E-commerce business in Dubai is undergoing rapid growth, even more so after the Covid-19 pandemic. When the whole world had switched to operating digitally, everything, whether it be buying or selling, work or studies- all of it was carried out through online mediums. This gave rise to businesses to thrive in this online marketplace. So if you’re looking to start an E-commerce business in Dubai, you must obtain an E-commerce license first.

Steps to Obtain a UAE Free Zone License

Determine the legal structure

The first step to obtaining a UAE free zone license is to determine a legal structure, this is decided based on the number of shareholders and the type of liability. E.g. Branch, FZE, and FZ LLC.

Choose your business activity

Depending on the nature or type of business you wish to undertake, you will have to select the relevant activities from the ones that are permitted by the Dubai Free Zone.

Choose the type of office space

As per your requirements, you can choose either a virtual or a physical office space in the free zone.

Obtain pre-approvals

If your business activity requires, you might have to obtain pre-approvals from the relevant government authorities for the trade license in Dubai.

Apply for a business license

After all these steps, depending on your business activity, you can now apply for the E- trading license type along with the required documents.

Look into: Professional License-in-Dubai

E-commerce license validity period and renewal:

Note that the validity of an E-commerce license in Dubai is up to one year.

Therefore one must keep track of the expiration date to ensure uninterrupted business operations and plan for renewal accordingly.

To gain more details on how to renew your trading license, you can contact our business set-up consultants

Benefits of an E-commerce License in Dubai:

Tax Advantages: No personal income tax, capital gains tax, or withholding tax.

Business Environment

If you want to set up a business in Dubai, this city offers a growing business environment with minimal taxation on capital investment and income.

Credibility and Legal Compliance

Improved credibility when dealing with suppliers and adherence to UAE’s commercial laws.

Operational Advantages

This license will give you the ability to conduct business activities online, reaching a wide customer base, and fast, secure banking facilities.


E-commerce licenses allow for the sale of a diverse range of products through online mediums.

Check out: Import-Export Business in Dubai


Embarking on the journey to obtain an E-commerce license in Dubai is not just a regulatory process; it’s a strategic move towards thriving in the dynamic digital landscape. By following this step-by-step guide and leveraging the benefits, businesses can navigate the complexities, ensure compliance, and position themselves for success in Dubai’s growing E-commerce market.

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