DUBAI FREE ZONE COMPANY FORMATION

DMCC company formation

Overview of DMCC authority

DMCC stands for Dubai Multi Commodities Center. It is by far one of the most well-known and highly reputable Free Zones in the UAE.

It’s the world’s biggest Free Zone, which was 5 times awarded as a “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. DMCC is home to many large multinational corporations. 

DMCC business facilities

DMCC is located in the area of Jumeirah Lakes Towers, which has both commercial and residential towers and looks like a city within a city.

It has 2 metro stations and convenient access to the main highways of Dubai. Dubai Marina and The Palm Jumeirah are just across the road and Downtown is 10 minutes drive away.

You can find business centers, offices, clinics, schools, sport clubs within the same area.

DMCC company has 4 options of the facilities to rent when you do company formation DMCC:

  • flexi-desk facility as the minimum required office space
  • serviced desk or office
  • executive office in any of the business towers located in JLT
  • Warehouse in JAFZA free zone

Activities

Business activities range from conventional trading or professional services ending up with crypto commodities trading.

You can also open a shop, a clinic, a restaurant or another type of retail business within the JLT area. It makes DMCC free zone company setup a great alternative to a Mainland company, which requires a local citizen as a sponsor. In DMCC you will be a 100% owner.

Your license can hold up to 6 business activities from the same group. It is 2 times more than the average across the UAE.

DMCC License costs

DMCC company set up cost consists of these major fees:

  • DMCC license
  • One-time registration fees
  • Facility rent flexi-desk, office or warehouse

DMCC license cost with 6 related activities is standard:

Type of licenceCost, AED
Pre-approval1,035
License fee20,285
Flexi-desk17,500
Security deposit1,000
Establishment card1,800
One-time registration fee9,020
Memorandum and Articles2,020
TOTAL:52,660

DMCC company setup

DMCC company setup takes from 2 to 4 weeks depending on the business activity. Half of the procedure can be done remotely.

A personal visit of the shareholder will be required to sign company legal documents at the authority’s offices.

Company formation in DMCC entails depositing of the share capital to corporate bank account. The free zone gives 60 days after the licensing for this procedure. Minimum share capital is 50,000 AED.

Documents for DMCC business setup include:

  • Passport copy
  • Utility bill
  • CV
  • Business plan for certain activities

There are quite a few post-registration formalities to be done:

  1. Demonstration of company capital to DMCC authority
  2. Appointment of auditors
  3. Stamping shares certificates
  4. Carrying out office inspection if you have rented one

The free zone holds promotions a few times a year, when it gives substantial discounts for DMCC company formation.

Dubai Resident Visas

All visas will be valid for 3 years for owners as well as employees. Company owners cannot get a visa designation of Investor like in many other zones. Instead, they can have any top managerial position.

All employees who need to get a managerial position in the visa have to provide attested educational certificate.

DMCC visa costs are the following (AED):

 DepositVisa feesMedical checkEmirates ID
Owner3,0203,376690390
Employee3,0203,376690390

When you apply for resident visas in DMCC, remember that you will need to get a health insurance before the visa stamping. Note, that insurance processing might make the visa procedure longer.

Visas and insurance can be taken care of by business setup consultants in Dubai, approved by DMCC.

Renewal of DMCC license

Company renewal costs less than the incorporation. One-time registration fee will not be charged. You will pay only license and facility fees.

It makes DMCC companies quite reasonable in terms of maintenance.

Any company in Dubai multi commodities center authority must provide annual audit report even if no commercial activity happened.

Business setup consultants in DMCC can carry out the renewal procedure without your personal presence.

Company amendments 

Almost any minor amendments in DMCC can be done remotely. In case of shares transfer, a personal visit of the owner or a Power of Attorney will be required.

The average cost of any amendment is 4,000 AED.

Some amendments can be done for free during the renewal of the license. For example, business activities you can remove or add them when you renew the company.

Other usual amendments can be:

  • Company name change
  • Change of the location
  • Removing or adding the company Manager

DMCC company liquidation

Company liquidation in DMCC authority is quite a substantial process. The following steps need to be taken:

  • Final audit
  • Newspaper advertising of the company closure
  • Closure of the bank account
  • Termination of lease
  • Cancellation of visas
  • Cancellation of the licence

Time-frame varies from 2 to 5 months sometimes. The government fees would be about 10,000 AED. Business setup consultants in DMCC can normally take care of the liquidation as well.

Opinion

In our opinion, DMCC is the best option for those who want to open a real office within Dubai in a developed business community. Even if you start with a flexi-desk, it’s a good opportunity to expand without changing the place of your company registration.

A slightly cheaper alternative option could be Dubai South business setup or Dubai Silicon Oasis company setup.

BENEFITS OF DMCC COMPANY

  • Highly reputable and recognized free zone
  • Big range of business activities
  • Central location
  • Incentives for Gold and Diamonds trading
  • Well regulated Free Zone - easier to open a bank account

START YOUR BUSINESS IN DMCC TODAY

TRADING AND SERVICE LICENSE COSTS IN DMCC FREE ZONE

UP TO 3 VISAS COMPANY

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading / Service license + Flexi desk no visa AED 67,880 $18,600 download breakdown
Trading / Service license + Flexi Desk 1 visa AED 76,459 $20,950 download breakdown
Trading / Service license + Flexi Desk 2 visas AED 85,037 $23,550 download breakdown
Trading / Service license + Flexi Desk 3 visas AED 93,616 $25,650 download breakdown

DOCUMENTS FOR DMCC FREE ZONE SETUP

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • - Passport
  • - Latest utility bill as address proof
  • - Passport size photo
  • - NOC from sponsor for UAE visa holders
  • - Description of business
  • - СV with 3 latest jobs and contact details of the employer
  • 1 week- Pre-approval
  • 1 time- Visit DMCC for documents signing
  • 1 week- Company establishing
  • 1 week- Establishment card
  • 1 week- Entry permit
  • 1 day- Medical Check-Up and Emirates ID application
  • 2 days- Basic insurance (mandatory for visa stamping)
  • 3 days- Visa stamping

Top 10 questions about DMCC Free Zone company

  • If l register a company in a free zone outside of Dubai, can l live and have a bank account in Dubai?

    Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.

  • Can I open a bank account remotely?

    No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.

  • Do banks give debit and credit cards or loans?

    Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.

  • Can a free zone company hold its offices outside the free zone?

    Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.

  • Why do I need a flexi desk or office?

    A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.

  • Do we have to pay VAT if our company is registered in the Free Zone?

    VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.

  • Should I pay any other TAX?

    UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.

  • Why will a free zone company suit me better than an offshore or a mainland entity?

    Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.

  • Can you guarantee opening of a bank account?

    We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.

  • Should I renew my company? When? How much does it cost?

    Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.

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