Establishment of a company in the Dubai Multi Commodities Center

The Dubai Multi Commodities Center (DMCC) district is one of the most prominent free zones in Dubai, and is a thriving global hub that attracts companies and investors from all over the world thanks to its distinguished business environment and the many advantages it offers. Establishing a company in DMCC represents a valuable opportunity to benefit from a flexible business environment, simplified incorporation procedures, and attractive tax exemptions. However, with this amount of attraction, it is still necessary for new and proactive investors to be aware of all the details associated with this process.

In this context, it is important to know the answers to frequently asked questions about setting up a company in the DMCC. These questions include all aspects related to the legal requirements, required documents, costs, and procedures necessary to establish and operate a successful company in this free zone. Understanding these aspects can facilitate the incorporation process and reduce potential challenges that new businesses may face.

Through this article, we will review the most frequently asked questions about setting up a company in the DMCC, providing a comprehensive overview of what it takes to meet both the legal and procedural requirements. In our talk, we will discuss how to streamline procedures and best practices to ensure compliance with approved standards, helping investors make informed decisions and effective strategies to achieve success in the dynamic business environment that DMCC offers.

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What is Dubai Multi Commodities Center (DMCC)?

Dubai Multi Commodities Center (DMCC) is a free zone located in the heart of Dubai, one of the most prominent business destinations in the United Arab Emirates. DMCC was established in 2002 to promote the growth of international trade and offer an ideal business environment for investors and companies from various sectors. The center provides a comprehensive range of services and infrastructure to support businesses, including company registration facilities, business licensing, and logistical and administrative support services. DMCC is also strategically located near major ports and airports, making it an important global center for trade and business.

Steps to establish a company in the Dubai Multi Commodities Center

Establishing a company in the Dubai Multi Commodities Center (DMCC) requires following specific steps to ensure that the company is legally registered and complies with local regulations. Here are the steps to establish a company in DMCC:

Determine the type of business activity: Determine the type of business activity you wish to engage in. DMCC provides a variety of activities that can be licensed.
Choosing a company name: Choose a business name that complies with DMCC standards and does not conflict with other company names. You can check the availability of the name through the DMCC online portal.
Preparing the required documents: Prepare basic documents such as: a copy of the passport, a copy of the ID card, a copy of the lease contract, and the business plan. Ensure that all documents are up to date and correct.
Submitting an incorporation application: Submit an incorporation application via the DMCC online portal or directly at the DMCC offices. The application requires submitting the required documents and filling out the appropriate forms.
Choose the type of licenses: Select the appropriate type of license for your business, whether it is a general license or specific to a specific activity.
Payment of fees: Pay the fees required to register the company and obtain the license. Fees include the cost of registration, business license, and any additional fees.
Obtaining the necessary approvals: In some cases, you may need to obtain additional approvals from government agencies or regulatory bodies depending on the type of activity.
Signing the Lease Agreement: Make sure to sign the lease agreement for the company headquarters at DMCC. Office space can be obtained from the Dubai Multi Commodities Center or choose an independent office.
Receiving the commercial license: After reviewing and approving the application, the commercial license for your company will be issued. You can collect the license from the DMCC office or via email.
Opening a bank account: After obtaining the commercial license, open a commercial bank account in the name of the company in one of the approved banks in the Emirates.
Register the company with the relevant authorities: Register the company with any other relevant government authorities, such as the Tax Authority, if the company’s activity requires this.
Securing Additional Licenses and Permits: Depending on the business’s activity, you may need to obtain additional licenses or permits to ensure you comply with all regulations and laws.

The main categories of fields that can be licensed in the Dubai Multi Commodities Center

Agriculture
hunting
Mining and stone quarrying
Manufacturing
Electricity, gas and water supply
Construction
Trade and restoration
Hotels and restaurants
Transportation, storage and communications
Financial intermediation
Real estate and business services
education
Health and social work
Other personal, community and social services

Documents required to establish a company in the Dubai Multi Commodities Centre

To incorporate a company in the Dubai Multi Commodities Center (DMCC), you will need to submit a set of basic documents. Here is a list of documents that are usually required:

Application for incorporation: The application form to open a company, which includes details about the business activity and contact details.
Passport: A color copy of the passport for all founders, directors and shareholders.
Visas: Copy of residency visas if the founders or directors are resident in the UAE.
No objection certificate: A no objection certificate from the sponsor or from the relevant authorities if the founders are currently employees of another company.
Articles of Association: A company’s articles of incorporation, which define the company’s structure, business activities, and shares.
Proof of address documents: Proof of residential or office address in Dubai, such as utility bills or rental contracts.
Appointment letter: If there are directors or employees, you will need to provide a formal letter of appointment.
Business Plan: A business plan that describes the business activity and future plans of the company.
Trade name reservation: A document confirming the company’s trade name reservation.
A copy of the establishment’s permit: If there is a commercial activity that requires a special permit from the local authorities, it must be submitted.

Types of companies that can be established in the DMCC

Here is a table showing the types of companies that can be established in the Dubai Multi Commodities Center (DMCC):

Company type	Description
Limited Liability Company (LLC)	A company that includes limited liability for partners, and its owner is only liable for his share in the company.
Private joint stock company	A company consists of a limited number of shareholders, and can have a limited number of shares owned by shareholders.
Public joint stock company	A company whose shares can be traded on a financial market and is open to public investors, but may need an additional license.
Sole proprietorship	A company owned by one individual who is responsible for all aspects of the company.
Company branch	A branch of an established international or local company wishing to open an office in DMCC and operate as part of the parent company.
holding company	A company that owns shares in other companies, and is used to manage investment and control subsidiaries.
A limited liability company wholly owned by foreigners	A company that can be fully owned by foreigners, without the need for a local partner, within DMCC approved activities.
E-commerce company	A company working in the field of online commerce, which deals with the buying and selling of products and services electronically.
Financial services company	A company that provides financial services such as brokerage, asset management, insurance, and banking.
Consulting company	A company that provides consulting services in various fields such as management, technology, finance, and human resources.

DMCC allows wide flexibility in choosing the type of company based on the type of business and the needs of investors. Advantages of establishing a company in the DMCC Free Zone

Advantages of establishing a company in the DMCC Free Zone

Fees related to setting up a company in DMCC

The fees related to establishing a company in the Dubai Multi Commodities Center (DMCC) include a set of expenses that can be divided as follows:

Registration fees: Includes fees for submitting an application for incorporation and registering the company.
License fees: fees for obtaining a commercial license that allows the company to practice its activity.
Office rental fees: Costs for renting office space in the free zone.
Management Services Fee: Includes annual management costs and assistance in completing legal procedures.
Work visa fees: Costs of issuing work visas for employees and founders.
Notarization fees: Costs of notarizing and certifying the documents required to establish the company.
Special permit fees: If special permits or approvals are required based on the type of business activity.
License renewal fees: The company’s annual license renewal expenses.

Advantages of establishing a company in the DMCC Free Zone

100% retransfer of capital and profits abroad
100% exemption from import and export duties
No tax is imposed on corporate gains or personal income in most cases
No restrictions on the use of currency
Low cost of operations
Pre-built offices, factories and warehouses
Fast establishment and licensing procedures
Single window for customs clearance; That is, multiple administrative services in one station
Provides labor recruitment assistance and additional support services, such as sponsorship and on-site housing
Abundant and inexpensive energy
Excellent infrastructure, communications, and attractive work environment

At the conclusion of our article about establishing a company in the Dubai Multi Commodities Center (DMCC), we see that this center is considered one of the most prominent investment destinations in Dubai thanks to its dynamic and unique business environment. DMCC is an excellent choice for local and international investors seeking to establish their companies within a framework that offers multiple advantages and broad opportunities.

Establishing a company in DMCC offers many benefits, ranging from full tax exemptions to various business licenses that cater to various economic activities. The center provides investors with full ownership of the company, and enhances the ease of the incorporation process thanks to simplified procedures and modern technologies. However, success in this field requires a careful understanding of the procedures and legal requirements that ensure full compliance.

The FAQs we have covered in this article explain that the process of setting up a company in DMCC includes essential steps such as submitting the required documents, understanding the fees involved, and complying with licensing requirements. The answers to these questions also provide a clear insight into the practical issues that need to be considered, helping investors make informed decisions and achieve their business goals effectively.