Dubai Multi Commodities Centre free zone is the largest and fastest developing Dubai free zone, with more than 15,000 registered businesses. Moreover, its close location to major business centres enables companies to benefit from intensified shipping and to have access to international markets. This free zone is an especially attractive place for a company registration in Dubai. Moreover, there are numerous other benefits to starting a business in DMCC. So, let’s discuss how to setup company in DMCC free zone, details about business packages, and more!
Advantages of Company Formation in DMCC Free Zone, UAE
The following are the benefits that a DMCC free zone company setup brings along:
1. Healthy Community
Some 92,000 people live and work within DMCC. It has a nice community park as well as a remarkable waterfront. The area also promotes health and community interaction with walking paths, exercise grounds, cafes, and constant social gatherings.
2. Awesome Location
DMCC is situated at the heart of Dubai city, around the Jebel Ali Port and the airport. Its strategic location gives it an advantage of easy access to major trade routes, an advantage that places it in good standing for both local and foreign enterprises.
3. Crypto Market
The DMCC even has its crypto centre, which enables them to interface with like-minded people and get exposure to a leading crypto and blockchain ecosystem. The market helps startups, provides alternatives in licensing, and coordinates events in order to promote innovation and collaboration in the digital assets industry.
4. 100% Business Ownership
If you are forming a business in Dubai DMCC, you have full ownership (100%) of it. Also, there is no local sponsor, which allows businesses to make decisions, manage operations, and earn profits freely.
5. Flexible Solutions
The company setup in DMCC offers a number of commercial activities. The company can be established as a subsidiary, branch, or even a new limited liability company (LLC). No matter whether you are a new or an established company, the DMCC provides flexible services for several industry sectors.
6. Zero Tax
Neither corporate nor personal income tax is collected in DMCC Dubai. Favorable tax policy benefits companies through improved profit margins and streamlined operational efficiency.
7. Easy Company Setup
Business registration and getting a license are so easy. The free zone at one of Dubai’s most famous places, Jumeirah Lake Towers (JLT), is at the heart of this project. It has become a huge source of income for the government since it was established in 2002, where it has listed more than 11,000 enterprises and registered the most companies.
Moreover, the business community of Dubai is widely known around the world for a variety of reasons, such as incubator programs, favourable tax structure, and dual license facilities. Dubai is number one on the list of best destinations for tourism in the world. Moreover, introducing the kind of business here in the areas of tourism and trading is more profitable than in any other industrial zone.
This business hub has played a major role in promoting the economy of Dubai’s commerce and trade. It is the ideal industry to get on board and start a business in the UAE.
8. Dubai Multi Commodities Centre
More than 19,000 companies have been registered in DMCC. This free zone was established in 2002 with a vision of operating the best commodities bourse and the drive to ensure the financial, physical, and market infrastructure that will enable one to set up. The main commodities traded here are stock, gold, silver, energy, copper, pearls, gems, fiat money, tea, base metals, and agricultural products.
The following exchanges also operate within this duty-free zone:
- Dubai Tea Trading Centre (DTTC)
- Dubai Gold and Commodity Exchange (DGCX).
- Dubai Pearl Exchange (DPE)
- Dubai Diamond Exchange (DDE)
What Facilities are Available to Set Up a Company in DMCC?
DMCC is a standalone city in Dubai that caters to both residential and commercial tower types. DMCC is well located and easy to access by the main highways and two metro stations. Other big attractions, such as The Palm Jumeirah and Dubai Marina, are conveniently located across the street, and downtown Dubai is just a 10-minute drive away.
Most amenities in the JLT area have multiple uses. Around the block, there is an abundance of business services, offices, clinics, schools, and sports clubs serving a full infrastructure to ensure overall personal and professional life.
There are four different categories of facilities available for rent while setting up a company in DMCC, and each of them will suit the needs of a business accordingly:
- Flexi-Desk Facilities: With these options, offices can operate with a bare minimum of office space and still make a profit.
- Serviced Office or Desk: This option gives a lot of convenience and flexibility, with the downside of administrative affairs, making it ideal for businesses that need a fully furnished serviced office.
- Executive Offices: For companies that require a little greater presence, this option, housed inside the prestigious JLT business tower, provides a prestigious and professional ambience.
- JAFZA Free Zone Warehouse: Rented warehouse in the adjacent JAFZA free zone allows companies that are involved in trading and logistics free access to a powerful logistics network and the opportunity to conduct trading on a global scale.
Types of Licenses to Start a Business in DMCC
The types of licenses that are available to you in the DMCC free zone are as follows:
- Trade License
Admittance to trade activities such as storage, importation, distribution, exportation, and re-exportation of specific goods is only possible for a person who has a trade license.
- Service License
A service license allows an organisation to provide the services that are named in the license and is meant for enterprises that provide various services. Acquiring such a license requires consultation with experienced sales executives to help you choose the right category.
- Light Industrial License
Industrial license owners are able to undertake some manufacturing operations, assembly, and packaging work.
- General Trading License
Under this license, a person can operate in general commerce by distributing, importing, exporting, storing, and re-exporting.
How to Setup Company in DMCC Free Zone?
Below are the steps that you should follow for the DMCC company setup:
- Decide on a Name for your Company
Naming your business is the first step towards starting your business within the free zone of DMCC. On the DMCC website, you can check to see whether the name you’ve chosen for your new company is available.
- Choose Legal Entity and Type of Business Activity
Once you have decided on your company’s name, you can choose the nature of your business activity. This is important because it will define the type of license that you need. To complete this, Xpert Advisory will assist you in choosing the type of legal entity that you want to establish, whether a branch office, limited liability company (LLC), or FZE.
- Make an Application for Intermittent Approval
When you do this, you can then make an application for intermittent approval by sending the paperwork required to the DMCC Authority. Xpert Advisory offers government liaison to help you prepare all the documents needed for the approval.
- Open a Business Bank Account
The procedure to open a corporate bank account may start once you are cleared on the initial stage. This will allow you to carry out business and manage the financial activities of your organisation. Xpert Advisory setup consultants can assist you in identifying which bank would be best suited for your business.
- Select a Place for DMCC Company Setup
You will need to rent a physical place for your office, based on your needs. Xpert Advisory business setup experts can help you identify the best available and the most perfect for your business.
- Seek the Final Approval
Other authorities may require additional licensing approval in certain cases. The DMCC authority will ask you to provide the last batch of necessary documents when everything is all set. Once you have been accepted, you are now ready to start your company.
Documents Required for DMCC Free Zone Company Formation
The following documents are a must-have to start your company formation in DMCC free zone:
- Online pre-approval application form
- An identity certificate stating you are the registered holder of the relevant electricity/meter bill or bank statement from your place of residence.
- A proper business plan to launch a company
- NOC for the UAE resident
- All necessary third-party approvals for your business activity, if any.
- Your passport copy (and UAE residence visa/Emirates ID if applicable)
- Send your parent company documents’ copies.
DMCC Comprehensive Business Setup Packages
To attract new investors and to make their UAE free zone more affordable, DMCC provides promotions throughout the year to both big and small businesses. You can save a lot on DMCC company formation if you choose one of the free zone business setup packages below:
Prime Plus Package
Suitable for: Larger and medium-sized companies.
Benefits:
- Fast-track company setup.
- Stamp of the DMCC company is valid for up to 3 years.
- Complimentary office fitness certificate.
- Commemorative certificate of incorporation.
- Changes to shareholding, directorship, and licensing activities to the company free of charge (up to 3 months from receiving the license).
- Discount on additional services required from DMCC.
- Dedicated support from DMCC.
Plan of package pricing for one year:
The package price is AED 38,145*
Jump Start Package
Suitable for: Start-ups and SMEs.
Benefits:
- 24% discount on company setup fees.
- DMCC company stamp.
- Standard flexi desk or co-working desk.
- One UAE residency visa.
- Commemorative certificate of incorporation.
Package (1 year) of pricing plans:
With the standard flexi desk option, the package price is AED 43,780*.
Unit price with co-working space option is AED 51,129*
Basic Biz Package
Suitable for: Entrepreneurs and smaller start-ups.
Benefits:
- DMCC company stamp.
- Standard flexi desk.
- One UAE residency visa.
- Commemorative certificate of incorporation.
Package pricing plan for 1 year :
The package price is AED 35,484*
Cost of DMCC Company Formation
Starting your business in DMCC can be an excellent opportunity for an aspiring entrepreneur like you. It is necessary to know the setup cost range from the start to the end.
The price for opening up a business within the DMCC free zone is approximately AED 50,000*. The cost of the license will vary depending on the permit, activities, other factors, etc.
DMCC Business License Renewal
DMCC free zone offers the following regulations regarding company license renewal:
- As provided for by the DMCC regulations, a DMCC company must renew its license (for 2, 3, or 5 years) yearly to remain in business.
- In turn, DMCC entities are required to renew their licenses by the expiry date. The Companies must submit a license renewal application and license renewal fee payment to DMCC.
- Authority advises to start the process of renewing a DMCC company license 3-4 weeks before the date of expiration of the current license.
- For a 3-year or long-term renewal of business licenses, a yearly insurance policy and an undertaking letter are needed.
- Companies that conduct retail, industrial, or regulated activities cannot renew their licenses for several years.
- Management of the company operating in the DMCC without a valid license in the DMCC Free Zone is forbidden.
- If a company in the DMCC free zone entity fails to renew its license once it expires, then it is liable to be sanctioned, penalised, and maybe have its license revoked altogether.
Company Amendments
In the majority of instances, minor DMCC business setup amendments take up remote handling. On the other hand, in the transfer of shares, a Power of Attorney or a personal visit from the owner becomes necessary. However, any amendment typically costs 4,000 AED*.
Some can be implemented without any costs during the license renewal exercise. To renew your company setup in DMCC free zone, for example, you can add or delete business activities. Other typical changes might be changing the name of the business, moving the headquarters, or even hiring or firing one manager.
DMCC Free Zone Business Liquidation
Liquidating a business in the DMCC free zone authority requires a considerable process that needs many steps:
- Final audit
- Newspaper adverts for the closure of the company
- Closure of the bank account
- Termination of lease
- Cancellation of visas
- Cancellation of the license
The time frame for company liquidation can be from 2 to 5 months, depending on individual cases. The government fees on liquidation are around 10,000 AED*.
Final Words
If you setup company in DMCC, you can enjoy a variety of benefits that will make DMCC one of the best business hubs in the UAE. With 100% of business owners with no taxes, an assertive community, and an easy initial setup, DMCC provides an ideal place for development. Its location, modern infrastructure, and office and license flexibility make it suitable for both young enterprises and old enterprises.
Moreover, if you want to build a contemporary trading centre in the heart of Dubai to encourage international trade of commodities, Xpert Advisory is here to help you. We will walk you through the steps of selecting the appropriate business setup and assist you with all of your business formation requirements. So, make an appointment with our expert team today for a better future for your business.
FAQs
Are JLT and DMCC Same?
No, JLT is the site of one of the fastest-growing free zones in the world, the DMCC, which allows firms from any sector to access global markets. An international business network without rival, DMCC has more than 22,200 member firms in its roster.
Is DMCC a Limited Company?
Yes, a DMCC company is a limited liability company where one or more shareholders can hold shares.
What is a DMCC License?
DMCC license is a business license which will allow any company to trade and operate in the DMCC free zone authority and globally through the Dubai Multi Commodities Centre.
