The biggest and most well-known free trade zone in the United Arab Emirates is the Dubai Multi Commodities Center (DMCC). DMCC was founded in 2002 on the lakeside of the Jumeirah Lake Towers (JLT) neighbourhood in the center of Dubai. The airports, the Logistic Corridor, and the Jebel Ali Sea are all only a few minutes away. Trade routes for jewellery, precious stones, diamonds, and energy commodities passing via Dubai were made available by the free zone. The Dubai Multi Commodities Center free zone has an "A" credit grade from Standard and Poor's, meaning it is committed to meeting its obligations. A rapidly expanding free zone in the United Arab Emirates is DMCC. Thus, in today’s blog, Dhanguard will extensively go through the available benefits and types of licenses and the procedure of acquiring a trade license in DMCC. So, without any further ado, let’s learn!
Understanding DMCC
The Dubai Multi Commodity Center, established in 2002, stands tall as the region's premier business hub. It offers a fertile ground for various industries, including commodities, trading, finance, and more. The unparalleled infrastructure, world-class facilities, and strategic location are central to its appeal, making it a magnet for global investors and entrepreneurs. In a short time, DMCC has won awards such as The Financial Times magazine's "Global Free Zone of the Year" seven times. With countless potential, DMCC is expanding, serving over 21,000 companies in its jurisdiction. According to the UAE, it's among the world's most well-known and networked free zones.
Benefits of DMCC:
If you want to start a Freezone company with 100% ownership and a decent location, the Dubai Multi Commodity Center (from now on referred to as DMCC) is the place to go. The DMCC allows for a wide range of activities in addition to trade. It also allows several activities not permitted in other free zones, such as gold and precious metals trading, diamonds, and colourful stones trading.
The following advantages come with forming a corporation in the DMCC:
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Foreign ownership is 100%.
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Personal income tax rates are zero.
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Tax holiday you are guaranteed for 50 years.
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Capital repatriation in its entirety.
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Various types of business operations are permitted.
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Freehold commercial properties are available for sale or lease at competitive rates.
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Flexible Office alternatives such as serviced offices, flexi desks, and shared offices are available.
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Services for effective immigration, including visa assistance.
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DMCC events, segment-specific clubs, and educational courses provide systematic networking possibilities.
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Training on the most recent regulatory and compliance requirements developments.
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Customer service portals and effective online solutions are available online.
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The Almas Tower, the AU Tower, and the AG Tower are among the best security measures to create a secure environment for the 200-hectare complex.
Some Additional Benefits are as follows-
Strategic Positioning
Residences, workplaces, a metro station, convenient access to public transit, and shopping malls are all available at Jumeirah Lakes Towers. The area is relatively large, yet it is easy to explore because JLT is divided into Clusters. Some clusters are near the Sheikh Zayed Road, while others are near the Lake. Both employers and employees may work and remain in a safe and healthy atmosphere because of the secure environment and convenient access to various facilities such as the metro, sports facilities, and stores. For startups and overseas branches looking to expand their enterprises in the DMCC and worldwide, the DMCC is an excellent choice.
Possibility of Acquiring Property
DMCC may possess freehold property in the city as a free zone business in Dubai.
Visas for Residence
Having individuals as shareholders has the advantage of allowing them to live in Dubai. Employees and employers are both eligible for residency permits. Because the authority assists with immigration, obtaining visas is substantially speedier. Greater employee visas will necessitate additional office space.
Structure of ownership
Individual and corporate stockholders are both permitted.
Swift Process
The Trade License takes two weeks to get and may require pre-approval. Dhanguard provides assistance and guidance throughout the entire process of incorporation at the time of establishment. Certain operations necessitate a business strategy, which we can also prepare for incorporation. A minimum capital requirement of 50,000 AED must be presented at the bank.
Offices
The possibility to rent office space and own offices/residences in Dubai is one of the best features of DMCC. This is an excellent choice for businesses looking to target both the Dubai and worldwide markets. If you're looking for a free zone company to open an office with, DMCC is the best option. You can obtain a flexi desk or a shared office if you don't require an office but want a spot to work for a few hours.
How do I get a Trade License in DMCC?
Additional documentation may be required in addition to your application to receive your DMCC business license:
Upload a Third-Party NOC
For some regulated business activity, third-party permission may be necessary. Please contact the appropriate third-party authorities to obtain a No Objection Certificate if this is the case. Once the NOCs are accepted, upload them.
Provide a Bank Letter
Contact your selected bank using the introduction letter given by DMCC to receive the bank deposit letter if your share capital is more significant than AED 500,000.
Upload Property Paperwork
If your preferred property type is not a Flexi Desk, please arrange for property documents and a meeting with your Business Setup Executive.
Please note that if the property type selected is Flexi Desk and the Share Capital is less than AED 500,000, these additional documents may not be required. We recommend you speak with one of our business experts to learn more about the paperwork needed for your business license.
To obtain and retain a license, the applicant must meet the following requirements:
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Possess a current DMCC Administration business permit or registration.
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Having a legal rental agreement or freehold real estate title
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Any element of the DMCC Rules and any other applicable laws, rules, and regulations in Dubai and sections of UAE federal legislation must not be in conflict. DMCC licenses are valid for a minimum of 12 months from the date of issuance.
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Licenses must be renewed at least 30 days before the expiration date of the current request. Failure to comply with this condition will result in a tariff penalty and the license being permanently revoked, refusal to meet the application for DMCC license renewal, or termination of a company's DMCC registration.
Documentation for DMCC Free Zone Business Setup:
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Application Form: Filled with precise details regarding the business activities and shareholders.
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Passport Copies Of shareholders and directors.
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Business Plan: Outlining the company's objectives, financial projections, and operational strategies.
DMCC License Types:
DMCC has almost any business activity you can think of. You can establish a branch, subsidiary, or new limited liability company to take advantage of our advanced and flexible company regulations, which allow for numerous classes of shares, multiple license activities under the same license, and even various licenses under the same business. If you need help determining which license or training suits your company, our knowledgeable business setup experts will gladly assist you during our free consultation session.
The types of licenses in DMCC are mentioned below-
Service License
It makes providing services in various industries easier, including professional, legal, financial, media, technology, education, energy, and healthcare. Also included are foreign company representative offices, holding corporations, family offices, and retail enterprises such as restaurants and cafes.
Trading License
Allows for the purchase and sale of goods and the import and export of items from, to, and within the UAE. The corporation must choose specific license activities corresponding to the things they wish to trade in.
Industrial License
Within the Free Zone, there are designated facilities for light manufacturing. Available for precious metals, stones, jewellery, and activities involving coffee and tea (blending, packaging, roasting, storage, etc.)
DMCC Flexi Desk and Fees:
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Flexi Desk Facility: Ideal for startups or small enterprises requiring a physical presence. It offers shared office space and administrative support.
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DMCC Flexi Desk Fees: Vary depending on the package chosen, offering flexibility and cost-effectiveness.
DMCC License Renewal Fees:
Ensures continuity of operations within the free zone. Renewal fees are structured based on the license type and company activities.
When requesting a license renewal, the company must complete the following steps:
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Maintain all of the standards in place when you first receive your license.
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Produce your most current audited financial statements or audit reports to demonstrate that you're in outstanding financial shape.
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Provide documentation confirming the company has no rent arrears, charges for using the JLT Infrastructure, penalties, or other fees owed to the DMCC Administration.
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The costs of DMCC license renewal must be paid according to the rates.
Why Choose DMCC?
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Global Recognition: DMCC's reputation as a prominent free zone amplifies the credibility of businesses established within its premises.
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Networking Opportunities: Access to a diverse community of businesses, fostering collaboration and expansion prospects.
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Supportive Ecosystem: Guidance from DMCC authorities and dedicated support services ensure a smooth setup and ongoing business operations.
Start your Journey with Dhanguard
Dubai Multi Commodity Center (DMCC) is a catalyst for success, offering a blend of opportunities, robust infrastructure, and an environment conducive to business growth. Choosing DMCC for your business setup in Dubai can pave the way for unparalleled success in the dynamic global trade and commerce landscape. Whatever activity you intend to undertake in the Dubai Multi Commodities Centre Free Zone, Dhanguard's team of experts will assist you throughout the setup process. Our skilled professionals will always answer your questions, covering everything from paperwork to the licensing process. Contact us with all your needs, and we'll get your task done quickly!