His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the launch of the emirate’s first virtual company license with an aim to build a ‘Virtual Commercial City’ in Dubai.
The initiative shall offer vast opportunities for investors around the world to do business digitally in Dubai without obtaining UAE residence visa. The virtual licence costs UAE Dirhams 850 (US Dollars 233) for one year, while UAE Dirhams 1,508 (US Dollars 411) and UAE Dirhams 2,161 (US Dollars 589) for two and three years, respectively. This initiative is aimed at enhancing confidence among businesses and investors around the world and increase the business competitiveness and growth in Dubai and the UAE.
The Virtual Company License is a joint initiative of Dubai Economy, Dubai International Financial Centre (DIFC), General Directorate of Residency & Foreigners’ Affairs (GDRFA), Smart Dubai, and the Supreme Legislation Committee, focusing on three main sectors: creative industries, technology and services.
Virtual companies shall be allowed to undertake selected professional activities including services related to printing and advertising; computer programming, consultancy and related activities; and design activities.
However, it is imperative to note that the owners of such virtual companies must be the nationals or tax residents of approved countries with whom UAE has signed double-taxation avoidance agreements. Furthermore, such virtual company license shall not allow automatic access to doing business or opening of a business bank account in the UAE.
Businessmen and investors may start applying for virtual company license through the website www.vccdubai.ae or through the offices of VFS Global worldwide. The initiative is expected to attract more than 100,000 companies.