Dubai is one of the most lucrative destinations for entrepreneurs to start their own businesses. However, the hassle of moving to a new country to start a business is too much for foreign entrepreneurs. This problem is no more thanks to the newly introduced virtual company license in Dubai.
With a virtual company license, you can start your own business in Dubai without moving to the country. Now you can take advantage of the world-class infrastructure and business-friendly environment of Dubai by starting a company without being a resident of the country.
All the benefits, like tax exemption, quick setup, and low initial investments, make Dubai the perfect destination for you to start your company. By acquiring the virtual company license, you can start your company and run your business operations without relocating to the country in Dubai.
A virtual Company License is offered by the Dubai government to facilitate foreign investors. With the help of Company Setup, you can easily apply for a virtual company license and start your remote business in Dubai in no time.
What is a Virtual Company License in Dubai?
A Virtual Company License allows a foreign entrepreneur to start a business remotely in Dubai without being a resident of the country. This means you can start a business from a foreign country in Dubai and run your business operation legally without moving to the country by acquiring a virtual company license. However, only citizens from the 101 eligible countries can apply for a virtual company license in Dubai. And there are some specific business activities that you can perform with a virtual company license.
The newly introduced virtual company license supports the objective of building a Virtual Commercial City in Dubai, the third Article of His Highness Sheikh Mohammed’s 50-Year Charter.
Commenting on the announcement, His Excellency Sami Al Qamzi, Director General of Dubai Economy, said:
“We are proud to launch the first Virtual Commercial City in the region that will provide virtual licenses for doing business digitally and without requiring residence in Dubai, in partnership with the General Directorate of Residency & Foreigners Affairs. The initiative underlines the role of Dubai’s Economy in shaping the future of business as envisioned by His Highness Sheikh Mohammed bin Rashid Al Maktoum. It also marks a quantum leap in the concept of doing business and will be a major attraction for the next generation of entrepreneurs.”
Criteria for the Eligibility of Virtual Company License in Dubai
There are some requirements you will need to fulfill to be eligible for the virtual company license in Dubai. You will need to meet the eligibility criteria to be able to apply for a virtual company license in Dubai. They are:
- You can not be a resident of the UAE to apply for the virtual company license in Dubai.
- Only foreign citizens of the approved countries can apply for a virtual company license in Dubai.
- You can only perform business activities from the predefined sectors with your virtual company. The predefined sectors include consultancy, and related activities, service activities, computer programming, and design activities.
- You will be subject to the rules and regulations regarding corporate affairs and taxation of your home country.
- If the revenue of your virtual company surpasses $100K per year, you will be subjected to the 5% VAT in UAE.
Starting a virtual company in UAE will not give you permission for physical access to the UAE. You will need to acquire a visa to enter the country.
Eligible and Non-eligible Countries
There are 101 countries whose citizens are allowed to apply for a virtual company license in Dubai. The eligible countries include:
• Saudi Arabia
• South Africa
And the non-Eligible countries include:
• Sri Lanka
The Process to Apply for The Dubai Virtual Company License
The process of applying for a virtual company license in Dubai is quite simple, thanks to the Dubai government. You can apply for the license online without visiting the country physically.
Here is the process to apply for the Virtual Company License in Dubai:
1. Select Your Business Activity
Before you can apply for a virtual company license in Dubai, you will need to determine the business activity you want to perform. You can only choose business activities from predefined sectors. The predefined sectors include Computer related activities, Service Activities, consultancy, and creative design.
2. Choose a Company Name
Next, you will need to choose a name for your virtual company. You will need to follow the rules of the host country when choosing a name for your company. You must carefully make sure that the name of your company is unique in UAE and does not contain any kind of profanity.
3. Register The Company
Once the first two steps are completed, you can visit the official website of the Dubai Virtual Commercial City and start the registration process. You will need to fill out an application form with relevant information when registering the company. You will also be required to mention the business activities you are going to perform and enter the trade name of your virtual company.
4. Upload The Documents
To complete the registration process, you will be required to upload some documents. Make sure that the documents contain the latest and most accurate information. Here are the documents you will be required to upload online:
- Passport-sized photograph
- Scanned copy of Passport
- Proof of tax residency
- Proof of present address, like a utility bill or official letter
5. Monitor the Progress of Your Application for a Virtual Business License
Once you have submitted the application, the authority will take some time to verify your information. This process can take a month to complete. The authority will complete the verification process with a background check. Once the process I completed, you will be notified via email. Inaccurate information will result in rejection which means you will need to restart the whole process. So, be careful when filling out the application form and uploading the documents.
6. Verify your Identity with VFS Global
Once your application is approved, you will need to visit VFSA global to confirm your identification. You can make an appointment from their website beforehand. This process will cost you around EUR 75 or AED 300 + tax.
7. Pay the relevant fees
Once your identity is verified, you will need to visit the official website of the Dubai Virtual Commercial City to pay for the virtual company license. You can pay via ePay, the official payment gateway of VCC. The cost of obtaining the Virtual Business License can vary, considering the business activity you want to perform and the validity of your license.
What Are the Business Activities Permitted Under a Virtual Company License?
Before applying for a virtual company license in Dubai, you will need to determine the business activities you want to perform. You will need to keep in mind that the business activities will be conducted remotely. You should choose a business activity that suits your skillset, capabilities, and financial resources.
There is a specific list of business activities that you can perform under a virtual company license. These business activities come under three main categories. Here is the list of business activities permitted under a virtual company license in Dubai:
1. Service activities
- Design & Artwork Services
- Books Binding
- Promotional Gifts Preparing
- Typesetting Services
- Greeting Cards Production & Distribution Services
- Color Separation Services
2. Computer programming, consultancy & related activities
- Computer Systems & Communication Equipment Software Design
- Public Networking Services
- Managed Cybersecurity Services Provider
- Electronic Chips Programming
- Social Media Applications Development & Management
- Cyber Security Architecture
- Cyber Risk Management Services
- Auditing, Reviewing & Testing Cyber Risks
- Marketing Services
3. Creative Design
- Interior design
- Calligraphers & Painters
- Product Design
- Fashion Design
- Jewellery Design
Dubai Virtual Company License Cost
Starting a virtual company in Dubai is one of the best decisions you can make right now as an entrepreneur. Starting a virtual company is one of the most affordable ways to start a business in Dubai. The cost of obtaining a virtual company license will depend on some factors, like the type of business activity and the validity of the license, among other factors. Here is a breakdown of the cost of obtaining a virtual company license in Dubai:
- For trade name registration: Around AED 700
- For the virtual company license: Around AED 1800 per year
- For identification and passport validation: Around AED 300
Advantages of Virtual Company License in Dubai
The advantages of starting a virtual company in Dubai are huge. You will have access to the Dubai market by starting a virtual company in Dubai without even relocating to the country. The potential for growth is also very high.
Here are some of the advantages of starting a virtual company in Dubai:
1. Quick Setup
Dubai government has streamlined the process of obtaining a virtual company license to facilitate foreign entrepreneurs. You can easily apply for a virtual company license online through the official website of the Dubai Virtual Commercial City. The process will take around one month to complete. Once the application is approved, you will be allowed to conduct your virtual business operation legally in Dubai.
2. Low Investment
Establishing a virtual company is especially attractive to foreign entrepreneurs as it requires very little initial investment. As you will be conducting your business remotely, you will not need to bear the cost of moving to the country or renting a physical office space.
3. Access to superior market
By starting a virtual company in Dubai, you will have access to fresh clients, markets, and investment opportunities in Dubai. This will open up new doors for your company.
4. Expansion Opportunity
A virtual company offers you a huge expansion opportunity. You can expand your business to new markets without incurring a huge cost. As you will conduct your business online and remotely, you will not need to relocate to expand your current business physically. This will allow you to offer your product to a larger customer base.
5. Low Risk
By starting a virtual company, you will be able to explore business opportunities in Dubai without physically moving to the county. You will not need to make any major investment to start the company. If the completion is too tough, you can easily move on to a new market or stop your business operation and dissolve the virtual company. All of these means that starting a virtual company in Dubai would be a low-risk investment.
How can We Help You?
If you are looking to start a virtual company in Dubai but do not know where to get started, then you are in the right place. This is because Company Setup Consultants have helped more than 20,000 companies make a name for their brands in the UAE marketplace. Our experienced business consultants will answer all your business-related queries. Contact us today and hit the ground running.
If you want to book a free consultation with our experts and learn more about how to acquire a virtual company license in Dubai, call +971582595164. You can also send a WhatsApp message at +971582595164. For email assistance, mail your query at firstname.lastname@example.org
What is a virtual company license in UAE?
A virtual company license allows foreign entrepreneurs to start a virtual company in UAE without moving to the country. This means you can digitally setup a business in UAE and run your business operation remotely. You will not need to move to the country to start a virtual company. However, you will need to be a citizen of one of the 101 eligible countries to be allowed to apply for the virtual company License in UAE.
How to start a virtual company in Dubai?
Here are steps you can follow to start a virtual company in Dubai:
- Choose your business activity
- Select a company name
- Register your company
- Upload the documents
- Monitor the Progress of Your Application for a Virtual Business License
- Verify your identity with VFS Global
- Pay the relevant cost
How do I register my virtual company?
You can register your virtual company by visiting the official website of the Dubai Virtual Commercial City. You will need to complete a provided application form with relevant information when registering the company. You will also be required to upload the relevant documents required by the authority. This step usually takes around one month to complete.