To start an ecommerce business in Dubai from the UK, get a free zone or mainland licence with an e-commerce activity. Then open a UAE business bank account, connect payments and marketplaces, and register for UAE tax when required. A free zone company can be set up remotely, with 100% foreign ownership.
Can a UK resident start an ecommerce business in Dubai?
Yes. Free zone licences are open to British founders living in the UK, and you can apply for a residence visa later. Dubai’s home-based eTrader licence is different: it is for individuals trading from their residence in Dubai (dubai.ae), so it is not a starting point from the UK.
The Dubai South UK Ecommerce Launch Steps
1. Choose your activities and name. Dubai South Business Hub’s trading licence page lists E-Commerce (code 4790) and General Trading (4690.97), with the first five codes included. Use its free name check.
2. Prepare documents. The hub lists a passport copy for each shareholder. If a UK company will be the shareholder, see the legalisation step below.
3. Apply online and receive your licence. The hub advertises same-day licensing
4. Open a business bank account and connect a payment gateway.
5. Register for tax. Corporate tax registration is due within three months, and VAT registration once you pass the threshold.
6. Set up customs and logistics if you import stock.
7. List on marketplaces such as Amazon.ae and noon.
### Legalising UK documents
UK-issued documents must first be legalised by the FCDO Legalisation Office, which attaches an apostille. They are then attested by the UAE Embassy in London through its digital attestation service (UAE Ministry of Foreign Affairs). The embassy says this typically takes 2–3 working days. An FCDO apostille costs £45 per paper document, or £35 as an e-Apostille (GOV.UK).
How much does it cost to start?
A Business Setup In Dubai Free Zone at Dubai South Business Hub starts from AED 12,500 a year, including a flexi-desk. The 1-visa package costs AED 16,350. Also budget for legalisation, payment and marketplace fees, and stock.
How do payments and marketplaces work?
You need a UAE licence and a business bank account before you can take payments.
· Stripe: free zone entities verify their account with their UAE trade licence, and payouts arrive in a UAE bank account (Stripe).
· Amazon.ae asks for a UAE commercial licence (mainland or free zone), Emirates ID, proof of address and a payout bank account (Amazon Seller UAE).
· noon needs a licence that permits trading or e-commerce, not services only, and a business (not personal) bank account (noon Seller Help Center). It also accepts international sellers registered outside the UAE, so a UK company can test demand first.
What about customs and shipping?
Dubai customs duty is 5% of CIF value, higher for alcohol and cigarettes (u.ae).
Since 3 August 2026, Dubai Customs Notice No. 16/2026 exempts cross-border e-commerce goods worth up to AED 1,000 from customs duty. The exemption excludes tobacco, vaping products and alcohol. Returned B2C goods are also exempt if they come back within 60 days.
Dubai South Business Hub lists warehousing and import and export code support among its services, near Al Maktoum International Airport.
Which laws apply to selling online in the UAE?
Two laws matter most:
· E-commerce law: Federal Decree-Law No. 14 of 2023 on Modern Technology-Based Trade has applied since 16 September 2023 (UAE Legislation portal). Sellers must give accurate product information, protect customer data and issue a digital invoice for each sale (u.ae).
· Consumer protection: Federal Law No. 15 of 2020 covers UAE-registered e-commerce platforms. Invoices must be in Arabic (other languages can be added), and misleading prices can lead to fines of up to AED 2 million (u.ae).
How is a Dubai ecommerce company taxed?
VAT is 5%. Registration is mandatory once taxable supplies and imports exceed AED 375,000 over 12 months, and voluntary above AED 187,500 (Federal Tax Authority).
Corporate tax is 0% on taxable income up to AED 375,000 and 9% above that. New companies must register within three months, and late registration carries an AED 10,000 penalty (Ministry of Finance).
Free zone 0% is limited for ecommerce. Sales to individual consumers are an “Excluded Activity”, taxed at 9% (Ministerial Decision No. 229 of 2025). A Qualifying Free Zone Person also needs adequate substance, audited accounts and non-qualifying revenue below the lower of AED 5 million or 5% of total revenue (FTA).
What UK rules still apply?
· Personal tax: UK residents pay tax on worldwide income. You are usually non-resident if you spend fewer than 16 days in the UK in a tax year, or 46 days if you were not UK resident in the previous three tax years (GOV.UK).
· Company residence: a non-UK company is UK resident if its central management and control is in the UK (HMRC International Manual).
· CFC rules: these can apply if UK residents control the Dubai company (HMRC).
This is general information, not tax advice.
FAQ
Can I sell on Amazon.ae with a free zone licence?
Yes. Amazon accepts a UAE commercial licence from either the mainland or a free zone.
Is a free zone ecommerce company tax-free?
No. Income from sales to individual consumers is taxed at 9%.
Launch your online store with Dubai South Business Hub
Dubai South Business Hub offers e-commerce and trading activities, visa packages and banking and tax support. Run a free name check, use the cost calculator or speak to an advisor.
David Prior
David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.
