How to Get a Virtual License in Dubai for Your Company?

The Dubai Economic Development Department launched several initiatives to boost the businesses operating in the Emirate. One such initiative included introducing a Virtual Company License in light of the international move towards eCommerce and the directives of the Dubai Government to adopt e-commerce in the local business sector by taking benefit of websites, social media and intelligent applications. Virtual License in Dubai is an effort to boost Foreign Direct Investment (FDI) in Dubai.

What is a Dubai Virtual Company License?

A Dubai Virtual Company Licence will allow investors worldwide to do business in Dubai digitally without requiring residence and following the highest international legal standards. This means that Virtual Company Licence owners can manage all their business-related activities, including document signing and submission digitally, and the signatures are legally binding in the UAE.

You must know a few things before starting a virtual company in Dubai.

First, to be suitable for a virtual license, you must reside outside the UAE and be a national or tax resident in an approved country.

Eligible Countries to Obtain Virtual License in Dubai

Some of the countries that are granted virtual company license in Dubai are 

• Brazil
• Cameroon
• Canada
• China
• India
• Nigeria
• Pakistan
• Russia
• Saudi Arabia
• South Africa
• Uganda
• UK
• USA

Non-Eligible Countries for Dubai Virtual License

Dubai virtual license are not granted to the following countries

• Afghanistan
• Belarus
• Egypt
• Iran
• Oman
• Serbia
• Sri Lanka
• Thailand
• Venezuela

It is also imperative to note that Dubai virtual company remains subject to corporate, individual income and social taxation in the country of business formation and residence, depending on the location of economic activities and international tax agreements. However, if you understand the license and feel that it fits your and your business's needs, you'll find that, with the proper guidance, the application process is incredibly straightforward.

Activities under Virtual Company License in Dubai

The activities under virtual company license in Dubai include –

• Computer Systems & Communication Equipment Software Design
• Electronic Chips Programming
• 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
• Fashion Design
• Jewellery Design
• Design Services (Interior Design, Garden Design)
• Calligraphers & Painters
• Product Design
• Books Binding
• Typesetting Services
• Colour Separation Services
• Design & Artwork Services
• Greeting Cards Production & Distribution Services
• Promotional Gifts Preparing

How to Apply for a Dubai Virtual Company License?

The process of applying Dubai virtual company license is as below

 1.  Decide on the Business Activity

Before making your Dubai virtual license application, the first step is to decide on your organizational activities. The complete list of permitted activities under a virtual license is mentioned above.

 2. Decide on a Company Name

Make sure your business name is not similar to any of the existing names in the UAE and that you abide by the laws set by the government while naming your company.

 3. Apply for the License

With these formalities out of the way, you can now make your virtual license application. You will be required to provide certain documents as part of the application process.

Documents required for Virtual Business License Dubai

To get a virtual business license Dubai, you need to submit certain documents, and they are

• Passport copy (with more than three months till expiry)
• Proof of address (any utility bill or official letter, not more than three months old)
• Proof of tax residency (if you are not from the approved countries)
• A recent photo on white background (not more than three months old)
• Completed application including your name in Arabic script (if your current or past nationality is that of an Arab country, information on your experience with Dubai 

How Much Does Virtual License Dubai Cost?

The virtual license Dubai cost depends on the type of company you wish to establish. The trade name reservation costs 200AED and per year AED 650 for the license and extra depending upon the type of establishment. E.g., sole proprietorship costs AED 850. 

Benefits of Obtaining - Dubai Virtual Company Licence

Obtaining the Dubai Virtual Company licence has the following benefits

• The Virtual Commercial Licence interprets the work and life of entrepreneurs and freelancers through the provision of:
• Moderate costs and administrative burdens to start and grow your company
• Online access to your business
• Access to business opportunities in Dubai
• Access to new customers, markets, and investment opportunities
• Participation in virtual companies’ directory

Things to Consider Before Applying for Virtual Trade License Dubai

Virtual company in Dubai Your virtual trade license Dubai needs certain criteria to be fulfilled. Check for that below

• Applicants of the Virtual Company License cannot be residents of the UAE.
• Owners of virtual companies in Dubai must be national or tax residents from any of the 101 approved countries. This includes Canada, India, Pakistan, the United States, Russia, China, Saudi Arabia, Japan, etc. (Visit VCC’s official website for the full list of approved countries)
• Only business activities from the predefined sectors can set up a virtual business in Dubai. The predefined sectors include service activities related to printing and advertising, consultancy, computer programming, associated activities, and design activities in jewelry, fashion, and interiors.

Although the procedure is straightforward, like any UAE license application, it needs some understanding of the region's business practices. For that reason, it is a good idea to work with an expert in UAE business formation who can manage the whole process for you. Licenses are usually issued in around 30-35 business days.

Our consultants at Commitbiz can handle all the registration and paperwork related to virtual company licenses in Dubai hassle-free and straightforwardly. Contact us today for further queries.