Many entrepreneurs and business people dream of doing business in Dubai. However, the process can be challenging for non-residents of the UAE. Fortunately, it is now possible for foreign investors, as the Deputy Ruler of Dubai has announced the issuance of a virtual company license in Dubai.
What Is a Virtual Company In Dubai?
A virtual company is an organization that allows entrepreneurs to operate online without the need for a physical office in Dubai. Business activities can be handled through digital platforms, making it an attractive option for foreign investors.
What Is a Virtual Company License?
Dubai Virtual Commercial City is a new project of the Dubai government that allows foreign investors to enter Dubai’s business market while being in their home country. The only requirement is to obtain a license.
Virtual company license Dubai is a permit provided to virtual company holders upon registration of the company with relevant authorities. License holders are allowed to perform all business activities in Dubai without being there.
This license was introduced by the combined efforts of Dubai Economy, General Directorate of Residency and Foreign Affairs (GDRFA), Smart Dubai, Dubai International Financial Center (DIFC), and the Supreme Legislation Committee. Each department or organization has a different role in this initiative.
- Dubai Economy: This department has a role in the growth of the economy through various projects to attract foreign investors.
- GDRFA: It has a role in dealing with visa and residency permits of foreigners.
- DIFC: It is a financial center that supports virtual companies.
- Supreme Legalization Company: It ensures that rules and regulations are supportive for virtual commercial cities and they’re followed.
- Smart Dubai: It plays a role in making Dubai a smart city with advanced technology. This technology facilitates easy and efficient processing and improves quality of life.
Virtual companies of more than 101 countries are allowed to get virtual license and it is not restricted to one type of industry. It covers a wide range of industries including computer programming, web design, consultancy, technology and creative industries.
Process For Setting Up Virtual Company in Dubai
As we know, license is mandatory for any Business Set Up in Dubai. The same is true in the case of virtual company setup. A virtual license is issued by the Department of Economic Development (DED). You can follow this procedure to get it.
Choose a Name for the Company
The first step in setting up a company is to decide on a name. It is recommended that you follow the guidelines so that you choose a proper name. Ensure that the selected name is not offensive, doesn’t contain any word related to religion, or is not in use already. You can also choose your name as the company name. Submit up to three names to the relevant authority, and then the registry office will verify their availability.
Select Local Service Agent (LSA)
Hiring a local service agent (LSA) for your virtual company is mandatory. LSA performs multiple tasks according to the business’s needs, such as representing the company, dealing with other authorities, and facilitating connections.
Select Business Jurisdiction
Mainland and Free zones are the two main jurisdictions for business establishment in Dubai. There are more than 40 free zones, each with specific requirements and benefits. Establishing a company in one of these zones offers incentives and tax relaxation.
On the other hand, the mainland will allow you to trade directly in the UAE, eliminating the need for further processing and a branch office.
Choose Business Activity
Different kinds of Trading Licenses are available in Dubai. Each type of license allows various business activities to be performed. You can choose business activities of your interests. It is important to follow the rules of the selected license.
Apply For License
After completing the above steps, submit the required documents to obtain a virtual license and trading license.
Select Virtual Office Provider
The next step is to select a service provider to start a virtual company legally by signing the contract. It is important to choose a professional provider as the success of business depends on it.
Eligibility Requirements for License
- It is important to fully understand the eligibility requirements for a virtual company setup. You must meet the eligibility criteria for smooth registration.
- The applicants mustn’t be residents of the UAE.
- UAE residents cannot open virtual company.
- Only residents of approved countries are eligible for virtual company startup. The approved countries are Pakistan, India, Canada, China, and Australia. You can also check the list of 101 countries on the official VCC website.
- Your chosen business activities must fall under the pre-defined business categories. These include programming, printing, designing, and consultancy.
Documents Required for Registration
- Copy of passport
- Passport sized photographs
- Tax residency certificate
- Contact number and email of the applicant
Virtual Company Registration in Dubai Cost
A virtual company license Dubai is cost-friendly, and the estimated amount is around AED 10,000 to AED 30,000. It depends on various factors and can vary.
- License Fee: The license fee can vary as it depends on the selected business activity.
- Administrative Fee: Virtual company registration in Dubai fees also include an initial fee and a name reservation fee. The estimated amount is AED 1000 to AED 5000.
- Visa Fee: The visa fee is AED 3000 to AED 4000. Some virtual companies do not require a visa.
Benefits Of Virtual Business in Dubai
Setting up a virtual company and obtaining a license offers a lot of benefits, which makes it an attractive choice for foreign investors.
Minimum Startup Cost
Setting up a virtual company has a minimum startup cost as it does not require office space, which eliminates the expenses of rent and utilities. Moreover, you can complete most of the administrative work online, minimizing startup costs.
Strategic Location
We all know that Dubai is in the central spot between Asia, Europe, and Africa. The strategic location of Dubai makes it easier for investors to reach the global market and access to large firms around the world.
Easy Processing
Setting up a virtual company is quite easy and straightforward compared to opening a traditional company. It also requires less time and effort.
Tax Benefits
Dubai offers a favorable tax environment for investors, and it is one of the top reasons for virtual company registration in Dubai. Free Zones in Dubai are 100% tax-free. It encourages people from all over the world to invest here and get a complete return.
Access to Visa
With virtual company registration in Dubai, you can apply for a visa of your choice, such as a residency, business, or Investor Visa.
Flexibility
Another benefit of a Virtual company license in Dubai is that it provides flexibility to operate your business however you want it. Wherever you are in the world, you can run your business without any partner or external help.
It gives you the freedom to hire employees and add services without any external pressure. In essence, it gives you 100% control over the business.
Conclusion
At the end of this article, we hope you understand the Dubai Virtual Commercial City and how you can apply for a virtual license. A virtual company is an attractive choice for foreign investors as it allows you to enter the Dubai business market without being in Dubai.
The process of obtaining a license is straightforward. It provides various benefits, including tax benefits, access to visas, and low startup costs.
The process of registering a virtual company can be confusing for entrepreneurs. Al Riyady is here to assist you in setting up your business. Our mission is to provide the best services so your business can scale up.