DUBAI FREE ZONE COMPANY

Dubai Multi Commodities Center company formation

PROS 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

CONS OF DMCC COMPANY

— One of the most expensive Free Zones

— Company setup process takes longer than in other Free Zones

— Annual audit is required

— Many miscellaneous after licensing formalities to be followed

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Why DMCC Free Zone company can be good option for you

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About Dubai Multi Commodities Center

DMCC stands for Dubai Multi Commodities Center. It is by far one of the most well-known and highly reputable Free Zones in UAE. It’s the world’s biggest Free Zone, which was 3 times awarded as a “Global Free Zone of The Year” by Financial Times.

Well, in our opinion it really deserves this title and not because our company is registered there too)

It’s home of Dubai gold and commodities exchange, Dubai diamond exchange and Dubai pearl exchange. DMCC also has Tea and Coffee centers, promotes trading of agro commodities and metals.

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.

Over 14 000 companies are registered in DMCC at the moment. Company registration takes from 2 to 4 weeks depending on the business activity. Half of the procedure can be done remotely, but a personal visit of the shareholder will be required. DMCC company can either have a flexi-desk facility as the minimum required office space, or rent an executive office in any of the business towers located in JLT.

Business activities range from conventional trading or professional services ending up with crypto commodities trading. You can also open a shop, a clinic or another type of retail business within the JLT area, which makes JLT an alternative to a Mainland company with a local sponsor.

DMCC holds promotions a few times a year, when it gives substantial discounts for company registration.

Company renewal costs less than the incorporation which makes DMCC companies quite reasonable in terms of maintenance. Any company must provide annual audit reports even if no commercial activity happened.

When you apply for resident visas in DMCC, remember that you will need to get a health insurance. All visas will be valid for 3 years - for owners as well as employees.

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.

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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