Dubai Multi Commodities Centre - DMCC Free Zone Company Formation
- Company setup from 35,484 AED (may vary)
- Registration from 2 weeks
- Bank account Guaranteed
- Residence visas for 1 years
Moreover, DMCC is not suitable for you if you are involved in the manufacturing of goods or logistical operations and are looking for warehouses or hubs for facilitating transportation or large spaces for facilitating production activities.
Other free zones, such as JAFZA or RAKEZ, are recommended for the same.
About DMCC Free zone
The Dubai Multi Commodities Centre (DMCC) is a free zone in the UAE that acts as a hub for global businesses that work with or trade commodities.
The DMCC freezone is located in the Jumeirah Lakes Towers development, opposite Dubai Marina in New Dubai. It is well connected by bus and metro routes.
It is the home to thousands of small businesses, start-ups, and multinationals. A vibrant community is awaiting you in the DMCC free zone with a plethora of world-class facilities and services. The free zone started as a start-up in 2003 to become one of the world’s leading free zones in the year 2023.
When is the DMCC-Free zone suitable for you?
Trading companies
The DMCC free zone is widely known for its expertise in the sector of trading commodities. A conducive environment is provided for trading companies to benefit from operating in the free zone’s resources and extensive networks.
Distribution and logistics companies
The DMCC free zone is no exception from being a major logistics hub just like Dubai. For companies based in distribution and logistics looking to establish their presence in the region, the free zone provides excellent connectivity and facilities.
Technology Firms
With the advanced infrastructure of the freezone and wide access to global markets, the freezone is a thriving hub for firms basing their operations in technology. If you are in any tech-related field, such as IT services or software development, this free zone offers various opportunities for innovation and growth.
Consultancy Firms
A wide range of consultancy firms is attracted by the immense global recognition and reputation of this freezone. This free zone provides an ideal platform for various consulting firms, including marketing, legal, or finance.
E-Commerce Businesses
Various benefits for e-commerce businesses are provided by this fee zone, including strategic location, access to international markets, and world-class infrastructure.
Contact us today to get more updates on the same.
DMCC Company Formation Process in Dubai, UAE
Step 1: Choose a company name
You must choose a unique and suitable name. The availability of the chosen name can be checked from the DMCC website.
Such a name that is memorable to the target audience is necessary for your business to be reflected well among the audience.
Step 2: Select your business activity
The nature of the business activity is the second most important thing after a suitable business name. This will help you understand the type of license needed by your business. The various types of licenses available in the DMCC free zone have been discussed later.
Additionally, the legal entity of the company must be decided. The options available for you include:
- A FZE, or free zone establishment
- A limited liability company
- And a limited liability company, LLC
Each option has its own set of requirements and benefits.
Step 3: Apply for Initial Approval
Once the company name, legal entity, and business activity have been chosen, you can go ahead and apply for initial approval from the DMCC Free Zone authority.
This involves the submission of required documents such as proof of address, business plan, and passport copies. Any delays in the approval process can be avoided by ensuring that all necessary paperwork is completed.
Step 4 : Open a corporate bank account
After receiving the initial approval, you can proceed with opening up a corporate bank account. This will allow you to carry out all the transactions of your business organization and manage the finances of the company efficiently.
A bank that offers suitable services must be chosen by you in order to meet the business requirements of your organization. Ensuring that you choose the correct bank to meet the financial requirements of your company can be done by working with an esteemed business setup service provider like JSB Incorporation.
Step 5: Choose a location
Depending on the requirements of your business organization, you will need to choose a physical location for your company. From executive offices to flexi desks, a range of options is provided by the DMCC free zone.
Factors such as amenities, budgets, and space requirements must be considered when choosing an appropriate location for your business setup in Dubai.
Step 6: Obtain final approval
Once all the previously mentioned steps have been fulfilled, you will need to obtain a final approval from the DMCC free zone authority. Depending on your business activity, this may include additional licensing approvals from other authorities.
You must ensure that you have all required documents submitted carefully and that you have complied with all additional requirements. Once the final approval has been received, you can officially launch your business and start your working operations in the DMC-free zone.
After all, JSB Incorporation is here to guide with each step of company formation in Dubai, UAE. We have experts for everything you need for successful company formation.
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Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
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info@jsbincorporation.com
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Documents required for registration of businesses in the DMCC free zone
- A complete online application form
- An objection certificate
- Proof of residential address
- A memorandum of association
- Legal documents of the mother company
- Copies of passports or UAE residence visas (if applicable)
- And a lease agreement
DMCC License Cost and Dual License
Different types of licenses are offered in the DMCC free zone to fit the needs of the entrepreneur. These include:
- Industrial license
- Commercial license
- General trading license
- And service license
Further, 5 activities can be carried out under one license. This makes running your business more efficient and smoother. Dual licensing is also available in the DMCC free zone.
Dual licensing implies the amount of business activities carried out under one license can be expanded. This can be done by owning dual licenses of both onshore and mainland.
This means you will be able to expand your business to onshore or mainland. In order to get this done, both DMCC and mainland licenses are required.
If we talk about the cost, the cost of a DMCC free zone license starts from AED 9,000 to AED 50,000. The ultimate cost of the license may vary.
Other relevant considerations, such as specific business activities, type of license, etc., are what the ultimate cost of a license depends on.
The process becomes much smoother once these processes are understood well, and this allows you to enter a DMCC free zone company.
Business activities in DMCC free zone
Catering to various sectors and industries, a wide range of business activities is offered by DMCC. There is ample room for innovation and growth in this free zone with traditional and present-day ventures in terms of trading.
Within the JLT region, entrepreneurs can set up retail businesses such as restaurants, clinics, shops, etc.
This makes DMCC an attractive alternative to setting up a business organisation on the mainland. In terms of business activity, the flexibility offered by DMCC is another advantage that you can enjoy in this free zone.
From the same group, you can engage in up to six business activities. This is almost double the number of activities permitted across the UAE.
This gives you the opportunity to diversify your operational activities or to explore more than one avenue of business than your current industry.
As discussed earlier, a plethora of key commercial activities take place in the DMCC free zone. Out of these, DMCC has many other companies, like:
- Commodity trading companies
- Cogistics companies
- Financial service companies
- And technology companies
DMCC facilities
For businesses, a plethora of facilities are awaiting for one in the DMCC-free zone. Complementary cafes, washrooms, lounges, and high-speed internet are available in the free zone, along with fully equipped and furnished co-working space and rooms to hold meetings in.
Training and networking opportunities are present, along with storage, processing, and roasting facilities. A tax-friendly environment is provided with 100 percent business ownership, access to various infrastructures, and zero percent personal income tax.
Further, it is the largest free zone in the UAE and is considered to be the leading business authority in terms of commodities trade on an international level.
Post-Licensing and license renewal in DMCC
Your bank won’t break as the process of license renewal in the DMCC-free zone is a breeze. Once the initial report has been passed, you must keep the annual audit report handy. The signed lease agreement for your space needs to be sent, and to seal the deal, the license renewal fee must be paid.
In contrast to the initial process of incorporation, the process of license renewal is cheaper. No one-time fee is involved, and the facility and license fee must be paid. Once again, personal presence is not required, and some person on your behalf can take care of the renewal procedure.
Here’s a rundown of the DMCC Free Zone License Renewal Cost:
- 1-Year License Renewal: AED 20,265*
- 2-Year License Renewal: AED 40,530*
- 3-Years License Renewal: AED 60,795*
- 5-Years License Renewal: AED 101,325*
DMCC Company Amendments
Remote handling of minor amendments is common in this free zone. A personal visit from the owner or power of attorney is required in case of transfer of shares. The average cost of any amendment is around AED 4,000.
During the process of license renewal, some amendments can be made free of charge. For example, while renewing a company, business activities can be added or removed. Common amendments include changing the name of the company, removal of a company manager, changing the company location, etc.
DMCC Company Liquidation
The process of liquidating or shutting down businesses in the DMCC-free zone is as simple as setting it up. You do not have to be present in person, and you can simply appoint someone to handle it on your behalf. For completion of the process, you only have to pay the government fee.
The process of liquidation takes about a month and includes processes such as canceling visas, ending the lease agreement, and closing the bank account.
Other steps that are included in the substantial process of liquidating a company include:
- Cancellation of the license
- Termination of the lease
- Final audit
- And newspaper advertising of company closure
In some cases, the process of liquidation can take up to five months. The government fee mentioned before is approximately AED 10,000.
DMCC Residence Visas
In the DMCC freezone, the validity of the visa for both the employees and the company owners is about two years. Unlike other zones, company owners are not eligible for an investor visa designation.
But they are eligible to hold any top managerial position in the company. Attested educational certificates must be provided by employees seeking a top managerial position in the company.
Health insurance must be obtained before applying for a visa in the DMCC-free zone. Insurance processing may lead to an increment or lengthening of the visa procedure. Business setup consultants in Dubai can be trusteed for simplification of the procedure to handle both health insurance and visa requirements on your behalf.
Why Choose JSB Incorporation?
We have been working towards our shared goal of establishing successful businesses in the Emirates and tending to all needs regarding relocating to this country.
Our team comprises lawyers, accountants, business consultants, tax exporters, and realtors who are experienced enough to handle all your needs. Visit us today and let us help you.
FAQs
The DMCC business license process typically takes around two weeks from the initial application to approval. Factors such as the completeness of documentation and the type of business activity can influence the timeline. Ensuring that all required documents are submitted accurately can expedite the process.
Yes, businesses operating in the DMCC free zone benefit from zero percent corporate and personal income taxes for a period of 50 years, making it an attractive option for entrepreneurs.
Additionally, there are no import or export duties, which further enhances the financial appeal of setting up a business in this free zone.
Absolutely. One of the key advantages of establishing a company in DMCC is that entrepreneurs can maintain 100% ownership of their business. This is particularly beneficial for foreign investors looking to retain full control without needing a local partner.
DMCC offers several types of licenses tailored to various business activities:
- Industrial License: For manufacturing and production activities.
- Commercial License: For trading activities.
- General Trading License: Allows for multiple trading activities under one license.
- Service License: For businesses providing services rather than goods.
Each license type has specific requirements and is designed to cater to different sectors.
The type of license you require depends on your specific business activities. It is essential to clearly define your business model and activities before applying for a license. Consulting with a business setup advisor in the UAE can help determine the most suitable license based on your operational needs.
Don't miss out on this limited-time opportunity!
We'd Love To Hear From You
contact us
Find us Here
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com