DMCC Free zone company formation refers to setting up a company in UAE’s most popular free trade zone that is home to a number of international companies doing their business in a wide range of industries and sectors. Dubai Multi Commodities Centre (DMCC) Free Zone made history when in 2017, it was ranked as the number one free trade zone in the world by Financial Times fDi magazine for the third consecutive year. DMCC was established is 2002 and it is now a global business hub with over 13,700 registered companies and 92,500 people working and living in Dubai Multi Commodities Centre.
DMCC is the preferred choice of global investors who aim at growing their business’s reach through a global trading platform. DMCC free zone connects the business companies to a flourishing marketplace and provides an excellent opportunity to grow a business in a friendly economic environment.
DMCC Free Zone Company Formation Process
The process of DMCC Company set up is simple and consists of different procedures and legal requirements that need to be completed to start a free zone business in DMCC. The investors must know that there are two types of business entities that can be established in the DMCC free zone. Investors can either establish a new company or they can set up a branch/subsidiary of an existing company in the Dubai Multiple Commodities Centre.
Here is the step-by-step procedure to set up a DMCC free zone company:
- Making a decision to choose a specific type of business license from different DMCC license types
- Selecting specific business activities
- Submitting online application form for company set up
- Paying registration and license fees
- Signing legal documents
- Selecting a suitable office solution
Documents required to set up a DMCC Company
There are specific documents required to complete the above-mentioned procedure for DMCC Company set up. Here is the list of these documents:
- Online application approval form
- Residential proof in the country of residence
- Business plan summary for selected activities
- Third party approval for setting up some specific business activities
- Copy of the passport and residence visa
- Copy of Emirates ID (if applicable)
- NOC from Sponsor (needed if the applicant holds a valid UAE residence Visa)
- Copies of documents of parent company (if setting up a subsidiary)
- Details of the company address in the DMCC Free Zone (needed when the company has already been registered)
All these documents must be submitted to the DMCC authority in order to complete all the legal requirements for starting a free zone company in the Multiple Commodities Centre of Dubai.
DMCC License Types
There are different types of business licenses that investors can apply for in order to set up a free zone company in DMCC. It must be noted that specific types of business activities are allowed under a specific business license. This is the reason why investors should make a well-thought-out decision to choose a specific business license according to their business requirements.
Here are the three types of business licenses offered as an option to investors in DMCC:
- Service License
- Trade License
- General Trade License
Investors must plan to set up DMCC Company intelligently, choose the right type of business license and complete all the legal requirements according to rules and regulations of the DMCC authorities in order to set up a free zone company successfully.
Guidelines for License Renewal in DMCC Free Zone
The business license in DMCC needs to be renewed every year. The renewal fee for Service License and Trading License is AED 20,265 while the renewal fee for a General Trading License is AED 50,265. The companies can be banned from operating in the DMCC on failing to renew their license every year. It is also advised that the companies should apply for the renewal of their license, three to four months, prior to the expiry date so that fines and penalties for late payments can be avoided.
DMCC Company Setup Cost
The DMCC Company set up includes the registration fee, license fee, visa fee and many other service fees that need to be paid to complete the whole procedure of company registration and set up in the DMCC. The total cost for setting up a company varies on the basis of specific business activities selected, nature of business license, number of visas required and the type of office solution selected.
Here is a table that provides the details of costs involved to set up a DMCC Free zone company:
|Company Registration (Service and Trading)||AED 10,015|
|Company Registration (General Trading)||AED 29,000|
|Memorandum and Articles of Association||AED 2,000|
|Business License (Service and Trading)||AED 20,265|
|Business License (General Trading)||AED 50,265|
|Establishment Card||AED 1,800|
Investors must know that the fees for company registration and memorandum and articles of association are to be paid only once at the time of setting up a company. However, the License fees and Establishment Card fees need to be paid every year in order to renew both of these documents. These are the fundamental fees involved in setting up a free zone company in Dubai Multiple Commodities Centre. The collective DMCC Company set up cost varies as the cost for specific types of office solutions is different. Four types of office solutions are available for investors in DMCC that include Flexi Desk, Serviced Desk, Serviced Office and Physical Office.
DMCC Visa and its Requirements
The investors must complete the visa requirements to set up a free zone company in Dubai Multiple Commodities Centre. As per DMCC rules and regulations, a DMCC registered free zone company must comply with the rules that all its employees should have a residence visa/employment visa, access approval or the identity card.
All employees of a DMCC company should have the employment residence visa unless they are sponsored by their father, mother or husband or if they are GCC nationals. The DMCC visa remains valid for three years.
Following documents are required to apply for a DMCC visa:
- Passport size photo
- Copy of passport
- Education certificate (must be legally attested by Dubai Ministry of Foreign Affairs)
- Copy of Establishment Card
- Copy of signed offer letter (for employees of a DMCC company and it must be signed by the employer)
The initial application procedure is followed by the visa stamping process and following documents are required to complete this process:
- Medical Fitness Certificate
- Emirates ID Application Form
- Copy of Health Insurance
The validity of the DMCC free zone visa is three years after which it needs to be renewed. The DMCC visa costs around 3,912 per person, which is exclusive of the Medical Test fee that costs AED 320 per person. Applicants need to complete all the above-mentioned procedures and pay all the required fees to obtain the DMCC visa and set up their business in DMCC free zone.