An e-commerce company needs more than a licence. You need the right activity on paper, a way to hold stock if you sell physical products, and a bank and payment gateway that will accept you.
What to look for
- E-commerce and trading activities — if you import stock, you need the right trading group too.
- Warehouse or fulfilment options — or a zone that's happy with third-party logistics.
- Payment gateway acceptance — gateways look at your licence activities and website.
- Low yearly cost — margins in e-commerce are tight.
Our shortlist
- SPC Free Zone (Sharjah) — very competitive prices and a long list of combinable activities. A favourite for marketplace sellers.
- IFZA (Dubai) — mix e-commerce with trading and services on one Dubai licence.
- Dubai CommerCity — built specifically for e-commerce, with logistics on site. Costs more, but useful once you scale.
- UAQ FTZ — one of the lowest yearly costs, with e-commerce and trading options.
See the full ranking on our best free zone for e-commerce page.
Selling on Amazon.ae or Noon
Marketplaces typically ask for a trade licence that includes e-commerce or trading activities, a UAE bank account and a VAT certificate once you pass the threshold. Make sure your licence wording matches what you sell.
Dropshipping
You can run a dropshipping business from a free zone with an e-commerce licence. If suppliers ship directly to customers, you may not need a warehouse at all.
Tip: think about VAT early
VAT registration is mandatory above AED 375,000 in taxable supplies over twelve months, and voluntary above AED 187,500. Marketplaces and gateways often ask for your TRN as you grow.
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About the author
Freezone King Advisory Team is the business-setup advisory team at Freezone King, a Sky Palace Tourism company. We help founders compare UAE free zones and handle licences, visas, banking and tax end to end.