10/10/2019
DUBAI HAS RECENTLY LAUNCHED VIRTUAL BUSINESS LICENSE PLAN
What is a Virtual Business License?
The Virtual Company License allows foreign investors to open a digital business in Dubai, without being a resident of the UAE. The virtual company owners will be able to manage all of the operations and document processing digitally. The E-signatures will be legally binding in the UAE and the highest international legal standards will have to be maintained.
what are the Benefits?
This virtual business license is an opportunity for investors to access Dubai’s growing market while saving resources that would be otherwise needed to set up onshore operations.
Low start-up & running costs
Low administrative burden when starting your company
Access to Dubai’scustomers, markets, and investment opportunities from across the globe
Membership in a virtual companies directory
Provides freelancers with access to Dubai’s companies
Terms and Conditions of the Virtual License
You must reside outside of the UAE
Virtual companies are subject to corporate, personal, and social tax – Taxation is determined by the company’s country of origin or residence. The virtual company is also subject to international tax agreements based on the location of activities.
Transparency – The virtual company must provide a full public registry of the owners’ names, this information will be shared with tax authorities and legal jurisdictions as per request.
The license does not guarantee physical access to the UAE – There is no guarantee that visit or residence visa will be provided to any members of the virtual company.
Bank account opening will be at the discretion of the UAE’s commercial banks
The virtual license requires background checks by Dubai authorities
The legal form of the business will be of a sole proprietorship – The company will not be subject to the local ownership, director, auditor or service provider requirements
If the company’s yearly revenue exceeds USD 100,000, then tax registration will be necessary – The value-added tax (VAT) is 5% in the UAE, however, there is no income taxation on non-financial entities.
The licensing process includes measures against money laundering and tax evasion.
You must be a tax resident or national of the following countries:
Russia
Norway
Latvia
USA
Czech Republic
Kazakhstan
Slovak Republic
Romania
Bulgaria
Cyprus
Spain
Slovenia
Qatar
India
Ghana
Indonesia
Vanuatu
Bahamas
El Salvador
Brazil
Canada
Sweden
Lithuania
Netherlands
Germany
China
Switzerland
Moldova
Turkey
Lebanon
Portugal
Croatia
Palestine
Uganda
Senegal
Malaysia
Mauritius
Mexico
Costa Rica
Peru
Greenland
Finland
Denmark
Belgium
Ireland
Japan
Austria
Georgia
Greece
Albania
Tunisia
Luxembourg
Kuwait
Cameroon
Bahrain
Brunei Darussalam
Dominican Republic
Guatemala
Panama
Chile
Iceland
Estonia
UK
Poland
Ukraine
France
Hungary
Azerbaijan
Italy
Morocco
Saudi Arabia
Pakistan
Nigeria
South Africa
Australia
Jamaica
Belize
Colombia
Argentina
Activities
Printing & advertising services
Typesetting
Bookbinding
Color separation
Design & artwork
Promotional gift preparation
Greeting cards & distribution
Computer programming & consultancy services
Electronic chip programming
Computer systems & communication equipment software design
Social media management & application development
Website design
Cybersecurity architecture & risk management
Auditing, reviewing & testing cyber risks
Public networking services
Managed cybersecurity services
Social media marketing
Design services
Fashion design
Interior design
Jewelry design
Product design
Exterior design (garden & outdoors)
Painting & calligraphy
Tags: COMPANY OWNERSHIP UAE, DUBAI BUSINESS, INDIAN COMPANIES, INVESTORS DUBAI, NEW BUSINESS REGULATIONS, RAG, UAE, VBL, VIRTUAL BUSINESS LICENSE
