E-commerce License in the UAE: Zones, Costs and Marketplace Rules

Federal Decree-Law No. 14 of 2023 on trading through modern technology replaced the older e-commerce law and came into force in September 2023. Law firm summaries note that it can also apply in free zones where the activity is not wholly contained in the zone or where the zone has no equivalent rules, so a free zone address does not take you outside it.

Consumer protection is covered by Federal Law No. 15 of 2020, which expressly includes e-commerce, and its executive regulations issued as Cabinet Decision No. 66 of 2023. In practice online sellers must identify themselves clearly to buyers, describe products accurately, give a dated invoice and provide key information in Arabic, with other languages optional.

None of this needs a lawyer for a small store, but it does shape your website. Publish your company name and licence details, clear prices, delivery terms, a returns policy and a privacy policy before you go live. Payment gateways usually check these pages before approving your account.

A free zone company can sell online to customers in the UAE and abroad, and most small online brands start this way because it is the cheapest route. Free zone rules on holding stock and delivering inside the UAE differ by zone, and selling directly from a local shop or warehouse to UAE customers may need a mainland licence or permit.

If most of your customers are in the UAE and you want a local warehouse, showroom or pickup point, a Dubai mainland licence from DET removes those limits. It costs more because you need a registered lease, but it can be the better long-term base for a brand that sells mainly inside the country.

Many sellers start in a free zone, prove the product, and add a mainland licence later. If you think that is likely, tell us at the start so we choose activities and a company name that will carry over.

Both marketplaces expect business sellers to register with a valid UAE trade licence, a passport or Emirates ID for the account holder and a bank account for payouts. Noon's help centre says the licence must have at least 30 days of validity left when you register. VAT-registered sellers give their tax registration number, while sellers below the threshold can register as non-VAT sellers.

Seller guides commonly report that a licence covering trading or e-commerce is accepted, while a pure service licence usually is not, and that the bank account should be in the company's name. Some product categories also need extra approvals before you can list them. Rules change, so check the current requirements on the marketplace's own seller pages when you apply.

If you will use Amazon or Noon fulfilment, your stock is imported and stored before it sells. That makes the trading activity and customs registration important, because the marketplace and customs will look at whether your licence covers the goods you are bringing in.

VAT registration becomes mandatory once your taxable supplies in the UAE pass AED 375,000 over 12 months, and you may register voluntarily from AED 187,500. Marketplaces charge VAT on their own fees, but the VAT on the products you sell remains your responsibility, so keep marketplace reports and invoices together.

Every UAE company must also register for corporate tax. The standard rate is 9% on taxable income above AED 375,000, and free zone companies can pay 0% on qualifying income if they meet the conditions. Sales to UAE consumers can affect that position, so get advice before you plan around the 0% rate.

For your own store, payment gateways usually ask for the trade licence, the bank account in the company's name, the owner's ID and a live website with clear policies. Starting the bank account early saves time, because the gateway and the marketplaces both need it.