What is a Virtual Company Licence UAE: How to Set up company in UAE from Abroad 

A Virtual Company Licence in the UAE lets foreign entrepreneurs set up company in UAE from abroad without visiting the country. It works best for consultants, digital service providers, and non-resident founders. You can start a business in UAE online, run it remotely, and serve clients worldwide without renting an office.

You don’t need to live in the UAE to open a business there. Many founders now use simple online systems for UAE company formation without visiting. If you are an overseas entrepreneur, the UAE makes it easy to open company in UAE remotely from anywhere in the world.

What Is a Virtual Company Licence in the UAE?

In the UAE, there’s this thing called a virtual company license, and it’s a legit license you can get, allowing you to open a business while staying abroad. You can manage it without staying or getting an office in the UAE. You get this from government-sponsored entities specifically meant for remote business operations in the UAE.  

Unlike the regular commercial license in the UAE, this one makes it so you don’t need an office or a physical presence in the country. Everything can be done virtually, so it’s most optimal for services like counseling, IT and marketing. You cannot use this for trading or manufacturing, or if you have an actual store.

Who Is Eligible for a UAE Virtual Company Licence?

The virtual company licence is mainly for non-resident entrepreneurs who want UAE company formation without visiting the country. It is suitable for foreign founders who live and operate outside the UAE but want a legal UAE business presence.

Only approved nationalities can apply for this licence. The UAE has a list of eligible countries, and this list can change over time. Some countries may be restricted due to regulatory or compliance rules. These limits are standard and are applied to keep the system secure and compliant for UAE company registration from overseas and international businesses.

Why the UAE Allows Remote Business Setup

UAE’s Digital Business & Economic Strategy

The UAE has made it very easy for people to set up company in UAE from abroad. The government wants more new businesses from abroad, so they made online systems that are easy and quick to use. This is called remote incorporation, and it is how people start business in UAE online without stepping into the country. 

Most people in the UAE will say it is the best place to start a new business because you hardly have to do anything in person. You can use digital services to fill out forms, upload documents, and get approvals in Dubai and Abu Dhabi. 

These digital services lighten the workload, save time, and make it easier to do business from outside the UAE. 

Benefits of the UAE Business Licence for Foreigners 

• 100% Ownership  

You get complete access to your business and don’t have to get a local partner.  

• No Physical Office Is Required  

You don’t need to rent an office space to operate your business.  

• Freedom to Work from Anywhere  

You can efficiently use your time to manage your business from any location.

• Global Invoicing

Send invoices and get paid by clients around the world.

• Simple Setup

The UAE’s digital systems make remote business setup UAE easy for non-residents.

Virtual Company Licence Options by Emirate

Dubai Virtual Commercial City (VCC) Licence

Who It’s For

• Freelancers, consultants, and service providers.
• Non‑resident founders who want UAE company formation without visiting.
• Digital and online‑based businesses.

Supported Business Activities

• Consulting and advisory services.
• IT and tech support.
• Marketing and creative work.
• Online services and digital‑led work.

Key Limitations

• Not for trading goods or physical products.
• No manufacturing or import/export.
• Visa eligibility may be limited.
• Office space is not included.

Abu Dhabi Virtual Business Licence

How It Differs from Dubai

• Similar remote setup rules, but different authority and approval steps.
• May offer slightly different eligible activities based on Abu Dhabi’s regulations.

Regulatory Scope

• Issued by the Abu Dhabi government digital platform.
• Focused on service and knowledge‑based work.
• Online licence that supports digital operations.

Use‑Case Suitability

• Ideal for consultants, online service businesses, and professionals.
• Good for entrepreneurs who like the Abu Dhabi scenario.
• Online business owners who require a basic licence and wish to receive assistance digitally.

What Business Activities Can You Conduct Under a Virtual Licence?

Having a Virtual Company Licence in the UAE allows you to conduct limited online businesses activities without an office, and there are some rules. Here are the relevant guidelines.  

What You Can Do

• Consultancy

It is possible to conduct discussions and communicate to provide direction and analysis to both individuals and organizations, and that is in specialized areas, management, finance and other professional consulting.

• IT & Digital Services

You can provide software development, website creation, app development, or tech support services.

• Marketing & Creative Services

You can offer social media management, online marketing, graphic design, and content creation.

• Professional Services

You can do accounting, legal work, training, or other expert services that do not need a physical office.

These activities are ideal for a remote business setup UAE and for entrepreneurs who want to set up company in UAE from abroad.

Activities Not Allowed

• Trading & Import/Export

Selling physical products locally or internationally is not allowed.

• Manufacturing

You cannot produce goods in factories under a virtual licence.

• Physical Retail

Running shops, showrooms, or customer-facing stores is not allowed.

• Regulated Sectors

Businesses like healthcare, finance, or other sectors that need special government permits cannot operate under this licence.

By knowing these rules, you can choose the right business type and avoid problems while starting a business in UAE online.

UAE Free Zone Company Setup Remotely

Many UAE free zones now let you set up company in UAE from abroad. You can complete most steps online without visiting the country.

Remote Formation Process in UAE Free Zones

• Submit digital copies of your passport and application forms.
• Choose your business activities clearly.
• Sign incorporation documents online using platforms like DocuSign.
• Some free zones allow video verification for extra security.
• After processing, you get your trade licence digitally.

This is a quick and easy way for foreign service businesses to register a company in Dubai.

Finding a Free Zone for Remote Set Up

Some of the best free zones to register your company are:

• IFZA (Dubai) – Flexible and digital-friendly.
• RAKEZ (Ras Al Khaimah) – Good for small businesses and freelancers.
• SHAMS (Sharjah) – Service-focused and has an easy setup.

These free zones are designed to support online businesses and provide flexible office packages or no office at all, and they allow you to be visa eligible while out of the UAE.

Visa and Banking Issues

• Visa: The company’s owner and employees can be sponsored for a visa, but they must enter the UAE to undergo medical tests and biometrics.
• Banking: Non-residents often find it hard to open a corporate account; some free zones can help, but you may still need to pay them a visit.

This is the ideal option for business owners who wish to set up a company in Dubai for remote operations abroad while remaining 100% compliant.

Can You Open a UAE Bank Account with a Virtual Company Licence?

Yes, with a Virtual Company Licence, you can open an account in the UAE, but it can be complicated for businesses operating remotely. Understanding the requirements makes it easier.

• Compliance Verifications: Banks check your company and your documents thoroughly.
• How to Verify your Identity: Many want you to travel to the UAE to verify your identity.
• Limited Options: Few banks allow virtual license companies, and those banks have clients living abroad.

Practical Banking Opportunities

• Digital Banks: Some online banks allow you to open accounts without physically visiting a branch.
• Other Types of Accounts: Multi-currency or free zone accounts can fit numerous remote businesses.
• Approved Banking: Assure you have your documents ready, show your business is operational, and seek advice from a business setup consultant.

You can remotely open a company in UAE and operate your business without worry.

How to Apply for a Virtual Company Licence

To open company in UAE remotely is a five-step process and everything is virtual. 

Step 1: Select a Virtual Company Licence and Free Zone

• Choose a Virtual Company Licence in Dubai, Abu Dhabi or a different free zone.
• Find out which free zones accept your type of business.

Step 2: Get Your Stuff Together

• A copy of the owner’s passport
• A passport-sized picture
• Proof of where you live
• Experience you have, if applicable, or a CV

Step 3: Apply Online

• Complete the online application form on the government or free zone platform.
• Choose your business activities clearly.
• Upload all needed files.

Step 4: Verification Step

• A few free zones do a video call to confirm your identity.
• DocuSign is one example of digitally signed documents. 

Step 5: Get Your Trade Licence

• After approval, you will have your licence.
• You can begin an online business in the UAE with remote work capabilities.

Step 6: Open a Bank Account 

• Select a bank that works with companies that have a virtual licence.
• Some banks may require a visit, while other banks may offer a complete online setup.

UAE Visa Eligibility – Does a Virtual Company Licence Qualify?

Many people wonder if a Virtual Company Licence lets them get a UAE residency visa. Here’s what you need to know.

Residency Visa Rules Explained

• Virtual licences do not give visas on their own.
• The UAE law only allows specific licences or business setups to issue residency permits.
• Virtual licences are meant for remote entrepreneurs to run businesses without being in the UAE.

Alternative Visa Options

• Free Zone Upgrade – Some free zones let you upgrade your virtual licence to a full licence that gives visa eligibility.
• Partner Visas – You can get a visa through a UAE-based partner or sponsor.
• Investor Routes – Investing in UAE property or other approved ventures may help you qualify for a residency visa.

Costs, Fees, and Timelines

• One-time License Payment: AED 7,000 – 10,000.
• Renewal Costs: AED 6,000 – 9,000 annually.
• Document Costs: AED 500 – 1,500.
• Costs of Government Services: AED 200 – 500.
• Virtual Office, Mail, & Phone: AED 1,500 – 3,000.
• Bank Costs: AED 2,000 – 5,000.
• If Upgrading Visa: AED 3,000 – 7,000.

Setup Schedule

Normal Processing Costs: 5 – 15 business days.

Tax, VAT & Compliance Obligations for Virtual Companies

Still being remote, one must comply with UAE laws on tax and other compliance. Compliance knowledge is paramount to be on the right side of the law and avoid penalties. 

Corporate Tax & VAT Overview

Applicability – the corporate tax law in the UAE is applicable if your profits are upwards of AED 375,000 per annum. 

VAT – if you are in a business that sells taxable goods or services within the local jurisdiction and your business generates an income of more than AED 375,000 within a year, you are obliged to register for a tax of 5%. 

Compliance Responsibilities

• Economic Substance Regulations

In the UAE, some service activities are required to report the structure of their business operations. 

• UBO Filing

You are required to report your Ultimate Beneficial Owners, that is, the real owners of the business. 

• Annual Renewals

Annual renewal of virtual licenses is mandatory, and one is required to update documents to keep the licenses active. 

Compliance with these laws simplifies and secures legal registration of your UAE company from abroad.

Legal Reforms Enabling Remote Ownership

The UAE has made significant changes to help non-residents start a business in UAE online. These reforms make remote ownership legal and simple.

Key Reforms

• 100% Foreign Ownership

Non-residents can fully own a company in many free zones and specific Mainland business setup UAE from abroad.

• Operational Licenses

Companies can now work without needing a physical office.

• Gov’t Services Online

There are online services where you can do things such as submit documents, register for licenses, and get approvals.

• Friendly Free Zone Rules

Many free zones now allow for the remote setup of business operations in the UAE and also allow visas for service-based business operations.

Things to Avoid When Establishing a Virtual Company

• Wrong Activity

Select only the activities permissible under a virtual licence.

• Assuming Visa Eligibility

A virtual licence does not give a UAE residency visa.

• Ignoring Banking Requirements

Some banks may not accept virtual licence companies.

• Underestimating Compliance Needs

Don’t skip UBO filing, licence renewals, or economic substance rules.

Is a Virtual Company Licence Right for Your Business?

Best Use Cases

• Advisors: Guiding customers via the internet. 
• Digital Service Supplier: Web, app or online marketing services. 
• Worldwide Freelancers: Collaborating globally with customers. 

When to Choose Free Zone or Mainland Instead

• Expansion-Oriented Company: Aimed to develop rapidly in the UAE.  
• Staffing: When you need to employ people in the UAE.
• Tangible Activities: Running a shop, a showroom or a warehouse.

Our Business setup experts in Dubai can help you in your licence process. They are licensed Business setup consultants in Dubai with over 12+ years of experience streamlining business setup in Dubai.

Frequently Asked Questions

Q1: Can I set up a UAE company completely from my home country?

Yes! With a Virtual Company Licence UAE, non-residents can register and manage specific types of businesses online from other countries without travelling to the UAE. 

Q2: What types of businesses can you operate under a virtual licence? 

Generally, service-oriented businesses such as consultancy, IT, digital service, marketing, creative work and professional services. No trading, manufacturing, or brick-and-mortar retail will be permitted. 

Q3: Can you obtain a UAE residency visa under a virtual licence? 

Not at all. Virtual licences do not, as a matter of course, come with a visa. Virtual licences will require you to look into free zone upgrades, partner visas and other investor alternatives to qualify. 

Q4: How long will the process take to get a virtual company licence? 

In most instances, virtual licences will get approved within a span of 5 to 15 working days. It will depend on the free zone of your choice, the completeness of the documents, and the verification process. 

Q5: Can I open a virtual bank account with a virtual company licence? 

Yes, though it can be a bit tricky. Depending on the bank, some do accept virtual licences and company setups online, while others will require you to make a physical bank visit. Non-resident business setup UAE can work with digital banks, as well as other alternative account structures. 

Conclusion 

A Virtual Company Licence UAE is ideal for freelance businesses, digital consultants, and service providers willing to work from any location.

Starting a company in the UAE is easy and totally above board. You do not even need a physical office and can service clients anywhere in the world.  

If you’re starting a business in the UAE from abroad, select the business activity, free zone, and correct legal licence. This will streamline the processes and help you get the needed approvals, stay compliant, and open a business bank account.  

Contact Business setup experts in Dubai for a smooth hassle-free license process!a