Are you planning to start an online business in Dubai and do not know how to obtain an e-commerce license?
Dubai has been rapidly becoming one of the most attractive destinations to e-commerce startups and expatriates, not to mention digital startups in the globe. Dubai Online store and 100 per cent foreign ownership, business-friendly regulations, and global market access mean that starting an online store in Dubai is no longer complex, just that you do the appropriate legal procedure.
This is a comprehensive guide on how to obtain an e-commerce license in Dubai, where you will find all the information needed on the various forms of e-commerce licenses, the process of applying step-by-step.
What Is an E-Commerce License in Dubai?
An e-commerce license in Dubai is a license that has been granted by the authorities of Dubai, permitting individuals or companies to sell products or services online. This involves the selling via:
- Your own website
- Shopify or WooCommerce stores
- Marketplaces like Amazon, Noon, or Etsy
- Social media like Instagram or Facebook.
Without this license, it is illegal to be in business online in Dubai, and it can easily be fined or even shut down.
Process to Get an E-Commerce License in Dubai
The following is how it will work:
Step 1: Choose Your Business Activity
Define what you will sell:
- Physical products
- Digital products
- Online services
- Dropshipping
- Subscription-based services
The business model should be consistent with your license activity.
Step 2: Select a Trade Name
Your business name must:
- Be unique
- Follow UAE naming rules
- Avoid offensive or religious terms
Approval usually takes 1–2 days.
Step 3: Submit an Application to DED
Go to the Department of Economic Development (DED) and apply for an e-commerce license, and provide the relevant information.
You’ll typically need:
- Passport copy
- Visa copy (if applicable)
- Emirates ID (if available)
- Passport-size photograph
- Business activity details
Step 4: Pay the License Fees
The fees are different based on the type of license and visa requirements.
Free Zone License Cost
- Starting from 6500 AED to 10000 AED
- May include visa packages
Step 5: Receive Your E-Commerce License
Once approved, you’ll receive:
- Trade license
- Company registration documents
You are now free to conduct your business online.
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Types of E-Commerce Licenses in Dubai
1. E-Trader License
E-Trader License is given by the Dubai Department of Economy and Tourism (DET) and is intended to be given to individuals and single business owners who wish to sell online without creating an actual company.
Who Is It For?
- UAE residents
- Home-based sellers
- Freelancers
- Social media sellers
- Instagram, TikTok, and Facebook shop owners.
- Personal brand businesses
What You Can Do
- Sell products or services online
- Operate via social media platforms
- Run a basic online store
- Offer digital services
- Work as a solo entrepreneur
Key Features
- Issued under your personal name
- No physical office required
- Simple and fast registration
- Low cost
- Legal protection for online selling
2. Portal License
The Portal License is a superior and professional e-commerce license. It is targeted at companies that conduct online platforms, marketplaces, or digital portals that involve buyers and sellers.
Who Is It For?
- Online marketplaces
- Service platforms
- Booking portals
- Digital directories
- Multi-vendor platforms
- Aggregator websites
- SaaS platforms
- Subscription platforms
What You Can Do
- Create online platforms
- Host multiple sellers
- Offer digital services
- Operate large-scale e-commerce portals
- Run service marketplaces
3. Virtual Company License
Virtual Company License is a special project of Dubai where non-residents and foreign entrepreneurs can use Dubai as the place to operate their business without necessarily being physically present in the UAE.
Who Is It For?
- International entrepreneurs
- Foreign business owners
- Digital nomads
- Global startups
- Overseas investors
- Online service providers
What You Can Do
- Operate an online business in Dubai
- Sell services digitally
- Run global operations
- Manage business remotely
- Access Dubai’s digital economy ecosystem
How Long Does It Take to Get an E-Commerce License?
- Free Zone: 3–7 working days
- Mainland: 5–10 working days
Delays may occur if documents are incomplete.
Can Foreigners Get an E-Commerce License in Dubai?
Yes – and here is one of the greatest attractions of Dubai.
Foreigners can:
- Own 100% of the business
- Apply without a local sponsor
- Obtain residency visas for themselves and their family.
- Operate remotely in some setups
Common Mistakes to Avoid
There are a lot of mistakes that can be avoided by entrepreneurs:
- Selecting an inappropriate business activity.
- Ignoring VAT obligations
- Choosing a license without access to the market.
- Underestimating total costs
- Not verifying platform compliance (Amazon, Shopify, etc.)
These mistakes can be avoided and leads to time, money, and frustration savings.
Frequently Asked Questions (FAQs)
Do I need a physical office?
Not always. Most of the free zones provide a virtual office.
Is it possible to sell on Instagram using the e-commerce license?
Yes, but a valid license is mandatory.
Is VAT registration required?
Only when the annual turnover is above AED 375,000.
Is it possible to operate a Shopify store in Dubai?
Yes, and a valid license for e-commerce.
Can I sell internationally?
Yes, particularly when one has a free zone license.
Read Also: What Is NOC Letter in UAE? Meaning, Types & How to Get
Final Thoughts
Dubai is also one of the most business-friendly places that hosts online entrepreneurs. The right e-commerce license will afford you the legal protection, customer confidence, and access to the international markets. You are an expat, as well as a freelancer or an international founder, and it may become a breakthrough to start the e-commerce business in Dubai.
Dubai can definitely be the step to your online success in the future, just in case you do it properly, just in case you take the proper license, and in case you do not break the rules.
