• BY VR1 Global

Starting a Business? Here’s Your Guide to the Virtual License in Dubai

Imagine starting a business in the vibrant city of Dubai, right from the comfort of your home, no matter where you are in the world. Sounds like a dream, right? Well, Dubai has turned this dream into reality with the introduction of the Virtual Company License.

This license is a golden ticket for foreign entrepreneurs, allowing them to set up Business in Dubai without even needing to live here.

His Highness, Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the United Arab Emirates and Ruler of Dubai, announced the launch of the first ‘Virtual Company Licence’ focusing on the growth of three key industries, i.e, Media, Technology & Service.

In this article, we will explore every detail of the Virtual License in Dubai, exploring its benefits, eligibility criteria, the application process, permitted activities, and more.

What is Virtual License in Dubai?

The Virtual License, also known as the Virtual Commercial License, is a digital gateway that enables entrepreneurs to tap into Dubai’s thriving business landscape from anywhere in the world. 

This initiative is Dubai’s way of saying “Welcome” to smart and innovative businesses from around the globe.

It’s a part of Dubai’s vision to become a global hub for businesses and a leader in attracting top-notch companies.

Eligibility Criteria to Get a Virtual License in Dubai

The Virtual License in Dubai is specifically designed for foreign entrepreneurs who want to conduct business in Dubai without physically residing in the city. To be eligible, applicants must meet the following criteria:

• Residency: Applicants cannot be residents of the UAE. This license is exclusively for foreign entrepreneurs.
• Nationality or Tax Residency: Owners of virtual companies must be national or tax residents of any one of these 101 approved countries, which include India, Pakistan, Saudi Arabia, the United States, Canada, Russia, China, Japan, and more.
• Business Activities: The business activities must fall under the predefined sectors, which include service activities related to printing and advertising, computer programming, consultancy, design activities, and more.

Steps to Apply for a Virtual License in Dubai

• Register Your Company: Begin by registering your company and providing the necessary details about your business and its activities.
• Upload Required Documents: Submit the required documents, including a passport copy, proof of residency, tax residency certificate, phone number, email address, and a recent passport-sized photograph.
• Track Your Application: Keep track of your application status online to stay informed about its progress.
• Confirm Your Identification: Confirm your identification at VFS Global, a trusted service provider for governments and diplomatic missions.
• Pay the License Fee: Finally, pay the fee for the virtual business license, which includes a fee for reserving your company name and an annual fee for the virtual license.

Cost of the Virtual License

Starting a business usually involves some costs, and the Virtual Company License is no exception. The total cost for a sole proprietorship is AED 850. This includes AED 200 for reserving your company name and AED 650 per year for the virtual company license.

Tax Implications

Virtual companies are subject to corporate, individual income, and social taxation of the country where they are based. If the virtual company’s revenue within the UAE exceeds $100k per year, then you will be subject to the 5% Value Added Tax (VAT) in the UAE.

Documents Required for Virtual Company License in Dubai

To apply for a Virtual Company License in Dubai, you’ll need to provide the following documents:

• Passport copy (with more than three months till expiry)
• A utility bill or official letter that is no older than 3 months serving as proof of residency
• A tax residency certificate
• Phone Number & Email Address
• Recent passport-size photograph on a white background

Advantages of the Virtual License in Dubai

Obtaining a Virtual License in Dubai brings several advantages for entrepreneurs:

1. Low Startup Costs:

Compared to setting up a physical office, the virtual license requires lower startup costs, making it an affordable option for startups and small businesses.

2. Online Business Management:

With the virtual license, you can manage all your business-related activities online, including signing and submitting documents electronically.

3. Access to Dubai’s Business Opportunities:

Dubai boasts a vibrant economy and offers a wide range of business opportunities. The virtual license allows you to tap into these opportunities without a physical presence.

4. Expansion to New Markets:

The virtual license opens doors to new clients, markets, and investment opportunities, expanding the reach and scope of your business.

5. Participation in the Directory of Virtual Businesses:

Being listed in the Directory of virtual businesses enhances your business’s visibility and credibility.

Permitted Activities under the Virtual License

The Virtual License in Dubai allows businesses to engage in various activities within the predefined sectors. Some of the permitted activities include:

• Service Activities: This includes design and artwork services, bookbinding, and other service-oriented businesses.
• Printing and Advertising: Businesses involved in printing, advertising, and related services can operate under the virtual license.
• Design and Artwork: Fashion design, jewelry design, and other design services fall within the scope of the virtual license.
• Food Preparation: Businesses engaged in the preparation of food can also operate under the virtual license.

It is important to note that the specific activities permitted under the virtual license may vary. To ensure compliance, it is advisable to consult our Company Formation Experts.

VR1 Global – Business Setup Consultancy can help you with Virtual License in Dubai

The Virtual Company License in Dubai is a revolutionary step toward fostering a global business environment. It provides foreign entrepreneurs like you with a unique opportunity to establish a business presence in Dubai without the need for physical residency.

VR1 Global Business setup consultancy is one of the best company formation experts in Dubai, and if you are planning to start your own business here, you can contact our company formation experts who are adept at dealing with all of your queries and concerns without you worrying about the supporting documentation and procedure.

Call or WhatsApp +971508045640 today for a free consultation call with our business setup experts