Launching online in the Emirates rewards good planning and clean compliance. This guide walks you through the essentials with verified sources and clear steps.
- 1) Map your model and jurisdiction
- 2) Pick the legal form and activity
- 3) Reserve your trade name and obtain initial approval
- 4) Finalise premises and issue the licence
- 5) Understand taxes that affect e-commerce
- 6) Open a bank account and set up payments
- 7) Secure your domain, website, and marketplace listings
- 8) Publish clear customer policies
- 9) Protect personal data and e-signatures
- 10) Maintain UBO and other registers
- 11) Plan logistics and imports
- FAQs
- Conclusion
Many founders search for starting an online business in Dubai. Others want a step-by-step on how to open e commerce business in Dubai. This guide shows the clean path to launch an e commerce business in UAE.
1) Map your model and jurisdiction
Decide how you will sell. Own-store, marketplace, or both. Next, choose the mainland or a free zone. Mainland licensing lets you sell across the UAE directly to consumers. Free zones suit exporters and cross-border models, with a simple set-up. The official UAE Government portal lists the steps for both options. It explains mainland formation and the streamlined free zone route. Khaleej Times also summarised the free zone process in six steps.
2) Pick the legal form and activity
Choose the legal form that fits your risk and ownership needs. In free zones, common options include FZ-LLC and branches.
For online retail, you must add an approved e-commerce activity. Apply for an e commerce business license in UAE that matches your goods and model. Dubai’s Invest in Dubai platform covers the licensing flow end to end. It includes the trade name, initial approval, and issuance of the licence. Choose the activity wording that fits an e commerce business in UAE.
The e-Trader licence in Dubai is available only to UAE and GCC nationals resident in Dubai. It allows online sales through social media but does not provide visa quotas or shop facilities.
3) Reserve your trade name and obtain initial approval
In Dubai, you can reserve a name and get initial approval online. The official service pages confirm the steps and typical fees.
4) Finalise premises and issue the licence
Lease an office or flexi-desk as required by your authority. Then submit the final documents and pay the fees to issue the trade licence. Budget for your e commerce business license in UAE and its annual renewals. The UAE portal lists the usual document flow for the mainland. Free zones outline similar steps with their own timelines.
5) Understand taxes that affect e-commerce
Corporate tax applies at 9% to business profits above AED 375,000. Reliefs exist for qualifying free zone entities and small businesses under certain conditions. (UAE Ministry of Finance)
VAT. The UAE levies VAT at 5 per cent. Registration is mandatory at AED 375,000 in taxable supplies, with voluntary registration from AED 187,500. The Ministry of Finance sets these thresholds.
Customs. Standard customs duty is 5 per cent of the CIF value for most goods.
6) Open a bank account and set up payments
For card payments, integrate with a gateway licensed by the Central Bank. You can check the rulebook and licensed categories for payment services and stored value providers.
7) Secure your domain, website, and marketplace listings
Register a .ae domain through an accredited registrar under the national .aeDA system overseen by TDRA. For starting an online business in Dubai, a local domain improves trust and delivery clarity.
8) Publish clear customer policies
The Consumer Protection Law applies to goods and services sold in the UAE, including e-commerce registered in the country. It requires accurate pricing, Arabic disclosures, and defined warranties and invoices.
9) Protect personal data and e-signatures
The federal Personal Data Protection Law sets rules for collecting and processing personal data. It sits alongside the Electronic Transactions and Trust Services framework, which recognises e-signatures and trust services.
10) Maintain UBO and other registers
Companies must maintain a Real Beneficiary register under Cabinet Decision No. 109 of 2023, which replaced the 2020 decision. Keep shareholder, controller, and establishment data current with your registrar.
11) Plan logistics and imports
If you import stock into the mainland, register with customs and budget for duty and VAT. Free zone warehousing can defer duty until goods enter the mainland. The government portal explains rates and clearance.
FAQs
Q: What licence do I need to sell online?
A: You need an activity that covers online retail under your trade licence, issued by your emirate’s economic department or a free zone authority. The UAE portal states that e-commerce activity requires an appropriate licence.
Q: What is an e commerce business license in UAE?
A: It is the trade licence that includes an e-commerce activity under your chosen authority. It authorises online sales tied to your entity and must match your goods and model.
Q: What is the fastest route for how to open e commerce business in Dubai?
A: Use the Invest in Dubai pathway. Reserve a trade name, get initial approval, select the e-commerce activity, secure premises, and issue the licence online.
Q: When must I register for VAT?
A: Register when your taxable supplies in the last 12 months exceed AED 375,000, or expect to cross that in the next 30 days. The Ministry of Finance confirms the thresholds and 5 per cent rate.
Q: What about corporate tax?
A: The 9 per cent rate applies to taxable income above AED 375,000, with reliefs for small businesses and qualifying free zone income subject to conditions. See the UAE Ministry of Finance for scope and updates.
Q: How do I accept online payments?
A: Work with providers licensed by the Central Bank, such as retail payment service providers or stored value facility operators. Check the rulebook and licensing pages.
Q: Do I need Arabic on my site?
A: Yes for key content. The Consumer Protection Law requires Arabic data, advertising, and contracts, with other languages allowed alongside.
Q: How do I get a .ae domain?
A: Register through an accredited .ae registrar managed by aeDA under TDRA.
Conclusion
If you plan to scale an e commerce business in UAE, assemble compliance early. Map the right licence, tax registrations, and customer policies.
If you want a step-by-step for how to open e commerce business in Dubai, follow the DET flow: name, initial approval, activity selection, premises, and issuance. Then complete VAT, banking, and payments.
For founders starting an online business in Dubai, protect your data flows, publish clear returns, and use licensed payment rails. That foundation keeps growth on track.
