If you want to start an online business in Dubai, the city offers some of the simplest company formation routes anywhere: some licences are issued online in minutes, several free zones allow remote registration, and the first AED 375,000 of taxable profit is taxed at 0%. But the “starting from” price in adverts is rarely what your first year costs.
This guide compares the Dubai Economy and Tourism (DET) eTrader licence, a full mainland licence and four popular free zones (IFZA, DMCC, Meydan and Dubai Silicon Oasis). It gives published fees, labels agent quotes, and covers the tax, VAT, banking and visa costs on top of the licence.
All fees are in UAE dirhams (AED), as of November 2026. Tariffs change without notice, so get a written, itemised quote before you pay.
Table of Contents
- The Three Routes to an Online Business in Dubai
- The DET eTrader Licence
- Mainland vs Free Zone
- Free Zone Packages: IFZA, DMCC, Meydan and DSO
- Corporate Tax and VAT
- Bank Account and Visa Costs
- Step-by-Step Setup Process
- First-Year Startup Cost Table
- Frequently Asked Questions
- Conclusion
- Official References
The Three Routes to an Online Business in Dubai
Every legal online business in Dubai needs a licence from a licensing authority. In practice you will choose one of three routes:
- eTrader licence (DET mainland): a low-cost, home-based sole establishment licence for selling through social media and online platforms.
- Standard mainland licence (DET): a full company licence that lets you trade anywhere in the UAE, including directly with local consumers and government buyers.
- Free zone licence: a company registered with a free zone authority such as IFZA, DMCC, Meydan or Dubai Silicon Oasis, usually with 100% foreign ownership, a flexi-desk and an optional residence visa quota.
The Government of Dubai’s eCommerce page also notes that all eTrade licences on the mainland require an approval or no-objection certificate (NOC) from the Telecommunications and Digital Government Regulatory Authority (TDRA). TDRA’s “NOC for Practicing E-Activity” is free of charge, is applied for with UAE Pass, and has an expected processing time of two working days. If you sell through a website, TDRA’s service conditions ask for a national .ae domain; for social media you provide the account name and link.
Online selling also falls under Federal Decree-Law No. 14 of 2023 on Modern Technology-based Trade. You may only sell goods and services approved for trade in the UAE, and restricted items need the relevant authority’s approval first.
The DET eTrader Licence
The eTrader licence is the cheapest published route. Dubai’s official business portal, Invest in Dubai (run by DET), describes it as “a sole establishment licence for Dubai home-based businesses that have been issued with the trade name” and lists the fee as AED 1,070 (licence fees plus knowledge and innovation fees) plus AED 300 for Dubai Chamber membership. DET says the licence is issued within five minutes once you apply through the Invest in Dubai portal with your ID number.
What the eTrader licence covers
- One owner, operating from their place of residence in Dubai.
- Selling goods or services through social media and online platforms.
- Issued only as a sole proprietorship, so the owner carries full personal legal responsibility.
Limits to check before you apply
Before you apply, you need to book a trade name. DET charges AED 620 for this, done online with a verified Invest in Dubai account. Eligibility is the main uncertainty. Older federal guidance limited the eTrader licence to UAE and GCC nationals living in Dubai, and several independent guides report that the current DET pages do not clearly state which nationalities qualify. If you are an expatriate, confirm eligibility for your nationality and activity on the Invest in Dubai portal or at a DET service centre before you plan around this licence. It also does not give you a residence visa, so it suits people who already live in Dubai.
Mainland vs Free Zone
The choice between mainland and free zone shapes your customers, your tax position and your costs.
| Factor | DET Mainland | Free Zone (IFZA, DMCC, Meydan, DSO) |
|---|---|---|
| Who issues the licence | Dubai Economy and Tourism (DET) | The free zone authority |
| Selling to UAE consumers | Allowed directly | Restricted; mainland trade usually needs a permit or a mainland distributor |
| Published entry price | eTrader AED 1,370; standard licences vary by activity and are not published as one tariff | From AED 12,500 (Meydan) to AED 35,484 (DMCC Basic Biz) |
| Office requirement | Normal licence needs a site lease; instant licence includes a virtual site for year one | Flexi-desk usually included in the package |
| Corporate tax | 0% up to AED 375,000 taxable income, 9% above | Can be 0% on qualifying income for a Qualifying Free Zone Person; 9% on non-qualifying income |
| Speed | eTrader and instant licences issued in about 5 minutes (DET) | Varies by zone; Meydan says its Fawri licence is issued in under 60 minutes |
DET does not publish one fee schedule for normal or instant mainland licences. It says fees depend on the licence type and activities, and points applicants to its Business Set-Up Recommendations tool on Invest in Dubai.
Free Zone Packages: IFZA, DMCC, Meydan and DSO
| Free zone | Entry package (1 year) | What is included | Price status |
|---|---|---|---|
| Meydan Free Zone | AED 12,500 (Fawri instant licence from AED 15,000) | Trade licence, company registration, digital application, portal access, up to 3 activity groups; visa, medical and Emirates ID not included | Official (meydanfz.ae) |
| IFZA | About AED 12,900 (zero-visa licence) | Licence with flexi-desk; visas and establishment card extra | Quoted. IFZA sells through professional partners and does not post prices on ifza.com; figure from IFZA’s 2024 partner price list as reported by agents |
| Dubai Silicon Oasis (Dtec) | From AED 18,000 (flexi-desk) | Service licence, common-area workspace, eligibility for 2 visas; fixed desk with 3-visa eligibility AED 24,200 | Official, from Dtec’s published packages (the page dates from 2020, so confirm current pricing) |
| DMCC | AED 35,484 (Basic Biz package) | Licence, establishment card and special flexi-desk eligible for 1 visa; inclusive of VAT and Knowledge & Innovation Dirhams | Official (DMCC Schedule of Charges) |
What to know about each zone
- Meydan: publishes AED 12,500 a year with no paid-up share capital and no mandatory office lease. Visa processing, immigration services and office upgrades are pay-as-you-go extras, and multi-year licences are up to 15% cheaper.
- IFZA: sells only through professional partners. Agents report that IFZA’s 2024 schedule lists about AED 3,750 per two-year residence visa and about AED 2,000 for the establishment card. Ask for the current schedule in writing.
- DMCC: publishes an itemised standard setup (application AED 1,035, registration AED 9,020, Articles of Association AED 2,020, licence AED 20,285 a year, establishment card AED 1,825 a year). Its Jump Start package with one residence visa costs AED 43,780, and a FreelanceUAE licence package costs AED 4,020.
- Dubai Silicon Oasis (Dtec): also offers furnished private offices at AED 47,820 including two visas per desk. It suits tech founders who want a startup community and access to accelerator programmes.
Corporate Tax and VAT
Corporate tax
According to the UAE Government portal and the Federal Tax Authority (FTA), corporate tax is charged at 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000. It applies to businesses whose first financial year started on or after 1 June 2023. A Qualifying Free Zone Person can pay 0% on qualifying income and 9% on other taxable income, but only if it meets all the conditions.
Two reliefs matter for small online businesses:
- Small Business Relief: resident businesses with revenue of AED 3 million or less in the current and all previous tax periods can elect to be treated as having no taxable income. The Ministry of Finance announced on 7 August 2026 that this relief now runs to tax periods ending on or before 31 December 2029. Qualifying Free Zone Persons cannot elect it, and you must still file a (simplified) return.
- Individuals: the FTA says a natural person carrying on business only has to register for corporate tax if their UAE business turnover exceeds AED 1 million in a calendar year.
VAT
The FTA’s rule is that a UAE business must register for VAT once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days. You may register voluntarily above AED 187,500. The standard VAT rate is 5%. Registration is done online through the FTA’s EmaraTax platform, and the FTA’s VAT user guide lists an AED 20,000 penalty for late registration.
Bank Account and Visa Costs
Business bank account
Banks set their own fees and approve accounts after compliance checks; free zones such as Meydan help with the application but cannot guarantee approval. As one published example, Wio Bank’s business fee guide lists an Essential plan at AED 99 a month and a Grow plan at AED 249 a month, both with no minimum balance and free account opening (VAT included). Traditional banks may instead ask for a minimum average balance. Compare at least two banks before you choose a licence.
Residence visa costs
A trade licence does not automatically come with a residence visa. You pay for the visa quota (often built into the package), an establishment (immigration) card, and the visa itself, plus medical fitness tests, Emirates ID and health insurance. DMCC’s published schedule shows a new two-year employment residence visa at AED 2,972.50 when applied for from outside the country, or AED 3,407.50 from inside without amendment. Other free zones’ visa fees are mostly quoted by agents rather than published, for example about AED 3,750 at IFZA. Budget roughly AED 4,000 to 6,000 per person once medical and Emirates ID are added. This is an estimate, not an official figure.
Step-by-Step Setup Process
- Define your activity. Licensing authorities approve specific activity codes, so list exactly what you will sell.
- Choose your route. If you live in Dubai, sell to local consumers and qualify, look at eTrader. If you need a visa or international clients, compare free zones. If you need unrestricted UAE trade, choose a mainland licence.
- Check and book your name. On the mainland, book a trade name through Invest in Dubai (AED 620). Free zones run their own name checks.
- Apply for the licence. Submit your passport, Emirates ID if you are a resident, and any activity approvals through the authority’s online portal.
- Get the TDRA e-activity NOC if you sell online through a website, app or social media (free, about two working days).
- Apply for your establishment card and visa if you need residence, then complete the medical test and Emirates ID.
- Open a business bank account using your licence and company documents.
- Register for tax. Register for corporate tax with the FTA when required, and track turnover so you register for VAT before the AED 375,000 threshold is crossed.
First-Year Startup Cost Table
The table combines official fees and clearly labelled estimates for a solo founder. Payment gateway, website and marketing costs are excluded.
| Cost item | eTrader (resident, no visa) | Low-cost free zone (Meydan/IFZA, 1 visa) | DMCC (Jump Start, 1 visa) |
|---|---|---|---|
| Trade name | AED 620 (official) | Included or nominal | Included |
| Licence and registration | AED 1,370 (official) | AED 12,500 to 12,900 (Meydan official / IFZA quoted) | AED 43,780 package (official) |
| Establishment card and visa allocation | Not applicable | About AED 2,000 to 4,000 (quoted) | Included in package |
| Residence visa, medical, Emirates ID | Not applicable | About AED 4,000 to 6,000 (estimate) | Visa included; medical and Emirates ID extra (estimate AED 1,000+) |
| TDRA e-activity NOC | Free | Free (if required) | Free (if required) |
| Business bank account (12 months) | About AED 1,188 (e.g. Wio Essential) | About AED 1,188 | About AED 1,188 |
| Indicative first-year total | About AED 3,200 | About AED 19,700 to 24,100 | About AED 46,000+ |
Totals are rounded estimates from the line items above and exclude mandatory health insurance for visa holders.
Frequently Asked Questions
What is the cheapest way to start an online business in Dubai?
The DET eTrader licence is the cheapest published option at AED 1,070 plus AED 300 Dubai Chamber membership, plus AED 620 for the trade name. It is limited to home-based sole establishments, and eligibility for expatriates should be confirmed with DET.
Can a foreigner own 100% of an online business in Dubai?
Yes. Free zones such as Meydan, IFZA, DMCC and Dubai Silicon Oasis allow full foreign ownership, and Meydan says you can set up remotely without UAE residency.
Do I pay corporate tax on my Dubai online business?
Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%. Resident businesses with revenue of AED 3 million or less can elect Small Business Relief for tax periods ending on or before 31 December 2029.
When do I have to register for VAT?
Registration is mandatory once your taxable supplies and imports exceed AED 375,000 in the previous 12 months, or are expected to in the next 30 days. Voluntary registration is possible above AED 187,500.
Do I need a TDRA NOC to sell online?
The Government of Dubai says all mainland eTrade licences need a TDRA approval or NOC. The NOC for Practicing E-Activity is free and normally takes two working days.
Does a free zone licence include a residence visa?
Not always. Meydan’s AED 12,500 and IFZA’s zero-visa licence exclude visas, while DMCC’s Jump Start package includes one residence visa. Check the visa allocation and processing fees in your quote.
Conclusion
Starting an online business in Dubai can cost anywhere from about AED 3,000 for a resident eTrader to more than AED 45,000 for a premium DMCC company with a visa. For most solo founders who need a visa, a low-cost free zone such as Meydan or IFZA, with a first year of roughly AED 20,000 to 24,000, is the practical middle ground. Get a written, itemised quote, secure your TDRA NOC, and track revenue against the AED 375,000 VAT threshold from day one.
Official References
- Invest in Dubai (DET): Request to issue a trade licence
- Invest in Dubai (DET): Request to book a trade name
- Government of Dubai: eCommerce licence in Dubai
- TDRA: NOC for Practicing E-Activity
- UAE Government Portal: Corporate tax
- Federal Tax Authority: Registration for VAT
- Federal Tax Authority: Small Business Relief
- UAE Ministry of Finance: Small Business Relief extended to 2029
- Meydan Free Zone: AED 12,500 trade licence
- DMCC: Schedule of Charges
- IFZA: Commercial licence
- Dtec, Dubai Silicon Oasis: Business setup packages
- Wio Business: Plans and fees guide