market do, so a business importing stock to sell locally pays duty either way.
3. Which channels will you use? Marketplaces, your own website and social media can usually sit under one licence, as long as its activities cover online selling and name the goods you deal in. Banks and payment providers read that wording closely.

A mainland licence from DET

A mainland company licensed by DET can sell to any customer in the UAE, ship abroad and hold stock in its own warehouse or a third-party one. For a business whose market is the UAE, it is usually the cleaner option, because nothing restricts where you sell.

The licence activities should cover both the goods you sell and the fact that you sell them online. DET's activity list sets the exact wording, and getting it right matters more than it looks, because payment providers and banks check it. Mainland companies generally need premises registered on Ejari, Dubai's tenancy registration system. Our guide to Dubai trade licence types covers DET's instant and eTrader routes, which work differently.

DET also lists an eTrader licence for small home-based online businesses. Its trading activities have been limited to UAE and GCC nationals, so it is not a route most expatriate founders can plan around.

A free zone e-commerce licence

Several free zones license e-commerce, and a few have built facilities around it:

• Dubai CommerCity, near Dubai International Airport, is a free zone dedicated to digital commerce and operates under the Dubai Integrated Economic Zones Authority. It offers smart desks and offices alongside warehousing, fulfilment and last-mile services.
• DMCC runs an e-commerce community whose packages include co-working and storage space, with access to warehousing and fulfilment facilities through JAFZA and The Box.
• IFZA and SPC Free Zone both list e-commerce among their licence options. SPC describes its category as selling through your own platforms or through marketplaces.

A free zone licence suits you if you sell mainly to customers abroad or run regional distribution from UAE stock. It gets harder if UAE shoppers are your main market.

A free zone company cannot sell directly into the mainland on its free zone licence alone. In Dubai, a free zone company can now apply for a DET permit or branch licence, and the permit's first phase includes trading. Our guide to free zone companies doing business on the mainland explains those routes. For help comparing zones, see how to choose a UAE free zone.

Do not choose a free zone for the 0% corporate tax rate if you sell to consumers. Transactions with individuals are excluded activities under the free zone tax rules, so retail revenue does not qualify.

Which setup fits which model

Say you import phone accessories from China, keep them in a Dubai warehouse and sell to UAE shoppers on Amazon.ae and your own website. Your customers and goods are on the mainland, so a DET company with the right trading and online activities is the straightforward choice. You pay customs duty when the goods are imported, and you must register for VAT once your taxable supplies and imports pass the threshold. If you instead shipped the same stock from a free zone warehouse to buyers in other countries, a free zone licence would avoid duty on goods that never enter the UAE market.

Marketplaces or your own store

Marketplaces give you customers from day one. Amazon.ae states that you need a commercial registration if you are the owner, or a power of attorney if you act for the business, to sell there. It also asks for a business email and phone number, an Emirates ID, a recent bank statement, credit card statement or utility bill, and a bank account to receive payouts. The noon marketplace runs its own seller checks. Either way, register your licence before you plan a launch date around a marketplace.

Your own store gives you margin and the customer relationship, but you need a payment gateway, and gateways onboard merchants much as banks do. Expect them to check that your licence activities match what your site sells, that your terms, refund policy and contact details are published, and that the business bank account is in the company's name. A site that looks unfinished is a common reason for delays. If you are building the store from scratch, our software development team builds e-commerce sites and integrations.

Many sellers do both: marketplaces for volume, their own site for repeat customers.

VAT, customs and consumer rules

This is general information, not tax or legal advice.

• VAT. The standard rate is 5%. Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days, and voluntary above AED 187,500 (Federal Tax Authority thresholds as of October 2026). See our guide to UAE VAT registration.
• Customs. In Dubai, customs duty is 5% of the CIF value of imported goods, with higher rates for alcohol and tobacco and lower rates for some goods under the tariff. Goods held in a free zone become dutiable when they move into the mainland market.
• Consumer and online trading law. Federal Law No. 15 of 2020 on Consumer Protection and Federal Decree-Law No. 14 of 2023 on modern technology-based trade both apply to online sellers. Read them before you finalise your product pages, delivery terms and returns policy.

Common mistakes

• Vague activity wording. A licence that does not mention online selling, or omits a product category, is a frequent reason for payment gateway and bank questions.
• Selling to UAE shoppers from a free zone without a route. Customs clears the goods, but the licence problem remains.
• Counting only sales towards the VAT threshold. Imports count as well.
• Assuming the 0% rate applies. Retail sales to individuals are not qualifying income.
• Leaving regulated products until later. Food, medical and some other products need approvals beyond the trade licence, so check before you order stock.

If you would like help matching the licence to your sales model and getting the company set up, our business setup team can take you through the options.

Sources

• UAE Government portal: Steps to start a business on the mainland, including licence types
• Federal Tax Authority: Registration for VAT
• UAE Government portal: Customs duty and tariff
• UAE Government portal: Business regulations, including consumer protection and online trading laws
• Amazon.ae: Selling on Amazon, documents and requirements
• Dubai CommerCity: About the free zone