
Virtual Office & Ejari Assistance
What is a Virtual Office?
Can we use a virtual office for a NEW or RENEW Trade License?
Yes, Virtual Ejari plays a crucial role for businesses when obtaining a new trade license or renewing an existing one.
1. Virtual Ejari for New Licenses
Standard-Rated (5% VAT): The majority of goods and services.
1. Virtual Ejari for New Licenses
For new businesses setting up in Dubai, Virtual Ejari is a simple way to meet the legal requirements for obtaining a trade license. Startups, freelancers, and entrepreneurs who don’t require a physical office can use a virtual office address to get their trade license approved by the Department of Economic Development (DED). The virtual office address will be used in the Ejari contract, allowing the business to operate legally within Dubai without the need for costly office rentals.
2. Virtual Ejari For License Renewals
For established businesses looking to renew their trade licenses, Virtual Ejari offers a flexible and cost-efficient option. Companies can renew their trade licenses through the virtual office setup, avoiding the expenses associated with leasing a physical space. This is especially useful for companies that have downsized, switched to remote work, or operate mainly online but still need to comply with DED regulations.
Who Should Consider Virtual Ejari?
Virtual Ejari is ideal for a variety of business types and professionals, including:
Branch Offices: Companies expanding to Dubai but don’t immediately need a physical presence can opt for Virtual Ejari to establish a foothold.
Startups and Freelancers: Entrepreneurs just starting out can save on rental costs while still maintaining a legal business address.
E-commerce Businesses: Companies that operate online and don’t require a physical storefront can benefit from the low overhead.
Consultants and Remote Workers: Professionals who work remotely but need a registered address for legal and professional purposes.
Small to Medium Enterprises (SMEs): Businesses looking to scale can use Virtual Ejari to remain compliant without the financial burden of a physical office.
Benefits of Virtual Ejari in Dubai
Accuracy is paramount when managing VAT payments and refunds. In the event of an error, a VAT voluntary disclosure form can be submitted to rectify the mistake and avoid penalties. Businesses must update their ERP and accounting systems to handle these requirements effectively.
Deregistration from VAT is an option for businesses whose taxable supplies fall below 187,500 over 12 months or if they cease to make taxable supplies.
Tourists and visitors can claim refunds on VAT for purchases made during their stay through an electronic system that connects registered retailers with all entry and exit points. To qualify for a refund, transactions must be validated within 90 days, and the tourist must meet certain criteria, including being over 18 and purchasing from a retailer participating in the ‘Tax Refund for Tourists’ scheme.
Refunds are processed at departure points, where tourists can receive 85% of the total VAT paid, less a handling fee, either in cash or as a credit to their card. However, refunds are only available for consumed goods or if the goods are present upon departure.
Business Responsibilities
1. Cost-Effective
One of the primary benefits of Virtual Ejari is cost savings. Businesses, especially startups and SMEs, can avoid the high rental costs associated with physical office spaces in Dubai. This is ideal for entrepreneurs who want a business presence in the city without a significant investment in office space.
2. Quick Setup
Virtual Ejari can be obtained in as little as 30 minutes. This fast processing time is beneficial for businesses that need to register or renew their trade licenses quickly to maintain compliance.
3. Compliance
By obtaining a Virtual Ejari, businesses ensure that they meet the requirements of the DED and RERA. It provides the company with a legitimate, registered business address that is mandatory for licensing.
4. Flexibility
A virtual office gives companies flexibility in terms of where they operate. It is ideal for businesses that don’t require a physical space but still need a legal address to meet regulatory demands. Freelancers, online businesses, and consultants can benefit from this option.
5. Professional Image
Even without a physical office, a Virtual Ejari provides businesses with a professional address in Dubai. This can help establish credibility with clients and partners who may value a formal business presence in the city.
