Types of E-Commerce Licenses in the UAE: Which One is Right for Online Business?

Starting an online business in the UAE is now easier than ever. With more people shopping online, the demand for digital businesses keeps rising. 

To legally sell products or services online, you need to get an e-commerce license. This license allows you to run your business within the UAE and reach a wider audience.

What Is an E-Commerce License in the UAE and Why Do You Need One

E-commerce industry in the UAE is growing fast. Many people are now looking to start online businesses, especially in cities like Dubai and Abu Dhabi. This growing interest is mainly due to how much the market is expanding. 

In 2020, the UAE’s e-commerce market reached USD 3.9 billion. That was a 53% increase from the previous year. Experts believe this growth will continue. By 2025, the market is expected to hit USD 8 billion.

With numbers like that, it’s no surprise that many are exploring how to start their own online store. To run a legal online business, you need to get an e-commerce license in the UAE. This allows you to sell goods or services online and meet all legal requirements.

Let’s take a look at how you can apply for an e-commerce license, and what you’ll need along the way.

How to Apply for an E-Commerce License in the UAE

The steps may vary based on whether you choose a free zone e-commerce license, a mainland e-commerce license, or one through a virtual company license in the UAE. But the general process is similar.

1. Prepare Required Documents

You’ll first need to gather basic details about your business. Here’s what you’ll need:

• Company name
• Business activity
• Passport copy or visa/entry stamp
• Shareholding ratio
• Contact details and address of all shareholders
• Photos (some free zones may ask for this)

Now that your documents are ready, it’s time to move to the next stage.

2. Choose Jurisdiction

You can set up business in a free zone or a mainland area. If you’re targeting the local UAE market directly, a DED e-trader license or mainland e-commerce license may suit you. If you plan to sell online through a global platform, a portal license UAE or a portal marketplace license in a free zone could work better.

Submit your documents to the relevant authority. For example, IFZA is a popular option for an IFZA e-commerce license. The cost of an e-commerce license usually starts from AED 5,750, but it can vary depending on the location and setup.

You may need to pay a fee before your application is reviewed. Many free zones take 3 to 7 days to process it. In the mainland, approval may come in just 1 or 2 days.

3. Get License and Documents

Once your license is approved, digital copies will be shared with you. Some places may also send physical documents later. At this stage, your business is almost ready to go live.

4. Apply for Visas (If Needed)

If your license package includes visas, the next step is to apply for them. This happens after your immigration card is issued. Depending on your setup, you may or may not need to rent an office. Some licenses, like a home-based online business license or e-trader license Dubai, don’t require office space.

New UAE E-Commerce Law 2023: What Online Sellers Must Know

In 2023, the UAE introduced a new law called Federal Decree – Law No. 14 of 2023, also known as the Digital‑Economy Law 2023. This law now governs how online businesses operate. It covers everything from social media selling to full online stores.

It applies to all sales made through websites, e-platforms, apps, and other digital tools. Both digital and physical goods are included. The law treats online business the same way it treats traditional business.

This means your business must follow certain rules. Let’s look at those next.

Requirements for e-Commerce Traders in the UAE

If you want to start selling online, you must:

• Have full legal capacity to run a business
• Follow all local laws and technical rules
• Get approvals and an e-commerce license from the right authorities
• Build a secure platform for selling and customer data
• Meet all cybersecurity standards

Traders must sell only items that are legal in the UAE. If a product needs special approval, you must get it first. You must also:

• Follow rules for advertising and data sharing
• Avoid false promotions or claims
• Provide digital invoices to customers

This law protects both the seller and the buyer. It also covers payment gateway setup, return policies, and solving disputes.

Types of E-Commerce Licenses in UAE: Which One Is Best for You?

There are different types of e-commerce licenses in the UAE, and each one suits a different kind of online business. Whether you’re selling through a website, mobile app, or social media platform, the UAE has a license that fits your needs.

Let’s look at the most common options:

1. Mainland E-Commerce License UAE: Sell Directly in Local Market

Issued by the Department of Economic Development (DED), this license allows you to sell directly to customers across the UAE. You can trade freely within the local market, set up a physical store if needed, and connect with local distributors.

2. Free Zone E-Commerce License UAE: 100% Ownership & Quick Setup

A free zone e-commerce license is ideal if you want 100% ownership and a quick setup process. You can operate your online business from zones like IFZA, SHAMS, RAKEZ, and Dubai CommerCity. This license is great for international trade but may require a local partner or distributor to sell in the mainland.

3. Virtual Company License UAE: Online Business for Non-Residents

This license allows entrepreneurs to run an online business remotely from outside the UAE. It’s best for freelancers, digital service providers, or online-only sellers who do not need a local office or visa.

4. Portal Marketplace License UAE: Build Your Own Online Platform

This license is for companies that create digital platforms where other businesses or individuals can list and sell products. It is suitable for those who want to build e-commerce websites, apps, or online marketplaces.

5. E-Trader License Dubai: Start a Home-Based Online Business

The e-trader license Dubai is offered by DED for UAE and GCC nationals living in Dubai. It’s perfect for home-based sellers who use social media platforms to sell products or services.

Best Free Zones for E-Commerce License in the UAE (2025 List)

If you want to start an online business, getting the right e-commerce license UAE is a must. Many free zones in the UAE offer licenses that allow online selling. These areas provide easy setup, fewer restrictions, and full foreign ownership. Whether you are starting a new venture or expanding an existing one, free zones are a good option.

Here are some popular free zones that offer an e-commerce license:

• Dubai Multi Commodities Centre (DMCC)
• Dubai World Trade Centre (DWTC)
• Dubai South
• Fujairah Creative City
• Ras Al Khaimah Economic Zone (RAKEZ)
• Sharjah Media City (SHAMS)
• Sharjah Research Technology and Innovation Park (SRTIP)

These zones allow you to sell through websites, apps, and social media. Each free zone has its own rules, so it’s important to choose one that matches your business plan.

For example, some zones are better for digital services, while others suit physical product sales.

Mainland E-Commerce License UAE: Costs, Rules, and Benefits

If you plan to sell directly in the UAE market, a mainland e-commerce license may be the right choice. This is issued by the Department of Economic Development (DED) in each emirate.

To get started, you’ll need approval from the Telecommunications and Digital Government Regulatory Authority (TDRA). This body regulates all e-commerce transactions in the country.

You can apply for a non-objection certificate through their online platform. Once approved, your license lets you run a legal business without physical office space, depending on the activity.

Dubai CommerCity: Best Free Zone for E-Commerce Businesses

Dubai CommerCity (DCC) is a special free zone e-commerce license area. It’s designed for online business growth in the MENA region. It offers fast company setup, built-in platforms, and access to services like:

• Payment gateways
• Call centers
• Marketing firms
• Web developers

You also get:

• 100% foreign ownership
• No corporate or income tax
• Full profit repatriation

The free zone is close to Dubai International Airport, making it great for logistics. It’s made up of three areas: a business cluster, a logistics cluster, and a social cluster. Together, they support smooth business operations.

Another strong option is next.

EZDubai at Dubai South: Logistics-Friendly E-Commerce Hub

EZDubai is another full e-commerce ecosystem. It supports both B2B and B2C businesses. You can use it to serve local and global customers. It’s ideal if you want access to a wide network and fast shipping.

Now, if you’re based in Abu Dhabi or Sharjah, there are more license options available.

eTajer License Abu Dhabi: Online Selling Without Office Space

The Tajer Abu Dhabi license from ADDED allows you to run an online business without a physical shop. You can sell through websites and social media platforms. This license includes the e-commerce mark, which can be shown when marketing your products.

Originally for UAE nationals only, Tajer Abu Dhabi now includes:

• Emiratis and GCC nationals (under Establishment or One-Person Company)
• UAE residents (through LLC with a local partner)

You can now choose from over 1,000 business activities. No office space is needed, making it perfect for a home‑based online business.

Now let’s move to Dubai’s version of this.

DED e-Trader License Dubai: Social Media Selling for Locals

The e-trader license in Dubai is available from Dubai Economy. It lets locals and GCC nationals in Dubai sell goods or services using social media. It’s a simple license, best for individuals who want to run small online businesses.

This license does not allow shop rental or visa issuance. It’s best for small traders selling directly from home.

Lastly, Sharjah also supports online sellers.

Eitimad License Sharjah: Legal Home-Based Business for UAE Nationals

The Sharjah Eitimad license is for home-based online businesses in Sharjah. It’s given by the Sharjah Department of Economic Development (SEDD). It’s available to UAE nationals aged 18 and up.

This license does not allow hiring staff, but it is ideal for individuals selling through social platforms. You can register as a user or seller and run your small business legally from home.

Need Help with Your E-Commerce Business Setup?

Choosing the right type of e-commerce license, preparing the paperwork, and understanding costs and office space requirements can feel overwhelming. That’s where we come in.

Bestax helps you register your business, apply for the correct license, whether it’s a free zone e-commerce license, mainland e-commerce license, or a virtual company license UAE, and guide you through every step.

Let us simplify your business setup in the UAE so you can focus on growing your brand.

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Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.