Dubai, known as the commercial capital of the UAE, has been attracting many investors and entrepreneurs to establish their business here. With its strategic location, modern infrastructure, and business-friendly environment, Dubai has become an ideal destination for businesses from around the world. One of the recent initiatives of the Dubai Government to attract more investors is the introduction of a Virtual Company License. In this blog, we will explain what a Virtual Company License is and how to obtain one in Dubai.
What is a Virtual Company License?
A Virtual Company License (VCL) is a new type of license introduced by the Dubai Government to allow entrepreneurs and investors to start a business in Dubai without the need for a physical office space. It is an innovative initiative aimed at facilitating foreign investment and encouraging startups to set up a business in Dubai. With a VCL, entrepreneurs can establish a business in Dubai and access a range of government services remotely. This license is ideal for startups and freelancers who do not require a physical office space to run their business.
How to Obtain a Virtual Company License in Dubai
To obtain a Virtual Company License in Dubai, there are certain requirements that need to be fulfilled. These include:
The first step is to determine the business activity for which the VCL is required. It is important to choose the correct activity as it will determine the type of license required.
The next step is to choose a unique name for the company. The name should comply with the naming conventions set by the Department of Economic Development (DED) and should not violate any trademark or copyright laws.
A business plan is required to obtain a VCL. The business plan should include details such as the nature of the business, target market, marketing strategy, and financial projections.
The shareholders of the company should be identified, and their details should be submitted along with the application.
Local Service Agent:
A local service agent is required to obtain a VCL. The local service agent is a UAE national who acts as a representative of the company and is responsible for liaising with government departments.
Once all the required documents are prepared, the application for a VCL can be submitted to the DED. The application can be submitted online through the DED website.
If the application is approved, the Virtual Company License will be issued, and the company can start operating in Dubai.
Benefits of a Virtual Company License
A Virtual Company License in Dubai offers many benefits for entrepreneurs and investors. Some of the key benefits include:
One of the main benefits of a VCL is that it is a cost-effective way of establishing a business in Dubai. It eliminates the need for a physical office space, which can save a significant amount of money.
Easy Access to Government Services:
With a VCL, entrepreneurs can access a range of government services remotely, making it easier to manage their business from anywhere in the world.
No Corporate Tax:
Dubai does not levy corporate tax, which makes it an attractive destination for businesses.
No Personal Income Tax:
In addition to no corporate tax, Dubai also does not levy personal income tax, which means more money in the pockets of entrepreneurs and investors.
Dubai is a hub for business and commerce, and a VCL allows entrepreneurs to tap into the global market and connect with clients from around the world.
Best Audit Firms in Dubai
If you are considering obtaining a virtual company license in Dubai, it is important to work with a qualified audit firm. An audit firm can help you with the following:
- Register your business with the DED.
- Obtain a valid trade name.
- Obtain a registered address in the UAE.
- Open a valid bank account in the UAE.
- Prepare your financial statements.
- Conduct an audit of your business.
Obtaining a virtual company license in Dubai is a relatively straightforward process. However, it is important to work with a qualified audit firm to ensure that your business is in compliance with all UAE regulations. By following the steps outlined in this article, you can ensure that your business is up and running in Dubai in no time.