To start an online business in Dubai, you need more than a domain and a product; you need a valid business license issued by an approved authority in the UAE. Launching a service, building a digital brand, or selling products online all fall under regulated commercial activity that must be licensed and registered. The UAE government applies this requirement to every online platform, from Instagram shops to SaaS startups.
This guide explains how to choose the right type of license, how free zones and mainland registration differ, and what steps are involved in legal company formation and business setup in Dubai, so your venture is fully compliant and ready to scale in one of the region’s top business hubs.
Benefits of Setting Up a Company in Dubai Free Zone
Free zone company formation in Dubai offers many benefits, especially for foreign companies and entrepreneurs. Here’s a simpler look at the main advantages:
What Are the License Options to Register Your Online Business in Dubai?
Ideal for individuals offering services like writing, design, or coaching without forming a full company.
- No trade name or office required
- 2-year freelance visa included
- Available to residents and expats
- Offered by RAKEZ, TECOM, twofour54, etc.
- Cost: AED 7,000–9,500
Best for: solo professionals with no plans to hire.
For citizens selling through social media or from home.
- No visa or office allowed
- Basic services and product sales only
- Cost: AED 1,050/year
Best for: side income with minimal setup.
Most popular for expats and startups looking to scale.
- 100% foreign ownership
- Visa and virtual office options
- Suits e-commerce, SaaS, and digital services
- Cost: AED 5,750–15,000
Best for: flexible, regional or global operations.
Required if you want to sell directly in the UAE market or to government entities.
- Office lease (Ejari) required
- Unlimited visas based on office size
- Full market access
- Cost: from AED 12,000
Best for: physical businesses or those needing a strong UAE presence.
Is It Legal to Run an Online Business from Dubai Without a License?
No, it’s not legal. Running an online business in the UAE without a proper license—even from home or via social media—is a violation of local regulations. The law applies to all commercial activity, including e-commerce, freelancing, coaching, and affiliate marketing.
Without a license, you can’t open a corporate bank account, apply for visas, or use payment gateways legally. UAE residents and non-residents alike must register.
For basic setups, the e-Trader license covers limited home-based work. For full operations, you’ll need a free zone or mainland license. If you’re serious about starting a business, registration is your first step.
Steps to Start an Online Business in Dubai, UAE
Choose Your Business Activity
Explore online business ideas in Dubai that align with your goals and legal structure.
- Examples include online retail, digital services, SaaS, or content monetization.
- Your selected activity must match one listed by the licensing authority.
- If you plan to operate across multiple channels or platforms, apply for a multi-activity license from the start.
Legal Aspects of Starting a New Business
The structure affects ownership, taxation, and the ability to hire.
- Free zone company (FZC or FZE): Offers 100% foreign ownership and is ideal for e-commerce businesses and digital startups.
- LLC (Limited Liability Company): Required for mainland setups; allows full access to the UAE market.
- Sole establishment: Suitable for individuals offering personal services under their own name.
Select a Licensing Authority
This determines where your company will be registered.
- DED for mainland companies and e-Trader license applicants
- One of the many free zones for international operations or digital-first business models
- Consider visa needs, office space requirements, and cost when choosing your authority
Reserve Your Company Name
Submit a trade name for approval.
- The name must reflect your business activities and comply with UAE naming rules
- No religious or political words, no abbreviations, and no references to external jurisdictions
- Once approved, the name is reserved for use on your license and bank account
Submit the License Application
After your name and activity are approved, you’ll submit the application with supporting details.
Depending on the setup, the authority may request:
- Passport copy
- Entry stamp or valid UAE visa
- Emirates ID (for residents)
- Basic business model or company description
Free zones often provide support teams to help complete this step online. Most applications are processed within 2 to 7 working days.
Pay Fees and Receive Initial Approval
Once your documents are verified:
- You’ll receive an initial approval notice
- You’ll pay the full license in Dubai and registration fee
- Some setups may require digital signature of incorporation documents or a lease confirmation
- After payment, your e-commerce license is issued
Apply for Visas (If Applicable)
If your license includes visa eligibility:
- Open an immigration file through your licensing authority
- Apply for your own investor or owner visa
- Add employee or dependent visas later, based on your quota and office space
Visa quotas vary by jurisdiction and setup.
Open a Corporate Bank Account
With your company licensed, you’ll need a business bank account to handle payments legally.
Common requirements include:
- Trade license
- Passport and visa
- Proof of address or tenancy contract
- Business website or plan (especially for digital services or online platforms)
Banks like WIO, RAKBank, Mashreq, and Emirates NBD are often used for online business accounts in the UAE.
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How Much Does It Cost to Register an Online Business in Dubai?
Online business cost in Dubai varies by license, zone, visa count, and workspace needs.
Setup Type | Estimated Cost (AED) | Key Highlights |
---|---|---|
e-Trader License | ~1,050/year | No visa, no office, UAE/GCC only, home-based social media business |
Free Zone Company | 5,750 – 15,000 | Optional visa, virtual office, 100% expat ownership, ideal for startups |
Mainland Company | 12,000 – 25,000+ | Visa required, physical office, 100% expat (in most cases), full UAE access |
Additional Cost Considerations
Cost Element | Range/Note | Applies To |
---|---|---|
Visa Fees | AED 3,000 – 6,000 per person | Free Zone & Mainland setups |
Bank Account Setup | Minimum balance or activation fee may apply | All setup types |
Ejari Lease | Required for office rental | Mainland licenses only |
External Approvals | Needed for regulated sectors (media, etc.) | Activity-specific (education, finance) |
Document Attestation | Translation/legalization costs may apply | Foreign owners/documents |
FAQS (Frequently Asked Questions)
Can I register an e-commerce business from outside the UAE?
Yes. Many free zones support full company setup remotely. You can establish your online presence, receive your license, and begin conducting business without entering the UAE. A physical visit is only needed later for visa issuance.
How long does it take to get an online business license?
Most free zones issue licenses within 2–3 business days if documents are complete. Company setup in the mainland or for restricted activities may take 5–15 working days.
Do I need a visa to start an online business in the UAE?
A visa isn’t required to own a company in Dubai, but it’s beneficial for accessing banks, leasing space, and managing business operations. Many company setup packages offer optional investor visas.
Can I sell globally with a Dubai-registered company?
Yes. A free zone company in Dubai can conduct international sales and accept payments worldwide. If you handle physical products, pick a zone with customs and logistics support to streamline business operations.
Is a physical office required to register?
No. Many free zones offer virtual or flexi-desk solutions to support your online presence. Mainland setups, however, usually require a leased office tied to your license and visa quota.
Are there banking challenges for online businesses?
Yes. UAE banks often require proof of legitimate business operations, including invoices, a clear plan, and verified documents. Account approval can take 2–4 weeks.
Can I change my license or business activity later?
Yes. Within the same authority, you can update or expand your license. Moving your company setup from a free zone to mainland involves registering a new entity.