7 Steps : How To Get Freezone Ecommerce License in Dubai?

Have you ever dreamed of starting your own online store?

Dubai might be the perfect place to make it happen! The UAE’s e-commerce market is exploding, with sales jumping over 50% in just one year.

This means more and more people in Dubai are shopping online, creating a golden opportunity for entrepreneurs like you.

But before you launch your online business, you’ll need to know how to get a Freezone ecommerce license in Dubai ?

This license unlocks a world of possibilities, allowing you to sell your products directly on your own website or popular online marketplaces.

This guide will show you exactly how to get a Freezone e-commerce license in Dubai and take your online business dream to reality!

What is Ecommerce license?

An ecommerce license is your golden ticket to legally selling goods and services online within Dubai.

It acts as a regulatory permit specifically for businesses operating solely through digital channels. This includes companies that are entirely digital-first, with no physical stores, as well as businesses that manage inventory but conduct all sales online.

The license offers flexibility – even if you have aspirations for a future brick-and-mortar shop, you can still acquire an ecommerce license to kickstart your online operations.

This forward-thinking approach allows you to establish your brand and customer base online before expanding to a physical location.

Types of E-commerce License in Dubai

E-commerce License (Mainland)

Issued by DED
More expensive than E-Trader license (varies depending on business activities)
Open to all nationalities
Allows for a wider range of online business activities, including selling through a website
May require a physical office space depending on the business activity

Portal License

Issued by DED
Ideal for businesses that act as a marketplace connecting buyers and sellers (e.g., Amazon, eBay)
Open to all nationalities
Allows for online transactions but may not permit selling your own products directly

Free Zone E-commerce License

Issued by various free zones in Dubai (e.g., Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA))
Varied costs depending on the free zone
Open to all nationalities (usually)
Offers additional benefits like 100% foreign ownership and corporate tax exemptions
May have restrictions on mainland operations

Freelance License

Not strictly an e-commerce license, but can be used for some online freelance activities (e.g., graphic design, social media marketing)
Relatively inexpensive and easy to obtain
Limited to freelance services and not suitable for selling products

Feature	E-Trader License	E-commerce License (Mainland)	Portal License	Free Zone E-commerce License
Issuing Authority	DED	DED	DED	Various Free Zones (e.g., DMCC, JAFZA)
Cost	Cheapest (around AED 1,070)	More expensive (varies)	Varies	Varies depending on the free zone
Ownership	UAE Residents/GCC Citizens only	Open to all nationalities	Open to all nationalities (usually)	Open to all nationalities (usually)
Business Activities	Limited to social media sales	Wider range of online activities, including website	Act as a marketplace connecting buyers/sellers	Wide range of online activities, including website
Physical Office	Not required	May be required depending on activity	Not required	May not be required (depends on free zone)
Residency Requirement	Must be a UAE resident/GCC citizen	No residency requirement	No residency requirement	No residency requirement
Foreign Ownership	Not applicable	Not applicable	Not applicable	100% foreign ownership possible (depends on free zone)
Corporate Tax	Subject to standard UAE corporate tax	Subject to standard UAE corporate tax	Subject to standard UAE corporate tax	Tax exemptions possible (depends on free zone)
Growth Potential	Limited	More scalable	Limited for selling own products	High growth potential

Advantages of starting an e-commerce business in Dubai

There are several advantages to starting an ecommerce business in the UAE, particularly in Dubai. Here are some of the key benefits:

Tax-free environment

The UAE, and especially Dubai, boasts a tax-free environment for businesses. This means you get to keep all your profits without corporate or income tax deductions, allowing you to reinvest in your business and grow faster.

Thriving e-commerce market

The UAE has a rapidly growing e-commerce market, fueled by a high internet penetration rate, a young and tech-savvy population, and a growing disposable income. This translates to a large and receptive customer base for your online store.

Strategic location

Dubai is strategically located at the crossroads of three continents, making it a great base for reaching customers across the Middle East, Africa, and Asia. This opens doors for expanding your reach beyond the UAE.

Government support

The UAE government actively supports e-commerce businesses through initiatives that simplify business setup, free zones with additional benefits, and investment in infrastructure development.

Cost-effective setup

Compared to a traditional brick-and-mortar store, launching an e-commerce business requires less upfront investment. You save on rent, utilities, and staffing costs, allowing you to start small and scale up gradually.

Global audience

With an online store, you’re not limited by geographical boundaries. You can target customers worldwide, increasing your potential sales and market reach.

Data-driven marketing

E-commerce platforms provide valuable data on customer behavior and preferences. This allows you to tailor your marketing strategies for better targeting and increased conversion rates.

If you’re looking for a dynamic and supportive consultant to launch your online venture, an affordable business setup consultant offers a compelling proposition.

Cost of E-commerce license Dubai -How to get a Freezone ecommerce license in Dubai?

The cost of an e-commerce license in Dubai, UAE can vary depending on a few factors, but here’s a general breakdown:

In AED 5,750 to AED 20,000 per year (approximately USD 1,560 to USD 5,450) you can get Ecommerce license in Dubai.

Residency status

There’s a cheaper option (E-trader license at AED 1,070) for existing UAE residents and GCC citizens. Non-residents will need other licenses starting around AED 11,500.

Business type and size

Specific activities and larger businesses might incur slightly higher fees.

Free zone vs. mainland

Setting up in a free zone may have additional costs depending on the zone’s specific rates.

7 Steps to getting an e-commerce license in Dubai

Choose a Free Zone

Dubai has several free zones, each with its own set of benefits and fees. Research and choose one that aligns with your business needs and budget. Popular options include:

Dubai Multi Commodities Centre (DMCC)
Jebel Ali Free Zone (JAFZA)
Dubai Airport Free Zone (DAFZA)

Select a Company Name

Check with your chosen free zone authority for name availability and compliance with their naming regulations.

Determine Your Business Structure

Popular options include a sole proprietorship or a Limited Liability Company (LLC). Each has its own ownership and liability implications.

Contact the Free Zone Authority

Each free zone has a dedicated department to guide you through the application process. They’ll provide specific requirements and forms.

General Required Documents (may vary slightly)

Application form
Passport copies of owners/shareholders
Business plan
Proof of address (usually your residence visa)
No Objection Certificate (NOC) from your current employer (if employed)
Fee payment receipt

Complete the Application Process

Submit the required documents and any additional fees as outlined by the free zone authority.

Visa Application (Optional)

If you plan to reside in Dubai and manage your business, you might need to apply for a residency visa. The free zone authority can guide you on this process.

The cheapest e-commerce license in Dubai

There are two main contenders for the cheapest e-commerce license in Dubai:

E-trader license

This license issued by the Department of Economic Development (DED) boasts the lowest price at AED 1,070 (around USD 295). However, it’s only available to UAE residents and GCC citizens.

Free zone e-commerce licenses

Several free zones in Dubai offer e-commerce licenses starting around AED 5,500 (around USD 1,500) per year. These might be a better option for non-residents.

Online e-commerce sites in Dubai

Do you need a license for e-commerce in the Dubai, UAE?

Yes, you absolutely need a license for e-commerce in Dubai, UAE. Operating an online business without a proper license is illegal and can lead to hefty fines of up to AED 500,000 (around USD 137,000). This applies even if you sell through social media platforms.

Why Do You Need an Ecommerce License in Dubai?

Operating an online business in Dubai without a license is illegal and can lead to hefty fines. The license regulates your business activity and ensures consumer protection.

Why Start an Ecommerce Business in Dubai?

Dubai boasts a strategic location, excellent infrastructure, a supportive government, and a business-friendly environment. It’s a gateway to the vast Middle Eastern market and beyond.

How Can You Get an Ecommerce License in Dubai?

The process involves choosing the right license type (E-Trader, Mainland, Free Zone, etc.), registering your business, and obtaining approvals. Consider consulting a business setup specialist for guidance.

Ecommerce License in Dubai: Deciding a Company Name

Choose a unique and relevant name that complies with Dubai’s naming regulations. Check for availability before finalizing it.

Ecommerce License in Dubai: Corporate Bank Account Opening

A corporate bank account is essential for business transactions. You’ll need your license and other documents to open one.

Why Should You Set Up an Ecommerce Business in a Dubai Free Zone?

Free zones offer benefits like 100% foreign ownership, tax exemptions, and streamlined procedures. However, they may have restrictions on mainland operations.

Can An Ecommerce License Permit Selling to The Entire UAE or Just Within the Free Zone of Registration?

It depends on your license. Mainland and some Free Zone licenses allow selling throughout the UAE. However, there might be additional requirements for mainland operations with a Free Zone license.

Is Renting Office Space Mandatory for Obtaining an Ecommerce License in Dubai?

Not always. The E-Trader license and some Free Zone licenses don’t require a physical office. However, a mainland license might depend on your business activity.

What types of products can I sell with an e-commerce license in Dubai?

Permitted products depend on your license and any restrictions. Generally, you can sell most products except for prohibited items like weapons or pork.

What documentation do I need to apply for an e-commerce business license?

Required documents vary depending on the license type. They typically include passport copies, business plans, and visa information.

What are the consequences of operating an e-commerce shop without a license in Dubai?

Fines can be hefty, reaching up to AED 500,000. You might also face business closure and legal repercussions.

Can I operate my e-commerce business from outside Dubai with a Freezone license?

Yes, in most cases. Free Zone licenses allow remote operation, making them ideal for international businesses.

Can I use my e-commerce license to trade outside of Dubai?

Your license is primarily for operating within Dubai or the UAE. Trading outside might require additional licenses depending on the target market.

What is the difference between an E-trader and an E-commerce license in Dubai?

The E-trader license is the cheapest and simplest option, but it’s limited to UAE residents and restricts sales to social media platforms. An e-commerce license offers more flexibility but might require a physical office (depending on the type).