Globally Recognized Dubai Free Zone

Dubai Multi Commodities Centre - DMCC Free Zone Company Formation

verified by : Andrey Ovchinnikov

07 Jan 2024

Overview of DMCC authority

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.

DMCC objectives

The DMCC has a number of objectives, including:

  • To be the world's leading trade hub for commodities and related products.
  • To attract and retain the world's leading companies in the commodities and related sectors.
  • To create a vibrant and dynamic business environment in Dubai.
  • To contribute to the economic development of Dubai and the UAE.

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 business facilities

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:

  1. Flexi-desk facility: This option provides the minimum required office space, allowing businesses to operate efficiently while optimizing costs.
  2. Serviced desk or office: Ideal for businesses seeking a fully equipped and serviced workspace, this option offers convenience and flexibility without the burden of administrative tasks.
  3. Executive office in JLT business towers: Positioned within the prestigious business towers in JLT, this option provides a prestigious and professional environment for companies requiring a more prominent presence.
  4. Warehouse in JAFZA Free Zone: For businesses involved in trading or logistics, the option to lease a warehouse in the adjacent JAFZA free zone offers easy access to a robust logistics infrastructure and international trade opportunities.

DMCC Activities

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.

Key commercial activities in DMCC Free Zone in Dubai

The DMCC is home to a wide range of companies, including:

  • Commodity trading companies: These companies trade in a variety of commodities, including gold, silver, oil, and gas.
  • Logistics companies: These companies provide logistics services, such as warehousing, transportation, and freight forwarding. The DMCC is a major logistics hub for the Middle East and North Africa region.
  • Financial services companies: These companies provide financial services, such as banking, insurance, and asset management.
  • Technology companies: These companies develop and provide technology solutions for the commodities and related sectors.

DMCC License costs

The cost of setting up a DMCC company includes the following major fees:

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

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

Post-licensing in DMCC Free Zone

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:

  • Paying annual fees to the DMCC of AED 10,000 for a service license and AED 20,000 for a trading license.
  • Submitting annual reports to the DMCC authorities.
  • Maintaining a physical presence in the DMCC.

The DMCC has a team of experienced professionals who can help companies with all aspects of post-licensing compliance.

DMCC company setup

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:

  • Copy of the passport
  • Utility bill
  • CV
  • Business plan for specific activities.

After registration, there are several post-registration formalities to be fulfilled:

  • Demonstrating the company's capital to the DMCC authority
  • Appointing auditors
  • Stamping share certificates
  • Conducting an office inspection if one has been rented.

DMCC also offers promotions several times a year, providing significant discounts for company formation within the free zone.

DMCC dual license

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:

  • Access to the mainland UAE market: The DMCC Dual License gives companies access to the mainland UAE market, which is a large and growing market.
  • Reduced compliance requirements: Companies with a DMCC Dual License are subject to reduced compliance requirements in the mainland UAE.
  • Increased flexibility: The DMCC Dual License gives companies more flexibility in how they operate.

The DMCC Dual License is a valuable option for companies that want to access the mainland UAE market and benefit from reduced compliance requirements.

Ease of doing business in DMCC Dubai

DMCC offers a number of benefits to businesses, including:

  • 100% foreign ownership: There are no restrictions on foreign ownership of businesses in DMCC.
  • Zero corporate tax: There is no corporate tax on profits made in DMCC.
  • Simple licensing process: The licensing process in DMCC is quick and easy.
  • Dedicated support: DMCC offers a range of support services to businesses, including help with finding office space, setting up bank accounts, and obtaining visas.

These benefits make DMCC an attractive option for businesses looking to set up or expand in the UAE.

Dubai Resident Visas

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.

Renewal of DMCC license

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.

Company amendments 

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.

DMCC company liquidation

Liquidating a company in the DMCC authority involves a substantial process that requires several steps:

  1. Final audit
  2. Newspaper advertising of the company closure
  3. Closure of the bank account
  4. Termination of lease
  5. Cancellation of visas
  6. Cancellation of the license

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.

Opinion

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.

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 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

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

  • Can I open a bank account remotely?

    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.

  • Do banks give debit and credit cards or loans?

    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.

  • Can a free zone company have offices outside the free zone?

    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.

  • Why do I need a flexi desk or office?

    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.

  • Do free zone companies need to pay VAT?

    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.

  • Are there any other taxes to be 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.

  • Why would a free zone company be better for me than an offshore or mainland entity?

    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.

  • Can you guarantee the opening of a bank account?

    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.

  • When and how should I renew my company? How much does it cost?

    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.

  • How can I pay the fees?

    You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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