E-Commerce Business in Dubai, UAE – License Cost with Visa & How to Get Started

Selling online in Dubai has moved far beyond a side hustle. Today, running an e-commerce business in the UAE requires the right license, clear compliance, and a setup that allows you to scale without problems. Many online sellers who started on Instagram, WhatsApp, or Shopify now want to sell online legally and build a proper business structure.

Every week, we speak with entrepreneurs who want clarity. They want to know which e-commerce license they need, how much the ecommerce license cost is, and whether they should choose Dubai mainland or a free zone. This updated article is created to answer those exact questions in a clear and practical way.

In this guide, we explain the available options for starting an e-commerce business in Dubai and across the UAE. You will understand the difference between licenses with and without visa, the type of business activities allowed under each option, and how to choose the right setup based on your long-term plans.

If your goal is to sell online the right way, avoid mistakes, and build a compliant e-commerce business in the UAE, this guide will give you the clarity you need to move forward with confidence.

E-Commerce Business in Dubai – Why It’s Booming

The e-commerce market in the UAE is growing rapidly, and Dubai is leading the way. With a strong digital infrastructure, cashless payment systems, and one of the highest internet penetration rates in the world - it’s no surprise that online platforms like Amazon.ae and Noon are thriving.

So here’s the situation…

Let’s say you have a product ready to sell online - maybe it's clothing, electronics, or beauty products. But suddenly, the big question hits:

Where do I register my business?

Do you choose Dubai Mainland? A Dubai Freezone? Or go for one of the other Emirates?

Let’s start with the mainland option first.

E-Commerce License from Dubai Mainland

In the Dubai mainland, you can apply for a commercial license such as “XYZ Trading LLC” and add the approval from the Telecommunications and Digital Government Regulatory Authority (TDRA) - the body that regulates e-commerce activities in the UAE.

Let’s simplify this with an example.

Suppose you want to start selling clothes online. You decide to buy your stock locally or import it from China. The first step is to apply for a commercial license under the “Readymade Garments” activity group. This license allows you to sell:

a. Clothes
b. Perfumes
c. Shoes
d. Gifts and accessories

Once you’ve got the license, you’ll need to:

a. Build your website or online store.
b. Add the TDRA e-commerce activity approval.
c. Market your product and start selling online.

Yes - it’s that simple. Any commercial license from the Dubai mainland can be used for e-commerce, once the right approvals are in place. In Dubai, once your company is licensed with a valid business activity, you’re allowed to sell both online and offline. The law doesn’t differentiate between in-store and online sales - as long as your activity is approved, the sales method doesn’t matter.

Cost of E-Commerce License in Dubai Mainland

Here’s the breakdown:

Trading license: AED 12,000

Virtual office or flexi-desk: Required for license issuance

Total setup without visa: AED 20,000 approx.

With visa option: Add AED 6,000

Total with visa: AED 25,000 approx.

Steps to Register an E-Commerce Company in Dubai Mainland

If you're looking for the full breakdown of how to register a company in Dubai - from choosing your jurisdiction to getting your trade license and Emirates ID - we’ve already covered it in detail. You can check out our complete company registration guide here to walk through every step clearly and confidently.

Here’s a quick overview:

1. Select Your Business Activity

In our clothing business example, you’d go with Readymade Garments Group.

2. Decide the Legal Structure

You’ll form an LLC (Limited Liability Company) under a commercial license.

If you’re unsure whether your business should go for a commercial or professional license, don’t worry—we’ve explained it all in our dedicated guide. Read our article on the different types of trade licenses in Dubai to understand which one fits your business best.

3. Choose a Trade Name

The name must be unique, follow UAE naming rules, and can include Arabic or English. (Note: AED 2,000 extra fee applies if your name is not in Arabic.)

4. Get Initial Approval

This confirms there are no objections to your business setup.

5. Get a Virtual Office or Flexi Desk

If you don’t want a physical store, a virtual office will do just fine.

6. Prepare and Sign the MOA

This is your legal document showing shareholder structure and responsibilities.

7. Pay License Fees and Receive Your License

Once all your documents are ready and approvals are in place, the final step is to pay the license fee. After payment is completed, your trade license will be issued - officially making your business legal and ready to operate in Dubai.

8. Apply for TDRA Approval

This is mandatory to legally conduct e-commerce activities in the UAE.

Once this is done, you're ready to go live!

E-Commerce License for UAE and GCC Nationals

If you're a UAE or GCC national, you also have the E-Trader License option.

This is a low-cost, home-based e-commerce license ideal for individuals selling homemade items, crafts, or services through social media. The cost of eTrader license is AED 1,070

a. Visa Eligibility: Not allowed
b. Physical Shop: Not allowed
c. Bank Account: Allowed

If you’re an expat planning to start a home-based or social media-driven business, the E-Trader license option is good. But, it only allows expats to offer digital services like content creation, photography, or consulting. Physical product sales are not permitted under this license for non-GCC nationals. Read our full guide on the E-Trader license in Dubai to see if it’s the right fit for you.

Let's Recap: Dubai Mainland E-Commerce Setup

Let’s sum it up:

You can register any commercial business activity and operate online. The mode of sales (physical store vs online) doesn't change the license type. Just make sure you get TDRA e-commerce approval

If you add a visa, your total cost will be AED 25,000 approx.

Now, if you’re looking for a more budget-friendly option, let’s talk about Freezones.

E-Commerce License from Dubai Freezones

Freezones are known for easy setup, 100% foreign ownership, and flexible pricing. They are ideal if you don’t need direct access to mainland consumers, or if you’re selling outside the UAE.

Confused between setting up in a Freezone or Mainland? Don’t worry - it’s a common question. Each option comes with its own set of benefits, depending on your business model and target market. Check out our detailed comparison of Freezone vs Mainland company setup to make the right decision for your business.

Here are the top Freezones offering e-commerce licenses in Dubai:

1. IFZA (International Free Zone Authority)

Affordable and fast setup. Great for solo entrepreneurs and license starts from AED 12,000 (no visa)

2. Meydan Freezone

Located near Downtown Dubai. Offers a digital dashboard and premium support

3. Dubai CommerCity

UAE’s dedicated e-commerce freezone. Ideal for large e-commerce and logistics businesses.

4. DMCC (Dubai Multi Commodities Centre)

Global reputation. Supports trading, e-commerce, and physical office setup.

E-Commerce Licenses in Other Emirates

Several Freezones outside Dubai offer e-commerce licenses at very competitive prices. Here are the top choices:

1. RAKEZ (Ras Al Khaimah Economic Zone)

a. Starting from AED 5,750 (without visa)
b. Flexible business packages

2. UAQ Freezone (Umm Al Quwain)

a. Entry-level e-commerce solutions
b. Affordable visa packages

3. Ajman Media City Freezone

Great for digital services and online stores

4. Sharjah Publishing City Freezone (SPCFZ)

a. Affordable option
b. Easy and quick setup
c. Bank account opening assistance.

5. Fujairah Creative City

E-commerce and content-based businesses are welcome.

6. SHAMS Freezone (Sharjah Media City)

a. License + Visa starts around AED 9,500

Note: All Freezones include additional charges like e-channel registration and establishment card fees.

As you can see, Dubai offers multiple options for launching your e-commerce business - whether through a Freezone, the Mainland, or even special licenses like the E-Trader. The key is choosing the setup that best matches your goals, budget, and business activity. If you’re still unsure or have any questions, feel free to reach out to us at COFTT. We’re here to guide you every step of the way.

Cost of E-Commerce License with Visa

If you're looking to get an e-commerce license with a residency visa in the UAE, here’s what you need to know. In Dubai Mainland, the total cost comes to around AED 25,000, while in Freezones like IFZA, it’s slightly more affordable at around AED 18,000.

But if you’re looking for the most budget-friendly option, Freezones in Sharjah, Ajman, and Umm Al Quwain offer e-commerce licenses with a visa starting from just AED 10,000. Isn’t that amazing?

Just keep in mind - prices can change depending on the Freezone and the number of visas you need. For the latest pricing and guidance, reach out to us anytime. We’re here to help you start smart.

Let COFTT Guide Your E-Commerce Launch

At COFTT, we’ve helped hundreds of entrepreneurs launch successful online businesses in Dubai and across the UAE. Whether you're selling products, services, or digital content - we’ll guide you through every step.

From selecting the best license to registering your company, getting visa support, and even connecting you with bank partners - we’re here to make your business dream a reality.

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Ready to start your e-commerce journey the right way? Contact COFTT today and let’s turn your idea into a legal, profitable online business.