Dubai Economy along with other Dubai government entities launched the Dubai Virtual Commercial City programme (VCC) which will enable entrepreneurs and freelancers across the world to start a virtual company in the UAE even if they do not live in the UAE. That means a person without a residence visa or permit can conduct a business in the UAE. He just needs to apply for the Virtual Company Licence.
Dubai believes that a business idea should not limited to where you live or work. The Dubai Virtual Commercial City offers the opportunity to register and manage a business online without the need to be a resident of Dubai or the UAE. You can access and operate your business from anywhere in the world.
What is Dubai Virtual License?
WHAT IS A VIRTUAL COMPANY LICENSE?
The Virtual Company License aka the Virtual Commercial License is 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.
The new Dubai Virtual Company License aims to align with the third Article of His Highness Sheikh Mohammed’s 50-Year Charter to build a Virtual Commercial City in Dubai. To help you get your Dubai Virtual license please contact a Dubai company formation specialist like Business Incorporation Zone (BIZ).
CRITERIA TO START VIRTUAL COMPANIES IN DUBAI
Applicants of the Virtual Company License cannot be residents of the UAE
Owners of virtual companies in Dubai must be national or tax resident from any of 101 approved countries. This includes India, Pakistan, Saudi Arabia, Unites States, Canada, Russia, China, Japan etc. (Visit VCC’s official website 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 fields fashion, jewellery, interiors amongst others.
Apart from these, 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.
Also if the virtual company’s revenue within the UAE exceeds $100k per year, they 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.