Virtual Company Management or Dubai Virtual Company has become easy due to the Dubai Virtual Commercial City program and new Virtual Company License.
Dubai Virtual Commercial City (VCC)
Dubai Virtual Commercial City program (VCC) helps professionals across the world to start a virtual company in the UAE. That means a person who is not a UAE resident can conduct a business in the UAE.
Getting the Virtual Company License allows foreign business investors, to do business in Dubai without actually living there. And manage all business related activities from an online portal.
Below government agencies started the VCC and the new Virtual Company License:
- Firstly Dubai Economy
- Secondly The Dubai International Financial Centre (DIFC)
- Thirdly General Director of Residency and Foreigners Affairs (GDRFA)
- Fourthly Smart Dubai.
- And finally the Supreme Legislation Committee.
Cost of the License
The License is expected to cost AED 850 for a year. AED 200 is the start-up fee for ownership and AED 650 is the cost for license. The license covers the sectors like creative industries, technology and services.
Benefits of Virtual Company License
Virtual Company License offers direct access to a regulated e-commerce platform. It helps to get the access to banking services. The Virtual Company License helps to simplify the work of owners by:
- Firstly lowers the opening and administration cost
- Secondly, gives online access to your company
- Thirdly gets more opportunities of doing business in Dubai
The license helps you to reach new customers, markets and investment opportunities
Criteria to Start a Dubai Virtual Company
The applicants should not be a resident of UAE. Next, it is important for the owner of the virtual company to be the national resident from any of 101 approved countries.
In addition the businesses predefined in the license can only be set up by the virtual company such as:
- Service activities like advertising and printing, consultancy etc.
- Creative activities like jewellery, fashion etc.
Also owner of the Virtual Company will pay income tax in the country where they are living.
Moreover, you have to pay 5% value added Tax (VAT) if the virtual company’s income increases more than $100 K in a year. This means the company has to be registered with the UAE’s Federal Tax Authority.
However owning a virtual company does not mean you can open a bank account in UAE. The VCC can help in opening bank account in Dubai. The bank will finally decide to open bank account.
In addition the virtual company license will not get you visa of any category in Dubai. However the Dubai government is working to update visa process for virtual company owners. The owner should have minimum monthly income of $5000.
Finally the applicants will benefit from the emirate’s zero income tax. However, VCC will share details about the owners of the company with local tax authorities.
Dubai government will conduct background checks for all applicants of the virtual company license.
Documents needed for Virtual Company License
- Passport having minimum six months validity.
- Proof of address (any utility bill or official letter, not more than 3 months old)
- Health insurance covering UAE.
- Proof of tax residency (if you are not from the approved countries)
- Should have a proof of employment from the current employer,
- One year contract validity, minimum salary in a month $5000
- Last four month’s pay slip
- If the applicant is the company owner then it will require proof of ownership for one year
- Monthly income of minimum $5000
- Bank statements for last three months
Steps to Apply for Virtual Company License Online
- First Register the company
- Visit the Dubai Virtual Commercial City’s official website
- Fill out the online company registration form
- Enter the trade license name of the company and define the business activity
- Second prepare the documents and upload
- Third track the status of your license application
- Dubai government will do a background check
- Fourth confirm your identification at UFS global
- After getting the approval the owner will go in person to VFS Global for identification and passport verification
- Pay the cost.
Dubai has favorable living conditions, so professionals prefer to move to Dubai. This license helps them to move to Dubai while continue to serve there employers in their home country.
In conclusion, Dubai virtual company will help to develop Dubai as one of the world’s major business hubs.