Starting a business just got easier thanks to the newly launched Virtual Company License in Dubai. The new virtual business license will allow foreign business owner/investors to set up a business without actually residing in the UAE. Continue reading find to out about the new virtual business license and how you could possibly start a business in Dubai from your home country.
Also Read: Expand your business to Dubai
Virtual Commercial License is actually a new directive that enables overseas entrepreneurs to digitally establish a business in Dubai, without acquiring a residence in the city. Application of the new virtual license in Dubai is open to foreign businesses from over 101 countries and covers main sectors including creative industries, technology and services based. To set up a virtual business in Dubai, an applicant needs to register for the Virtual Commercial License. Here is the application process for the Dubai Virtual Company License.
Step 1 Check your eligibility for acquiring the license
- Applicants of the Virtual Company License cannot be residents of the UAE
- Owners of virtual companies in Dubai must be nationals or tax residents from any of the 101 approved countries. This includes India, Pakistan, Saudi Arabia, Unites States, Canada, Russia, China and Japan. (Contact business set up consultants for the full list of approved countries).
- Only business activities from the pre-defined sectors can set up a virtual business in Dubai. The predefined sectors include service activities related to printing and advertising; computer programming, consultancy and related activities; and design activities in fashion, jewelry and interior design amongst others.
- Virtual company owners in Dubai must remember that their companies will continue to remain 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, it will be subject to the 5% Value Added Tax (VAT) in the UAE. This means that a Dubai Virtual Company License holder will be required to register the company with UAE’s Federal Tax Authority.
Step 2 Register the company
Seek the help of business set up consultants to initiate the registration process for the virtual company. The applicant will need to fill out the company registration form with the help of a team of business set up consultants.
Step 3 Furnish requirements for license issuance
The next step is to furnish the following documents.
- Passport copy (with more than 3 months till expiry)
- Proof of address (any utility bill or official letter, not more than 3 months old)
- Proof of tax residency
- A recent photo on white background (not more than 3 months old)
Step 4 Track the status of the virtual commercial license
Once the application is submitted, the information submitted will be sent for authentication by experts. The Dubai Government authorities carry out the authentication via a background check. This virtual company license verification step can usually take a month, so ensure that all the submitted information is accurate. After the screening process, the applicant will receive an email notifying of either an approval or rejection.
Step 5 Pay the cost of the license
After successfully validating the identification, the applicant will have to pay the Dubai Virtual Company License cost. This will depend on the validity of the license.
Business set up consultants
The Virtual commercial License is a testament to our commitment to eliminating barriers for the private sector, which is a strategic partner of UAE for sustainable development. The public and private sectors are integral to Dubai’s diversified economy and the Virtual Commercial City will further strengthen public-private partnerships and enhance Dubai’s profile as a global business and investment destination.
With the new virtual business license in Dubai, the emirate is expected to grow. For more information on all the details mentioned here, make sure to consult with our business set up experts. Our experts can help you throughout the application of a virtual commercial license in UAE.
Which sectors are covered under virtual commercial license?
It focuses on three main sectors:
- Creative industries
- Technology industries
- Service industries
Can a UAE based business have a virtual license?
No UAE residents are not eligible for such type of license.
What are the eligible countries?
The official website has a list of the eligible and non-eligible countries across the globe. India, Pakistan, Saudi Arabia, China, Russia, North Americas, South Africa, Nigeria, Cameroon, Uganda, Brazil, Argentina and Chile are some of the countries on the eligible list. Your ca also consults with our experts to determine your eligibility to acquire a virtual commercial license.