The introduction of a virtual company licence in Dubai has made the process of forming a business much more straightforward. It is a collaborative effort of the Dubai Economy, the Dubai International Financial Center, the General Directorate of Residency and Foreigners Affairs, Smart Dubai and the Supreme Legislation Committee to provide virtual business licences. Using a Dubai Virtual Company License, investors and freelancers from all over the globe may establish their companies without having to physically visit the United Arab Emirates. A virtual business licence may be obtained by individuals from any of 101 countries across the world. It includes industries such as technology, media & entertainment, creative industries such as design, and a variety of service industries. To learn more about virtual business licences in Dubai, continue reading this article.
CRITICAL CRITERIA FOR APPLYING FOR A DUBAI LICENSE FOR A VIRTUAL COMPANY
Residents of the United Arab Emirates are not eligible to apply for a Virtual Company License.
The owner of the virtual business in Dubai must be a tax-paying citizen of one of the 101 countries that have been recognised by the government. Visit the VCC’s official website to see a list of the nations that have been authorised.
Only a small number of business operations qualify for the use of a virtual company licence. Computer programming, consulting, and design in a variety of areas such as fashion, jewellery, interiors, and so on are examples of such activities.
However, virtual company owners in Dubai are liable to corporation or income tax in the nation where they are located, which should be taken into consideration. If the income generated by a virtual business in the United Arab Emirates reaches $100 per year, the firm will be liable to VAT. In this case, the virtual business licence holder will be required to register the firm with the Federal Tax Authority of the United Arab Emirates.
How to Submit an Online Application for a Dubai Virtual Company License
In order to apply for a virtual business licence in Dubai, please follow the procedures outlined below:
1. Create a legal entity for your business.
To begin the process of registering your business, go to the official website of the Dubai Virtual Commercial City, fill out the application form, and give all of the necessary information. You will also be required to give the name of your business licence as well as a description of the kind of business activity that you plan to engage in at this stage.
2. Place your papers on the server.
The following papers are needed in order to submit an application for a virtual business licence:
A copy of your passport is required (with more than 3 months validity)
Identification as proof of residence (any utility bill or official letter, not more than 3 months old)
Proof of tax residence is required (if you are not from any of the approved countries)
A recent picture with a white backdrop is shown here (not more than 3 months old)
3. Keep track of the progress of your application.
Once your application has been submitted, the authentication procedure will begin immediately. The Dubai Government will conduct a background check on the applicant. The authentication procedure takes about one month on average. Upon completion of the application procedure, you will get an email indicating whether your application has been approved or rejected.
4. Verify your identity with VFS Global.
If your application is approved, you will be required to attend VFS Global for identity and passport verification before moving further. If you would like to schedule an appointment with VFS Global, you may do so on their website or by sending an email to [email protected]. The cost of the visit is AED 300, which includes the cost of the booking.
5. Pay the costs associated with the virtual business licence (if applicable).
It will be necessary for you to pay the costs for your Dubai Virtual Company License after your identification has been properly validated at VSF Global. Alternatively, you may make your payment on the VCC website using the official payment channel offered by the Dubai Government’s Smart Dubai initiative. The price for the Virtual Company License is determined by the length of time the licence is active. The overall cost of the Virtual Business License is AED 850, which is comprised of AED 650 per year for the virtual company licence and AED 200 for the company name, which is divided into two parts.