Dubai Virtual Company License

Dubai has emerged as a global hub for business and innovation in recent years, attracting entrepreneurs worldwide with its favourable regulatory environment and strategic location. One of the latest developments in business setup in Dubai is the introduction of virtual company licenses, offering a streamlined and cost-effective option for entrepreneurs to establish their presence in the region without needing physical office space. In this article, we delve into the concept of Dubai virtual company licenses, their benefits, and the process of obtaining one.

Experts at Filings.ae can assist you in obtaining a Dubai virtual company license.

Virtual company license

A virtual company license, as described, enables individuals such as business people, entrepreneurs, and freelancers to operate their companies virtually in Dubai without the need for physical presence or residency in the city. This license allows holders to manage their business activities digitally, including signing documents, without maintaining a physical office space.

The introduction of the virtual company license is the result of collaborative efforts between various government entities and organisations in Dubai, including Dubai Economy, the General Directorate of Residency & Foreigners Affairs (GDRFA), The Supreme Legislation Committee, Smart Dubai, and the Dubai International Financial Centre (DIFC). These entities have worked together to establish a regulatory framework that facilitates virtual business operations in Dubai, promoting entrepreneurship, innovation, and ease of doing business in the city.

Benefits of Dubai Virtual Company License

The Dubai Virtual Company License (VCL) offers a range of benefits to entrepreneurs and businesses looking to establish a presence in the region. Some of the key advantages include:

• Cost-Effectiveness: Virtual company licenses eliminate the need for physical office space, reducing overhead costs such as rent, utilities, and maintenance expenses. This makes it a cost-effective option for entrepreneurs, especially those operating on a tight budget.
• Flexibility: VCLs provide unparalleled flexibility, allowing business owners to manage their operations remotely from anywhere in the world. This flexibility is particularly beneficial for digital nomads, freelancers, and small businesses that require free services, including access to co-working spaces, networking events, mentorship programs, and financial incentives designed to support entrepreneurship and innovation.
• Global Reputation: Dubai is globally recognised as a business-friendly destination with a robust regulatory framework and infrastructure. Holding a VCL enhances the credibility and reputation of businesses operating in the region, potentially attracting more clients and partners.

Overall, the Dubai Virtual Company License offers entrepreneurs a compelling opportunity to establish and grow their businesses in a dynamic and thriving business environment with minimal costs and maximum flexibility.

Eligibility Criteria for Virtual Company License

The eligibility criteria for obtaining a virtual company license in Dubai are outlined below:

• Residency Requirement: Virtual company licenses are available to individuals not residing in the UAE. This means entrepreneurs from other countries can establish virtual businesses in Dubai without a physical presence.
• Ownership Criteria: The company's owner must be a national or tax resident of an approved country. These approved countries include India, Pakistan, Saudi Arabia, China, Russia, North America, South Africa, Nigeria, and others.
• Business Activity Restrictions: Under the virtual business model in Dubai, only business activities from pre-defined sectors are permitted. Dubai government authorities typically determine these sectors and may vary based on specific regulations and policies.
• Background Checks: All applicants for a virtual company license are subject to background checks conducted by Dubai government authorities. These checks are designed to ensure compliance with regulatory requirements and to maintain the integrity of the virtual business ecosystem in Dubai.

By meeting these requirements, entrepreneurs can become eligible to apply for and obtain a virtual company license in Dubai, enabling them to establish and manage their businesses remotely in the city.

Key Information About Virtual Company Licenses in Dubai

 Here are some additional key points to consider about virtual company licenses:

• Visa Considerations: A virtual company license does not automatically guarantee physical access to the UAE through business, visitor, or resident visas for the company's partners or employees. Visa issuance is subject to the relevant immigration regulations and procedures of the UAE government.
• Taxation: Virtual companies remain subject to corporate, individual income, and social taxation in the country of incorporation and residence, depending on the location of economic activities and any international tax agreements in place.
•  Bank Account Opening: While a virtual company license facilitates access to the account opening processes in the UAE, the decision to open a business account ultimately rests with commercial banks and is subject to their policies and criteria.
•  Ownership and Compliance: Virtual companies structured as sole proprietorships are not subject to local ownership, directorship, auditing, or qualified business service provider requirements in the UAE.
•  Value-Added Tax (VAT): Virtual companies operating in the UAE may be required to register for VAT with the federal tax authority if their revenue within the UAE exceeds USD 100,000 per annum. VAT registration and compliance are the responsibilities of the virtual companies. The standard VAT rate in the UAE is 5%, and there are no income taxes on non-financial entities.

Understanding these aspects is crucial for entrepreneurs considering establishing a virtual company in Dubai.

 Are there Industry Restrictions for Virtual Company Licenses?

The virtual company license is exclusively available for specific sectors, including:

• Service activities related to printing and advertising.
• Computer programming.
• Consultancy and related activities.
• Design activities, including fashion design.

Procedure for Obtaining Virtual Company License

Registering a Virtual Company in Dubai: Step-by-Step Process is explained here:

• Online Registration: Begin the registration process by visiting the website official website. Complete the application form and submit it online.
• Background Check: After you submit your application, the UAE government conducts a background check, which typically takes 1 to 30 days.
• Identification and Validation Visit: VFS Global arranges an identification and validation visit following the background check. During this visit, your documents and information will be verified.
• Fee Payment Request: Upon successfully completing the background check and validation visit, you will receive a request to pay the required fees.
•  Payment of Fees: Once you receive the request, make the prescribed payment through the designated channels.
• Receipt of Virtual Company License: After you confirm the payment of fees, you will receive your Virtual Company License electronically, enabling you to legally operate your business in Dubai.

 Following these steps outlined on the VCC website, you can successfully register your virtual company in Dubai and begin conducting business activities there.

Cost of obtaining a Virtual Company License (VCL)

The cost of obtaining a Virtual Company License (VCL) in Dubai can vary depending on several factors, including the specific package chosen and any additional services required. However, generally speaking, the cost of a Virtual Company License can range from approximately AED 2,500 to AED 15,000 or more. This cost typically covers the license issuance fees, government processing fees, and other administrative charges associated with setting up a virtual company in Dubai.

 Allowed Business Activities for Virtual Companies in Dubai:

1. a) Service activities relating to printing and advertising:

• • Books Binding
  • Typesetting Services
  • Colour Separation Services
  • Design & Artwork Services
  • Greeting Cards Production & Distribution Services
  • Promotional Gifts Preparing
• b) Computer programming, consultancy, and related activities:
  • Computer Systems & Communication Equipment Software Design
  • Electronic Chips Programmings
  • Web-Design
  • Social Media Applications Development & Management
  • Cyber Security Architecture
  • Public Networking Services
  • Cyber Risk Management Services
  • Auditing, Reviewing, and Testing Cyber Risks
  • Managed Cyber Security Services Provider
  • Marketing Services Via Social Media
• c) Creative Design:
  • Fashion Design
  • Jewelry Design
  • Design Services (interior design, garden design)
  • Calligraphers & Painters
  • Product Design

These are the specific business activities permitted for virtual companies in Dubai.

Dubai Store

Dubai Store is an online platform where businesses holding virtual trade licenses in Dubai can list and showcase their products and services. It provides a digital marketplace for entrepreneurs and companies to reach customers and conduct e-commerce activities. DubaiStore.com is operated by Digital Economy Solutions LLC, a joint venture between the Department of Economic Development (DED) and Emirates.

Through Dubai Store, businesses can leverage the digital economy and expand their reach by tapping into online sales channels. The platform facilitates transactions, allowing customers to browse, purchase, and pay for products and services online. By participating in Dubai Store, businesses can enhance their visibility, access a broader customer base, and capitalize on the growing trend of online shopping and beyond.

Process of Obtaining a Dubai Virtual Company License

The process of obtaining a virtual company license in Dubai typically involves the following steps:

• Business Activity Selection: Determine the nature of your business activities and ensure compliance with Dubai's regulations and licensing requirements.
• Choose a License Package: Select a suitable virtual company license package offered by Dubai government authorities or authorised service providers. These packages may vary in pricing, features, and additional services.
• Documentation: Prepare the necessary documentation, including identification documents, business plans, and other required paperwork.
• Application Submission: Submit your license application through the relevant online portal or authorised service provider. Ensure that all required information is accurately provided to expedite the processing of your application.
• Approval and Payment: Your application will be reviewed by the relevant authorities upon submission. If approved, you will receive a notification and instructions for paying license fees.
• License Issuance: Once the license fees are paid, you will receive your virtual company license electronically, enabling you to commence your business activities in Dubai.

Conclusion

Dubai's virtual company license initiative presents a compelling opportunity for entrepreneurs seeking to establish a presence in the region without the constraints of traditional office setup requirements. With its cost-effectiveness, flexibility, and ease of setup, a virtual company license allows entrepreneurs to pursue their business ventures while benefiting from Dubai's dynamic business ecosystem. By understanding the benefits and process of obtaining a virtual company license, entrepreneurs can use this innovative solution to unlock new opportunities in Dubai's thriving economy.

Filings.ae specialists can guide you in acquiring a virtual company license.