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Telephone: +971 56 408 6728

Guide to Obtaining an E-commerce License in Dubai Free Zones

Robin Philip
September 3, 2024

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As Dubai’s e-commerce industry continues to rise exponentially, more people have shown interest in embarking on their commercial journey online. The steady rise is seen more than ever now. Whether it’s newbies or established businesses, everyone is eager to launch their online ventures. The first step to selling online is getting a business license.

A legal authorization or permit known as an e-commerce license enables businesses to operate online within the UAE. Companies that solely prefer to conduct business through retail shops and have physical inventories are exempt from this license requirement.

Types of e-commerce licenses in Dubai

E-Trader License

The first is the E-Trader License, which can only be acquired by UAE and GCC nationals under single ownership. The Department of Economy and Tourism (DET) is the one that issues it. Under this license, you are not allowed to own a physical location or open a store.

Portal License

Non-UAE nationals can obtain a portal license. It is an additional e-commerce license in Dubai. With a portal license, you can launch an internet company in Dubai that connects buyers and sellers.

Virtual Company License

This license enables foreign investors and non-residents to conduct online business in the ÛAE. However, the scope of this license is restricted to computer programming and design work as well as printing and advertising-related services.

Steps to getting an e-commerce license in Dubai free zones

In Dubai free zones, you can get an e-commerce business license in a few steps. Take into consideration the following to help you with the process:

1.Select a free zone

The first step is to understand the Dubai market and what business type is best for your requirements. It can be either B2B or B2C business, depending on market potential. Your strategy should be choosing a free zone where your online business can prosper. Another aspect to consider is customer and supplier accessibility, permissible business activity, and infrastructure availability.

2.Select the type of business structure

Choose the business structure you wish to create (limited liability corporation, sole proprietorship, etc.). It will affect the kind of license you need and the documentation needed.

3.Select a trade name

Choose a distinctive trade name that adheres to the UAE’s naming regulations. Make sure the name does not conflict with trademarks and is not currently in use.

4.Documents required

The documentation required for an e-commerce license is a copy of the business owner or shareholders’ passport and KYC (Know Your Customer) documents, including proof of residence. The applicant has to submit a business plan for the proposed e-commerce activity.

5.Submission of e-commerce license application

Send your application to the appropriate free zone authority along with the necessary paperwork.

For convenience, the majority of free zones have online application procedures. Your application for an e-commerce license must be accurate and comprehensive. It is crucial to lessen the likelihood of delays or rejections.

6.Pay fees

Depending on the free zone and the kind of license, pay the applicable licensing fees. License fees, registration fees, and other administrative expenses are examples of fees.

7.Get the initial approval

The free zone authority will grant you first permission when you submit your application. Depending on the free zone, this can take a few days.

8.Take office space

To operate in most free zones, you must have a fixed office space or a flexi-desk. Find an appropriate office space for your business setup in a UAE free zone.

9.Final registration

Complete the last steps of the free zone authority registration process after obtaining an office space. Send in any extra documents needed for final approval of the business setup Dubai. After approval, you will receive your e-commerce license.

How can A&A Associates help?

Speak to a business setup consultant in UAE, such as an A&A Associate expert for personalized guidance. We have a team of business setup specialists and legal experts who can provide updates on current regulations, legal requirements, and updates regarding free zones.

Ring our experts at A&A Associate for a free consultation on +971 56 408 6728 or register your interest on our website for a callback from one of our consultants. You can also chat with our representatives online.