When you setup company in DMCC (Dubai Multi Commodities Centre), you gain access to the leading and internationally useful free zone in Dubai: the Dubai Multi Commodities Centre. DMCC is a recognised free zone and an active international business centre. DMCC offers entrepreneurs and investors a whole ecosystem for growth, development, and global trade.
Let’s look at how to start your business in DMCC – and what makes DMCC one of the best free zones to set up your business globally.
Understanding the DMCC Free Zone
The DMCC Free Zone is one of the prominent free zones in Dubai, located at the center of Dubai. Established in 2002, DMCC has won “Global Free Zone of the Year” by the Financial Times on multiple occasions due to the innovative business, infrastructure, and governance model it has established.
DMCC is home to over 24,000 registered companies, making it one of the most vibrant free zones in the UAE. The variety of business activities is extensive, spanning from commodities and fintech to logistics and consulting, with a daily expanding area of business activities.
The DMCC Free Zone offers:
- Strategic Location:Located in Jumeirah Lakes Towers, with easy access to the ports, airports, and Downtown Dubai.
- Full Range of Licenses: Commercial, service, and industrial.
- Foreign Ownership: 100% foreign ownership, full control, and no local sponsor required.
- Tax Benefits: Non-existent personal and corporate tax within the Free Zone.
- World-Class Facilities: Grade A offices, co-working spaces, and modern infrastructure are essential for your DMCC free zone business.
Types of Company License in DMCC
To initialize business activities, businesses are required to acquire a DMCC license based on the activity in which they want to engage. Each permit specifies the types of business activities that the license holder can carry out in the free zone.
- Commercial License
Best suited for businesses that engage in trading and that specifically involve both import/export businesses as well as trading goods. This can include several activities, such as wholesale trading, distribution of products or goods, e-commerce, and other business hub operations.
- Service License
Designed for service-oriented businesses that can include consultation practices, IT service providers, legal and similar firms, marketing agencies, and other similar service activities.
- Industrial License
For manufacturing as well as light production activities carried out in accordance with the free zone’s approved construction, you can set up your business efficiently.
Additionally, DMCC provides the opportunity for businesses to apply for a dual license to facilitate the expansion of the business’s activities beyond the confines of the leading free zone.
Company Formation in DMCC Free Zone
Setup company in DMCC is a straightforward process directed by the DMCC Authority. The entire process of establishing a company can be done online, making it one of the most robust processes across the UAE.
Step-by-Step Setup Process
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- Choose Business Activity:
Choose from over 900+ approved activities selected by the DMCC authority. The type of business license you will apply for will depend on the chosen activity when setting up a company in DMCC.
- Reserve a Company Name:
Choose a unique company name that adheres to the DMCC regulations and reflects your activity for your DMCC company formation.
- Submit Application:
It is a crucial step in the DMCC business setup process. Apply online through the DMCC online portal, and upload required documents such as passport copies, business plan, and proof of address.
- Choose Office Space:
Choose Office Space in the heart of Dubai for your DMCC free zone company formation. Select from a variety of office solutions from flexi desks to serviced offices or full floors in Uptown Dubai.
- Pay Fees:
Fees will vary depending on the type of license, size of office, and selected service, which are important considerations in the business in the DMCC free zone.
- Provide License and Register:
After approval, you will be issued the company registration certificate and business license, allowing you to commence operating your DMCC Dubai venture.
Benefits of DMCC Company Setup
DMCC is not just a free zone; it’s a worldwide business community. Let’s break down why investors from around the world choose to set up their companies in Dubai with DMCC.
- Full Ownership: 100 percent foreign ownership and profit repatriation is a key benefit of DMCC company formation.
- Zero Taxes: Zero percent corporate and personal tax for free zone companies.
- Networking Opportunities: An opportunity to connect with thousands of entrepreneurs and other DMCC companies.
- Ease of Banking: Open a corporate bank account with a leading UAE bank with our assistance.
- Business Growth Ecosystem: At any stage of your business, from licensing to expansion, we’ve got your back!
- Modern Infrastructure: Premium offices and business centres in Uptown Dubai.
DMCC Free Zone Company Setup Costs
The business setup packages in DMCC can vary based on license type, office requirements, and the preferred business setup options. Although costs may vary, the fees are competitive and come with top-end services and access to a premium infrastructure.
Typical business startup costs will be about AED 30,000 – AED 50,000 and will usually cover registration & issuing of the license, and rental of office space.
DMCC setup packages can include:
- Company registration and name approval
- Trade license
- Flexi desk or office rental
- Emirates ID and visa applications
- Assistance with opening a bank account
DMCC offers bespoke pricing for larger setups and full business needs, catering to businesses of all sizes across various sectors.
Opening a Corporate Bank Account in DMCC
Opening a corporate bank account will come after registration of your company in the DMCC. A corporate bank account will make it easier to process the company’s finances, payments, and international payments/transfers for you and your clients. There are several banks in the UAE that have relationships with DMCC free zone business, including Emirates NBD, Mashreq, and RAKBANK. This will make it easy for business owners to finalize the required documents and complete the approval process.
To open a bank account, you should carry your company license and other necessary documents for DMCC company formation:
- Trade License and Certificate of Incorporation
- Shareholders and Directors Documents
- Office Lease Agreement
- Company Stamp and Business Plan
Having a corporate bank account will help add credibility to your new company and allow for more seamless business transactions in the UAE.
Renewing Your DMCC License
Each DMCC company is required to renew its license annually, ensuring compliance with DMCC rules and regulations and uninterrupted operation in the free zone. A late renewal carries the risk of fines and possibly the suspension of your business license, so it is best to get started well in advance of your expiration date.
Companies must submit:
- Updated lease agreement or proof of office space renewal within DMCC
- Valid passport copies for both shareholders and the authorized signatories
- Audited financial statements (if applicable)
- Standard fees for renewal as outlined by the DMCC Authority
The license renewal process is entirely digital and is carried out via the DMCC online portal. After the submission of your documentation and fees (if applicable), the authority’s approval process can take two to five working days as per their verification process.
DMCC allows the license renewal process at the same time as you either want to change business activities, change shareholders, or change office space, any of which may be timed with your renewal for convenience.
Maintaining your renewals will not only keep your company license current but will also reaffirm your eligibility for visa processes, corporate bank accounts, and access to DMCC free zone premises.
Conclusion
For those looking to establish in the center of Dubai, it is best to setup company in DMCC. Entrepreneurs automatically benefit from Dubai’s leading free zone and a strategic location away from central prime commercial districts and international airports.
At Xpert Advisory, we specialize in business setup in DMCC, providing comprehensive support from license application to corporate bank account setup. Contact us today to kick off your process of incorporation in DMCC to establish your company in the rich tapestry of global Dubai!
FAQs
1. How much time is required to set up a business in DMCC?
Generally, the whole establishment duration is between 5 – 10 working days, depending on the time taken to approve your documents that are presented to the DMCC Authority.
2. What sorts of companies can register in DMCC?
DMCC is available for businesses across a variety of business activities, including trading, consulting, IT services, and Professional Services. The authority keeps its list up to date to accommodate the needs of a changing market.
3. Can DMCC companies operate outside the Free Zone?
Yes. DMCC free zone companies can operate within the UAE free Zones, subject to and through appropriate licensing types and approvals, such as Distributors and dual licensing.
