The UAE’s free zones are recognized by the business community across the world as they provide entrepreneurs with one of the most attractive hubs to form a company. Each of these free zones offers particular benefits to business people who plan to set up their companies in the free zones. One of the most leading entities among the free zones in UAE is the Dubai Multi Commodities Centre (DMCC).
DMCC offers an ideal place to set up a business, as the Freezone is strategically located at the heart of Dubai at the centre of the Jumeirah Lakes Towers (JLT) district. DMCC is one of the most interconnected free zones in the world. The DMCC also holds the reputation of being one of the most rapidly growing free zones in the UAE, which makes it a perfect place to form a company.
Also Read: Business Setup in Dubai Free Zone
Facts and Statistics About the DMCC Free Zone
The DMCC was set up in 2002 as part of a strategic plan to create a global marketplace for commodities and drive trade flows through Dubai. DMCC Free Zone in JLT is a 200 hectare business and residential community of over 10,000 people living and working across 68 towers
DMCC has grown from 28 member companies in 2003 to more than 17,000 companies to date. Collectively, the economic impact of DMCC member companies contributes over 10% to Dubai’s GDP, which in turn, positively impacts the long-term economic diversification strategy of the UAE.
The DMCC Free Zone was crowned as the ‘Global Free Zone of the Year’ five times by the Financial Times fDi Magazine. The Free Zone is an abode of a vibrant community, innovative infrastructure, world-class services and a stunning
DMCC’s Significance as Leading Commodities Hub
The DMCC Free Zone has been set up in Dubai with the objective of attracting investors in a wide range of commodity sectors. The DMCC provides access to Gold and Diamond vaults, commodity trading platforms like Dubai Gold & Commodities Exchange, Dubai Diamond Exchange.
Tea is one of the major commodities that the DMCC focuses on because the UAE is one of the world’s largest tea re-exporters. The DMCC data suggest that its Tea Centre handles 53 million kilos of tea a year. DMCC also plays a significant role in commodities like Gold as Dubai is one of the leading hubs of physical gold and diamond.
Benefits of Setting up a Company in DMCC
NOC to Operate on Dubai Mainland
The free zone companies in the UAE are not allowed to do business on the Dubai mainland since a license issued by the DED is mandatory for mainland business activities. However, the companies with a DMCC license for specific business activities can operate onshore as well. This applies to the DMCC-licensed companies with one or more eligible service activities. Most importantly, such eligible companies need not obtain a trade license from DED but they need to obtain a no-objection-certificate (NOC) from DMCC for onshore permit. The NOC is of 90 days validity from the date of issuance and the companies are not required to submit documents for the NOC.
Multiple Office Structures
DMCC offers multiple office solutions like Flexi, virtual, communal and permanent offices
Easy Setup And Registration
The easiness of setting up and registering businesses are some of the most attractive reasons why business people should choose DMCC to form a company. Working with a company formation expert at this stage would ensure that all the paperwork is done properly
Easy Bank Account Opening
Business people find it easy to set up their business bank account easier at the DMCC. All major banks and financial institutions honour the compliance practices of DMCC, which makes business bank account opening faster at DMCC
Multiple Licence Structures
DMCC issues a variety of licenses like General Trading License, Commercial/Trading License, Service License and also special license structures like single-family office option
Sponsoring of Dependents
Business people get the option to apply for visas for dependants if they open their company in the DMCC Free Zone. Through a straightforward process, the company owners can apply for visas for a spouse, child, maid or driver
Discounts for JLT Residents
The DMCC Free Zone offers a 40% discount for the Jumeirah Lakes Towers (JLT) residents when they set up a business in the free zone. The offer is aimed at enhancing the SME community in Dubai and also to support aspiring entrepreneurs and freelancers who are planning to start a business
Key Business Activities & Top Companies in DMCC Free Zone
Apart from the special focus on the commodities sector TO form companies in DMCC, the DMCC is also home to a wide range of industries from shipping, trade, recruitment, IT, advertising, restaurants, retail stores, fitness centres, luxury brands, and universities.
Some of the top companies that set up their businesses in the DMCC include Sinopec Group, Glencore, Total, American Express, ENI, Honeywell, TATA, Whirlpool, Harley Davidson, Viacom and many more. It is important to note that these are Global and Fortune 500 Companies.
Steps to be Followed to Setup a Company in DMCC
Expression of Interest
Expressing interest in DMCCcompany formation is the first step in starting a business in this Freezone in Dubai. In this stage, entrepreneurs are required to add shareholders and officers to be followed by choosing company name, bank & Financial Year. After providing the required documents, DMCC authorities will grant the pre-approval for the business in 5-10 working days. The DMCC then will issue Company Name Reservation, Management and Compliance approval, and Third-Party Introductory Letter.
In this stage, entrepreneurs are required to select their preferred property type, furnish details about their Value Added Services and submit third party NOC if it is required. The applicant needs to submit Registration Fees, License Fees, Memorandum & Articles of Association (MOA) fees, and Establishment Card Fees. Flexi desk and VAS fees are to be paid if applicable.
After the company registration process at the DMCC is completed, the Freezone authorities will issue Provisional Approval Letter, Introduction Bank Letter, Memorandum and Articles of Association (AFS Declaration), Flexi Desk service agreement, certificate of incorporation, share certificate & trade license.
If the business property is a Flexi desk then no third party approval is required. However, in cases where a third-party approval is required business owners should submit NOC from relevant authorities. If the share capital exceeds AED 500,000, then the entrepreneur needs to approach the bank with the introduction letter issued by the DMCC to receive a bank deposit letter.
The process of licensing can take from 2 to 3 working days. The DMCC Freezone authorities will then issue a Company License, attested DMCC Memorandum & Articles of Association (MOA), Share Certificate, Certificate of Registration, and Flexi Desk Tenancy Contract. Application of employment visa is required to be submitted at this stage in case of a Flexi desk or serviced office.
Within one month of DMCC issuing license to the company, certain documents are required to be provided. They are
- Bank Share Capital Deposit Letter
- Sample Company Letterhead with stamp
- Third-Party Liability Insurance
Documents Required To Start a Company in DMCC Free Zone
The following documents are required to be submitted to the DMCC while opening a company in the Free Zone in Dubai
- HR Signatory Appointment Letter
- Passport copy. Emirates ID -front and back (in case of UAE residents)
- Proof of residential address in the country of residence
- Power of Attorney
- Memorandum & Articles of Association
- Parent Company Documents
- Board Resolution
- A valid property lease agreement
- Title Deed or DMCC Serviced Office Contract
Business Setup Consultants in DMCC
Setting up a company in the DMCC will be smooth once all the processes related to it are performed in a proper and systematic way. Though the procedures are designed by the DMCC Authority to make the DMCC company formation a hassle-free process, seeking the help of Dubai business setup consultants in handling all the necessary company formation work including the selection of company name, bank account opening and creating a robust business plan is much recommended.
Hiring a business setup consultant to establish a company in DMCC will ensure that all the necessary documentation is done in accordance with the regulations designed by the DMCC. Jitendra Business Consultants offer services of its dedicated team of legal consultants to make the company formation process easier. Both local and foreign investors can avail our business consultancy services to easily sail through the processes like business registration, office set up documentation for both flexi desk and physical offices, and license issuance.
Other Major Free Zones in Dubai
Apart from Dubai Multi Commodities Center (DMCC) there are other prominent free zones in Dubai. Check out the feature and facilities these free zones offer…