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How to Open a Virtual Company in Dubai & UAE

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  • By Robin Sebastian
  • January 29, 2025

businesses are rapidly shifting towards flexible and cost-efficient models. A virtual company in the UAE offers entrepreneurs the opportunity to establish a presence in one of the world’s most dynamic business hubs without the need for a physical office. Whether you’re a startup, freelancer, or an established business looking to expand, a virtual office in Dubai or Abu Dhabi provides a prestigious business address, professional communication services, and access to essential resources without high overhead costs.

What is a Virtual Office in Dubai?

A virtual office is a cost-effective business solution that provides an official business address, mail handling services, and administrative support without requiring a physical workspace. This is an excellent option for startups, freelancers, and international businesses looking to establish a presence in Dubai without high overhead costs.

Benefits of a Virtual Office in Dubai:

Lower Costs – No need for office rental or utilities.
Professional Image – A prestigious Dubai business address enhances credibility.
Flexibility – Operate remotely while maintaining legal status in Dubai.
Visa Eligibility – Some virtual office packages allow visa applications.


Why Open a Business in Dubai?

Dubai is one of the best places in the world to start a business due to:

✔️ 0% Corporate & Income Tax – Most free zones offer tax exemptions.
✔️ 100% Foreign Ownership – Many jurisdictions allow full ownership without local sponsors.
✔️ Strategic Location – Access to international markets from a global trade hub.
✔️ Easy Business Setup – Streamlined registration process with government support.
✔️ Fast-Growing Economy – Strong business ecosystem with endless opportunities.

Whether you choose a mainland, free zone, or virtual company, Dubai offers an ideal environment for businesses to grow, expand, and succeed.

Step-by-Step Guide to Opening a Virtual Company in Dubai

Step 1: Choose Your Business Jurisdiction

Decide whether you want to set up your virtual company in a Free Zone or Mainland:

  • Free Zone: Ideal for international businesses. Offers 100% ownership, tax exemptions, and no customs duty.

  • Mainland: Suitable for businesses looking to trade directly within the UAE. Requires a local service agent for specific activities.

Step 2: Select Your Business Activities

Not all businesses qualify for virtual licensing. Common activities for virtual companies include:

  • E-commerce & Online Businesses

  • IT & Software Services

  • Consultancy & Professional Services

  • Marketing & Media Services

  • Freelancing & Digital Entrepreneurship

Step 3: Register Your Company Name

Your company name should comply with UAE’s naming guidelines:

  • No offensive or religious terms

  • Must align with your business activity

  • Cannot include abbreviations or references to government entities

Step 4: Apply for a Virtual Business License

Submit your application to the Department of Economic Development (DED) or the Free Zone Authority. Required documents typically include:

  • Passport copy

  • Business plan (if applicable)

  • Proof of residency (for some jurisdictions)

  • Completed application form

Step 5: Choose a Virtual Office Provider

A virtual office enhances credibility and provides essential services like:

  • Professional Business Address in Dubai or Abu Dhabi

  • Mail Handling & Forwarding

  • Call Answering Services

  • Meeting Room Access (if required)

Step 6: Open a Corporate Bank Account

Once your business license is approved, you’ll need a UAE bank account to manage transactions. Requirements vary but typically include:

  • Business license

  • Passport copy

  • Proof of address

  • Initial deposit (varies by bank)

How Much Does It Cost to Open a Virtual Company in Dubai?

The cost of setting up a virtual company in Dubai varies depending on the jurisdiction and services required. On average:

  • Free Zone Virtual License: AED 5,500 – AED 15,000 annually

  • Mainland Virtual License: AED 10,000 – AED 20,000 annually

  • Virtual Office Services: AED 3,000 – AED 10,000 annually (optional but recommended)

Note: Costs may vary based on additional services, visa requirements, and jurisdiction-specific fees.

How to Open an Online Business in Dubai?

Starting an online business in Dubai follows a similar process to setting up a virtual company but may require an E-Commerce License depending on your business model. Steps include:

  1. Choose Your Business Model (E-commerce, Dropshipping, Online Services, etc.)

  2. Select a Free Zone or Mainland Jurisdiction

  3. Apply for an E-Commerce or Virtual License

  4. Set Up a Payment Gateway & Business Bank Account

  5. Build a Website & Digital Marketing Strategy

  6. Launch & Grow Your Online Business

Frequently Asked Questions (FAQs)

1. Is it legal to operate a virtual company in the UAE?

Yes, as long as you obtain a virtual license from the DED or a relevant Free Zone Authority.

2. Can a virtual company sponsor visas in Dubai?

Some Free Zones allow visa sponsorship, but it depends on your license type and business activities.

3. Do I need to visit Dubai to open a virtual company?

No, many Free Zones offer 100% remote setup services.

4. How long does it take to set up a virtual company in the UAE?

It typically takes 5 to 10 business days, depending on documentation and jurisdiction.

5. Can a virtual company in Dubai open a corporate bank account?

Yes, but requirements vary by bank. Some businesses may need a physical presence for verification.

Get Started with Your Virtual Business in the UAE

Setting up a virtual company in Dubai or the UAE is a smart move for entrepreneurs seeking a cost-effective, flexible business structure. Whether you’re a freelancer, startup, or an international business, Raes Associates can guide you through the process seamlessly.

Contact us today to start your business journey in the UAE!

Robin Sebastian

Chartered Accountant | Certified Management Accountant (UAE, India & United States) | Business Setup Consultant | 17 Years of Industry Expertise
Robin Sebastian is the Director of RAES Associates and a qualified Chartered Accountant & Certified Management Accountant with credentials in the UAE, India, and the United States. With over 17 years of industry experience, he specializes in audit, taxation, compliance, strategic financial advisory, and business setup solutions. Robin has helped numerous entrepreneurs and corporations establish and expand their operations in the UAE, offering end-to-end support with company formation, regulatory requirements, and financial structuring. Through his expertise and insights, he empowers businesses to navigate complex financial regulations, optimize resources, and achieve sustainable growth.
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