A new virtual license for companies will enable investors to carry out business in Dubai without the need for a residence permit
On Tuesday 1st October 2019, the Deputy Governor of Dubai, Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, announced the launch of the first “virtual company license” in the region.
What are the implications?
The virtual company license will enable non-resident investors to do business in Dubai digitally in accordance with the highest international legal standards. Virtual enterprise licensees will be able to manage all activities related to their business, including signing and submitting documents digitally. Signatures are legally binding in the United Arab Emirates.
This initiative aligns with the third article of the 50-year Charter of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, with the intention of building a “virtual commercial city” in the Emirate’s capital.
The Sheikh has said that Dubai is making great progress in improving business regulatory frameworks and is becoming one of the most powerful markets in the world.
Who is the license for?
The virtual company license , which is a joint initiative of the Dubai Economy, the Dubai International Financial Centre (DIFC), the General Directorate of Residence and Foreign Affairs (GDRFA), Smart Dubai and the Supreme Committee on Legislation focuses on three main sectors: creative industries, technology and services.
The program only allows verified non-residents to register a company. The owners of such companies must be nationals or tax residents of countries that have implemented the “Convention on Mutual Administrative Assistance in Tax Matters” and that share tax information on their tax status.
Benefits for freelancers
The virtual enterprise license will enable the self-employed and entrepreneurs around the world to access a regulated e-commerce platform and easily work with Dubai-based companies, while exploring new markets and investment opportunities digitally.
The capital will begin to receive applications for the virtual company license from entrepreneurs and investors from 101 countries through the website www.vccdubai.ae or through VFS Global offices in 11 locations around the world.