Dubai Virtual Company License: Everything You Need to Know

Dubai Virtual Company License Guide

It’s the word “virtual” again. You must have noticed that virtual assistants, virtual services, etc., occasionally pop up. But have you ever heard about a virtual company license? It’s now possible to get one in Dubai.

In this article, we’ll talk to you about what a virtual company license is, the benefits of a virtual company license, whether you qualify for it, its criteria, how to apply for it, and its fees. Let’s start with what a Dubai virtual company license is.


What is the Dubai Virtual Company License?

A virtual company license allows a company to do business in Dubai without having a presence there. This is a great idea for businesses that want to benefit from Dubai’s growing markets without worrying about establishing an office there or paying for its expenses. In short, a virtual company license is your ticket to doing business in the Emirates without going there.

After obtaining their license, virtual company owners can run their businesses from anywhere in the world. This enables overseas entrepreneurs to run their businesses and profit in one of the most promising cities without worrying about additional, unnecessary costs like a physical presence, offices in expensive locations, or utility bills.

Understanding the Dubai Virtual Company License

UAE Residency

The best thing about Dubai’s virtual company license is that company members or owners don’t have to be residents of the Emirates. The license is especially for those who don’t live in the Emirates. So, if you live in the Emirates and want to start your business there, this article is not for you. Residents of the UAE are not eligible for a virtual company license.

About the Virtual Company Licence

The Dubai virtual company license is a joint initiative of Dubai International Financial Centres (DIFC), Dubai Economy, Smart Dubai, the General Directorate of Residency and Foreigner’s Affairs (GDRFA), and the Supreme Legislation Committee.

As per His Excellency Sami Al Qamzi, Director General of Dubai Economy, Emirates has launched “the first Virtual Commercial City in the region that will provide virtual license for doing business digitally and without requiring residence in Dubai.” He added that launching this virtual license “marks a quantum leap in the concept of doing business and will be a major attraction for the next generation of entrepreneurs.”

Approved Countries and Tax Residency

To get a virtual company license in Dubai, you must be a national or tax resident of approved countries like Canada, Peru, Spain, South Africa, and the United States. You can check the full list of approved countries and non-eligible countries here.

The Legality of Your Virtual Business

This virtual business license allows holders to do business-related activities normally, like electronic signing and document submittal, and electronic signatures are legally binding in the UAE.


You must remember that virtual companies are “subject to corporate, individual income and social taxation in the country of incorporation and/or residence depending on the location of economic activities and international tax agreements.”

As for taxes in the UAE, virtual companies are exempted from taxes if their revenue is less than $100k per year, but if it exceeds that amount per year, they will pay the 5% value-added tax (VAT) in the UAE. A registry of the UAE’s federal tax authority becomes a must.

The Benefits of Dubai Virtual Business License

Dubai Virtual Business License

A virtual business license in Dubai is “virtual, ” meaning you don’t have to have an office in Dubai and its costs. You will save money as you can run your business cheaply and avoid the administrative burdens of running the business from Dubai. You get online access to your company and have access to many markets, investments, and business opportunities. And you also get access to

Do You Need a License for Online Business in Dubai?

Yes, if you want to do business in Dubai without worrying about the cost and your business is in one of the creative industries, services, or technology fields. Then, the license is a good idea because your business activities are completely legal when you acquire the virtual license. And as you’ve seen above, it opens many business opportunities to help your business thrive and survive.

Businesses Eligible for a Dubai Virtual Company License

Your business must meet the criteria to apply for a virtual company license. The authorities have decided on some pre-defined sectors that can do business in Dubai. Some of the predefined sectors are:

  • Web Design
  • Cyber Security
  • Computer Programming
  • Computer Systems & Communication Equipment Software Design
  • Social Media Applications Development & Management
  • Public Networking Services
  • Auditing, Reviewing, and Testing Cyber Risks
  • Marketing Services Via Social Media
  • full list

What You Can and Can’t Do with Dubai’s Virtual Licence:

What You Can Do

You can run your business wherever you are in the world. Dubai offers plenty of business opportunities. Rent a virtual office in Dubai through a third-party service provider and run your company virtually. This license is Dubai Virtual Commercial City’s gift for entrepreneurs.

What You Can’t Do

This virtual License does not guarantee physical access to open a business bank account in the UAE. Running your business with a virtual license doesn’t automatically guarantee physical access to the Emirates through different visas to any company members.

How Do I Apply for a Virtual Commercial License in Dubai?

Now that you’re sure that Dubai’s virtual business license is right for you let’s start by explaining how to apply and the expected fees for this virtual commercial license.

Online Registration

To register, visit Dubai’s Virtual Commercial City website and fill out an online company registration form. You must add your name, date of birth, contact details, trade license name, business activity, and passport information.

Upload the following required documents.

You must have the following documents ready to apply for the virtual license. You’ll need:

  • Proof of Tax Residency (if you’re from a non-eligible country)
  • Passport Copy (valid with more than three months till expiry)
  • Proof of Address (any utility bill or official letter not more than three months old)
  • A Recent Photo on White Background

Check your application status

Dubai Government authorities will verify your data through a background check, which will take about a month. After the verification process, the applicant will get an email that states whether their application was approved or rejected.

Visit the VFS Global 

You need to book an appointment at one of VFS Global’s offices for passport verification. You can schedule an appointment at their website or send them an email. This verification process costs about AED 300 + the taxes of your country.

Pay for the License

After visiting VFS Global and completing this step, it’s time to pay for the license. You can pay through ePay, the payment method provided by Dubai Government’s Smart Dubai.

How much does the Dubai virtual company license Cost?

Dubai virtual company license fees depend on the length of the license. A one-year license costs about AED 850, divided into AED 200 for sole proprietorship and 650 for the license. A two-year license costs AED 1508, and a three-year license costs AED 2161.

Final Words

Nowadays, it’s an exciting time for entrepreneurs to start making a profit without starting with a lot of money. Dubai’s virtual commercial city’s business license makes every entrepreneur’s dream possible: running their business in one of the most promising cities in the world with reduced costs.

Suppose you meet Dubai’s virtual license criteria and want to expand your business, access new markets, and have amazing business opportunities. In that case, Dubai’s virtual company license is for you. Now is when you join many entrepreneurs and start your business in Dubai. A virtual company license in Dubai makes your dream possible.

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