Question 1

Q-1. Can a foreigner have 100% ownership of an e-commerce business in the UAE?

Accepted Answer

Yes, foreigners can now fully own e-commerce businesses in both mainland and free zones. Free zones guarantee 100% ownership by default. Recent legal reforms also allow 100% foreign ownership on the mainland for most e-commerce activities—though it's wise to verify with the DED for your specific business type.

Question 2

Q-2. Is a physical office mandatory for an online e-commerce business license?

Accepted Answer

Not always. Home-based licenses like Dubai’s E-Trader or Abu Dhabi’s Tajer don’t require a commercial office. For other licenses, free zones provide cost-effective flexi-desk or virtual office solutions, which meet legal address requirements without needing a full physical office setup.

Question 3

Q-3. What is the main difference between an E-Trader and a full E-commerce license?

Accepted Answer

An E-Trader license is limited to UAE/GCC nationals (and some residents) for selling via social media from home. It doesn’t allow hiring staff or opening a shop. A full e-commerce license supports visa sponsorship, warehouse use, full website operations, and international trade—ideal for formal, scalable businesses.

Question 4

Q-4. Can I sell on Amazon or Noon with a free zone license?

Accepted Answer

Yes. Major platforms like Amazon.ae and Noon require a valid trade license for seller registration. A free zone e-commerce license is fully accepted and allows you to legally sell products on these platforms, provided you meet any additional compliance or logistics requirements they may have.

Question 5

Q-5. What is the typical timeframe to apply for an e-commerce business license?

Accepted Answer

The timeline varies by license type. Dubai’s E-Trader license may be issued within minutes. Free zone licenses typically take 3–7 working days. Mainland licenses or those needing third-party approvals can take 2–4 weeks. Processing time depends on business activity, documentation, and the chosen jurisdiction.

Question 6

Q-6. Is a local sponsor required for a sole proprietorship e-commerce license on the mainland?

Accepted Answer

Not necessarily. For professional services, a sole proprietor can have 100% foreign ownership but must appoint a Local Service Agent (LSA) with no control or shares. For commercial trading activities, most sectors now allow full foreign ownership without the need for a UAE national sponsor.

Question 7

Q-7. How much does an e-commerce license cost in the UAE?

Accepted Answer

E-commerce license costs vary depending on the emirate and jurisdiction. In free zones, prices typically start from AED 5,750 to AED 15,000, including basic setup and flexi-desk options. Mainland licenses can range from AED 12,000 to AED 25,000. Costs may increase with additional services like visas, offices, and external approvals.

Question 8

Q-8. Do I need a UAE residence visa to start an e-commerce business?

Accepted Answer

Yes, if you're setting up as a shareholder or managing director, you’ll typically need a UAE residence visa. Most free zones offer visa packages with the license. However, for home-based permits like E-Trader (available to UAE/GCC nationals and some residents), a visa may not be mandatory.

Question 9

Q-9. Can I run an e-commerce business from outside the UAE?

Accepted Answer

Yes, you can operate remotely by setting up a UAE-registered e-commerce company in a free zone. Many entrepreneurs choose this option to access UAE banking, logistics, and payment gateway integration without relocating. However, a UAE visa and local presence may be needed to access certain services or hire staff.

Question 10

Q-10. What are the legal requirements to start an e-commerce business in the UAE?

Accepted Answer

Legal requirements include: selecting the right jurisdiction (mainland or free zone), obtaining an e-commerce license, reserving a trade name, having a registered address, and complying with Federal Decree-Law No. 14 of 2023, which includes cybersecurity and consumer protection standards for online businesses.

Question 11

Can I accept online payments with a UAE e-commerce license?

Accepted Answer

Yes. With a valid e-commerce license, you can legally integrate with local and international payment gateways such as Telr, PayTabs, Stripe, and Network International. A licensed and compliant setup is a must to open merchant accounts with banks and payment providers in the UAE.

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