Obtain a Virtual Company License In Dubai – Eligibility, Process and More

Starting a business in Dubai without residing in the UAE has gotten much easier with the virtual company license in Dubai. It allows foreign investors and business owners to establish a business in the city without a physical presence. Let us know more about the virtual business license and how to obtain it to start a business in Dubai without moving into Dubai!

Virtual Company License in Dubai

Dubai attracts investors from across the world in huge numbers due to its most lucrative market offers. However, typically investors move to Dubai to realise their dream of setting up a business in Dubai. Some time back, the city introduced a virtual office space system for investors operating from remote locations.

This also saves the investors from the worries and hassles of relocation to the city to start a business. Additionally, it saves much money needed for relocation and other processes of setting up an office for smooth operations.

Why Apply for Virtual Business License?

To initiate the process, you will first need to apply for a virtual company license in Dubai. It is the first step towards starting a virtual business in the city of the United Arab Emirates without having to relocate to the country. A virtual setup will permit investors to run various official activities like submitting and signing documents electronically, which is legal within Dubai. This virtual commercial license in Dubai is open to foreign investors from over 101 countries, including India, Pakistan, Saudi Arabia, United States, Canada, Russia, China, and Japan. The license is issued to companies in the sectors like – creative industries, technology and services. (Visit VCC’s official website for the complete list of approved countries)

Eligibility Criteria for the Virtual Business License in Dubai

The eligibility criteria to start a virtual company in Dubai:-

• Applicants cannot be residents of the UAE.
• Virtual company owners must be national or tax residents from any of the 101 countries approved to start a virtual business in Dubai.
• Business activities from the previously specified sectors can only start a virtual business in Dubai. The sectors are – computer programming, service activities in printing and advertising, design ventures in fashion, jewellery, interiors and consultancy related services, and more.
• Additionally, virtual company owners in Dubai must be aware that their companies will remain subject to corporate, individual income and social taxation of the country they are established in.
• Moreover, if the company’s annual revenue surpasses $100k within the UAE, they will be liable to the 5% Value Added Tax (VAT). Therefore, virtual commercial license holders in Dubai need to register their company with the Federal Tax Authority in UAE.

Another essential thing to note is that the Dubai Virtual Company License does not allow physical access to any company members inside the UAE through a business/visitor/resident visa. The rules are the same when applying for a business bank account in the UAE.

What is the Application Process for Virtual Company License in Dubai?

The process consists of three crucial steps:-

1. You will first need to decide on the type of business activities that can be operated from a remote location. However, the activities you choose must be carried out virtually as per the rules set by the UAE Government.

2. Once you have finalised your business activities, move on to choose a name for your company before you apply for a virtual company license. Follow the naming conventions laid by the concerned authorities to choose a business name. Make sure it does not violate any norms of the country.

3. Next, it is time to apply for your Dubai virtual business license. You will also have to submit all necessary documents like – passport copy, address proof, tax residency proof, recent photograph, and complete application also with name in Arabic script.

What are the Benefits of a Virtual Business License in Dubai?

• Get access to a vast and profitable market of UAE from a remote location without having to physically relocate into the country.
• Low-cost operations compared to physical offices.
• Low-cost company formation and business setup compared to physical offices.
• It is a lucrative option for freelancers and independent professionals as they gain access to the market without obtaining a residence visa.

Finally, Finding a Virtual Office Space in Dubai

Once you have decided to start a business in Dubai virtually, you will need a virtual office space to manage your presence in Dubai. Your business setup consultant can help you find the right virtual office keeping your business requirements in mind. A virtual office is required to maintain a business on behalf of the business owner. You can have a dedicated telephone number, an attendant to attend to your business calls, mail management assistance and an office address in a prime location of the city. Additionally, you can handle all your business communication from this office on behalf of the company owner.