E-commerce license in the UAE: which one you need and how to get it
Mainland, free zone, eTrader or a home business license? A plain-English guide to the licenses that let you sell online in the UAE, and how to choose.
By the Samay.ae teamUpdated 11 min read
To sell online legally in the UAE, you need a license that covers e-commerce. The right e-commerce license depends on four things: your nationality, your emirate, whether you work from home, and where your customers are.
UAE and GCC nationals living in Dubai can get the eTrader license for about AED 1,370. In Abu Dhabi, the Tajer Abu Dhabi license costs about AED 1,115 for three years, and Abu Dhabi says it is open to residents too. Most other sellers, including most expats, need a mainland trade license with an e-commerce activity, or a free zone license.
All fees below are at the time of writing (October 2026). Check them with the authority before you pay.
Why you need an e-commerce license in the UAE
The UAE's e-commerce law, Federal Decree-Law No. 14 of 2023, covers selling goods and services through websites, platforms, social media and apps. It expects sellers to hold the required licenses and to protect customer data. So selling on Instagram or WhatsApp counts, just like selling on a website.
A license also matters in practice:
- Payments: Payment gateways usually ask for a trade license before they approve you. So do buy now, pay later providers such as Tabby and Tamara.
- Banking: You need a license to open a bank account in your business's name.
- Trust: Shoppers and suppliers take a licensed business more seriously.
- Tax: Tax rules apply with or without a license. If you trade as an individual, Corporate Tax applies once your business turnover goes over AED 1 million in a calendar year, licensed or not.
The e-commerce license options, one by one
There are five main routes to an online business license in the UAE. A mainland license comes from the economic department of your emirate. A free zone is a business area with its own authority and rules. Home business licenses cost the least, but only some people can get them.
Dubai eTrader license (UAE and GCC nationals)
The eTrader license is a home-based license from Dubai's Department of Economy and Tourism (DET). Dubai launched it in March 2017 for people who sell products or services through social media and online platforms.
- Who: UAE nationals and GCC nationals living in Dubai, as a single owner.
- What: A sole proprietorship, so you carry full legal liability for the business. You cannot open a physical shop.
- Cost: About AED 1,370. That is AED 1,070 for the license plus Knowledge and Innovation fees, and AED 300 for Dubai Chamber membership. It is usually renewed every year.
- Where: On the Invest in Dubai platform. Every eTrader license also needs approval from the TDRA, the UAE's telecoms and digital government regulator.
For expats, news reports quoting DET say trading activities are only for UAE and GCC nationals, while some service activities may be open to residents. Some consultancies advertise a new "online seller" activity for all nationalities, but this is not officially confirmed. Ask DET before you plan around it.
The official wording is on the UAE government's e-commerce page. Our Dubai eTrader license guide explains how to apply.
Tajer Abu Dhabi
The Abu Dhabi Department of Economic Development (ADDED) issues Tajer Abu Dhabi for specific activities that need no business premises. You apply on TAMM, Abu Dhabi's government services platform.
- Who: The Abu Dhabi Media Office says it allows UAE citizens and residents, across about 1,200 activities. Older government text describes stricter rules, so confirm your case on TAMM.
- Cost: About AED 1,115 (AED 790 + AED 10 + AED 315), valid for 3 years. That is under AED 400 a year.
- Time: About 10 working days to process.
- Premises: No shop or office rent needed for the three years.
See the Tajer Abu Dhabi service on TAMM for current fees and requirements.
Sharjah Eitimad license
The Sharjah Economic Development Department issues the Eitimad license for home-based and social media businesses. It is open only to UAE nationals aged 18 or over who live in Sharjah. Holders cannot hire staff. Check the current fees with the department.
Mainland trade license with an e-commerce activity
A mainland trade license for an online store is open to any nationality. Some emirates issue a standalone e-commerce license, while others add an e-commerce activity to a normal commercial license.
If you already have a shop or a trade license, ask your licensing authority about adding an e-commerce activity first. In Abu Dhabi, for example, ADDED's e-commerce license lets a business add online trading to an existing license. You can also get it as a new license for selling through websites and social media. Holders can use the "eTajer" mark.
Costs vary a lot, because office lease rules depend on the emirate and the activity. Ask for a written quote that lists every fee, including any office requirement. A mainland license is usually the right base if you plan to open a shop, take on partners or hire a team.
Free zone e-commerce license
Many free zones advertise e-commerce licenses, for example Dubai CommerCity, IFZA, Meydan Free Zone, SHAMS, RAKEZ and DMCC. Costs vary by zone and package, so compare quotes line by line.
The catch is selling to customers in the mainland. A free zone company is generally set up to trade inside its zone and abroad. To sell to mainland customers, it usually needs a mainland license or permit, or a distributor. Goods that move from a free zone into the mainland are treated as imports.
Dubai now offers one route for this. Since 8 October 2025, free zone companies can apply on Invest in Dubai for a Free Zone Mainland Operating Permit. It costs AED 5,000 for six months and can be renewed, so budget about AED 10,000 a year. The first phase covers non-regulated activities, including trading.
There is a tax catch too. Free zone tax benefits generally do not cover income from sales to ordinary consumers, so that income is usually taxed at the normal Corporate Tax rate. Ask a tax adviser before you set up in a free zone to sell to shoppers.
A word on freelance permits
Freelance permits are usually meant for services, not for selling goods. If you plan to sell products, check that the permit covers trading before you rely on it.
UAE e-commerce licenses compared
| License | Who can get it | Cost guide | Best for |
|---|---|---|---|
| Dubai eTrader | UAE and GCC nationals living in Dubai | About AED 1,370, usually yearly | Selling from home as a single owner |
| Tajer Abu Dhabi | UAE citizens and residents (confirm on TAMM) | About AED 1,115 for 3 years | Home-based selling in Abu Dhabi |
| Sharjah Eitimad | UAE nationals 18+ living in Sharjah | Ask the Sharjah Economic Development Department | Home and social media sellers without staff |
| Mainland trade license | Any nationality | Varies by emirate, activity and office | Shops, partners and teams |
| Free zone license | Any nationality | Varies by zone and package | Selling mostly abroad |
| Dubai Free Zone Mainland Operating Permit | Free zone companies | AED 5,000 for six months | Free zone companies selling to Dubai mainland customers |
The three home-based licenses let you work from home. Mainland licenses may need an office, depending on the emirate and activity. Free zone packages vary, so check what each one includes.
Which e-commerce license do you need?
- You are an Emirati in Dubai selling from home: Start with the eTrader license. It was made for this.
- You are a GCC national living in Dubai: The eTrader license covers you too.
- You are an Emirati in Sharjah with no staff: Look at the Eitimad license.
- You live in Abu Dhabi: Check whether your activity is on the Tajer Abu Dhabi list on TAMM. At about AED 1,115 for three years, it is one of the lowest-cost options.
- You are an expat selling products in Dubai or the northern emirates: Plan for a mainland trade license with an e-commerce activity. If most of your customers are abroad, a free zone license may suit you better.
- You already have a shop: Ask about adding an e-commerce activity to your current license. See how to take your shop online in the UAE.
- You plan to hire staff or open a shop: Look at a mainland license. Eitimad holders cannot hire staff, and eTrader holders cannot open a shop. Do not plan on sponsoring visas with an eTrader license.
- You sell mostly outside the UAE: A free zone license can work well. Goods you export within 90 days are zero-rated for VAT (0%), as long as you keep proof of export.
- You dropship from overseas suppliers: You still need a license that covers selling those goods. See our guide to dropshipping in the UAE.
- You sell only on Instagram or WhatsApp: You still need a license, because selling on social media is still selling. See how to sell on Instagram in the UAE.
Tip: Before you pay for any license, list every product you plan to sell in the next two years. Then ask the authority whether your chosen activity covers all of them. Adding activities later can cost time and fees.
Check your products, not just your license
Some products need approval from another authority, on top of your license.
- Cosmetics, perfumes and personal care products: In Dubai, these usually need registering with Dubai Municipality through its Montaji system before sale. Other emirates have their own rules.
- Food made at home, medicines, supplements and e-cigarettes: These have extra rules, so check with the authority before you launch.
- Some electronics: Check whether your products need approval before you import them.
- Labels: UAE rules generally expect labels and product information in Arabic, and another language can be added. Check what applies to your products.
If you sell scent, our guide on how to start a perfume business online in the UAE goes further.
What to do after you get your e-commerce license
- Open a business bank account. Payment providers pay into it, and it keeps your records clean.
- Apply for a payment gateway, the service that takes card payments for you. Providers usually ask for your license, your ID, a UAE bank account in the business's name and a live website with policies and contact details. See payment gateways in the UAE.
- Build your store. Our step-by-step guide on how to start an online store in the UAE covers domains, payments and delivery.
- Watch the VAT threshold. You must register when taxable sales plus imports go over AED 375,000 in 12 months, and you may register once they pass AED 187,500. See VAT for online stores in the UAE.
- Understand Corporate Tax. The rate is 0% on taxable income up to AED 375,000 and 9% above it. Businesses with revenue of AED 3 million or less can claim Small Business Relief for tax periods ending on or before 31 December 2029. They must still register and file, and the penalty for late registration is AED 10,000.
- Put renewals in your calendar. The eTrader license is usually renewed every year, Tajer Abu Dhabi every 3 years, and the Free Zone Mainland Operating Permit every six months.
When your license is ready, the store comes next. Our Website package builds it for 7,870 AED a year, with payments and delivery set up. See what every store includes.
This guide is general information, not legal or tax advice. License rules and fees change, so check with the authority in your emirate or an adviser before you act.
Frequently asked questions
Can I sell online in the UAE without a license?
No. UAE rules require online sellers to hold a license that covers e-commerce, whether they sell on a website, Instagram or WhatsApp. Payment providers and banks will also usually ask for one. Home-based options start at about AED 1,115 for three years with Tajer Abu Dhabi.
Can expats get an e-commerce license in Dubai?
Yes. Expats can get a mainland trade license with an e-commerce activity from DET, or a license from a free zone such as Dubai CommerCity or DMCC. The eTrader license is officially for UAE and GCC nationals living in Dubai, so expats should check with DET before relying on it.
How much does an e-commerce license cost in Dubai?
The eTrader license costs about AED 1,370, for UAE and GCC nationals living in Dubai. Mainland and free zone licenses cost more, depending on the activity, office rules and package. Ask for a written quote that lists every fee before you pay.
Do I need a license to sell on Instagram in the UAE?
Yes. The UAE's e-commerce law covers selling through social media, so Instagram and WhatsApp sellers need a license too. For UAE and GCC nationals living in Dubai, the eTrader license was designed for this. Others can look at Tajer Abu Dhabi, or a mainland or free zone license.
Can a free zone company sell to customers in Dubai?
Not without extra steps. A free zone company is generally set up to trade inside its zone and abroad. To sell to mainland customers, it needs a mainland license or permit, or a distributor. Dubai's Free Zone Mainland Operating Permit costs AED 5,000 for six months and covers trading in its first phase.