DMCC Free Zone - 7 Factors to Consider Before Starting your Business

by Zaara 20, Jan 2021

Dubai is considered the Middle East's trading capital because of its liberal economy and a pro-business administration. Its urban culture also makes Dubai an ideal destination to start a company for foreign entrepreneurs. The government has developed several special economic zones, the Dubai Multi Commodities Center or DMCC, to promote more foreign investment crucial for the economy.

DMCC is unlike any other Dubai Free Zone but has many potential and opportunities for the retail and commerce sectors.  DMCC has a strategic initiative by the Dubai Government to provide a marketplace and necessary physical and financial facilities to run a thriving commodities market.

Dubai Multi Commodities Centre (DMCC)

Dubai Multi Commodities Center (DMCC) is a fast-growing free zone and one of the UAE’s largest economic zones. In 2002, DMCC came into existence and registered about 170 businesses each month. Trading and incorporation in DMCC are very fast, and with the increase in government initiatives. DMCC company formation has proven to be highly competitive and productive.

Benefits of Business Setup in the DMCC Free Zone

  • Conducting operations among the 10,000 business partners make it possible to choose the suitable suppliers and customers in the B2B sector.
  • Obtaining a trade or business company license does not mean providing the client with a long number of requirements.
  • The registration period depends on the nature of incorporation.
  • Relevant internet portals are supplied for all economic zone stakeholders with access to various documentation processing facilities, simplifying local officials’ interaction procedures.

Types of Licenses in the DMCC Free Zone

The free zone DMCC grants licenses for critical commodities trading operations. Each of the company's activities falls under a particular license category, they are-

  • General Trading License
  • Consultancy/ Service license
  • Trading/ Commercial license
  • Branch Company

Office Infrastructure Accessible in DMCC Free Zone

  • Flexi desk
  • Services desk
  • Services office
  • Business center office
  • Physical office
  • Retail shop

Corporate Frameworks in the DMCC Free Zone

Free Zone Establishment (FZE)

           A minimum of AED 50,000 with one shareholder is required.

Free Zone Company (FZC)

With two to five shareholders, this form of business incorporation has a minimum capital of AED 50,000.

Local or international branch/subsidiary

There is no capital requirement for this form of organization.

Features of Business Setup in DMCC Free Zone

The minimum standard to establish a company in DMCC includes-

  • One independent director and one shareholder of any nation
  • Physical office space
  • Paid-up share capital

Seven Factors to Consider Before Starting a Business in DMCC Free Zone

Here is a list of criteria we should be cautious of before starting up a DMCC Free Zone business:

  1. The Business Type
  2. The Type of License
  3. Business Activity
  4. The Name of the Company
  5. Choosing an Office Space
  6. Capital Requirement
  7. Bank Account in the Local Bank

1. The Business Type

      The first step is to decide the kind of business you want;     

  • Local or international branch, or
  • Limited Liability Company (either as a newly established organization with a

           single or multiple shareholders or as a wholly-owned subsidiary of an

           international or local corporation).     

The decision is necessary as for visas and other requirements, and you may proceed further accordingly.

2. The Type of License

      DMCC license is of the following three forms:

General Trading License

      Allows import, export, distribution, acquisition, and stock storage, except a few

Service License

      Gives the authority to participate in service or consulting activities mentioned in the


Industrial License

      Allows the implementation of light production activities mentioned in the license.

3. Business Activity

     The kinds of business operations you want to participate in including trading, manufacturing, utilities, etc. shall be set before handing over so that you can continue as per your business plan defined. Selecting a business activity will help you apply for visas and licenses; therefore different permissions are given for various business activities.

4.  The Name of the Company

     The corporation’s name is an integral part of the legal process, and the title should reflect the form of business operation. The name of the business does not contravene the practice in which you are engaged. The name should not be identical to that of a corporation already founded. The name has to be unique, too.

  The DMCC rules and business name policies can be found on the DMCC website.

5. Choosing an Office Space

   The critical point here is to pick an office space, so you need to determine what kind of office area you need. If you need a warehouse, office, or home, it is up to you to choose it according to your requirement. A significant office decision is taken to save the expense for the location over expenditure.

6. Capital Requirement

     In DMCC, AED 50,000 per enterprise and AED 10,000 per shareholder are the minimal share capital needed to create a free zone corporation. They should have the minimum share capital of AED 1 million for a commercial trading firm.

7. Bank Account in Local Bank

     A local bank account is required for depositing the share capital value of the businesses within three weeks of the business license issuance date. Shareholders can withdraw the sum some time afterward. The firm's branches do not require a

    provision for share capital.

The establishment of DMCC seems advantageous and successful as the government gives full ownership and exclusive rights without local sponsorship. This free zone is now one of a businessman's most favored options because of the various advantages. It's sure to be a profitable investment in DMCC.

How to Start Up a Business in the DMCC Free Zone?

Here is the extensive step-by-step procedure to start a business in Dubai Multi Commodities Centre;

  1. Select the legal framework of the business.
  2. Pick a business activity for your company to approve the license.
  3. Select a business name and register the same with the free zone authorities
  4. Apply for company registration. It includes submitting the following documents-
  • Signed application form
  • NOC if you are a UAE resident
  • Details of the shareholders
  • Passport copy
  • Evidence of address of your company
  • Bank share capital letter
  • Lease contract if you are getting a physical office
  • Third-party permission by appropriate authorities
  • Appoint a DMCC authorized auditor for your company once you obtain the company license

 You can now begin trading and start the procedure to hire employees.

Why Start Up a Business in the DMCC Free Zone?

In this free zone, the business registration process takes seven working days and can be done online. The strategic location adds to the range of benefits DMCC has to provide. This free zone is right in the heart of Emirate, near the district of Jumeirah Lake Towers. It includes various facilities such as office spaces and warehouses, focusing on the business's needs.

It is ranked four times by the Financial Times Magazine as a 'Global Free Zone of the Year.’ It is dedicated to a vibrant culture, creative infrastructure, world-class facilities, and beautiful property options, all minutes away from the world's excellent sea, air, and road connections.

Still cautious? Well, here are a few more benefits you can reap from setting up a business in the DMCC sector.

  • Zero income tax and personal tax for 50 years
  • Services on immigration include visas and other permits.
  • Global ownership at 100 percent
  • Licenses for a plethora of things
  • Infrastructure designed

Our Role

The DMCC free zone has contributed to Dubai's trade and commerce industry’s growth and has made it the best industry to enter and start a business. Starting your company at DMCC can ensure your company grows and success and a business consultant will help you get started.

If you're excited about starting a free zone company in Dubai Multi Commodities Centre,  we at Commitbiz will help you. Commitbiz services include corporate registration, licenses, public relations officer (PRO) services, UAE VAT registration, employee visa services, and other legal business formalities. We take on the responsibility of business setup services in Dubai so that you can concentrate on your venture's bigger picture. To know how we can guide you, contact us today.


How many companies are there in DMCC?

There are more than 20000 businesses in DMCC.

What are the business activities that come under DMCC?

The business activities come Did any company under DMCC are

  • Brokerage
  • Banking 
  • Commodities exchanges
  • Business support firms 
  • Professional services companies

How long does it take for the firm to be established in DMCC?

Depending on the business activity, the DMCC company establishment takes 2 to 4 weeks.

What is the mandated minimum share capital for a DMCC business?

A minimum share capital of 50,000 AED is required for doing business in DMCC.

Does the DMCC company renewal cost less than the incorporation?