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Introduction of Virtual Commercial License by Certified Public Accountants in Dubai

August 13, 2020 Comments Off on Introduction of Virtual Commercial License by Certified Public Accountants in Dubai

Dubai has recently announced the introduction of a ‘Virtual Commercial License’ in Dubai. This license is the first of its kind, and the possession of this license will allow entrepreneurs and businessmen all around the world to conduct their business in Dubai on a digital platform without any physical presence.

About the Virtual Commercial License in Dubai

This license has been introduced by the combined efforts of the Dubai Economy, General Directorate of Residency & Foreigners Affair (GDRFA), The Supreme Legislation Committee, Smart Dubai and the Dubai International Financial Centre (DIFC). The Virtual Commercial License can be obtained by the residents of more than 120 countries with whom the United Arab Emirates has signed a Double Taxation Treaty.

This license will allow the company to conduct business in Dubai, but obtaining the license will not guarantee the physical access of the person in the country. The license will enable the company to be set up under the Virtual Commercial City and also expects to attract more than 100,000 companies from all around the world.

Industries that can Apply for this License

Currently, the license allows the setup of some specific businesses so that they can conduct the activities such as:

  • Creative and Designing Industries such as Fashion Designing, Interior Designing, Product Designing, etc.
  • Computer Programming and related activities such as Web Design, Social Media Application Development, and Management, Marketing services via Social Media, Analysing and reviewing of Cyber Risks, etc.
  • Services related to Advertising and Printing such as Bookbinding, Design, and Artwork Separation, Greeting card Production, etc.
  • Consultancy and related Services

Eligibility Criteria for Virtual Commercial License (VCL)

There are specific criteria that have to be followed in order to be deemed eligible for getting a Virtual Commercial License in Dubai. These criteria are:

  1. To receive the VCL, the applicant must be a resident or a national of the approved countries. To know about which countries are approved, visit the official website of Virtual Commercial City.
  2. All the companies and industries which can open up a business in Dubai have been mentioned above. The companies which relate to the other sectors are not eligible to set up a company.
  3. The individual must not reside in the United Arab Emirates
  4. The virtual companies that will be established have to register with the Federal Tax Authority (FTA) of the UAE, in case the revenue of the company exceeds USD 100,000 per annum.
  5. All the applicant companies will be subject to a background check before the establishment.

How to Apply for a Virtual Commercial License in Dubai?

The government of Dubai will start accepting the application for the Virtual Commercial License from the businessmen and entrepreneurs or any other interested parties via the Virtual Commercial City.

Here are the steps for applying for a Virtual Commercial License in Dubai:

  1. Go to the required website and fill the online registration form.
  2. After receiving the application, the government will conduct a background check which can take anywhere from a day to a month.
  3. After checking if the application is correct or not, a team of officials will be identifying and validating the certificate.
  4. If your application has been validated, you will receive a mail that will then prompt for the payment for the Virtual Commercial License.

This license will bring in a considerable number of entrepreneurs and businessmen from all around the world, which will help the Virtual Commercial City. Let’s know about Dubai Virtual Commercial City and its benefits.

Dubai Virtual Commercial City (VCC)

The establishment of the Dubai Virtual Commercial City was declared His Highness Sheikh Mohammed Bin Rashid Al Maktoum with the goal of making new innovations and also allow more and more companies to conduct business in Dubai. The program aims to provide a compliant business environment to the global businessmen irrespective of their location. The companies don’t need to have a physical presence to set up a company in Virtual Commercial City. The reputation of Dubai is already very good among the global business community, and the VCC uses this reputation of Dubai to its benefit.

The combined efforts of the government along with the various other bodies of providing a Virtual Commercial License is a very commendable initiative taken by them. JAXA Chartered Accountants, a leading accounting and financial firm in Dubai, with over twelve years of expertise, supports the initiative of a Virtual business license in the UAE. This license will not require a physical presence of the company allowing global participation of companies from all around the world. These companies will require various financial services such as accounting, bookkeeping, VAT calculation, etc. JAXA Chartered Accountants can help your company in all these aspects.

With a profound experience in the Accounting and Auditing industry, JAXA can help your company to grow by taking care of the financial aspect of your company leaving you to focus on the other essential issues of the company. For more details on the services provided by JAXA Chartered Accountants, Contact us. We will be happy to help you.