DMCC (Dubai Multi Commodities Center) is one of the most well-known and highly reputable Free Zones in Dubai.
It’s the world’s biggest Free Zone, which was 5 times awarded as the “Global Free Zone of The Year”.
DMCC company formation is one of the best ways of registering your business in the Emirate of Dubai.
It hosts 16,000 companies and is home to many large multinational corporations.
The DMCC has a number of objectives, including:
The DMCC has been successful in achieving many of its objectives. It is now the world's leading trade hub for commodities and related products, and it attracts and retains the world's leading companies in these sectors. The DMCC has also created a vibrant and dynamic business environment in Dubai, and it has contributed to the economic development of Dubai and the UAE.
DMCC, situated in the vibrant Jumeirah Lakes Towers (JLT) area, offers a blend of commercial and residential towers, creating a self-contained city within Dubai. Boasting the convenience of two metro stations and easy access to the main highways, DMCC is strategically located. Moreover, the renowned landmarks like Dubai Marina and The Palm Jumeirah are just across the road, while Downtown Dubai is just a short 10-minute drive away.
Within the JLT area, an array of amenities cater to diverse needs. Business centers, offices, clinics, schools, and sports clubs are readily available, providing a comprehensive infrastructure to support various aspects of professional and personal life.
When setting up a company in DMCC, businesses have the flexibility to choose from four types of facilities for rent, tailored to their specific requirements:
DMCC offers a diverse range of business activities, catering to various industries and sectors. From traditional trading and professional services to cutting-edge ventures like crypto commodities trading, there is ample room for innovation and growth within the free zone.
In addition to these options, entrepreneurs can also establish retail businesses such as shops, clinics, restaurants, and other retail outlets within the JLT area. This makes DMCC an attractive alternative to setting up a mainland company, where a local citizen sponsorship is typically required. In DMCC, you have the advantage of being a 100% owner, providing greater control and ownership over your business.
Another advantage of DMCC is the flexibility it offers in terms of business activities. Your DMCC license allows you to engage in up to six business activities from the same group. This is twice the average number permitted across the UAE, giving you the opportunity to diversify your operations or explore multiple avenues within your chosen industry.
The DMCC is home to a wide range of companies, including:
The cost of setting up a DMCC company includes the following major fees:
The standard DMCC license cost covering up to six related activities:
Type of licence | Cost, AED |
---|---|
License fee - Trading, Service. Up to 3 visas | 20,285 |
Flexi-desk - Rental fee | 18,460 |
Flexi-desk - Admin services | 656 |
Establishment card | 1,825 |
Visa Fee - Outside country - 2 years validity | 4,470 |
Health insurance | 588 |
Medical test (result in 24 hours) | 755 |
Emirates ID - 2 years | 390 |
TOTAL: | 47,429 |
Once a company has been granted a license in the DMCC Free Zone, it is required to comply with a number of post-licensing requirements. These requirements include:
The DMCC has a team of experienced professionals who can help companies with all aspects of post-licensing compliance.
Setting up a DMCC company typically takes 2 to 4 weeks, depending on the nature of the business. Half of the procedure can be completed remotely for convenience.
However, a personal visit by the shareholder is required to sign the company's legal documents at the authority's offices.
During the company formation process in DMCC, the share capital must be deposited into a corporate bank account. The free zone allows a 60-day window after licensing for this procedure, with a minimum share capital requirement of 50,000 AED.
The required documents for DMCC business setup include:
After registration, there are several post-registration formalities to be fulfilled:
DMCC also offers promotions several times a year, providing significant discounts for company formation within the free zone.
The DMCC Dual License is a new type of license that allows companies to operate in both the DMCC Free Zone and the mainland UAE. This license offers a number of benefits, including:
The DMCC Dual License is a valuable option for companies that want to access the mainland UAE market and benefit from reduced compliance requirements.
DMCC offers a number of benefits to businesses, including:
These benefits make DMCC an attractive option for businesses looking to set up or expand in the UAE.
Visa validity for both company owners and employees in DMCC is 3 years. Unlike other zones, company owners are not eligible for an Investor visa designation but can hold any top managerial position within the company.
Employees seeking a managerial position for their visa must provide attested educational certificates.
DMCC visa costs are the following (AED):
Deposit, AED | Visa fees, AED | Medical check, AED | Emirates ID, AED | |
---|---|---|---|---|
Owner | 3,020 | 3,376 | 755 | 390 |
Employee | 3,020 | 3,376 | 755 | 390 |
When applying for resident visas in DMCC, it is important to note that you must obtain health insurance before the visa stamping process. It is worth mentioning that the insurance processing may lengthen the visa procedure.
To simplify the process, you can rely on the DMCC approved business setup consultants in Dubai to handle both the visa and insurance requirements on your behalf.
Renewing a DMCC company costs less compared to the initial incorporation process. There is no one-time registration fee, and you only need to pay for the license and facility fees.
This makes DMCC companies highly cost-effective in terms of maintenance.
Regardless of any commercial activity, every company within the Dubai Multi Commodities Center authority is required to provide an annual audit report.
To facilitate the renewal procedure, business setup consultants in DMCC can handle the process on your behalf, eliminating the need for your personal presence.
Minor amendments in DMCC can generally be handled remotely. However, in the case of shares transfer, a personal visit by the owner or a Power of Attorney is required.
The average cost for any amendment is around 4,000 AED.
During the license renewal process, certain amendments can be made free of charge. For example, you can add or remove business activities when renewing your company.
Other common amendments may include changing the company name, location, or adding/removing a company manager.
Liquidating a company in the DMCC authority involves a substantial process that requires several steps:
The time-frame for company liquidation can vary from 2 to 5 months in some cases. The government fees for liquidation are approximately 10,000 AED. Business setup consultants in DMCC can typically handle the liquidation process as well.
In our view, DMCC is the ideal choice for those seeking to establish a physical office within Dubai's well-developed business community. Even starting with a flexi-desk, it offers the opportunity to expand without changing your company's registration location.
For a slightly more affordable alternative for business setup in Dubai, options such as Dubai South or IFZA may be considered.
Up to 1 visa company
LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
---|---|---|---|
Trading / Service license + Flexi Desk | 1 visa | AED 56,199 $15,400 | download breakdown |
Up to 3 visas company
LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
---|---|---|---|
Trading / Service license + Flexi desk | no visa | AED 67,951 $18,650 | download breakdown |
Trading / Service license + Flexi Desk | 1 visa | AED 75,436 $20,700 | download breakdown |
Trading / Service license + Flexi Desk | 2 visas | AED 82,921 $22,750 | |
Trading / Service license + Flexi Desk | 3 visas | AED 90,406 $24,800 | download breakdown |
Individual shareholder
Top 10 questions about DMCC Free Zone company
No, a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity.
In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.
Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.
A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.
VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.
The UAE is free from income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.
On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.
The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.
While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.
Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.
You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.
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