E-commerce Company Formation in Dubai, UAE
E-commerce company formation in Dubai from AED 12,900 with a free zone licence. Payment gateways, marketplace selling, VAT on online sales and fulfilment explained.
Business Setup AE editorial review Last reviewed 2026-09-09
Quick answer
An e-commerce company in Dubai costs from AED 12,900 with a free zone licence (Meydan, IFZA, SHAMS) or from about AED 15,200 plus premises for a mainland e-trader licence. Free zones suit cross-border online sales; mainland is required for a physical shop or unrestricted UAE doorstep delivery under your own name.
- Free zone from
- AED 12,900
- Mainland from
- AED 15,200 + premises
- Setup time
- 3 – 10 working days
- VAT registration
- Mandatory above AED 375k
Selling online from the UAE requires a trade licence with an e-commerce or trading activity — a payment gateway, a business bank account and most marketplaces will not onboard you without one. The licence can sit in a free zone or on the mainland, and the right answer depends on where your customers are and how you fulfil orders.
For cross-border online sales, a free zone e-commerce licence is the cheapest compliant route and needs no physical premises. For selling to UAE consumers at scale — your own delivery fleet, a physical showroom, or listing as a local seller on marketplaces — a mainland DET licence removes the structural friction.
This page sets out the licence options, the real 2026 costs, and the operational pieces nobody prices into the headline: payment gateway onboarding, VAT on digital and physical sales, fulfilment and marketplace commission.
| Component | Free zone route (AED) | Mainland route (AED) |
|---|---|---|
| Licence and registration | 12,900 – 15,000 | 15,200 – 20,000 |
| Premises | Flexi-desk included | Ejari office / shop 10,000+ |
| One residence visa | 3,500 – 5,700 | 3,500 – 5,700 |
| Payment gateway setup | 0 – 1,500 | 0 – 1,500 |
| Year-one realistic total | 18,000 – 24,000 | 30,000 – 45,000 |
Which licence for which selling model
| Selling model | Recommended licence | From (AED/yr) |
|---|---|---|
| Cross-border online store (own site) | Free zone e-commerce activity | 12,900 |
| Instagram / social selling to UAE | Meydan / SHAMS e-trader style licence | 9,500 – 14,500 |
| UAE marketplace seller (own entity) | Mainland DET commercial licence | 15,200 + premises |
| Online + physical retail shop | Mainland commercial licence | 25,000+ with shop rent |
| Dropshipping into the UAE | Free zone trading + logistics agreement | 12,900 |
Payment gateways and banking
UAE payment gateways (Stripe UAE, Telr, PayTabs, Checkout.com, Network International) require a trade licence, a corporate bank account and usually a functioning website with refund and privacy policies before approval. Approval timelines run one to four weeks, and high-risk categories face longer underwriting.
Open the corporate bank account early — gateway onboarding stalls without it. Free zones with strong banking reputations (DMCC, Meydan, IFZA) see smoother account opening for e-commerce activity codes.
VAT and tax for online sellers
- VAT registration is mandatory once UAE taxable turnover passes AED 375,000 in any 12 months — voluntary from AED 187,500
- Goods delivered to UAE customers attract 5% VAT; exports shipped out of the UAE are generally zero-rated with proof of export
- Marketplace sales still count toward your turnover — commission invoices do not reduce it
- Corporate tax of 9% applies on profit above AED 375,000; qualifying free zone sellers of goods to non-UAE customers may retain the 0% rate
Who this option suits best
- Founders selling internationally from a UAE base
- Social-commerce sellers formalising their sales
- Brands listing on Amazon.ae or Noon under their own entity
- Dropshippers using UAE or overseas fulfilment
- Retailers adding an online channel to a physical shop
Step-by-step process
- 1
Define the catalogue and fulfilment model1 day
What you sell and who delivers it decides the activity code and whether mainland is mandatory.
- 2
Pick the licence route1 day
Free zone for cross-border; mainland for UAE-market scale.
- 3
Reserve trade name and apply1 – 2 days
Standard name reservation and initial approval.
- 4
Receive the licence2 – 7 days
Free zones issue in days; mainland needs Ejari first.
- 5
Open the corporate bank account1 – 4 weeks
Do this before gateway applications.
- 6
Onboard payment gateway and marketplaces1 – 4 weeks
Website policies, KYC and underwriting.
- 7
Register for VAT when requiredOngoing
Track turnover from day one so the AED 375,000 threshold does not surprise you.
Documents required
- Passport copies (valid 6+ months) for every shareholder and manager
- Passport-size photo with white background for each applicant
- Proof of address or a recent utility bill / bank statement
- Three proposed trade names in order of preference
- Business activity list and a short business description
- Emirates ID and visa copy or entry stamp if you are already in the UAE
- Website URL or store plan (requested by most banks and gateways)
Realistic timeline
| Stage | Duration |
|---|---|
| Licence issuance | 3 – 10 working days |
| Bank account | 1 – 4 weeks |
| Payment gateway approval | 1 – 4 weeks |
| Residence visa (if taken) | 7 – 14 working days |
Licence figures are 2026 published fees. Gateway, marketplace and logistics fees are set by those providers and change frequently.
Common mistakes and how to avoid them
Buying the cheapest licence before checking gateway acceptance
Fix: Confirm your target gateway onboards your chosen zone and activity code.
Ignoring VAT until the threshold is crossed
Fix: Track turnover monthly; late registration brings backdated VAT and penalties.
Assuming a free zone licence covers UAE doorstep delivery
Fix: Structuring local fulfilment properly may need a mainland entity or distributor.
No refund or privacy policy on the site
Fix: Gateways reject stores without them — build policies before applying.
Compliance after licensing
- Corporate tax registration with the FTA — 9% applies on taxable profit above AED 375,000; 0% below it. Small Business Relief may apply to revenue under AED 3m.
- VAT registration is mandatory once taxable turnover passes AED 375,000 in 12 months, and voluntary from AED 187,500.
- Economic Substance Regulations (ESR) notifications for relevant activities such as holding, IP, headquarters and distribution.
- Ultimate Beneficial Owner (UBO) register kept with the licensing authority and updated within 15 days of any change.
- Anti-Money Laundering (AML) registration on the goAML portal for designated non-financial businesses and professions.
- Annual licence and establishment-card renewal, plus audited financials where the free zone or activity requires them.
Regulators referenced: Ministry of Economy (UAE) · Dubai Department of Economy and Tourism (DET) · Abu Dhabi Department of Economic Development (ADDED) · Federal Tax Authority (FTA) · General Directorate of Residency and Foreigners Affairs (GDRFA) · Ministry of Human Resources and Emiratisation (MOHRE)
Frequently asked questions
How much does an e-commerce licence cost in Dubai in 2026?
Can I sell on Amazon.ae with a free zone licence?
Do I need a residence visa to run an e-commerce company?
When must an online store register for VAT?
Which free zone is best for e-commerce?
People also ask
Is an e-trader licence enough for a real online store?
E-trader style licences suit home and social selling. For payment gateways, importing stock and scaling, a full commercial or e-commerce activity licence is the safer structure.
Can I run Shopify with a UAE licence?
Yes. Shopify works with UAE entities; pair it with a local gateway such as Stripe UAE, Telr or PayTabs for dirham settlement.
Do I pay VAT on sales to customers outside the UAE?
Exports of goods are generally zero-rated with export evidence. Digital services follow place-of-supply rules — take advice for your exact model.
How long before I can take payments?
Realistically four to eight weeks end to end: licence in days, then bank account, then gateway underwriting.
Founder checklist
- Confirm the exact activity codes you need before paying any fee
- Compare at least three verified providers on total year-one cost, not licence cost alone
- Check the visa quota attached to your chosen facility (flexi-desk vs office)
- Ask what is excluded: establishment card, e-channel deposit, medical, Emirates ID, PRO fees
- Confirm bank-account support and which banks the provider actually opens with
- Register for corporate tax within the deadline after licence issuance
- Diarise your licence renewal date and UBO/ESR filing dates
Why you can trust this guide
- Independent marketplace — Business Setup AE does not form companies and takes no commission on provider pricing
- Every listed provider holds a valid UAE trade licence and publishes fixed prices
- Costs reviewed against 2026 published government schedules
- Written and reviewed by advisers who have processed UAE licences and residence visas
Editorial ownership: Business Setup AE Editorial Team. See our editorial and corrections policy and package verification method.
Related guides and services
Official government sources
Fees, thresholds and licensing rules on this page are checked against these official UAE government and regulator sources.
- u.ae — e-commerce in the UAEGovernment rules for licensed online trading
- Dubai Department of Economy and Tourism (DET)E-trader and e-commerce licence conditions
- Ministry of Economy — UAEFederal commercial registration, trade names and company law
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