What is a Virtual Company Licence UAE: Complete Guide

A Virtual Company Licence UAE enables you to set up a company in UAE from abroad without actually having to come to the country. Everything can be done online — from signing up to operating the company.

This is a licence that allows you to register your own company in the UAE, yet run it from outside. You can sign up and start business in UAE online.

Now, new legal reforms and digital systems are allowing non-residents to setup UAE company formation without visiting and from the safety of their own homes. This has made UAE company registration from overseas easy and legal. 

In this guide, you will learn about the detailed process for registering your company in the UAE from outside.

What is a Virtual Company Licence

A Virtual Company Licence is a unique license through which you can open company in UAE remotely without being physically present in the country. With this licence, you get a UAE trade licence, which lets you operate legally in the country. 

You can have 100% foreign ownership, meaning you fully own your company. The whole process can be done online, making it easy for a remote business set up UAE. This licence is perfect for consultants, freelancers, and digital service providers who want to work with clients worldwide.

Who Can Apply and Eligibility Rules

A Virtual Company Licence is for those residing outside the UAE who wish UAE company formation without visiting. You must have a valid passport, and some countries have special rules. This type of license is perfect for service-based small businesses such as consultancy, IT, digital marketing or any other online services. It’s not for a trader or manufacturer or the kinds of shops that require physical office space.

Emirate-wise, the options of the virtual company licence types are:

Dubai Virtual Commercial City (VCC) License

The Dubai VCC Licence lets you apply from home and operate a business in Dubai without having to come to the city. And this is mostly for service-based services such as consultations, IT and marketing. The key requirements include:

• A valid passport.
• Online application forms.
• Fee amounts are determined by business type and licence package.

Abu Dhabi Virtual Business Licence

The ADVBL covers a slightly broader scope of activities than Dubai. The process is also done online, but some of the steps and fees are not the same. This license suits expats who need flexibility and the option to tap into Abu Dhabi’s business opportunities.

What Businesses are Allowed and Restricted With a Virtual Licence

Permitted Business Operations

You can operate digital or service-based companies, such as consultancy, IT and marketing, with a Virtual Company Licence. You can also handle contracts and invoicing for clients worldwide, all from outside the UAE.

Restrictions and Limitations

This licence does not allow you to get a UAE residency visa. You cannot sponsor employees to work in the UAE, and opening a bank account may be limited for a Non-resident business setup UAE.

UAE Free Zone Company Setup Remotely

UAE free zone company setup remotely

Many UAE free zones now let you set up company in UAE from abroad. You can submit your passport and application documents digitally. Some zones even allow video verification, and documents can be signed electronically. After approval, you receive your trade licence online.

Selecting the Best Free Zone for Remote Formation

For remote setup, one of the best free zones would be IFZA (Dubai), RAKEZ (Ras Al Khaimah) and SHAMS (Sharjah). The free zones cater to service-oriented businesses, can provide virtual office options, and offer visa qualification without requiring a physical presence in the UAE.

Visa and Banking Effects on Free Zone Businesses

Free zone companies are able to sponsor visas for owners and staff, although you must visit the UAE for medical and biometric test procedures. At the same time, corporate account opening can be challenging for non-residents. Some of the free zones assist with banking, although a trip to the UAE may still be necessary.

UAE Company Registration from Overseas for a Mainland Company

A Power of Attorney can be used to set up a mainland company offshore. Secure trade name approval and draft legal documents, and apply through platforms like Invest in Dubai.

Instant licences for specific professional categories, which require less documentation and can be issued online through remote registration, have been enacted by the Department of Economic Development (DED).

Top Benefits of Free Zones and Virtual License

• Onshore Trading

Mainland business setup UAE from abroad can trade throughout the UAE – as opposed to free zone or virtual licences, which can be restricted for local trading.

• Government Work Eligibility

You can work with government clients and take part in public projects, which free zones or virtual licences cannot.

• Hiring Flexibility

Mainland companies can hire employees without restrictions from free zone offices.

• Physical Presence Options

You can open a physical office or branch anywhere in the UAE, giving your business more visibility.

• Wider Market Access:

Mainland companies are also allowed to service clients anywhere in the UAE or abroad without restrictions.

• Full Service Variety:

Hong Kong companies can do business across more industries with a licence from the mainland. Among other things, this revolves around trade, manufacturing and professional services.

Costs for UAE Business Licence for Foreigners

Virtual Licence Costs

• Dubai VCC Licence: Around AED 15,000–20,000 per year, depending on business type and package.
• Abu Dhabi Virtual Licence: Typically AED 12,000–18,000 per year, slightly cheaper or higher depending on the activity.

Free Zone and Mainland Setup Emirates 

• Free Zone Companies: First-year packages AED 15,000-25,000 (licence, registration and digital services)
• Mainland: Setup cost in the first year is around AED 20,000 – 35,000 based on office requirements and business activity.

Incorporation Timelines

• Virtual Licence: If all documents are ready, it can be approved within a few days to a week.
• Free Zone: Generally will take 1–2 weeks, subject to verification and approvals.
• Mainland: 2–4 weeks or longer (if authorizations or Power of Attorney action is needed).

UAE Remote Company Taxation and Compliance

VAT and Corporate Tax Obligations

Registration for VAT in the UAE will be required if the revenue value of your company exceeds specific amounts. The broad category of VAT is 5% on most goods and services. All firms, whether online or not, are supposed to abide by corporate tax rules that impose a minimum tax rate on profits in excess of the threshold.

Filing and Reporting Requirements

In order to keep the law companies running legally, they had to have their licences renewed every year. You also have to file UBO (Ultimate Beneficial Owner) disclosures so that the powers-to-be know what is who actually owns the company.

In addition, Economic Substance Regulations (ESR) require companies can demonstrate that they are actually doing business in the UAE.

Banking and Visa Planning for Non-Resident UAE Businesses

Do You Even Need To Reside In the UAE, As a Foreigner?

It can also be tricky for non-residents to open a bank account in the UAE. Some banks want you to be present in the country to verify. But there are digital banking solutions and other types of accounts that allow you to bank remotely for business.

Visa Choices After Setting up a Remote Company

A Virtual Company Licence doesn’t come with a residency visa. To live in the UAE, you may need to upgrade to a free zone licence or set up a mainland company. These licences can allow you to apply for an owner or investor visa legally.

Legal Changes That Let Foreigners Own UAE Companies Remotely

How Foreign Ownership Laws and Instant Licensing Will Impact Businesses

New UAE laws permit 100% foreign ownership of many companies. Non-residents can therefore have 100 percent ownership of a company and are not required to have any local partner. The reforms also speed up licensing, so you can get your business approved more quickly.

Digital Portals and E‑Government Infrastructure

The UAE has digital platforms such as TAMM, Invest in Dubai and UAE Pass, which make business set-up easy. You can upload documents, monitor approvals and run your company from anywhere in the world. These portals are designed to help non-residents open company in UAE remotely and legally.

Which UAE Business Setup Is Right for You?

If you want to run a business in the UAE when you are not already in the country, there are three primary options open to you: a Virtual Licence, opening a Free Zone company or setting up a Mainland company.

The Virtual Licence is great for freelancers and online service providers who don’t require an office. 

If you want to serve international clients and have some visa options, a Free Zone company is fine. 

If you intend to do business locally, hire staff or work with government customers, a Mainland company is advisable.

The correct decision largely depends on what your business does and how you prefer to work.

Our expert professionals from PRO Services in Dubai can help you streamline your licensing process. They are licensed business setup consultants in Dubai with over 12+ years of experience. 

Frequently Asked Questions

Q1: Can foreigners set up company in UAE from abroad?

Yes. Non-residents can set up a business in the UAE remotely using a virtual licence or a free zone company.

Q2: What is the difference between a virtual licence and a free zone company?

A virtual licence is mainly for digital and service businesses with no office. A free zone company can also serve international clients and may allow visa eligibility.

Q3: Can I open a bank account with a virtual company?

It can be tricky. Some banks will require you to be present physically, but there are digital-age banking alternatives for non-residents.

Q4: Does a digital license get me visa-enabled?

No. A virtual licence does not come with a residency visa. You need a free zone or mainland licence to sponsor an employee for a visa.

Q5: Which free zone is the most suitable for a remote set-up?

Some popular options are IFZA (Dubai), RAKEZ (Ras Al Khaimah) and SHAMS (Sharjah). These cater to service-based businesses and make remote setup possible.

Conclusion

The Virtual Company Licence UAE is perfect for freelancers, consultants and digital nomads. Particularly those who want to operate a business from abroad without a physical office. If you need visa options, local trading, or staff hiring, a free zone or mainland setup may be a better choice.

Choosing the proper setup depends on your business goals and needs. Take the time to compare licences, costs, and services to make the best decision. If you want trusted guidance, consulting an experienced UAE business setup expert can help you start business in UAE online quickly and avoid common mistakes.

Contact PRO Services in Dubai for a smooth licence process!