Dubai Multi Commodity Center: Benefits and Licensing
The Benefits of forming a DMCC Company
If you want to start a free zone company with 100 percent ownership and a decent location, the Dubai Multi Commodity Center (hereinafter 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 that are not permitted in other free zones, such as gold and precious metals trading, diamonds, and colorful stones trading.
Thus in today’s blog, Dhanguard will extensively go through the benefits, types of licenses available as well as the procedure of acquiring a trade license in DMCC. So without any further ado, let’s learn!
The following advantages come with forming a corporation in the DMCC:
Foreign ownership is 100 percent.
Corporate and personal income tax rates are both zero.
Tax holiday guaranteed for 50 years.
Capital repatriation in its entirety.
Various types of business operations are permitted.
Freehold commercial properties are available for sale or lease at competitive rates.
Flexible office alternatives such as serviced offices, flexi desks, and shared offices are available.
Services for effective immigration, including visa assistance.
DMCC events, segment-specific clubs, and educational courses provide systematic networking possibilities.
Training on the most recent regulatory and compliance requirements developments.
Customer service portals and effective online solutions are available online.
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.
Residences, workplaces, a metro station, convenient access to public transit, and shopping malls are all available at Jumeirah Lakes Towers. The area is rather 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 start-ups and overseas branches looking to expand their enterprises in the DMCC and worldwide, the DMCC is an excellent choice.
Possibility of Acquiring Property
As a free zone business in Dubai, DMCC may possess freehold property in the city.
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, the process of obtaining visas is substantially speedier. Greater employee visas will necessitate additional office space.
Structure of ownership
Individual and corporate stockholders are both permitted.
The Trade License takes two weeks to get and may require pre-approval. Dhanguard provides assistance and guidance throughout the full process of incorporation at the time of establishment. Certain operations necessitate a business strategy, which we can prepare for incorporation as well. There is also a minimum capital requirement of 50,000 AED must be presented at the bank.
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 do some work for a few hours.
Licenses Types in DMCC Freezone
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 multiple licenses under the same business. And if you're not sure which license or activity is right for your company, our knowledgeable business setup experts will be happy to assist you during our free consultation session.
The types of licenses in DMCC are mentioned below-
It makes it easier to provide services in a variety of industries, 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.
Allows for the purchase and sale of goods, as well as the import and export of items from, to, and within the UAE. The corporation must choose specific license activities that correspond to the items they wish to trade in.
Within the Free Zone, there are designated facilities for light manufacturing. Available for precious metals, stones, and jewelry, as well as activities involving coffee and tea (blending, packaging, roasting, storage...etc)
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 obtained, upload them.
Provide a Bank Letter
Please contact your selected bank using the introduction letter given by DMCC to receive the bank deposit letter if your share capital is greater 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 that you speak with one of our business experts to learn more about the paperwork needed for your business license.
In order to obtain and retain a license, the applicant must meet the following requirements:
Possess a current DMCC Administration business permit or registration
Having a legal rental agreement or freehold real estate title
Any element of the DMCC Rules, as well as 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.
Licenses must be renewed at least 30 days before the expiration date of the current license. 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.
Trade License Renewal
When requesting for a license renewal, the company must complete the following steps:
Maintain all of the standards in place when you first received your license
Produce your most current audited financial statements or audit report to demonstrate that you're in outstanding financial shape.
Provide documentation confirming the company has no rent arrears, charges for using the JLT Infrastructure, penalties, or other fees owed to the DMCC Administration.
The charges of DMCC license renewal must be paid according to the rates.
DMCC Dual license
Companies that conduct certain operations in the DMCC Freezone may apply for a 'Dual License' onshore, which allows them to hold an onshore Department of Economic Development (DED) license in addition to their Freezone license.
Although it is not an actual UAE Foreign Branch, this DMCC Dual License shows on the DED Trade License as a 'branch' of the Freezone company. It will not be treated as a distinct legal entity and will not be required to register with the Ministry of Economy.
The DMCC Dual License is merely a permit, not a legitimate Freezone subsidiary. Only the Freezone company is allowed to issue invoices, hire staff, and conduct business.
Only DMCC firms with a service license and one or more of the allowed service activities are eligible to apply for a NOC to operate onshore, assuming they meet the eligibility criteria. The NOC is valid for 90 days from the date of issuance.
In order to receive the permit to operate onshore, the firm must approach the DED with the DMCC's NOC and meet all of the DED's conditions.
The General Manager will need to pass the consultation exam at the American University of Dubai in order to apply for the Dual Licence Permit with the DED.
There are many more benefits that you can get when you start your own Company in the DMCC. Also the process of obtaining the required Licenses as per your need is not a hefty task and the process of which can be supplemented by our Experts at Dhanguard who are ready to assist you wholeheartedly. Thus we hope this blog provided you with insightful information. For more information on other related aspects, you can visit our official website.