What Is the Cost of an E-Commerce License in Dubai? | Detailed Breakdown

Dubai has grown very rapidly to become a global hub for online businesses. Having all the capabilities of a world-class infrastructure, a digital-first government setup, and a tech-savvy population makes it a more attractive place than ever for e-commerce ventures.

Whether you sell ready-made articles, offer digital services, or run a dropshipping concept, there are ample opportunities.

For every potential entrepreneur, however, one main question remains: How much does an e-commerce license in Dubai cost? 

Knowing the total cost is crucial not only for the sake of budgeting but to help you fine-tune your choice of license, set your launch date, and avoid nasty surprises.

This blog analyses all the real costs associated with e-commerce, from government/license fees to office rent and visa fees.

It even goes into less obvious expense areas so that by the end of it, you can chalk out a viable budget and make more informed choices towards your business.

What is the Cost of E-Commerce Licensing in Dubai

The cost of e-commerce varies depending on the products and the business size. Before talking about numbers, let us be clear about what exactly an e-commerce license is for and how to differs for the local UAE residents and the foreigners. Without one, operating your online business is considered illegal.

There are three main routes to getting an e-commerce license in Dubai:

• Mainland license from the Department of Economy and Tourism (DET, formerly DED)
• Free zone license from zones like DMCC, Dubai CommerCity, or IFZA
• Digital service licenses tailored for digital freelancers and content creators
  

Your choice of license significantly affects the overall cost of setup. For example, a license in a popular free zone might come with a bundled package, while a mainland license offers greater access to the local market, but often at a higher administrative cost.

Every regulatory body, i.e.,  DED, DMCC, JAFZA, or DIFC, has a different fee structure, documentation, and timelines.

Breakdown of Costs Associated with Obtaining an E-Commerce License

Let’s look at where your money goes when setting up an e-commerce business in Dubai:

Application and Registration Fees

This includes submitting your business name and getting your primary activity approved. Expect to spend around AED 1,000–AED 2,000 for this initial step.

License Issuance Fees

This is the money you pay for the actual license. In a mainland and free zones, the costs vary. They say for the mainland, it goes for between AED 10,000 and 15,000. Some free zones even offer packages starting from AED 5,750 for such as a solopreneur or SMEs.

Office Space Charges

Go for a mainland license, and most probably you will be asked to have a physical office. Free zones, on the other hand, offer cheaper services for flexi-desk or virtual offices, thus saving thousands per year. Start budgeting from at least AED 5,000 to 10,000 for a physical office or AED 2,000 to 4,000 for a flexi-desk.

Visa Fees & Quotas

You will also need to put some money into the residency visas for yourself and your staff. It can range between AED 3,500 and AED 7,000 per visa, depending on the type of visa, medicals, Emirates ID, and stamping charges.

Other Government Fees

Your license may require approval from other government departments, especially if your e-commerce activity concerns food, supplements, electronics, or media. Municipality fees can range between AED 1,000 and AED 3,000.

Professional Service Fees

If you engaged a business setup consultancy, as many first-time entrepreneurs do, their service fees range from AED 2,000 to AED 8,000. These usually include PRO services, document clearances, and step-by-step guidance.

So, the total cost of an e-commerce license in Dubai can range anywhere between AED 12,000 to AED 30,000, depending on your setup route and requirements.

Cost Differences Between Mainland and Free Zone E-Commerce Licenses

Let’s compare:

Mainland License:

• Cost: AED 15,000 to AED 25,000
• Must lease a physical office
• Can trade directly within UAE
• More paperwork and compliance
  

Free Zone License:

• Cost: AED 5,750–AED 15,000
• Flexi-desk options available
• Limited to online or international trade unless a local distributor is appointed
• Faster process, often bundled
  

Example:

• A solo founder opting for a flexi-desk setup in IFZA could pay about AED 6,500 annually
• A team of three aiming for a mainland license and physical office may need AED 25,000 or more

The cost of an e-commerce license in Dubai can swing widely, so choosing the right jurisdiction is crucial.

Hidden or Additional Costs to Consider

Many entrepreneurs forget to account for ongoing or situational costs:

• Renewal Fees: Most licenses need annual renewal, typically AED 5,000–AED 8,000.
• Fines: Missed renewals or non-compliance can incur penalties of AED 2,000–AED 5,000.
• Insurance: Some free zones require you to purchase liability or worker insurance.
• Amendments: Changing business activities or adding shareholders can cost AED 1,000–AED 3,000.
• IT Infrastructure: Hosting your website, payment gateway setup, and cybersecurity solutions may cost an additional AED 2,000–AED 10,000.

These may not be upfront expenses, but they should definitely be part of your total budget plan.

How to Budget for Your E-Commerce License Costs in Dubai

Start by listing all fixed and variable costs based on your business plan. Then:

• Add a 15–20% buffer for unexpected charges.
• Allocate funds for the next 12 months of operations, not just setup.
• Factor in marketing, compliance, logistics, and tech costs.
• Always plan for annual renewals and visa renewals separately.

Consultants can give you a tailored breakdown, which helps avoid overspending.

Sample Cost Breakdown for an E-Commerce License Setup

Let’s take a hypothetical startup: DigiCart, an online business selling eco-friendly home items across the GCC.

• Business Name Approval: AED 1,000
• Free Zone License (e.g., SPC Free Zone): AED 6,500
• Flexi-Desk Office: AED 2,000
• 1 Visa (Owner): AED 4,200
• Website Hosting + Payment Gateway Setup: AED 2,500
• Consultant Fees: AED 3,000

Total Initial Cost: AED 19,200
Annual Renewal Estimate: AED 7,000

Now, had DigiCart chosen a mainland route, the cost of an e-commerce license in Dubai would likely exceed AED 28,000. So, understanding trade-offs between flexibility, cost, and market access is essential.

How to Save Money on Your E-Commerce License in Dubai

• Choose the right jurisdiction: Free zones like IFZA or SPC offer low-cost packages.
• Opt for flexi-desks: Avoid physical office expenses unless needed.
• Bundle services: Some consultants offer packages with licenses, visas, and office included.
• Stay compliant: Avoid late renewals or amendments to save on fines.
• Use digital banks and tools: These reduce setup and operational costs significantly.

What Affects the Cost of an E-Commerce License in Dubai?

Several variables influence the final price tag:

• Nature of business: Retail dropshipping vs. B2B vs. digital consultancy.
• Number of employees: More staff means more visas and office space.
• Location: Premium locations like Dubai Marina have higher lease costs.
• Product category: Some products require external approvals or storage permits.

So, while average figures help, your actual cost of an e-commerce license in Dubai will depend heavily on these details.

Aslo Read:

• How Much to Renew Trade License in Dubai, UAE?
• How to Download Trade License in Dubai, UAE
• How to Verify a Trade License in Dubai?
• How Much is the Cost of a General Trading License?
• How to Obtain a General Trading License in Dubai?
• How to Get a Gold Trading License in Dubai, UAE?
• How to Get a Forex Trading License in Dubai?
• How to Get Municipal Approval for a Trade License?
• How to Cancel a Trade License in Dubai
• How to Get a Trade License in Dubai?
• How to Check Trade License Online in Dubai in 2025

Conclusion

There’s no one-size-fits-all answer to the cost of an e-commerce license in Dubai. The total depends on your business model, jurisdiction choice, office needs, and visa requirements.

That said, most entrepreneurs can expect to invest anywhere from AED 12,000 to AED 30,000 in their first year.

E-commerce licensure in Dubai is a streamlined yet manageable process.

Given the right preparation and adequate support, one can set up a legally compliant and scalable online enterprise that caters to both local and international customers.

If you are serious about coming out strong, it would be wise to consult a business setup expert. A small investment in peace of mind is nothing when set against laying the foundations of your success online.

 At Arnifi, we handle everything, i.e., registration to licensing and visa processing. Our experts will walk through the process and ease the business setup in 7+ international markets. Get a free consultation now!