What is a Virtual Company Trade License in Dubai and How to Apply for It?

Author: John Smith

After the launch of the virtual company license in Dubai, starting a business in Dubai has become easier. This license will allow foreign investors to set up a business in the city, without possession of a physical space or residing in the UAE. Let's try to know more about it from this post.

What is a Virtual Company License?

The Virtual Company Trade License is a new program that allows foreign investors and entrepreneurs to establish a business in Dubai, along with a backing of digital communication provided by those companies, without possessing a residence in the city. Foreign business owners can now apply for a virtual trade license in Dubai. It is open to investors from over 101 countries, and one gets a license to work in the areas’ major sectors, creative industries, technology, and services.

Eligibility Criteria

Here are some of the virtual company trade license requirements that investors have to provide to be eligible.

  • Virtual trade license cannot be issued to residents of the United Arab Emirates.
  • The virtual company owners in Dubai must be a national or tax-paying resident from any of 101 approved countries. The list includes - India, Pakistan, Saudi Arabia, United States, Canada, Russia, China, Japan, etc. For the full list of approved countries, you can visit VCC’s (Virtual Commercial City) official website.
  • Only selected business activities are allowed for virtual company licenses in Dubai. Those are from the pre-defined sectors like service activities related to printing and advertising; jewellery, design activities in fields fashion, computer programming, consultancy, and related activities; and interiors amongst others.

Please note that the virtual companies in Dubai shall continue to remain subject to corporate, individual income, and social taxation of the country where they are based.

Additionally, if the revenue of the virtual company within the United Arab Emirates surpasses $100k annually, they will have to pay 5% Value Added Tax (VAT) in the UAE. Meaning, a Dubai Virtual Company License holder will need to register the company with UAE Federal Tax Authority.

For further clarity on qualification criteria, visit the Dubai Virtual Commercial City’s (VCC) official website.

How to Apply for Virtual Company License?

To set up a virtual business in Dubai, the foreign investors need to apply for the Virtual Company License. Here is the process that they have to follow:

1. Register the Company

Visit the Dubai Virtual Commercial City’s official website for the registration process. You will need to fill out the online company registration form. Fill all the necessary details.

2. Upload the Documents

Below is a list of necessary documents for the Virtual Company License that you will have to upload online.

  • Passport copy (with more than 3 months till expiry)
  • Proof of address (any utility bill or official letter, not more than 3 months old)
  • Proof of tax residency (if you are not from the approved countries)
  • A recent photo on white background (not more than 3 months old)

3. Track the Status of Your Application

Whatever information you submitted will be sent for verification. The Dubai Government authorities carry out the verification process via a background investigation. Ensure all information that you have submitted is accurate. After the screening, the investor will receive a notification via email either of approval or rejection.

4. Confirm Your Identification at VFS Global

The investor will require to go to VFS Global in person for identification and passport verification, after receiving the approval. A visit to VFS Global must be pre-booked. You can make an appointment from their website or even by sending an email on bookappt.vccdubai@vfsglobal.com. You will have to pay EUR 75 (AED 300) + applicable taxes in the selected country, a service charge to clear this step.

5. Pay The Cost for The License

After the identification at VSF Global is successfully validated, investors will have to pay the cost for Dubai Virtual Company License. You can pay the fee via ePay, which is the VCC’s official payment mode.

For more information, make sure you visit the VCC’s official website.