Are you an aspiring entrepreneur or a foreign investor on a tight budget? Do you want to start a business in the UAE without any physical space? Are you planning on starting a virtual business in the UAE? Then, you are at the right place. Because local economic departments in the UAE have launched 3 Business Licenses That Do Not Require Physical Office Spaces. Moreover, you can also set up some businesses virtually without being physically present in the United Arab Emirates.
3 Business Licenses That Do Not Require Physical Office Spaces
- Dubai Virtual Company License
- Abu Dhabi Virtual License
- Abu Dhabi Tajeer eCommerce License
In this article, you can find all you need to know regarding the 3 business licenses that do not require physical office spaces. Read on to understand and choose the license that fits you best.
Also read how you can start a business in the UAE from anywhere in the world
Dubai Virtual Company License
The Dubai Virtual Company License aligns with the third Article of His Highness Sheikh Mohammed’s 50-year charter to build a Virtual Commercial City in the UAE. Application of Dubai Virtual license is open to foreign businesses of over 112 countries and covers the main sectors such as the creative industries, technology, and services.
This virtual license allows aspiring entrepreneurs and investors to conduct businesses without the need of any physical office spaces such as fashion and jewelry design, online marketing, blogging, trading, etc.
Dubai Virtual Company License allows you to manage and establish a virtual business registered in Dubai. You need not be a UAE resident or even be physically present to register a virtual business using the Dubai Virtual Company License.
If your virtual company’s revenue in the UAE exceeds $100k per year, your company will be subject to the 5% VAT or Value Added Tax in the United Arab Emirates. This means that this Dubai Virtual License holder must register the company with UAE’s Federal Tax Authority.
One of the important things to note about the Dubai Virtual Company License is that it does not guarantee physical access to the UAE through a visitor or business or resident visa to any of the company members. The same rule applies to opening a bank account in the United Arab Emirates.
Dubai Economic Department also provides an instant license without requiring a physical office for specified activities. Please let us know your Business setup requirement and avail free consultation on the right Business Structure.
Visit Dubai’s Virtual Commercial City’s official website to get more details about the Dubai Virtual Company License.
Abu Dhabi Virtual License
Abu Dhabi Virtual License was introduced by ADDED or the Abu Dhabi Department of Economic Development last year for non-Emirati foreign investors to obtain a business license without being physically present in the United Arab Emirates.
The Abu Dhabi Virtual License covers many business activities under 13 sectors which include:
- Agriculture
- Repair
- Manufacturing
- Contracting
- Maintenance
- Installations
- Retail trade
- Transport
- Services
- Leasing services
- Health and entertainment events
- Wholesale trade
- Import and export
Foreign investors can apply for this virtual license permitting 100% ownership for either of the two approved legal forms in the UAE: Sole Proprietorship L.L.C. and Limited Liability Company.
Read Sole Proprietorship vs LLC: All You Need to Know to know more about these two approved legal forms.
If you are planning to apply for Abu Dhabi Virtual License, visit Abu Dhabi Business Centre’s Website and choose the option “Abu Dhabi Virtual License”.
Also read How to start an eCommerce business in Dubai, UAE?
Abu Dhabi Tajeer eCommerce License
UAE residents who want to sell products on social media or start an online business must apply for the Abu Dhabi Tajeer eCommerce License from the Abu Dhabi Department of Economic Development (ADDED).
This license also allows entrepreneurs to add their online trade activities to their already existing licenses, or they can obtain a new license to conduct their business through social media networks and websites. Owners of electronic trade licenses also use the eCommerce mark and serial number for the license to use it during the online promotion of their products.
With this license, UAE residents can establish a business without having any physical office space for three years and can also apply for over 1000 business activities that are sanctioned by the ADDED or Abu Dhabi Department of Economic Development.
In 2018, the Abu Dhabi Department of Economic Development (ADDED) expanded the Abu Dhabi Tajeer eCommerce License package to include all UAE residents and GCC nationals under the legal forms listed below:
- One-person company for GCC nationals and Emiratis
- Establishment for GCC nationals and Emiratis
- Limited Liability Company (L.L.C.) for residents in partnership with the Emirates
Also read how you can register a company in Dubai from India
Dubai’s Estidama License
Until recently, DDED or Dubai Department of Economic Development required businesses in Dubai to rent a physical office space to be capable of issuing the DED Trade License.
However, now the Dubai Department of Economic Development has permitted companies in the UAE to use the Estidama Virtual lease option for smaller companies with few employees to set up a company with a physical office space.
Since obtaining a physical office space can be an expensive option, the Estidama License helps you to get a virtual office space from a licensed business center in the UAE. This virtual office space comes with full facilities and administrative services that can be accessed for free. This license allows the employees of your company to work from anywhere, but your company will have a physical address, P.O. box, a conference room, and reception because business centers in Dubai provide all these office-related services rent-free.
A&A Associate, one of the best business setup consultants in the UAE, focuses on providing cost-effective and value-added services to help business setup in Dubai. Our team provides all kinds of services from business consultancy, financial management advisory, corporate finance, business plan, feasibility study, PRO services, Offshore registration, VAT-compliant accounting services audit services, and tax residency certificates to liquidation services.
Our experts help in the company formation in Dubai, contact us and take full advantage of our expert services.
