Virtual Company License in Dubai

Virtual Company License in Dubai

To capitalize on the versatile business market offered by Dubai, the Dubai administration introduced an initiative called the Virtual Company License (VCL) that has the potential to redefine the business ownership scenario within the Emirate.

In this blog, We aim to equip you with the knowledge and insights needed to seize the immense potential that the VCL offers for business setup in Dubai.

What is a Virtual Company Licence (VCL)?

A Virtual Company Licence (VCL) allows you to  launch and manage a business from a distance. With this licence you do not  need to be present in the nation. This is particularly significant for establishing firms in Dubai since it gives foreign employees an easy method to engage with the vibrant business scene in the area.

The Virtual Company License, also known as the Virtual Commercial Licence, permits anyone holding the Licence to undertake any electronic business-related activity.

How does VCL help in Company Formation?

The Virtual Company License (VCL), can help transform the company formation procedure by helping international businessmen create a presence in the UAE markets. The benefits of a Virtual Company License are as follows: 

With a Virtual Company License businesses will no longer be required to have a physical presence in Dubai, making it a desirable choice for foreign businesses. 

The application process is simplified compared to typical company licences. This speeds up the setup process and helps you launch your ventures quickly.

With VCL, The traditional costs incurred during intermediate steps of company formation such as ones incurred during renting physical office spaces is reduced or eliminated altogether. 

By Utilizing a Virtual License, companies can operate from anywhere in the world and yet benefit from Dubai's great business environment and convenient access to global markets. This flexibility encourages innovation and entrepreneurship by removing geographic restrictions.  

In conclusion, the Virtual Company License (VCL) makes company formation easier by providing entrepreneurs like you,  looking to launch their enterprises in Dubai with an easy, affordable, and adaptable option. It simplifies the procedure, gets rid of regional restrictions, and opens doors to a world of opportunities in one of the world's busiest business districts.

Criteria for Setting Up a Virtual Company in Dubai

There are 2 preconditions that must be fulfilled in order to obtain a VCL in Dubai, They include -

  1. VCL applicants cannot be a UAE resident and must be a national or tax resident of any of the 101 countries approved by the Dubai Administration.
  2. The Virtual Company License can be utilized by companies that fall under pre-determined industries. To learn more about the sectors, you can seek the assistance of a business advisor.

Once these criteria are met, the process for obtaining VCL begins. 

Procedure for Obtaining VCL

The following guide will help you understand the procedure involved in obtaining VCL. It consists of simple steps that a businessman needs to follow includes - 

 Initiate the process by applying for a Virtual Company License online through the Dubai Virtual Commercial City website 

Prepare and submit the necessary documents, which include:

  • Passport copies of shareholders and directors
  • Proposed company name
  • Business plan

3. Approval:

The Dubai authorities will conduct background checks on the application. Your application will be processed in  1-130 days. 

You will have to go to the relevent office for verification of your identity. You will have to be physically present for the verification.

In the next step  you have to make the payment for the license fee, which varies according to the license's duration. 

Once you achieve this important milestone of VCL application and approval, your business can be initiated.. 

Important Points to Keep in Mind

Some additional information about VCL in Dubai that can help you plan and adapt your business strategies appropriately are listed below -

    • Regardless of their physical location, businesses in the United Arab Emirates with yearly income over $100,000 are liable to 5% VAT. Dubai Virtual Companies are also covered by this.
    • Should your online business exceed this limit, you will have to register for VAT with the Federal Tax Authority (FTA) of the United Arab Emirates.


    • Opening a business bank account or having physical access to the UAE are not automatic benefits of holding a Dubai Virtual Company License.
    • If you need to be physically present, you'll need to apply for individual business, visiting, or resident visas for yourself and your staff.

Through this article, you now have a comprehensive understanding of the functionalities, benefits, and procedures associated with obtaining a Virtual Company Licence in Dubai. 

Further, to access more information, like the business activities that are permitted to obtain VCL in Dubai, reach out to our consultants at Business Setup Worldwide today! They will provide you with assistance for virtual company formation in Dubai with ease. Let your dreams take flight right away!

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