I want to open an online shop. Do I need a license to open an Etsy shop?

Dear Questioner,

Good morning.

Yes, you need a license to legally sell handmade items online in the UAE, even on platforms like Etsy or Shopify.

You can obtain either a freelancer permit from free zones like GoFreelance (Dubai), SHAMS (Sharjah), or RAKEZ, or an e-commerce license from the Department of Economic Development (DED) in your emirate.

Costs vary, with freelancer permits ranging from AED 5,750 to AED 15,000 per year and e-commerce licenses from AED 8,000 to AED 20,000 per year.

You can keep your residence visa under your father’s sponsorship, provided the licensing authority allows it. For detailed guidance, feel free to contact us.

Greetings,

Yes, you need a business license to legally sell handmade items online in the UAE, even on platforms like Etsy or Shopify. The suitable license depends on your business scope:

E-Trader License (DED – Dubai or Sharjah) – Ideal for small-scale individual sellers but may have restrictions on international sales.

Freelance Permit (Various Free Zones) – Suitable for selling digital goods or crafts as a professional.

E-Commerce License (Free Zone or Mainland) – Best for broader online sales, including international shipping.

Costs vary depending on the license type and issuing authority. You can keep your current residence visa (sponsored by your father) while running the business.

For expert guidance on choosing the right license and understanding legal requirements, book a consultation with Future Vision for Advocacy and Legal Consultancy today!

We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.

To contact us, you can call or WhatsApp us.

Greetings of the day,

Yes, you need a business license to legally sell handmade items online in the UAE, including on platforms like Etsy or Shopify.

Since you are in Sharjah and not a UAE or GCC national, you can consider obtaining an e-commerce license from Sharjah or a freelance permit from a free zone like SHAMS (Sharjah Media City) or SPC Free Zone.

Costs vary depending on the authority, but a basic e-commerce or freelance license typically starts from AED 5,000 to AED 10,000 per year.

You can keep your current residence visa sponsored by your father while operating the business, as long as the license allows it and you don’t require an investor visa.

Best Regards,

Sara Al Saedi Advocates and Legal Consultants

Thank you for reaching out with your inquiry about starting an online shop in the UAE.

I understand that you want to sell handmade items such as crocheted goods, bookmarks, and greeting cards, and I'd be happy to guide you through the process.

Do you need a license to open an Etsy shop? Yes, in the UAE, any business activity, even if it’s an online shop, typically requires a commercial license.

To sell your handmade items, you would need to obtain an e-commerce license from a free zone or a mainland authority.

The specific type of license depends on where you want to base your operations and whether you want to sell only locally or internationally.

Which license do you need to sell online?

There are several options, such as:

E-commerce license through a free zone: Free zones like Sharjah Media City (Shams) or Dubai Silicon Oasis (DSO) are popular for e-commerce businesses. They offer a simple and cost-effective process to obtain an online selling license.

Mainland e-commerce license: If you want to sell to customers across the UAE and possibly have a physical presence in the country, a mainland license might be suitable.

Cost of the license: The cost varies depending on the free zone or mainland authority you choose. Free zone licenses can range from AED 5,000 to AED 15,000 or more annually, while mainland licenses may be more expensive, starting from around AED 10,000+ per year.

Additional costs could be involved if you need a professional website or other services.

Can you keep your residence visa? Yes, you can retain your existing residence visa sponsored by your father.

Opening a business and obtaining an e-commerce license does not require you to change your sponsorship, as long as you maintain your current visa status.

I would suggest discussing the best licensing options for your business with a specialized advisor or directly with the relevant authorities to ensure compliance with all legal requirements.

If you’d like to move forward and receive further guidance or assistance in obtaining your license, I would be happy to help.

Feel free to reach out to me directly via WhatsApp or phone, or email me to discuss this further.

Best regards,

Suhail Rana

Dear Questioner,

You are required to obtain a trading license.

An E-trading license could fulfill your requirements.

Contact the Economic Department of Dubai for more details.

Thank you

Dear Valued Client,

Thank you for your inquiry regarding the establishment of an online shop for handmade items. Based on the information provided, we offer the following professional guidance:

1. Licensing Requirement:

Operating an online shop in the UAE, including on platforms like Etsy or Shopify, requires a valid e-commerce license.

2. License Type:

An e-commerce license is appropriate for your business model, allowing you to sell handmade items online both domestically and internationally.

3. Cost Considerations:

License fees vary depending on the jurisdiction (free zone or mainland). For non-UAE residents, costs typically start from AED 11,500 (approximately 3,150 USD).

4. Visa Status:

Your current residence visa, sponsored by your father, can be maintained. There's no requirement to alter your visa status for operating an online business.

5. Application Process:

To obtain an e-commerce license, you'll need to submit:

- Passport copy

- Digital passport photo

- UAE residence visa copy

- Additional documents as required by the licensing authority

6. Ongoing Responsibilities:

As a license holder, you'll be required to:

- Maintain accurate business records

- Comply with UAE consumer protection laws

- Renew your license annually

We recommend consulting with a business setup service or free zone authority in Sharjah for the most current information on costs and specific requirements tailored to your situation.

Should you require further assistance or have additional questions, please don't hesitate to contact us. We're here to support you in establishing your online business in compliance with UAE regulations.

Respectfully,

Abdul Wahied