The short answer
To sell online from the UAE you need a trade licence with an e-commerce activity. Most foreign owners get it in a Free Zone: for example IFZA's "Ecommerce" or "Online Seller" activities, or RAKEZ's e-commerce packages. Dubai's e-Trader licence is only for UAE and GCC nationals. If you will sell to UAE consumers from your own shop or warehouse, a mainland setup may fit better. Then you need a bank account, a payment gateway and, above AED 375,000 of sales, VAT registration.
Your licence options
| Option | Who it suits | Good to know |
|---|---|---|
| Free Zone e-commerce activity | Online shops, marketplaces, dropshipping, digital products, selling worldwide | 100% ownership, flexi-desk, residence visa; most popular with foreign owners |
| Mainland e-commerce licence | Selling to UAE consumers with local stock, delivery and returns, or a showroom | Needs registered premises; trades anywhere in the UAE |
| e-Trader licence (Dubai) | UAE and GCC nationals selling from home or on social media | Not available to other nationalities |
Free Zones that suit e-commerce
RAKEZ
- Lite package: one owner, one e-commerce or trading activity
- Pro: up to 10 activities
- Warehouses if you hold stock
IFZA
- "Ecommerce" and "Online Seller" activities
- A Dubai address
- 3 activities included, mix with services
Meydan
- 2,500+ activities, 3 groups included
- Fully online setup
- A route to work on the mainland
Dubai also has a free zone built for e-commerce. See all Free Zones. Not sure? Find your best Free Zone in 2 minutes.
Which model are you?
| Model | What to plan for |
|---|---|
| Your own online shop | Payment gateway, delivery partner, returns policy, VAT on sales |
| Marketplace seller (Amazon, Noon and others) | Each marketplace's seller rules, fulfilment, VAT number once registered |
| Dropshipping | Supplier terms, delivery times, returns, VAT on imports and sales |
| Digital products and services | Activities that cover digital sales, VAT on sales to UAE customers |
| Selling to other businesses | Trading activities, invoices with VAT details, credit terms |
Choosing your activities
- Cover what you sell. An e-commerce activity plus trading activities for your product types, or general trading for a wide range. See general trading licence.
- Regulated products need approvals. Food, cosmetics, supplements, medical products and electronics can need approval from other authorities.
- Add services if you have them. Many sellers also earn from marketing or consulting; most Free Zones let you combine both.
Search the IFZA activity list for "ecommerce" or "online" to see the exact activity names.
What you need to launch
- Trade licence with the right activities.
- Business bank account. Banks ask what you sell, where you buy and who your customers are. See bank account opening.
- Payment gateway. Usually your licence, bank account, a working website with terms, refund and privacy policies, and the owners' IDs.
- Delivery partner or marketplace fulfilment.
- Bookkeeping that matches marketplace payouts, fees and refunds. See bookkeeping.
- Corporate tax registration, and VAT once you pass the threshold.
Selling on marketplaces
Marketplaces are the fastest way to reach UAE buyers. Each sets its own rules, but sellers are usually asked for:
- A valid trade licence whose activities cover the products you list.
- A business bank account in the company's name for payouts.
- The owner's ID and, once you are registered, your VAT number.
- Brand or supplier documents for some categories.
Marketplace payouts arrive net of fees, refunds and fulfilment charges. Your books must show the full sale and each fee separately, which is where many sellers' VAT returns go wrong.
Shipping, returns and customs
- Delivery: a courier or logistics partner, or the marketplace's own fulfilment, so you don't need a warehouse to start.
- Returns: a clear returns and refund policy on your website, also needed by payment providers.
- Imports: goods brought into the UAE go through customs, and your company may need a customs registration. Import VAT is usually reclaimable once you are VAT registered.
- Selling abroad: exports can be zero-rated for VAT when you keep proof of export.
VAT for online sellers
VAT in the UAE is 5%. Registration is mandatory once your taxable sales pass AED 375,000 in any 12 months, and voluntary from AED 187,500. For online sellers the threshold often arrives faster than expected, because one good season counts. Exports and some sales abroad can be zero-rated if the conditions are met. Read VAT registration in the UAE, or let us watch the threshold for you as part of our accounting.
Common mistakes online sellers make
- Activities that don't cover the products. Marketplaces and banks check.
- Regulated products without approval, such as cosmetics, supplements or food.
- Recording payouts instead of sales. VAT is due on the full sale price, not the net payout.
- Missing the VAT threshold after a strong season.
- Personal accounts for business money, which blocks payment gateways and worries banks.
How we set up your e-commerce company
- Free 30-minute call. We look at what you sell, where your stock is and who buys, and pick the licence and zone.
- Company setup. Activities, name, licence and, if you want it, your residence visa.
- Bank account. We prepare the file the way banks want it.
- Ready to sell. Your documents for the payment gateway and marketplaces.
- Books and tax. Corporate tax registration, VAT threshold watched every month.
What decides the cost
The zone or mainland route, the number of activities, any product approvals, visas and storage. We don't publish a price that may be wrong for you: after a free call you get your exact cost, line by line, in writing.