The vaping market in Dubai has transformed into a well-regulated and profitable industry. To operate legally, every trader, manufacturer, or importer must obtain an official E-Cigarette License in Dubai and the UAE. This license ensures compliance with safety, health, and product quality standards defined by the UAE authorities.
The process might seem complex, but with the proper guidance, you can easily set up a legal and successful vape business in the UAE.
What is E-Cigarette License Registration
An E-Cigarette License Registration is an official permit that authorizes a company to trade, import, or manufacture electronic cigarettes, vaping devices, and e-liquids in the UAE. It is issued by the Department of Economic Development (DED) or a free-zone authority, depending on where the business is registered.
The registration ensures that all products meet the UAE’s health and safety standards and that the business complies with taxation, labeling, and advertising laws. Without this license, any vaping activity is considered illegal and subject to heavy penalties.
Obtain the E-Cigarette Commercial Trading License
To begin operating, you must obtain the E-Cigarette Commercial Trading License. This license allows you to sell or distribute e-cigarette products legally, whether through retail stores or wholesale distribution.
Businesses can apply either under a mainland license (issued by the DED) or a free-zone license (issued by a free-zone authority). The process includes submitting the trade name, defining the activity (e-cigarette trading), and providing documentation like tenancy contracts and passport copies of shareholders. Once approved, your business can officially operate in the UAE market.
Step-by-Step Process to Get an E-Cigarette License
Starting your vaping business in the UAE involves multiple steps and government approvals.
Step 1 – Choose a Business Jurisdiction
Decide whether to set up your company on the mainland or in a free zone. Mainland companies can trade anywhere within the UAE, while free zones offer 100% foreign ownership but limited domestic trading rights.
Step 2 – Reserve a Trade Name
Register a business name with the Department of Economic Development (DED) or the relevant free zone authority. Ensure the name aligns with UAE business naming rules.
Step 3 – Define Business Activities
Select specific business activities such as e-cigarette trading, wholesale distribution, or retail sales. Accurate classification helps avoid future license restrictions.
Step 4 – Secure Office or Retail Premises
Leasing a commercial space is mandatory. Retail shops must comply with zoning and safety regulations defined by the Dubai Municipality or the local authority.
Step 5 – Product Testing and Certification
Submit your vape products for approval to ensure they meet national safety and labeling standards. Certification is mandatory before any import or sale.
Step 6 – Apply for the E-Cigarette License
Submit all documents — including trade name approval, tenancy contract, and certification — to the respective licensing department for final approval.
Step 7 – Register for Excise Tax
Enroll with the Federal Tax Authority to declare excise duties and receive digital tax stamps for your products.
How to Get an ESMA Certification in the UAE?
The Emirates Authority for Standardization and Metrology (ESMA) ensures that vape products meet UAE safety standards. To legally sell your products, you must obtain ESMA certification for every brand or SKU.
The process involves submitting samples for testing, providing ingredient lists for e-liquids, and ensuring all devices comply with electrical safety requirements. Once approved, your products are granted the ECAS (Emirates Conformity Assessment Scheme) certificate. Without this certification, importing or selling vape products is strictly prohibited.
How to Start a Tobacco Trading or Electronic Cigarette Trading Business in Dubai
Starting a tobacco or electronic cigarette trading business in Dubai begins with choosing the proper jurisdiction. You can operate either on the mainland for full UAE market access or in a free zone for 100% foreign ownership.
You’ll need to register your trade name, define your activity under “Tobacco and Smoking Accessories Trading,” secure a commercial space, and apply for your license through the DED or relevant authority. After obtaining ESMA certification and excise registration, you can begin importing and distributing products legally within the UAE.
Certificate of Free Sales
The Certificate of Free Sales (CFS) is an important document required for product registration. It confirms that your products are legally sold in their country of origin. This certificate is mandatory when applying for ESMA approval or importing new products into the UAE.
It assures the authorities that your vaping products meet international safety and quality standards, reducing the risk of approval delays or rejections.
License from the Dubai Municipality
The Dubai Municipality License is necessary for physical retail outlets and ensures your premises meet health, safety, and zoning regulations. If you operate a vape shop, your location must comply with public health standards, such as ventilation, safety signage, and restricted access for minors.
This license is also required before you can display or sell tobacco or vape-related products in your store.
E-Form
The E-Form is an online application document submitted through the DED or free-zone portal. It includes company details, activity selection, shareholder information, and tenancy details.
This form must be filled out accurately to avoid rejection. Once completed, it becomes part of your company’s trade license application package for the E-Cigarette License.
Required Documents Preparation
Document preparation is one of the most critical steps in getting your e-cigarette license. Any missing or incorrect paperwork can delay your approval.
Key Documents Include:
- Passport copies of shareholders and managers
- Business name reservation certificate
- Ejari or tenancy contract
- Trade license application form
- Memorandum of Association (MOA)
- Emirates ID (if applicable)
- ESMA product test reports and ingredient lists
Preparing these documents in advance ensures your application process is smooth and fast.
Get the Certificate
Once your application, documentation, and testing are complete, you’ll receive the E-Cigarette Trading License Certificate. This certificate allows your business to operate legally within the UAE, import products, and sell them under approved regulations.
You’ll also need to register your business with the Federal Tax Authority (FTA) for excise tax purposes. Every product sold must have a Digital Tax Stamp (DTS) applied, ensuring proper tax compliance.
Requirements to Register an E-Cigarette Business with ESMA
To register your business with ESMA, you must follow a structured process and meet specific technical requirements.
Main Requirements Include:
- ECAS application for each product
- Valid trade license
- Product safety test reports
- Labeling in both Arabic and English
- Ingredient disclosure for all e-liquids
- Free Sales Certificate from the manufacturer
ESMA also reviews product packaging and nicotine content to ensure it meets UAE standards before approval is issued.
Cost of Starting a Vape Business in Dubai
The total cost of starting a vape business in Dubai depends on your setup type, product range, and chosen jurisdiction.
Estimated Cost Breakdown:
- Trade License and Registration: AED 15,000 – 25,000
- ESMA Product Testing & Certification: AED 10,000 – 20,000 per SKU
- Excise Registration and Tax Stamps: AED 2,000 – 5,000
- Office or Retail Space Lease: AED 20,000 – 40,000 annually
- Miscellaneous Administrative Fees: AED 5,000 – 10,000
Overall, you can expect an initial investment between AED 50,000 and AED 100,000 for a small-to-medium vape business.
Documents Requirements for Operating an E-Cigarette Business in Dubai
Running an e-cigarette business requires continuous documentation and compliance updates.
Ongoing Document Requirements Include:
- Updated trade license copy
- Renewed ESMA product certificates
- FTA excise registration and tax filings
- Store inspection reports
- Employee health and safety records
- Updated tenancy contract and municipal permits
Staying organized with documentation helps avoid penalties and ensures smooth annual renewals.
Benefits of Starting a Vape Business in the UAE
Starting a vape business in the UAE offers tremendous potential for entrepreneurs looking to enter a high-demand, fast-growing market. The country’s clear regulations, business-friendly policies, and expanding consumer base make it an ideal destination for investors in the vaping industry.
High Market Demand
The vaping trend in the UAE is rapidly increasing, attracting both residents and expatriates. With growing awareness of smoke-free alternatives, the demand for vape products, e-liquids, and accessories continues to rise year after year.
Legalized and Regulated Market
The UAE government has legalized and strictly regulated the vape industry, ensuring fair competition and consumer safety. Businesses that comply with certification and quality standards gain customer trust and long-term sustainability.
Tax Advantages
Entrepreneurs benefit from a low corporate tax environment and complete profit repatriation. This makes the UAE one of the most attractive destinations for foreign investors seeking to establish a vape business.
Regional Expansion
Dubai acts as a gateway to the GCC and global markets, allowing vape businesses to expand their reach beyond the UAE. Its strategic location and world-class logistics make international distribution seamless.
Strong Retail and Online Opportunities
The UAE market offers equal growth potential for both physical vape stores and online platforms. Licensed entrepreneurs can sell through retail outlets or e-commerce channels, catering to a broad and diverse customer base.
Conclusion
Launching a vape or e-cigarette business in the UAE is a rewarding opportunity, but it requires full legal and technical compliance. From obtaining ESMA certification to securing your E-Cigarette Commercial Trading License, every step ensures product safety and business credibility.
For professional assistance and a smooth setup process, consult Our Expert Business Setup Consultants, Mr. Adil Ahmad, who can guide you through licensing, approvals, and compliance from start to finish.
FAQs
Is an e-cigarette allowed in the UAE?
Yes, e-cigarettes are allowed in the UAE, but only under strict regulations. The UAE legalized vaping products in 2019 to ensure consumer safety and market control. However, only certified and government-approved e-cigarettes can be imported, sold, or distributed. Businesses must obtain an E-Cigarette Trading License and ESMA certification to operate legally. Personal use is allowed, but public vaping in restricted areas such as malls, government buildings, and public transport is prohibited.
How to start a vape business in Dubai?
To start a vape business in Dubai, you need to follow a legal setup process. First, choose your company structure (mainland or free zone) and reserve your trade name. Then, apply for an E-Cigarette Commercial Trading License through the Department of Economic Development (DED) or the chosen free zone. You must also obtain ESMA approval for your products, register with the Federal Tax Authority (FTA) for excise tax, and lease a compliant retail or warehouse space. Once all approvals are complete, you can legally sell or distribute vape products within the UAE.
How to get a tobacco license in Dubai?
To obtain a tobacco license in Dubai, submit your business setup documents to the DED or free-zone authority, specifying your activity as “tobacco and smoking accessories trading” or “electronic cigarette trading.” After receiving initial approval, secure Dubai Municipality approval for your store location and product display. Next, complete ESMA product registration, ensuring your products meet health and safety standards. Finally, register with the FTA for excise duty compliance and digital tax stamps. This license allows you to trade tobacco, vaping products, and accessories legally across Dubai and the UAE.
Can I carry a vape on a flight from Dubai?
Yes, you can carry a vape on a flight from Dubai, but with specific conditions. The UAE aviation authorities allow passengers to bring personal vaping devices in their hand luggage only, not in checked baggage. E-liquids should be stored in containers under 100 ml, following the airline’s liquid policy. However, vaping or charging the device on the plane is strictly prohibited. Always check your airline’s rules before traveling, as some may have additional restrictions.
Is an e-cigarette legal?
Yes, e-cigarettes are legal in the UAE, but they must comply with local standards and regulations. Businesses can only sell approved devices that meet ESMA safety requirements and bear the ECAS certification mark. For individuals, using e-cigarettes is permitted for personal use, but selling unregistered or counterfeit products is illegal. The government’s goal is to control quality and protect consumers from unsafe or counterfeit devices.
Does Emirates allow e-cigarettes?
Emirates Airlines allows passengers to carry e-cigarettes in their hand luggage but strictly prohibits their use or charging during the flight. The airline follows international aviation safety standards to prevent risks associated with lithium batteries and vapor devices. Passengers should pack vapes securely, avoid using them onboard, and comply with destination country regulations regarding vape possession and use.
