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Virtual company license in Dubai

Virtual company license in Dubai

The UAE government is confident that a promising business idea should not have restrictions in the form of a place of residence or the ability to be physically at the workplace. The belief has been embodied in a new virtual license Dubai program. It allows you to launch a new project in digital format as soon as possible.

What is a Virtual Company License?

The UAE is famous for expanding opportunities for entrepreneurs. They attract immigrants from different countries, where either favorable conditions for business have not been created, or the chosen niche is occupied. They create terms to implement new promising commercial ideas and innovations in life. Peculiarity of the new program is that foreign investors or business owners who do not live in the UAE can engage in entrepreneurial activity.

It is important to note that issuance of permits for the right to implement projects became possible thanks to a joint initiative of several government departments in Dubai. Which departments have participated in the decision:

  • DIFC – the abbreviation stands for International Financial Center;
  • Digital Dubai;
  • GDRFA – General Directorate for Residents and Foreigners;
  • Supreme legislative body.

Significant addition is the fact that they do not need to obtain a residence permit. Owners of foreign companies from different countries, the list of which is certified at the government level, can take advantage of unique opportunities. The program is designed for the development of certain areas of the economy, which will be given below.

It’s no secret that Dubai is on the way to being recognized as the city of the future. Recently, a plan was unveiled to create the largest economically developed center in the world in 10 years, where the latest virtual technologies will be used. The introduction of the virtual company license Dubai is one of the main steps towards the goal. It was initiated by the President  and the government of the UAE.

Advantages of a Virtual Business License in Dubai

Virtual Businessmen

According to experts, the uniqueness of virtual licenses is that the business owner cannot leave the main place of residence. If a number of conditions are met, everyone will be able to issue a permit to conduct business from anywhere in the world.

Holders of the right have an opportunity to gain access to the developing economy of the UAE without their presence in the country. The license provides access to the economic resources of a rich region and an easy way to organize business processes using low fees and minimal costs.

People who dream of starting a profitable business from home without investments can take advantage of the license. It can be used instead of a resident visa. Entrepreneurs can start implementing a project without obtaining a permit to work as a freelancer.

Selection criteria for obtaining a new Business License in Dubai

In order to get a virtual company license guaranteed, it is important to take care of the entrepreneur’s compliance with a number of requirements. They include:

  1. An important condition for obtaining a permit is that the applicant does not have the status of a resident of the UAE.
  2. License holders may be citizens or residents of countries included in the list approved by the UAE government. The full list can be found on the official VCC website.
  3. It is possible to develop business projects only in pre-defined sectors. Entrepreneurs can provide services in the field of marketing, advertising and printing. They can engage in IT technologies and computer programming. It is allowed to work in the field of consulting and related activities. Permission can also be issued to remotely working designers in different directions: fashion, interior, jewelry.

If you have become the owner of a virtual license, you need to keep in mind that business activity will be subject to different types of taxes in the country where it is officially registered.

Provided that the annual income of the business project exceeds 100 thousand dollars, it will be taxed 5%. It is called value added tax in the UAE. In order to conduct legal activities, the entrepreneur is obliged to officially register a company with the Federal Tax Service.

What types of business activities are allowed under the Virtual Company License?

Dubai

It is important to take into account that it is possible to create a virtual company in Dubai only in certain industries approved at the government level. Among them there are creative industries, service sector, promising and rapidly developing technology industries.

Service activities related to printing and advertising

  • Typesetter;
  • Copywriter;
  • Typographic worker who binds books at home;
  • Color Separation specialist;
  • Designer and art designer;
  • A person engaged in cardmaking;
  • Specialist in advertising campaigns.

Computer programming, consulting and related activities

  • Specialist in in-circuit programming;
  • Software Developer;
  • Webmaster;
  • Audit of cyber risk management processes;
  • A person who is engaged in SMM management;
  • Information Security systems architecture specialist;
  • Ensuring information security.

Creative design

  • Clothing modeling;
  • Jewelry design development;
  • Product designer
  • Any kind of design services (interior decorator, landscape designer, working remotely);
  • Specialist in calligraphy;
  • Illustrators.

Steps to apply for a dubai Virtual Company License online

The application process is simplified as much as possible for the convenience of applicants. To begin with, they only need a laptop and a good Internet connection. Officially, investors and businessmen from 101 countries can apply to the Dubai Economy Department for permission to create a virtual company. You should use the website: www.vccdubai.ae to submit a request.

Provided that filing an application online causes you distrust or there are some other doubts about this, you can make a request for a license through VFS Global office centers. You can also find out about their location on the website.

Creative design

It should be kept in mind that application process will not cause difficulties only if the applicant has well understood the filling process. The request must not contain any errors. Experts working in consulting companies will help to avoid them. They know everything about getting a virtual license.

Register the company

At first the entrepreneur needs to find a suitable name. There are a number of restrictions in the UAE that relate to the choice of it. In short, it is unacceptable to use offensive expressions and names containing religious terms. You should not stop choosing well-known abbreviations. In addition, it is desirable to specify the full form, and not an abbreviated version. Before you start filling out the license application, make sure that the chosen name is available.

Registration should be made on the project’s website, which is supported by the UAE government. It is called the Virtual Commercial City of Dubai. In various sources, you can find the abbreviated name DVCC. Online registration form is available on the website.

Upload the documents

What documents should be prepared for uploading:

  • copy of the applicant’s passport;
  • confirmation of the address of the actual residence (any official document indicating the address will be suitable);
  • certificate or other document of tax residence;
  • photo on a light background.

It is important that the validity period of the documents is at least 3 months.

You will also need to provide the results of a background check. The verification process takes from 1-30 days. This practice is widespread all over the world to exclude forgery of documents and to determine the reliability of an entrepreneur.

Track the status of your application for a Virtual Company License

In order not to miss the moment when approval will be given, it is important to keep track of application. Within about 30 days, the applicant will get an official letter by email.

Confirm your identification in VFS Global

VFS Global

If the applicant has received a positive response, he needs to visit VFS Global for checking documents and self-identification. When making an appointment online, you should provide proof of payment for the cost of the consultation. It is 300 dirhams UAE.

Pay the cost of a Virtual Business License

The cost of a virtual license in Dubai is not fixed. It varies depending on how long the business permit will be valid. For example, a 1-year license will cost 233 US dollars or 850 Australian dollars. The cost consists of an entry fee of 200 dirhams of the UAE and 650 Australian dollars for obtaining a permit. A license for 2 years costs $ 411, and for 3 years its cost will be $ 589.

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Vladimir Sviridov
Vladimir Sviridov
General Manager RLC Consulting
With a Postgraduate Masters in Finance from The, Moscow State University, Russia. Vladimir started his professional career as an auditor of the financial sector of EY. After that, he worked for several years in senior positions in corporate banking. In 2018-2021, he managed the finances of a large agricultural holding, and is currently responsible for strategic planning, corporate partnership and financial management in the role of General Manager of RLC Consulting GROUP in the UAE.

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