DMCC Free Zone Company Setup

A license to operate can only be issued to a company for an activity that is permitted by the Dubai Multi Commodities Centre. DMCC allows companies to carry out close to nine hundred (900) activities. All the permitted business activities can be put under the following three license types:

Trading

This license generally allows the company owners to buy, sell, resell and exchange different products and commodities.

Services

DMCC’s services license allows business owners to provide various kinds of business or professional services. These services can either be provided business to business or business to customer.

Industrial

Activities relating to manufacturing, producing or re-producing, packaging can be carried on an industrial license.

Up to six (6) activities can be combined and carried out on each license type. Beyond this, additional activities can be added but at the payment of additional fees per activity.

Depending on the nature of activities, some activities may require external third-party approvals.

The following company types can be incorporated at the Dubai Multi Commodities Centre:

Limited Liability Company

A limited liability company at DMCC can either be fully owned by one person or can be owned by multiple people. In this type of company, the liability of the owner(s) towards the company is restricted to the amount that they invest in the company. This means that the personal assets of the shareholders cannot be used to extinguish the liabilities of the limited liability company.

Subsidiary

Companies that are already operating inside or outside of UAE have the option of opening a subsidiary at the DMCC. A subsidiary at the DMCC is owned by the parent company through ownership of shares. Subsidiaries in UAE do not have to necessarily carry out the same activity as that of the parent company. Subsidiaries incorporated at DMCC can carry out any activity that is permitted by the DMCC.

Branch

Companies in and outside of UAE can also opt to open a branch at the DMCC. Unlike a subsidiary, a branch will have to carry out the same activity as that of the parent company. Companies that are situated in other free zones and offshore jurisdiction can choose to extend their operation by opening a branch at Dubai Multi Commodities Centre.

A wide variety of commercial office space options are available across sixty-eight (68) towers situated at the free zone. Company owners can choose various option ranging from single units to multiple floors. Company owners can select an office space amongst the following choices:

Flexi Desk

A flexi desk is a shared workstation that is situated in a large space. Flexi desk are not included only in some packages of DMCC. In the other packages, flexi desk can be purchased at an additional annual payment of AED 16,800. Along with this an administrative fee of AED 656 and a refundable security deposit of AED 1,000 is also payable. Up to three (3) visas can be allocated based on a flexi desk.

Serviced Office

A serviced office is a dedicated physical office that can be privately used by a company. Similar to flexi desks, serviced offices are included in some packages. In the packages that do not include serviced offices, they can be purchased upon annual payment of AED 35,000 plus VAT. Up to five (5) visa allocations are granted along with a serviced office.

Physical Office for Lease

Companies can also lease physical offices. The prices for the lease range between AED 50 to 150 per square feet. One visa is allocated per nine (9) square meter of leased office space.

Physical Office for Sale

DMCC companies also have the option of purchasing office space for their use. The cost for purchasing an office space is between AED 500 to 1,500 per square feet. One visa is allocated per nine (9) square meter of office space.

We have often commended various free zones that operate with the objective of specialising in one (1) area or one (1) activity. This is simply because it is difficult to grow when one is trying to manage and learn multiple things. However, it is the easiest to grow when one is just trying to practice to perfection only a few things. A lot of free zones in UAE have begin to understand this concept and are aiming to distinguish themselves based on the main activity that they seek to promote. Some of the examples are Dubai Media City and Sharjah Media City that mainly focus on media activities. Dubai Health Care City is a free zone in UAE solely focusing on medical and health care facilities.  Do not get us wrong here. It is not the case that these free zones only permit one (1) kind of activity, and nothing else. In actuality, these free zones provide multiple activities and focus on a few. The additional activities normally aid and assist the activities that the free zone wishes to focus.

Having said that, we know multiple free zones in UAE that focus on activities that fall under the license types of services and consultancy. It benefits them because the world economy has shifted hands from manufacturing and industrialising to services and consultancy. However, one (1) free zone in Dubai has been riding against the tide by specialising in commercial activities, and by doing so this free zone has also been beating everyone at their own game. The Dubai Multi Commodities Centre (popularly known as DMCC) is a free zone that focuses on trading of wide range of commodities, which includes everything under the sun from precious metals to teas. It is safe to say that that DMCC permits trading of all kind of goods and commodities.

So, if you wish to set up a booming trade business in Dubai then the Dubai Multi Commodities Centre Free Zone is a natural choice for you. However, to add cherries on the top, we have made a list of reasons as to why you should set up your next business at the DMCC. The reasons are below:

1. Location

The backbone of any trading business is location of the set up. The location determines connectivity through roads, ports, carriage ways and air ways. The Dubai Multi Commodities Centre is located in the heart of Dubai. Dubai city is well connected to other towns and cities in  UAE, as well as, to the rest of the world. The city finds itself in the middle of the state-of-the-art highways and port ways, which makes it easier to ship and receive goods. Dubai has two international airports namely the Dubai International Airport and the Al Maktoum International Airport, which provides easy access to two thirds of the world’s population by a direct eight (8) hour flight. So, if you set up a trading business in Dubai, then the world is your oyster (and customer).

2. Focused and expansive

While we do feel that DMCC is made for trade. Yet, there are other license types that are offered by the free zone. Dubai Multi Commodities Centre offers services and industrial licenses wherein a host of activities can be carried out. The free zone has made sure that it provides an operating infrastructure for its services and industrial companies that is equally at par with its trading infrastructure.

3. Business growth

DMCC provides huge amount of exposure to each company that is set up with it. This is done in a two-fold manner that aims to facilitate networking and training. Talking about networking first, the concept is simple. The people you meet is your potential audience. This audience can either be your potential customers or they can be somebody who can help you in your business. DMCC currently is a home to more than eighteen thousand (18,000) registered companies that employ over one lakh (1,00,000) employees. The massive exchange of information and ideas within this network will only lead the growth of your Dubai Multi Commodities Centre Company.

Further, to better educate businesses, the DMCC holds monthly educational events and workshops that helps investors and employees better run their businesses. DMCC has introduced a knowledge series program that gives valuable insights to constructing a successful business at the free zone.

The perfect blend of networking and training at DMCC is designed to benefit your business.

4. Ownership

The general misconception regarding company set up in UAE is that a foreign investor has to partner with a UAE national to incorporate a company. Even then, the UAE national will own the majority stake in the company, whereas the foreigner can only own up to 49% shares of the company. This requirement does not apply when you set up a company in a free zone such as the DMCC. Non-UAE nationals can own 100 % shares of a Dubai Multi Commodities Centre company, without having to partner with a UAE national. This gives complete autonomy to foreigners over the operations and investment of their company. As foreign nationals, you run your business as you please.

5. Tax exemptions

All over the world people hate taxes. It is because they feel that they are given a discounted reward for the hard work that they are putting. The money deducted as taxes just evaporate from people’s pockets mostly without their consent. There are some countries in the world that do not levy taxes and UAE is one of them. There is no personal or corporate tax in UAE. This means that if you set up a business in a free zone in UAE then all your profits are your own. This also means that the same company owner operating under similar circumstances will make more profits in UAE when compared to other parts of the world, simply because there are no deductions. For most it is a dream, but tax-free profits are a reality of a free zone business set up in UAE.

6. Property solutions

Dubai Multi Commodities Centre gives to its companies various property solutions for office spaces. Companies can select a flexi desk or a standard office for an office space while incorporating their company. The companies also have the option of purchasing and leasing office space. These office options are flexible and customizable and fits the needs of every business, big or small.

DMCC is one of the few free zones where you can both live and work. DMCC offers various residential options spaced across sixty-eight (68) towers located at Jumeirah. These options range in terms of both space and style. Business owners and their families can live and enjoy in the uptown district of Dubai.

If you are convinced that the DMCC is the right free zone for your business, then do contact us or leave an inquiry on our website. InZone offers simple company formation solutions that are quick, simple, and custom fit for each business.