Dubai Multi Commodities Centre (DMCC) is the largest and fastest-growing free trade zone in the United Arab Emirates, with over 15,000 registered businesses. Established in 2002 by the government of Dubai, it is a business hub for commodity-related companies. It has been named “Global Free Zone of the Year” by The Financial Times FDI Magazine in 2015, 2016, and 2017.
It is a popular destination for businesses, with over 2,000 new companies registering annually to take advantage of its liberal business policies and tax-free environment in a prime business district. Its proximity to major business centers allows companies to benefit from increased shipping and access to international markets. So, it plays a key role in connecting markets through trade.
This free zone is a particularly attractive location for company formation in Dubai. It allows 100% expat ownership and permits the transfer of profits back to the owner’s home country. Additionally, there are many other benefits to establishing a business in DMCC. It is a great choice for entrepreneurs looking to build a successful business in a land of opportunity.
Benefits of Company Formation in DMCC Free Zone
DMCC offers tons of benefits including:
- Healthy Community
Nearly 92,000 people live and work at DMCC. It has a beautiful community park and a striking waterfront.
- Awesome Location
DMCC is located in the heart of Dubai near the Jebel Ali Port and airport.
- Crypto Market
The DMCC even has its own crypto center that allows them to connect with like-minded individuals and gain exposure to a leading crypto and blockchain ecosystem.
- 100% Business Ownership
If you are setting up a company in DMCC, you can own 100% of it.
- Progressive Business Centre
More than 15,000 member companies from 170+ countries are available to you in DMCC.
- Flexible Solutions
The DMCC offers a variety of commercial activities. The company can be set up as a subsidiary, branch, or a new limited liability company (LLC).
- Zero Tax
There is no corporate and personal income tax here.
- Easy Business Setup
Company registration and getting a business license are super easy. One of Dubai’s most prestigious locations, Jumeirah Lake Towers (JLT), houses the free zone at its center. Since its establishment in 2002, It has quickly listed more than 11,000 enterprises and has registered the most companies.
It is the best special economic zone in the entire world. Financial Times Magazine voted DMCC as the Global Free Zone of the Year for consecutively four years.
Dubai’s business community is well-known worldwide for a number of factors, including incubator programs, excellent tax structure, and several incentives. Dubai tops the list of the best tourist destinations in the world. Opening a company here in the sectors like tourism and trading is more profitable than in any other industrial sector.
This business hub has made a significant contribution to the growth of Dubai’s commerce and trade. It is the perfect industry to break into and launch a company in the UAE. Your company could succeed and grow there.
- Dubai Multi Commodities Center
Over 19,000 companies are registered in the DMCC. this free zone was founded in 2002 with the goal to run a top-tier commodities marketplace, and aim of providing the financial, physical, and market infrastructure necessary to build up. The main commodities exchanged here are stock, gold, silver, energy, copper, pearls, gems, fiat money, tea, base metals, and agricultural products.
The following exchanges are also located within this duty-free area, specifically:
- Dubai Tea Trading Center (DTTC)
- Dubai Gold and Commodity Exchange (DGCX)
- Dubai Pearl Exchange (DPE)
- Dubai Diamond Exchange (DDE)
Business Facilities in Dubai Multi Commodities Centre Free Zone
DMCC is situated in the area of JLT. This area appearance of a city inside a city. It has residential as well as commercial towers.
It has easy access to Dubai’s main motorways and two metro stations. Downtown is a 10-minute drive away, and right across the street are The Palm Jumeirah and Dubai Marina.
Around the same area, you will find sports clubs, business centers, clinics, offices, and schools.
When forming a company in DMCC, you have four different options for the facilities you can rent:
- Warehouse in JAFZA free zone
- serviced desk or office
- The minimum required office space is a Flexi-desk facility
- Executive office in all the business towers present in JLT
Ease of Doing Business in DMCC Dubai
This business hub is one of the most rapidly expanding and largest free zones in the Middle East region. It gives you the opportunities you need to expand your business in Dubai and elsewhere. With over 66 towers, 13,000 firms, and home to a vibrant community of over 87,000 people, this FZ is the right partner for the growth of businesses. It is so because the Government of Dubai Authority is dedicated to making Dubai a worldwide gateway for trade.
If the FLEXI Desk facility is used, (Security Industry Regulatory Agency) SIRA approval is not necessary. Company capital of AED 50,000 must be deposited in a bank within a month of getting the license & capital letter must be submitted at DMCC. Any employee or shareholder must have prior expertise in the gold trade in order to qualify for a Gold Trading License (Non-Manufactured Precious Metal Trading). For a partner visa, a minimum shareholding of AED 10,000 is needed.
A 50-year tax exemption that is guaranteed, 100% firm ownership, and choices for freehold properties are all provided to the business owners having companies in this FZ. It was founded to support the unique requirements of its core industries, which include those of gems and colored stone, gold and precious metals, energy, and other commodities. All application processes can be completed from the Aurion office thanks to the DMCC Partner Portal.
DMCC Objectives
- To create a special market in Dubai.
- Promote regional industry by putting international standards into practice.
- Enhance the amount and value of commodities traded inside the region and through it.
- Boost the expansion of local industries.
- Integration and facilitation of the complete value chain of its key segments.
- Give a business-friendly atmosphere by means of infrastructure that is specifically designed to run businesses.
- Extend your understanding of local markets, such as trade, refinement, and manufacture.
- Establish market infrastructure that is industry-specific for its primary markets and develop fresh services and goods.
Business Activities in DMCC Free Zone, UAE
You have tons of options available out of which you can choose one and build your business around it. Some of the activities that you can do in the DMCC free zone are:
- Crypto trading
- Business activities involving precious stones, gold, and diamond
- Petroleum trading
- Import and export of different goods
Top Companies and Key Commercial Activities
TATA, Sinopec Group, Viacom, Glencore, Total, ENI, Honeywell, American Express, Whirlpool, Harley Davidson, and many more leading corporations have established operations in the DMCC. It’s vital to remember that these are Global and Fortune 500 companies with a presence in different parts of the world.
It comprises a huge variety of industries, including commerce, shipping, recruitment, IT, luxury brands, retail stores, advertising, fitness centers, colleges, and restaurants, in addition to its particular focus on the commodities area when forming companies there.
Types of Licenses in DMCC
Following are the types of licenses that you can obtain in the DMCC free zone:
Trade License
An individual who has a trade license is able to engage in trading operations such as the storage, import, distribution, export, and re-export of particular goods.
Service License
A service license permits an organization to offer the services listed in the license and is targeted at enterprises that offer different services. It should be noted that getting this license demands consultation with experienced sales executives to help you in selecting the appropriate category.
Light Industrial License
Owners of industrial licenses are allowed to engage in some manufacturing industrial operations, assembly, and packaging work.
General Trading License
With this license, one can engage in general commerce, such as distributing, importing, exporting, storing, and re-exporting.
Licensing in DMCC Free Zone
For a property is a Flexi desk there is no need for any third-party clearance. However, business owners should submit a NOC to the appropriate authorities when approval from a third party is required. Entrepreneurs who want to receive a bank deposit letter must approach the bank with the introduction letter the DMCC issued if the share capital goes over AED 500,000.
It can take two to three working days to complete the licensing procedure. A company license attested DMCC Memorandum & Articles of Association (MOA), Certificate of Registration, Flexi Desk Tenancy Contract, and Share Certificate will thereafter be issued by the DMCC Freezone authorities. If you have a serviced office or Flexi desk, you must apply for a work visa at this point
Post-Licensing
Documents must be submitted within one month of the company receiving a business license from DMCC. The documents are as follows:
- Third-Party Liability Insurance
- Bank Share Capital Deposit Letter
- Sample Company Letterhead with stamp
DMCC License Renewal
Renewal of a business license is less expensive than incorporation. There is no one-time registration cost upon renewal. Only facility and license fees will be due. In terms of business setup and maintenance, it makes DMCC companies fairly reasonable.
Even if there was no commercial activity, a company operating in the Dubai Multi Commodities Centre is required to submit an annual audit report.
It is possible to do the renewal procedure without your physical presence. For that, you have to take help from experienced business setup consultants like RIZ & MONA.
DMCC Dual License
A dual license in DMCC lets the companies expand their business operations into the mainland without the need for a shareholder. It is possible for entrepreneurs and businessmen to obtain a dual license. You must have a mainland license and a DMCC permit before you can apply for a dual license. Doing business on the mainland is very profitable, and offers the opportunity to expand into new markets. But you will be required to give 51% ownership to the local shareholder.
DMCC License Costs
Commercial Trading/Service License |
|
| Initial Approval & Trade Name (one time) | 1,000 |
| License Fee (yearly) | 20,020 |
| Registration Fee (one time) | 9,020 |
| Memorandum of Association (one time) | 2,000 |
| Auditors Appointment Letter (one time) | 1,000 |
| TOTAL | AED 33,040 |
General Trading License |
|
| Initial Approval & Trade Name (one time) | 1,000 |
| License Fee (yearly) | 50,020 |
| Registration Fee (one time) | 30,020 |
| Memorandum of Association (one time) | 2,000 |
| Auditors Appointment Letter (one time) | 1,000 |
| TOTAL | AED 84,040 |
Note:
– Minimum required share capital is AED 50,000.
– The total cost is exclusive of Flexi-desk or physical office cost.
Required Documents for Company Setup in DMCC Free Zone
You need to submit the following documents to start a company in the DMCC:
- Title Deed or DMCC Serviced Office Contract
- HR signatory appointment letter
- Passport copy.
- Emirates ID – back and front (if you are Emirates national)
- A valid property lease agreement
- Proof of residential address in the country of residence
- Board Resolution
- Power of attorney
- Documents of parent company
- Articles of Association & Memorandum
Flexi Desk or Office |
|
| Options | Cost |
| Flexi Desk (3 visa quota) | AED 17, 610/year |
| Physical Office for Lease | Starting from AED 90+ per sq. ft/year |
DMCC Visa Fees
| Description | Fees |
| DMCC Visa Fee(For inside country application additional AED 1600) | 3,300 |
| Security Deposit (Refundable) | 3,000 |
| Medical Check-up (VIP) and Emirates ID Fee | 1,150 |
| TOTAL | AED 7,450 |
DMCC Company Formation with RIZ & MONA
The DMCC wants to build a modern trading hub right in the middle of Dubai to promote international commerce in commodities and give access to the Middle Eastern markets. RIZ & MONA CONSULTANCY is eager to assist you with the DMCC company setup. We will guide you through the process of choosing the right business venture and help you with all your company formation needs. Book a free consultation with our expert team today.