How much does an e-commerce licence cost in Dubai?

The cheapest official route is DET's eTrader licence at AED 1,070 plus AED 300 Dubai Chambers membership, a total of AED 1,370 a year, but it has nationality and activity limits. A full mainland or free zone e-commerce company usually costs more, from roughly AED 5,000 to AED 20,000 or more before visas, depending on the zone and package.

Can expats get an eTrader licence in Dubai?

Only for some activities. DET describes eTrader as a sole establishment licence for Dubai home-based businesses. Khaleej Times reported, citing DET's call centre, that eTrader licences for trading activities are issued only to UAE and GCC nationals, while expats can get them for some service activities. Expats selling physical products usually need a mainland company or a free zone licence.

Can a free zone e-commerce company sell to customers in Dubai?

It can sell online to UAE consumers in many cases, but rules depend on the zone. The u.ae portal says free zone companies may operate within their zone and internationally, and need permission from the free zone authority and the local economic department to do business on the mainland. Ask your zone exactly what its e-commerce licence allows before you launch.

Do online sellers in the UAE have to charge VAT?

Only once registered. Registration is mandatory when taxable sales and imports over 12 months exceed AED 375,000, and voluntary from AED 187,500. Once registered you charge 5% on UAE sales and file returns. Exports of goods outside the GCC can be zero-rated if you keep export evidence.

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

Yes, if you're selling as a business. The 2023 e-commerce law covers trading through social media as well as websites and apps, and the u.ae portal says online selling needs a licence that includes e-commerce activity. Payment gateways and marketplaces also ask for a trade licence before they pay out, so an unlicensed shop runs into problems quickly.

Starting & growing a business

How to Start an E-commerce Business in the UAE (2026): Licence Options, Rules, Tax and Costs

E-commerce licence options in the UAE for 2026: DET mainland and eTrader, free zones like Dubai CommerCity, the 2023 e-commerce law, VAT, customs and costs.

Edited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources

Updated October 2026 Verified against official sources 13 October 2026 16 min read

How to start an e-commerce business in the UAE — MSMETOOLS guide cover

Contents (10)

1. Do you need a licence to sell online in the UAE?
2. Your three licence options
3. What the 2023 e-commerce law expects from sellers
4. How to set up, step by step
5. VAT and corporate tax for online sellers
6. What it costs to start: three worked examples
7. Products that need extra approvals
8. Dropshipping and selling into the UAE from abroad
9. Common mistakes, and how to fix them
10. What to do next

Selling online in the UAE looks easy: a Shopify store, an Instagram page, a payment link. The licence is where it gets complicated, because the UAE has no single "e-commerce licence". Instead you choose between a mainland licence from your emirate's economic department, a home-based eTrader licence in Dubai, or a free zone licence, and each comes with different limits on who can hold it, where you can sell and how you can store stock. This guide is for founders starting an online shop, a dropshipping brand or a social-media business in 2026. It explains the options, the 2023 e-commerce law, VAT and customs, realistic first-year costs and the mistakes that get payment accounts frozen.

Quick answer

To sell online in the UAE you need a licence that includes e-commerce activity, from the emirate's economic department (DET in Dubai), a free zone, or, for qualifying Dubai home businesses, DET's eTrader licence. eTrader costs AED 1,070 plus AED 300 Dubai Chambers membership, but trading activities on it are reserved for UAE and GCC nationals. Most expat product sellers use a mainland company or a free zone such as Dubai CommerCity.

Federal Decree-Law No. 14 of 2023 governs online trading, in force since 16 September 2023
It covers websites, apps, marketplaces and social media selling
Register for VAT once sales pass AED 375,000
Importers register with customs; Dubai Customs charges AED 100 plus a AED 20 fee

Do you need a licence to sell online in the UAE?

Yes. Trading is a licensed activity in the UAE whether the shop is on a street or on a phone. The government's u.ae portal says that selling online on the mainland requires a commercial licence that includes e-commerce activity from the emirate's economic department. Some emirates issue a dedicated e-commerce licence, while others add the activity to a regular commercial licence. The portal also states that all e-commerce licences require approval from the Telecommunications and Digital Government Regulatory Authority (TDRA); in practice the licensing authority tells you if your activity triggers that step when you apply.

The legal backdrop changed in 2023. Federal Decree-Law No. 14 of 2023 on modern technology-based trade, the UAE's e-commerce law, was issued on 4 September 2023 and took effect on 16 September 2023, replacing a 2006 law. According to law firm Reed Smith's analysis, it applies to anyone carrying out commercial activity through modern technological means inside the UAE, and it covers websites, platforms, mobile apps, social media and blockchain-based platforms. So an Instagram boutique or a WhatsApp catering business is inside its scope just as much as a full online store.

A licence also makes the business work. Payment gateways, marketplaces, couriers and banks ask for a trade licence before they onboard you, and many won't pay out to a personal account. Running a shop without one doesn't just risk fines from the economic department; it leaves you unable to collect your own money.

Getting an online shop licensed and selling

Step 1

Choose products and customers

Step 2

Pick a licence route

eTrader, mainland or free zone

Step 3

Trade name and licence

Step 4

Bank account and payment gateway

Step 5

Customs code

if you import

Step 6

VAT registration

at the threshold

Your three licence options

1. Dubai eTrader: the home-based route

DET describes the eTrader licence as a sole establishment licence for Dubai home-based businesses that already have a trade name. You apply on Invest in Dubai with your ID number, and DET says the licence is issued within five minutes. The fee is AED 1,070, which covers the licence and the knowledge and innovation fees, plus AED 300 for Dubai Chambers membership, a total of AED 1,370. You'll also pay AED 620 once for the trade name.

The catch is eligibility. Khaleej Times reported in 2025, citing DET's call centre, that eTrader licences for commercial activities such as trading are issued only to UAE and GCC nationals, while expats can obtain them for some service activities. eTrader also doesn't come with an office, a visa quota or an establishment card, so it suits a solo founder testing an idea rather than a business that will hire. Our home business licence guide covers eTrader and DET's Intelaq licence in detail.

2. A mainland company with e-commerce activity

A mainland licence from DET (or another emirate's economic department) lets you sell to customers anywhere in the UAE and hold stock in a mainland warehouse. You choose the legal form, usually a sole establishment, a single-owner LLC or an LLC, add e-commerce activities matching your products, and need an address. DET's instant licence can help here: it's issued in minutes for activities that don't need outside approvals, and comes with a virtual site for the first year, Dubai Chambers membership and establishment cards that let you employ up to three employees. After year one you need a real lease. Our UAE business licence guide explains mainland licensing in full.

3. A free zone e-commerce licence

Many free zones issue licences built for online business. The u.ae portal lists examples including Dubai CommerCity, Masdar City Free Zone, Sharjah Media City, Ras Al Khaimah Economic Zone and Ajman Free Zone. Dubai CommerCity, a free zone dedicated to digital commerce, offers e-commerce, trade, service, general trading and freelance licences. Its base licence includes three activities from the same group and can be extended to up to 20 activities across four groups, and it allows 100% foreign ownership with one to 50 shareholders. Its logistics clusters are bonded, so imported stock can be stored without paying duty until it leaves. Pricing is quote-based. Our Dubai CommerCity guide has the details.

The limit is geography. The u.ae portal says free zone companies may operate within the free zone and internationally, and that doing business on the mainland requires permission from the free zone authority and then the local economic department. Online sales to UAE consumers are often allowed under a free zone e-commerce licence, but conditions differ by zone, so get the answer in writing before you launch.

eTrader vs mainland vs free zone for an online shop

	Dubai eTrader	Mainland (DET)	Free zone
Who can hold it	Dubai residents; trading for UAE/GCC nationals only (reported)	Anyone; 100% foreign ownership for most activities	Anyone; 100% foreign ownership
Official fee	AED 1,370 a year incl. Chamber	Depends on activities and rent	Zone packages; often quote-based
Visas	None	Yes, linked to premises	Yes, linked to package or office
Stock and warehouse	Home only	Mainland warehouse	Zone warehouse; bonded in some zones
Sell to UAE consumers	Yes	Yes, anywhere	Depends on the zone's rules

Who can hold it

Dubai eTrader: Dubai residents; trading for UAE/GCC nationals only (reported)
Mainland (DET): Anyone; 100% foreign ownership for most activities
Free zone: Anyone; 100% foreign ownership

Official fee

Dubai eTrader: AED 1,370 a year incl. Chamber
Mainland (DET): Depends on activities and rent
Free zone: Zone packages; often quote-based

Visas

Dubai eTrader: None
Mainland (DET): Yes, linked to premises
Free zone: Yes, linked to package or office

Stock and warehouse

Dubai eTrader: Home only
Mainland (DET): Mainland warehouse
Free zone: Zone warehouse; bonded in some zones

Sell to UAE consumers

Dubai eTrader: Yes
Mainland (DET): Yes, anywhere
Free zone: Depends on the zone's rules

What the 2023 e-commerce law expects from sellers

Federal Decree-Law No. 14 of 2023 sets the framework rather than a checklist, and its detailed penalties were left to a later Cabinet decision. Reed Smith's analysis highlights several duties that matter to small sellers: issuing electronic (non-paper) invoices, giving consumers return and exchange rights, not charging customers extra for paying by digital means, and keeping the trading environment secure against cyber-attacks. Personal data you collect also falls under the UAE's federal data protection law.

Consumer protection rules sit alongside. The u.ae portal notes that the consumer protection law covers goods sold through e-commerce platforms registered in the UAE, and that online sellers must give consumers information such as who licensed them, product details in Arabic, specifications, contract and payment terms, and warranty information. In practice, build a site footer with your trade name, licence number and issuing authority; write product pages in Arabic as well as English for goods sold to UAE consumers; and publish a clear return, refund and delivery policy before your first sale.

Marketplaces add their own layer. Platforms that let third-party sellers trade can be held responsible under the consumer law when those sellers don't comply, which is why they check your licence, your trade name and, once you're registered, your tax registration number before they let you list.

Courier staff sorting customer parcels on the pavement before last-mile home delivery — Delivery is part of your customer promise: UAE consumer rules make the seller answerable for what was advertised, delivered and returned.· Image: ThomasYehYeh (Wikimedia Commons) (CC BY-SA 4.0)

How to set up, step by step

The sequence is the same whichever route you choose; only the authority changes.

From idea to first order

1
Decide what you sell and to whom
Physical goods or services? UAE consumers, other businesses or customers abroad? The answer decides the licence route and whether you need a warehouse.
2
Choose the licence route
eTrader if you qualify and are testing; mainland if you want unrestricted UAE sales and staff; a free zone if you sell internationally or want bonded storage.
3
Reserve the trade name and apply
In Dubai, reserve the name on Invest in Dubai for AED 620 and apply for the licence; free zones run their own name check.
Invest in Dubai — trade licence
4
Open a business bank account
Banks ask for the licence, ID, a business description and expected payment flows. Gateways and marketplaces pay out to this account.
5
Register with customs if you import
Register the business with Dubai Customs through Dubai Trade. The fee is AED 100 plus AED 20, and the code is issued in one working day.
6
Set up tax registrations
Register for VAT when you cross AED 375,000; register companies for corporate tax within 3 months of incorporation.

Bank account and payments. Payment gateways check that your licence covers e-commerce and that your website shows your trade name, terms and refund policy. Have those pages live before you apply. Our business bank account guide lists the documents banks expect.

Customs. If you bring stock in from abroad, the business needs a customs registration. Dubai Customs' business registration service needs a copy of the trade licence and the authorised person's passport and Emirates ID; it costs AED 100 plus a AED 20 knowledge and innovation fee and takes one working day. Imports generally attract customs duty of 5% on the CIF value plus import VAT, unless the goods sit in a free zone or are exempt.

VAT and corporate tax for online sellers

VAT. Registration with the Federal Tax Authority is mandatory once taxable sales and imports over the past 12 months exceed AED 375,000, or will within the next 30 days, and voluntary from AED 187,500. Apply within 30 days of becoming liable; the FTA charges nothing to register. Once registered you charge 5% on UAE sales, show VAT-inclusive prices to consumers, and file returns within 28 days of each period end. Exports of goods outside the GCC can be zero-rated if you keep the shipping evidence. Imports count towards the threshold, so a seller with modest sales but large stock imports can cross it sooner than expected. See our VAT registration guide.

Corporate tax. A company, including a free zone company, must register within 3 months of incorporation or face a AED 10,000 penalty. An individual trading as a sole establishment or eTrader is within corporate tax only once business turnover passes AED 1 million in a year. Profits are taxed at 0% up to AED 375,000 and 9% above, and businesses with revenue up to AED 3 million can elect Small Business Relief for periods ending by 31 December 2029.

Try it — add 5% VAT to a UAE online order

AmountTax Rate

Net Amount (Before Tax)AED 1,000.00

Tax (5%)AED 50.00

Gross Amount (Including Tax)AED 1,050.00

Open the full UAE VAT Calculator (PDF, save, compare)

What it costs to start: three worked examples

Costs below combine official fees with estimates for the parts no authority publishes. Treat the totals as indicative.

1. Fatima, an Emirati, selling home-made abayas on Instagram. She qualifies for eTrader. She pays AED 620 for the trade name and AED 1,370 for the licence and Dubai Chambers membership, so AED 1,990 in official fees in year one and AED 1,370 a year after that. She adds a simple website and payment gateway for an estimated AED 2,000 to AED 4,000. She has no visa costs and stays well below the VAT threshold in her first year.

2. Arjun, an Indian expat, importing phone accessories to sell on marketplaces. Trading isn't open to him on eTrader, so he compares a free zone e-commerce licence with a mainland instant licence. A free zone package with one visa typically runs from about AED 12,000 to AED 20,000 in year one based on published zone prices (SHAMS, for example, lists AED 13,935 for its standard package with one visa). He adds customs registration at AED 100 plus AED 20, stock and a third-party warehouse. Because each AED 100,000 of imports costs AED 5,000 in duty plus import VAT, he budgets duty into his landed cost from day one.

3. A two-founder skincare brand selling across the GCC. They want a bonded warehouse, two visas and room to hire, so they choose a free zone with logistics, such as Dubai CommerCity, and plan for quote-based pricing, warehouse fees and product registration with the relevant health or municipality authority for cosmetics. They expect to pass AED 375,000 within a year and register for VAT early to recover VAT on their set-up costs.

A parcel courier cycling along a paved street with delivery bags on the rear rack — Last-mile delivery costs and returns eat into margins; price them into every product before you launch.· Image: www.routexl.com (Flickr) (CC BY 2.0)

Products that need extra approvals

A licence lets you trade; it doesn't clear every product. Food, cosmetics, supplements, medical devices, children's products and electronics often need registration or conformity approval from a specific authority before you can sell them, whether online or in a shop. Food sold in Dubai falls under Dubai Municipality's food safety rules; our restaurant guide explains how those approvals work. Before you order stock, ask your supplier for the certificates UAE buyers request and check the product with the authority named on your licence application. Activities that need outside approvals also can't go on DET's instant licence, which is reserved for activities that don't.

If you plan to sell many unrelated product lines, from electronics to homeware to toys, check whether your licence needs to be a general trading licence rather than a single-category trading or e-commerce licence. Our general trading company guide explains the difference.

Dropshipping and selling into the UAE from abroad

Dropshipping, where a supplier ships directly to your customer and you never hold stock, still counts as trading if you run it from the UAE. You need a licence with the right activities, and you remain the seller in the customer's eyes: the consumer rules on product information, delivery and returns apply to you, not to your supplier. Check delivery times honestly, because cross-border parcels can take weeks and late or wrong deliveries are the commonest consumer complaints.

A business based outside the UAE that sells to UAE customers from its own foreign website is a different case. The u.ae portal notes that the federal consumer protection law doesn't apply to e-commerce between UAE consumers and businesses registered outside the UAE, but the goods still pass through customs, and the buyer may pay duty and VAT on arrival. If you live in the UAE, though, running a foreign-registered store doesn't remove the need for a UAE licence for the business you carry on here.

Before your first online sale

0/7

Common mistakes, and how to fix them

Selling before you're licensed. Payment gateways freeze funds when they find an unlicensed seller, and marketplaces delist. Get the licence first, even if it's eTrader, and keep personal and business money separate from the first order.

Choosing a free zone that can't serve your customers. If most buyers are UAE consumers, confirm in writing that your zone's e-commerce licence allows online sales to the mainland, or choose a mainland licence.

Activities that don't match the products. A licence for clothing won't cover electronics. Add the activity before you list the product, not after a platform flags it.

Forgetting duty and returns in pricing. Import duty, VAT on imports, payment fees, delivery and returns can take a quarter of the selling price. Use the marketplace profit calculator before you commit to stock.

Missing the VAT threshold. Track rolling 12-month sales and imports every month. Late registration triggers a penalty, and you may owe VAT on sales you never charged it on.

Official links

What to do next

Write down what you'll sell, where your customers are and whether you need a visa; those three answers point to eTrader, mainland or a free zone. Then reserve your trade name, open the business account and set up your store's legal pages before the first order. Price products with the payment fee calculator and marketplace profit calculator so duty, fees and delivery don't surprise you, and turn the estimates above into your own budget with the startup cost calculator.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Yes. Selling goods or services online is a commercial activity, so you need a licence that includes it, either from your emirate's economic department (DET in Dubai), a free zone, or DET's home-based eTrader licence if you qualify. Federal Decree-Law No. 14 of 2023, in force since 16 September 2023, applies to anyone trading through websites, apps or social media inside the UAE.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 13 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1.eCommerce — UAE Government portal (u.ae) · accessed 13 October 2026
2.Federal Decree by Law No. 14 of 2023 Concerning the Modern Technology-Based Trade — UAE Legislation portal · accessed 13 October 2026
3.Request to issue a trade licence — Department of Economy and Tourism, Dubai (Invest in Dubai) · accessed 13 October 2026
4.VAT Registration (service card) — Federal Tax Authority · accessed 13 October 2026
5.Request Business Registration — Dubai Customs · accessed 13 October 2026
6.Dubai CommerCity FAQ — Dubai CommerCity · accessed 13 October 2026
7.UAE Federal Law on Modern Trading by Technological Means — Reed Smith · accessed 13 October 2026
8.Dubai trade licence: Types, application process, verification explained — Khaleej Times · accessed 13 October 2026

MSMETOOLS is an independent platform and is not affiliated with any government agency, ministry or department.

We provide tools, guides and information for general educational purposes only. Always refer to official government websites for the latest and most accurate information.