How To Setup Company In DMCC Free Zone

  • Post category:UAE

DMCC, or Dubai Multi Commodities Centre, is considered the best free zone in the world. Situated in the center of Dubai, the free zone offers plenty of opportunities for the retail and commerce industry. There are over 21,000 companies in the free zone, and nearly 200 new ones join each month. For business people searching for a place filled with opportunities, this is the best place to open a business in Dubai.

Situated in the heart of JLT, this is one of Dubai’s most prestigious locations. 

How to setup a company in DMCC free zone

DMCC BUSINESS FACILITIES

DMCC is a self-contained city within Dubai that combines residential and commercial towers. DMCC is ideally situated, with easy access to major highways and two metro stations for convenience. Famous sites like The Palm Jumeirah and Dubai Marina are also conveniently located across the street, and Downtown Dubai is only a quick 10-minute drive away.

Many amenities serve a variety of needs in the JLT area. There are plenty of business centers, offices, clinics, schools, and sports clubs nearby, offering a complete infrastructure to support both personal and professional life.

Businesses can select from four different types of facilities for rent, each catered to their unique needs, when establishing a company in DMCC:

  • Flexi-desk facilities: These options enable businesses to run profitably while providing the bare minimum of office space needed for operations.
  • Serviced office or desk: This option provides convenience and flexibility without the hassle of administrative duties, making it perfect for companies looking for a fully furnished and serviced workspace.
  • Executive office in JLT business towers: For businesses needing a more noticeable presence, this option, located inside the esteemed JLT business towers, offers a prestigious and professional setting.
  • JAFZA Free Zone Warehouse: Leasing a warehouse in the nearby JAFZA free zone gives companies engaged in trading or logistics quick access to a strong logistics network and global trade opportunities.

COST OF STARTING A BUSINESS IN THE DMCC FREE ZONE

AED 50,000 is the minimum share capital needed for a DMCC Free Zone per company, and AED 9,000 is usually the initial cost for business registration. Other costs like licenses, visas, and other fees are not included in this.

DMCC Activities

DMCC provides a wide range of business services to a range of sectors and industries. Within the free zone, there’s plenty of space for innovation and expansion, ranging from conventional trading and professional services to innovative activities like cryptocurrency commodities trading.

Along with these options, business owners in the JLT area can open retail establishments like stores, clinics, restaurants, and other retail outlets. Because of this, DMCC is a desirable alternative for establishing a mainland business, where sponsorship by local citizens is normally necessary. One benefit of being a 100% owner in DMCC is that it gives you more control and ownership over your company.

The variety that DMCC provides with regard to business operations is another benefit. One can conduct up to six business activities from the same group using the DMCC license. This is twice the average amount allowed in the UAE, so the applicant has the chance to expand the business or look into other options within their industry of choice.

KEY COMMERCIAL ACTIVITIES IN THE DMCC FREE ZONE IN DUBAI

  • Companies that trade in commodities: These businesses deal in a range of commodities, such as gold, silver, oil, and gas.
  • Logistics companies: These businesses offer freight forwarding, transportation, and storage services. For the Middle East and North Africa, the DMCC serves as a significant logistics hub.
  • Companies that offer financial services: These businesses offer banking, insurance, and asset management, among other financial services.
  • Technology companies: These businesses create and offer technological solutions to the commodities industry and related industries.

LICENSES OFFERED BY DMCC FREE ZONE AUTHORITIES

DMCC free zone offers various licenses, such as:

  • General trading license
  • Service license
  • Industrial license
  • Commercial license

A license in the DMCC-free zone also allows business owners to conduct up to five activities from the same category under a single license, depending on the company.

Being one of the few free zones where entrepreneurs can get a dual license is another appealing feature of the DMCC free zone. Businesses can expand to the mainland or onshore with dual licensing. Entrepreneurs will need to get both a mainland license and a DMCC license in order to qualify for a dual license.

HOW TO SET UP A COMPANY IN THE DMCC FREE ZONE?

  • Choose a company name – Selecting a name for your business is the first step in starting a business. On the DMCC website, you can find out if the name you’ve selected is available.

     

  • Decide on the legal entity and business activity for the company – You can choose the nature of your business activity after deciding on your company’s name. This is important since it will specify the kind of license you require. After completing, Relin Consultants will help you select the kind of legal entity you wish to create, such as a branch office, limited liability company (LLC), or establishment in a free zone (FZE).
  • Apply for an initial approval – After that, you can apply for an initial approval by sending the DMCC Authority the necessary paperwork. Relin Consultants can assist you in preparing the necessary documents required for the approval.

     

  • Create a business bank account – The process of opening a corporate bank account can begin after you receive an initial approval. This will enable you to conduct business and oversee the financial operations of your organization. We can help you find the bank most suitable for your business.

     

  • Choose a location – You may need to rent a physical space for your office, depending on your needs. We will assist you in finding the best and the most suitable location for your business.

     

  • Obtain the final approval – Additional licensing approval from other authorities may be necessary, depending on the situation. The DMCC authority will request that you submit the last set of necessary documents once everything is in order. After being accepted, you can now start your company.

DOCUMENTS REQUIRED TO SET UP DMCC FREE ZONE COMPANY FORMATION

  • Online Pre-Approval Application Form
  • Proof of your residential address in your nation of origin, such as an electricity bill or bank statement
  • Proper Business plan
  • NOC for the UAE resident
  • Obtain any required third-party approvals for your business activity
  • A copy of your passport (and UAE residence visa/Emirates ID, if applicable)
  • Submit copies of the documentation from your parent company

RENEWAL OF DMCC LICENSE

Compared to the initial incorporation process, the cost of renewing a DMCC company is lower. You only have to pay the license and facility fees; there is no one-time registration fee.

Hence, in terms of maintenance, DMCC companies are very cost-effective.

Every business under the authority of the Dubai Multi Commodities Center must submit an annual audit report, regardless of any commercial activity.

COMPANY AMENDMENTS

In most cases, minor DMCC amendments can be handled remotely. On the other hand, a Power of Attorney or a personal visit from the owner is necessary when transferring shares.

Any amendment typically costs 4,000 AED.

Certain changes can be made at no cost during the license renewal procedure. When renewing your company, for instance, you can add or remove business activities.

Other common changes could be renaming the business, moving its headquarters, or hiring or firing a manager.

DMCC COMPANY LIQUIDATION

Like renewal, company liquidation can be completed through an agent and does not require the owner’s physical presence. The liquidation process cannot be completed until the government fee is paid. The following procedures are involved in company liquidation, which is completed in approximately one month:

  • Cancellation of visas
  • Termination of the lease agreement
  • Closure of bank account

BENEFITS OF STARTING A BUSINESS IN THE DMCC FREE ZONE

  • Tax Incentives: Businesses that have registered in the DMCC Free Zone are exempt from both corporate and personal taxes. Because of this, it’s the perfect place for tax optimization, which lowers operating expenses for companies.
  • 100% Ownership: Foreign business owners are able to hold 100% of their company in the DMCC Free Zone without the requirement for a local sponsor or partner.
  • Simple company setup: The DMCC Free Zone offers a simplified registration process and fewer documentation requirements, making it a convenient and easy place to start a business.
  • Tax Incentives: Businesses that have registered in the DMCC Free Zone are exempt from both corporate and personal taxes. Because of this, it’s the perfect place for tax optimization, which lowers operating expenses for companies.
  • Excellent location: Companies in the DMCC Free Zone have easy access to important transportation hubs in the Middle East, Africa, and Asia due to its central Dubai location.
  • World-Class Infrastructure: The DMCC Free Zone has excellent facilities and infrastructure, including advanced transportation and telecommunication networks that are helpful for businesses.
  • Wide Range of Business Activities: Companies operating in the DMCC Free Zone are able to carry out a range of operations, including manufacturing, trading, and service-oriented businesses.
  • Encouraging Regulatory Environment: Businesses can now operate and expand more easily due to the DMCC’s clear and business-friendly regulations.

Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for further assistance with your DMCC free zone company formation.

FAQs

What is the purpose of the DMCC?

DMCC, which was founded in 2002 with the goal of positioning Dubai as a hub for enterprise and commodity trading to the Middle East and beyond, has developed into one of the emirate’s most significant economic drivers, accounting for 11% of all foreign direct investment.

Why choose DMCC for company setup?

Companies can benefit significantly from the DMCC registration, as it permits complete foreign ownership. In addition, members receive a 50-year exemption from corporate tax and personal income tax for the duration of the company’s establishment within DMCC.

What types of companies are in DMCC?

Currently, the DMCC has over 24,000 enterprises, including brokers, banks, commodities exchanges, business support companies, and professional services firms.

What are the types of entities in DMCC?

Free zone companies are incorporated under DMCC. Creating a new company, subsidiary, or branch company are among the entity options for setting up a business.

Is a local sponsor or partner required to establish a business in DMCC?

If you choose to set up in a free zone like DMCC, no local sponsor is needed. Establishing an entity with 100% foreign ownership without requiring a UAE national as a partner or sponsor is one of the key advantages of incorporating in a free zone.