Key takeaways
- An online business in Dubai trades on a licence whose activity covers online retail of the goods or services it sells.
- Stock held in Dubai for local delivery points to a mainland licence or a DET branch.
- Certified courses for learners in Dubai bring in KHDA approval.
- Sales to consumers do not earn the 0% free zone rate, so the tax plan comes before the zone.
Which online business ideas work?
Each model needs its own licence activity. Most add a permit or a registration.
| Model | Licence activity | Also needs |
|---|---|---|
| Online store with your own stock | Online retail of the goods you sell | A Dubai Customs client code to clear imports |
| Dropshipping | Online retail of the goods sold | Dubai Municipality registration for cosmetics and food |
| Content creator or influencer | Electronic media or advertising activity | Advertising Permit to promote other brands |
| Online courses | Education or training activity | KHDA approval for certified courses in Dubai |
| Perfume or cosmetics online | Fragrance or cosmetics trading, sold online | Dubai Municipality product registration and advert approval |
Mainland or free zone for selling online?
Ask where the stock sits when a UAE customer places an order.
If you ship from abroad or sell through a marketplace, a free zone e-commerce licence and an investor visa fit. Holding stock in a mainland warehouse for local delivery calls for a mainland licence, or a DET branch of the zone company.
Watch the tax line. The 0% free zone rate does not reach sales to individuals, which sit outside qualifying income, so a zone store selling to consumers should plan without it.
Taking payments online
Card payments need a gateway on top of the corporate bank account.
The gateway runs its own review of what you sell and how the money reaches you. We build the gateway file while the bank reviews the account, so it is ready the day the account opens. For PayPal, our guide to PayPal for a UAE business covers what it asks for.
Our e-commerce licence page sets out where the licence and the stock should sit.
