How to Start an Online Business in the UAE

The internet is making it easier for entrepreneurs to earn an income and grow their wealth. In the UAE, online retailers are experiencing positive momentum as online shopping spikes to 140% per month. But online businesses are not limited to selling products.

Your online business could focus on consulting (practically any industry has room for consultants), marketing and sales, freelancing (e.g., virtual assistance, content creation, etc.), education and tutorial, translation, or tech support. 

But where do you start when you want to establish a digital business? How do you get an e-commerce trade license in the UAE? When you already know your “what,” we give you the “how.”

Here’s how to start an online business in the UAE.

Pick a jurisdiction.

Starting a business in the UAE is relatively easy. You can apply in person at government service centers or Tasheel offices, among several other offices. You can also apply for a license online, which makes perfect sense for your online business. 

Accomplishing  business set up in a UAE free zone or elsewhere is relatively simple, and something you can try to complete on your own. However, like most people embarking on a new venture, you will have several questions about the process. An experienced business setup consultant will help you simplify the process. 

First, consider which jurisdiction will work best for your online business. The UAE offers two, each with their distinct advantages.

Mainland

You can apply for your online business license through the Department of Economic Development of your emirate. 

The mainland category does not have a cap on employee visa, which could be beneficial if your online business employs a lot of foreign workers.

If you own a purely online business (with no physical presence), the Telecommunications and Digital Government Regulatory Authority will have to review your application for an e-trade license. The e-trade license, however, is limited to UAE or GCC nationals who run small, homegrown businesses with a few products. 

Free Zone

The UAE has 46 free zones, and each one caters to specific industries and has their own regulations. The beauty of starting an online business in Dubai, Sharjah, Abu Dhabi, or other  free zones in the UAE is not having to worry about custom duties or taxes for trade. 

If your online business has an import and export component, a free zone could make financial sense as your location.

Pick a business name that follows UAE guidelines.

Your online business’s name is crucial. It’s your brand, so it must be easy to recall and be relevant to the nature of your business. 

But it also has to comply with UAE rules:

• Include abbreviations of the company’s legal structure (e.g., LLC for limited liability company).
• The trade name must not contain inappropriate words and it must not offend the general public.
• It must not contain the names of rulers, government agencies, or the names and logos of external government bodies.
• It must not be registered by another company.
• The name must be approved by the DED and the trademark by the Ministry of Economy.

Prepare your documents.

In general, you’ll need the following documents when applying for your e-commerce license:

• Application form 
• Copy of your passport or visa/entry stamp 
• Emirates ID for UAE residents 
• Contact number, email and complete address of all company shareholders 
• Share ratio for each shareholder 
• Photos, if required 

Some businesses may need to obtain further approvals and include them in the application. If your online business performs health-related activities, for example, you may need to secure additional approvals from local health departments.

Apply for your online business license.

Once you have everything ready, you can start the application process to receive your business license. The wait time typically takes a week.

Your license will depend on what your business does and the jurisdiction you pick. For example, if you opt for a Dubai mainland company registration, you can obtain a dual license to operate in the mainland and in a specific free zone. 

If you decide to go with a business setup in an Ajman free zone, you can get the e-commerce license. Among the list of activities included in this license are events ticketing, fashion retail, media entertainment, and fashion retail.

Open a bank account.

Your business bank account signals the beginning of your online business. It is the first thing you need to do before applying for payment gateways.

Once your bank account and payment gateways are set, make sure your employee visas are in order.

How Much Does It Cost to Register an Online Business in the UAE?

Company registration costs will vary depending on several factors: the type of license you need to operate in the UAE, the applicable fees based on your business activities, and the size of your business, 

A Dubai company setup cost will differ from a business being registered in Sharjah or Abu Dhabi.

Do I Need a License to Start an Online Business in the UAE?

All businesses operating in the UAE need a license before starting. Even a home-based business must be registered and have the required license (for UAE/GCC nationals, this would be the e-trader license).

The UAE is one of the world’s most attractive business hubs. It is the 25th most competitive global economy in the world. 

The government continually encourages private sector growth and competition, developing ways to diversify the national income. This means more opportunities for different types of entrepreneurs.

How to Start an Online Business in the UAE With Ease

When you want the most efficient and cost-effective way on how to start an online business in the UAE, let our team of professionals handle the task.

Our years of experience with regulatory authorities, governing bodies, and free zones ensure we’re able to assist you in establishing your online business in no time. 

We’ll guide you through the process, explain the licensing costs, and prepare your documents for submission.

Book a free consultation today.