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How to Open a Virtual Company in Dubai & UAE

  • By raes
  • 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!

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