To sell online in the UAE, whether through your own website, social media or marketplaces such as Amazon.ae and Noon, you need a trade licence that includes an e-commerce activity. As of October 2026, the main options are a mainland company, a free zone company or, for eligible individuals in Dubai, the home-based e-Trader licence. The right choice depends on what you sell, where your customers are and whether you need visas, staff or a warehouse.
Why you need a licence
Online trading is regulated under Federal Decree-Law No. 14 of 2023 on Trading by Modern Technological Means, alongside consumer protection and data protection laws. A licence lets you open a corporate bank account, use payment gateways, register on marketplaces as a business, import stock under your own customs code and issue proper invoices. Selling without one can lead to fines and blocked accounts.
Your three main options
| Option | Best for | Key points |
|---|---|---|
| Mainland company | Selling across the UAE with local stock, showroom or delivery | Direct access to the UAE market; can lease warehouses; requires a registered office |
| Free zone company | Online stores, dropshipping, international sales | Often quicker set-up; flexible desk options; 0% corporate tax on qualifying income if conditions are met |
| e-Trader licence (Dubai) | Individuals selling from home via social media | Issued by Dubai’s Department of Economy and Tourism; no physical shop or office; no visa sponsorship |
Mainland
A mainland company can sell to anyone in the UAE, store goods in a local warehouse and work with government buyers. For most activities, full foreign ownership is now allowed.
Free zone
A free zone company suits founders running a website or marketplace store, particularly for services, digital products or international customers. If you hold stock and deliver to UAE customers, check how your zone treats onshore sales and logistics. Tajnes offers Dubai Free Zone, Dubai Free Zone Premium, Sharjah, Ras Al Khaimah and Ajman Free Zone options.
e-Trader
The e-Trader licence is aimed at individuals, mainly UAE and GCC nationals living in Dubai, who sell from home. It does not allow a shop or office and does not give visas. Eligibility for other residents should be confirmed with DET before applying.
Choosing the right activities
Your licence should list both the online channel and the products. For example, “e-commerce through websites” or “trading via social media” combined with the goods you sell, such as clothing, cosmetics or electronics. Some products need extra approvals, for example food, supplements, cosmetics or medical items, which may need municipality or ministry clearance. Getting activities right at the start makes bank and marketplace onboarding much easier.
Step-by-step set-up
- Decide your model: own stock, dropshipping, digital products or services.
- Choose mainland, free zone or e-Trader based on stock, customers and visa needs.
- Select activities and trade name.
- Obtain the licence and, if needed, immigration establishment card and visas.
- Open a corporate bank account and apply to payment gateways.
- Register for a customs code if you import goods.
- Register on marketplaces with your licence and bank details.
- Register for corporate tax within three months of incorporation, and for VAT once sales pass the threshold.
Tax for online sellers
- VAT: registration is required once taxable supplies exceed AED 375,000 in 12 months; voluntary from AED 187,500. Imports count towards the threshold.
- Corporate tax: companies must register from incorporation. Income up to AED 375,000 is taxed at 0% and the rest at 9%, as of October 2026. Small Business Relief may apply where revenue is AED 3 million or less.
- Individuals: fall within corporate tax only once business turnover exceeds AED 1 million in a calendar year.
More on our tax page.
Consumer and data rules to follow
- Show clear prices, product details, delivery terms and return policy.
- Provide a working customer contact channel.
- Issue electronic invoices and do not charge extra for digital payment methods.
- Handle customer data under the UAE personal data protection law.
- Use licensed logistics providers.
Payments, banking and logistics
Payment gateways and marketplaces review each business individually. They usually ask for your trade licence, owner IDs, a working website or store link with clear policies, and a corporate bank account in the company’s name. Approval is at their discretion. If you hold stock, budget for storage and last-mile delivery, and check that your logistics partner is licensed. If you import goods, you will also need to register with customs.
Common mistakes online sellers make
- Licensing only “e-commerce” without listing the actual products.
- Selling regulated products, such as supplements or cosmetics, without the required approvals.
- Using a personal bank account for business sales.
- Forgetting that marketplace sales count towards the VAT threshold.
- Copying another store’s terms and returns policy without checking they fit UAE consumer rules.
How Tajnes can help
We help online sellers choose the right licence and activities, set up the company, arrange visas and support corporate bank account applications. Government fees, third-party fees and our service fee are always shown separately. Compare options with the cost calculator, view current offers or book a consultation.
Frequently asked questions
Do I need a licence to sell on Instagram in the UAE?
Yes. Selling through social media is a commercial activity and needs a trade licence, such as an e-commerce company licence or, for eligible individuals in Dubai, the e-Trader licence.
Can a free zone company sell online to UAE customers?
Many free zone companies sell online to UAE customers, but rules on onshore stock and distribution vary. Check the conditions for your zone and model.
Who can get a Dubai e-Trader licence?
It is aimed at individuals, mainly UAE and GCC nationals living in Dubai, selling from home. Other residents should confirm eligibility with DET.
Can I sell on Amazon.ae with a free zone licence?
Marketplaces generally accept UAE trade licences, including free zone licences, subject to their own onboarding checks.
Do e-commerce businesses pay VAT?
Yes, once taxable supplies exceed AED 375,000 in 12 months, VAT registration is mandatory. Voluntary registration is possible from AED 187,500.
Does the e-Trader licence include a visa?
No. It does not provide visa sponsorship. A company licence is needed for that.
General information, not legal or tax advice. Rules and fees change and authorities make all final decisions. T&Cs apply.
