By Dubai, a global trade hub, has consistently embraced new technologies and ideas to foster a business-friendly environment. Its initiatives, including tax incentives, reduced bureaucratic hurdles, modern infrastructure, and free zones offering full foreign ownership, have created a dynamic environment conducive to corporate growth. One of Dubai’s latest innovations is the Virtual Company License, part of the Dubai Virtual Commerce City (DVCC) program, aimed at enabling entrepreneurs worldwide to establish and operate businesses in Dubai without needing a physical presence.
Dubai Virtual Commerce City (DVCC)
The DVCC is a collaborative effort between several Dubai government entities, including the Department of Economy and Tourism (DET), Dubai International Financial Centre (DIFC), General Directorate of Residency and Foreign Affairs (GDRFA), and Digital Dubai. The initiative aligns with Article 3 of the 50 Year Charter announced in 2019 by H. H. Sheikh Mohammed bin Rashid Al Maktoum. The program allows entrepreneurs and freelancers to establish virtual firms in the UAE, operating without a residency visa or physical authorization.
What is a Virtual Company License?
The Virtual Company License enables companies to operate digitally, removing the need for physical office space or warehouses. This license is ideal for startups, freelancers, and international companies. It offers a regulated online space for business activities, including market exploration, investment, deal-making, business management, and handling official documents online.
Eligibility for a Virtual Company License
To obtain a Virtual Company License in Dubai, individuals must meet specific criteria:
1. Non-residency: Applicants must be non-residents of the UAE.
2. Nationality/Tax Residency: Applicants must be nationals or tax residents of approved countries.
3. Business Activities: The business activities must be location-independent within the predefined sectors focusing on creative industries, technology, and services.
Additional conditions:
- Taxes must be paid in the applicant’s registered or residence country.
- Businesses earning over $100,000 annually in the UAE must register with the UAE Federal Tax Authority and pay a 5% VAT.
- The license does not grant physical visit rights to the UAE for the license holder or their partners, directors, or employees.
- The business cannot be owned by UAE residents and cannot have local directors, auditors, or qualified business service providers from the UAE.
Obtaining a Virtual Company License
The process to obtain a Virtual Company License involves several steps:
1. Registering Your Company: Visit the DVCC website and fill out the registration form with details about your company, business activities, personal information, and previous work experience in Dubai.
2. Uploading Documents: After registration, upload the required documents, including a passport copy (with at least 3 months validity), proof of address, proof of tax residency, and a recent photo on a white background.
3. Tracking Your Application: The submitted application undergoes an authentication process by government entities, typically taking around a month. Accurate information is crucial to avoid rejection.
4. Verifying Your Identification: Once approved, visit VFS Global for identity and passport verification. Schedule an appointment and pay approximately AED 300 as a service fee.
5. Making the Payment: Use the ePay system provided by Smart Dubai to pay for the virtual company license. The cost includes AED 200 for trade name reservation and AED 680 per year for the license.
Advantages of a Virtual Company License
1. Lower Costs: Reduced administrative and operational expenses.
2. Financial Savings: Elimination of traditional expenses like flights, office rent, and housing.
3. Streamlined Operations: Efficient online management of business activities.
4. Expanded Opportunities: Access to new customers, markets, and investment opportunities through the DVCC community and DubaiStore.com.
Eligible Sectors for Virtual Company License
Companies must belong to predefined sectors to obtain a virtual company license, including:
1. Computer Programming, Consultancy, and Related Activities
- Software design
- Electronic chips programming
- Web design
- Social media applications development
- Cybersecurity services
2. Design Activities
- Fashion design
- Jewelry design
- Interior and garden design
- Calligraphy and painting
- Product design
3. Service Activities Related to Printing and Advertising
- Bookbinding
- Typesetting services
- Color separation services
- Design and artwork services
- Greeting cards production and distribution
- Promotional gifts preparation
By embracing digital entrepreneurship and eliminating the need for physical presence, the Virtual Company License program sets new standards for global business operations, making Dubai an attractive destination for diverse business ventures and fostering increased foreign investment.
