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Dubai is an international city with people from all over the world. Because of this, global trends spread quickly here. Dubai is also a major business hub, and these factors are driving the growth of e-commerce.

E-commerce, which involves online shopping, is becoming very popular worldwide, and Dubai is seeing a big increase in this type of business.

Online Business in the UAE

The Ecommerce in the UAE, Dubai economy has rapidly become a cornerstone with projections indicating a market revenue of US 6.98 $ in 2024 and a compound annual growth rate (CAGR) of 8.63% from 2024 to 2029, reaching US$10.56 billion by 2029 according to Statista.

This growth is driven by the UAE’s successful economic diversification efforts towards the non-oil sector, high social media engagement, and a population that readily adopts digital innovations. The trend towards online shopping for everyday needs, including business and government services, further highlights the sector’s significance.

As the market is expected to continue its robust growth, reaching US$9.38 billion by 2028, understanding the regulatory requirements for obtaining an e-commerce license in Dubai becomes essential for businesses looking to capitalize on this thriving market.

Types of E-Commerce Licenses in Dubai

DED Trader License

Issued By: Dubai Department of Economic Development (DED)

Target Audience: UAE and GCC nationals residing in Dubai

Features:

Suitable for home-based e-commerce businesses in Dubai
Allows trade via social media networks
Registered under a single owner
Does not permit opening a physical store or issuing visas

E Commerce License from Free Zones

Issued By: Various Free Zones such as Dubai CommerCity and EZDubai

Target Audience: Local and international businesses

Features:

100% foreign ownership
Tax exemptions (corporate and income tax)
Full repatriation of capital and profits
Access to a robust e-commerce ecosystem
Facilities for B2B and B2C fulfillment
Pre-configured e-commerce platforms and support services

Mainland E-Commerce Trade License

Issued By: Dubai Department of Economic Development (DED)

Target Audience: Businesses looking to trade directly with the local UAE market

Features:

Requires a local sponsor or partner holding 51% ownership
Direct access to the local market
Approval required from Telecommunications and Digital Government Regulatory Authority (TDRA)

Tajer Abu Dhabi

Issued By: Abu Dhabi Department of Economic Development (ADDED)

Target Audience: UAE nationals, GCC nationals, and UAE residents

Features:

Allows adding online trade activities to existing licenses or obtaining a new license
Use of the eCommerce mark (eTajer) for promotional activities
No physical presence or office required
Various legal forms available, including establishments, one-person companies, and LLCs

Eitimad Domestic License from Sharjah

Issued By: Sharjah Department of Economic Development (SEDD)

Target Audience: UAE nationals residing in Sharjah

Features:

For home-based businesses and electronic trade through social networks
Available for individuals aged 18 and above
Does not allow staff recruitment

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How to Get an E-Commerce Licence in Dubai?

1. Understand the Online Business in Dubai, UAE

Before diving into the process of getting a Dubai virtual company license, conduct thorough market research to understand the needs and expectations of your potential customers. Use online resources, forums, and surveys to identify market gaps and determine the right business model for your venture, whether it be B2B, B2C, or C2B.

2. Choose the Right Jurisdiction

Decide whether to set up your Ecommerce business in Dubai Mainland or a Free Zone because the requirements for obtaining an ecommerce license in Dubai can vary depending on the jurisdiction in which the license is being sought.

Free Zone: Obtaining a trade license in a free zone offers benefits like full ownership, tax exemptions, and ease of repatriation of profits. Notable Free Zones include Dubai CommerCity and EZDubai. However, conducting E-commerce activities with the local UAE market may be restricted.
Mainland: Online trade license Dubai mainland allows direct trade with the local market without the need for a local agent but typically requires a local sponsor or partner holding 51% ownership.

3. Follow Company Naming Rules

Choose a company name that complies with UAE naming regulations:

Avoid special characters and offensive language.
Ensure the name is unique and not already in use.
The name should be transliterated into Arabic or English without using terms like “Universal,” “Middle East,” or “International.”

4. Submit Your Application

The application process differs based on your chosen jurisdiction and business setup in the UAE:

Mainland: Apply through the Department of Economic Development (DED) for license in Dubai mainland. All E-trader licenses also require approval from the Telecommunications and Digital Government Regulatory Authority (TDRA), which regulates the e-commerce framework and transactions in the UAE.
Free Zone: Apply directly to the chosen Dubai Free Zone authority, such as Dubai CommerCity or EZDubai. Ensure your application is complete and error-free to avoid delays.

5. Apply for a Visa

Once your e-commerce license application is approved, proceed to apply for your UAE residence visa. You can also apply for visas for your employees, family members, or domestic staff if needed.

6. Open a Bank Account

To facilitate business operations, open a corporate bank account in the UAE. Required documents typically include:

Company registration certificate
Trade license
Shareholders’ details and certificates
Passport copies of owners and stakeholders
Estimated turnover data

Seek professional assistance to navigate the bank account opening process smoothly.

Required Documents to Get an E-Commerce License in Dubai

To obtain an e-commerce license in Dubai, you will need to prepare and submit the following documents:

Passport Copy: Copy of the passport for each shareholder and the General Manager.
Digital Passport Photo: Recent digital passport-sized photographs of all shareholders and the General Manager.
Visa Copy: Copy of the UAE residence visa (if applicable) for each shareholder and the General Manager.
Emirates ID Copy: Copy of the Emirates ID (if applicable) for each shareholder and the General Manager.
Application Form: Completed application form with details about the business and shareholders, including Ultimate Beneficial Owner (UBO) information.
Proof of Address: Utility bills or tenancy contracts to verify the address of the shareholders or corporate entity.
Board Resolution: Resolution from the board of directors authorizing the establishment of the company (for corporate shareholders).
Memorandum & Articles of Association: Company’s Memorandum and Articles of Association or equivalent documents (for corporate shareholders).
Certificate of Incorporation: Certificate of incorporation or formation of the corporate shareholder.
Valid Trade License: Copy of the trade license or its equivalent for the corporate shareholder.
Business Plan: Detailed business plan outlining the nature of the e-commerce business, market analysis, and financial projections.
No Objection Certificate (NOC): NOC from the current sponsor (if applicable).
Proof of Initial Capital: Evidence of initial capital investment (if required by the specific Free Zone or Mainland authority).
Lease Agreement: For renting office space within the Free Zone (if applicable).
Bank Reference Letter: Reference letter from the shareholders’ bank (if required by the specific authority).
Detailed Business Operations: Specific details about the business activities you plan to conduct.

Which is the Cheapest E-Commerce License in Dubai?

The DED Trader License from the Dubai Department of Economic Development (DED) is the most affordable e-commerce license option in Dubai. Here are some key points about the DED Trader License:

DED Trader License

Features:

Cost-Effective: The cost of E-commerce license ranges between AED 7,000 and AED 15,000, depending on the business activity and region.
Home-Based Business: Suitable for individuals and small-scale businesses operating from home.
Social Media Trade: Allows trading through social media networks and online platforms.
Single Owner: Issued to a single owner, typically for small, home-based businesses.

Benefits:

Affordable: One of the most cost-effective options for starting an e-commerce business in Dubai.
Simple Application Process: Easy and straightforward online application process.
Quick Approval: Faster approval times compared to other license types.

Restrictions:

No Physical Store: Does not permit the opening of a physical store.
No Visa Issuance: Does not allow for the issuance of employment visas.

Eligibility:

Nationality: Available to UAE and GCC nationals residing in Dubai.

Key Considerations for Ecommerce Traders

Ensure compliance with all relevant laws and regulations, including:

Federal Decree – Law No. 14 of 2023: Governs e-commerce activities in the UAE.
Cybersecurity Standards: Follow cybersecurity guidelines set by the authorities to ensure safe and secure online transactions for consumers.

Licensing and Approval

Obtain the necessary approvals and permits from the competent authorities, including the TDRA for e-commerce transactions.

Consumer Protection

Comply with Consumer Laws, Ensure Transparency in Transactions, and Provide Accurate Product Details with Digital Invoices.

Benefits of Starting an E-Commerce Business in Dubai, UAE

Business-Friendly Environment

Advanced Digital Infrastructure

Regulatory Support

Prime Location

Comprehensive Ecosystem

Innovation and Expansion

Growing Market

Tax Benefits

Ecommerce License in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Ecommerce License in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!