Dubai is known to be the trading capital of the Middle East due to its liberal economy and a pro-business government. Its cosmopolitan culture also makes Dubai an attractive destination for foreign entrepreneurs in starting a business. To encourage more foreign investment, which is the driving force for the economy, the government established several special economic zones, the Dubai Multi Commodities Centre or DMCC.
The free zone was established in the year 2002 under the legislation passed by the Chairman of the PCFC. The segments under DMCC free zone includes- commodities, pearls, gold, diamonds, tea, cotton, minerals, and metals. There are more than 15,000 members in the DMCC who enjoy passage to market infrastructure and physical amenities such as gold and diamond vaults, dealing platforms like the Dubai Diamond Exchange, Dubai Gold and Commodities Exchange, DMCC Trade Flow, Dubai Pearl Exchange, Real Estate, Dubai Shariah Asset Management (DSAM), and DMCC Tea Centre and a range of commodities backed by financial investment options.
Advantages of Business Setup in the DMCC Free Zone
- Conducting activities among the 10,000 business partners make it possible to select appropriate suppliers and consumers in the B2B market
- Obtaining the license of trade or service company does not imply submitting a long list of requirements to the applicant
- The term of registration depends on the type of incorporation
- Specific internet portals are provided for all the participants of the economic zone, where there is access to a range of services on documentation processing, which simplifies the procedure for interaction with local authorities
Types of License in the DMCC Free Zone
The DMCC free zone issues licenses for core commodity trading activities. Each activity of the company falls under a specific type of license, they are-
- General trading license
- Consultancy/Service license
- Trading/Commercial license
- Branch company
Office Facilities Available in DMCC Free Zone
- Flexi desk
- Services desk
- Services office
- Business centre office
- Physical office
- Retail shop
Corporate Structures in DMCC Free Zone
- Free Zone Establishment (FZE) – It requires a minimum capital of AED 50,000 with one shareholder
- Free Zone Company (FZC) – This type of business incorporation has a minimum capital of AED 50,000 with two to five shareholders
- Local or Foreign Branch/Subsidiary – This type of entity does not have any capital requirement
Features of Starting a Business in DMCC Free Zone
The minimal requirements to establish a company in DMCC includes-
- One individual director and one shareholder of any nationality
- Physical office space
- Paid-up share capital
How to Start a Business in the DMCC Free Zone?
Here is the detailed step-by-step procedure to start a business in Dubai Multi Commodities Centre.
- Select the legal structure of the company
- Select a business activity for your company to finalize the license
- Select a company name and register the same with the free zone authority
- Submit the application for business registration. It includes submitting the following documents-
- Signed application form
- NOC if you are a resident of the UAE
- Details of the shareholders
- Passport copy
- Proof of address of your company
- Bank share capital letter
- Lease agreement if you are getting a physical office
- Third-party approvals from regulated activities
- Appoint a DMCC approved auditor for your company once you receive the business license
You can now commence trading and start the process to hire staff.
Why Start a Business in the DMCC Free Zone?
The company registration procedure in this free zone takes seven working days and can be completed online. The strategic location adds to the set of advantages that DMCC offers. This free zone is located right at the heart of Emirate near the Jumeirah Lake Towers district. It offers various facilities such as office spaces and warehouses, depending on the need of the company. Tt is crowned four times as a ‘Global Free Zone of the Year’ by the Financial Times Magazine, it is home to a vibrant community, innovative infrastructure, world-class services, and stunning choice of properties, all minutes from the excellent sea, air, and road links of the world.
Still skeptical? Well, here are a few more advantages you can get if you set up a company in DMCC zone.
- Zero corporate tax and personal tax for 50 years
- Immigration services including visas and other permits
- 100% foreign ownership
- Licenses for a full range of activities
- Purpose-built infrastructure
If you are excited to start a business in Dubai Multi Commodities Centre free zone, then we at Commitbiz can help you with it. We provide a range of business setup services for entrepreneurs like you. Contact us today to know more.