Dubai Multi Commodity Centre – DMCC
Dubai multi-commodity center is one of the best-known and award-winning free zones in the United Arab Emirates. It is situated opposite Dubai Marina in the center of Dubai, at the popular Jumeirah Lakes Towers (JLT). DMCC has all that you need for the growth of your business. Company formation in DMCC is the best option for startup businesses in Dubai.
Dubai Multi Commodity Centre – DMCC The DMCC has been awarded the ‘Global Free Zone of the Year’ four times by the Financial Times magazine. In the Dubai Multi Commodity Centre-DMCC, there is an innovative infrastructure, a vibrant community, and excellent business services. Dubai Multi Commodities Center, commonly known as Dubai Multi Commodities Center, was established in 2002 by the Government of Dubai. It was formerly known as Dubai Metals and Commodities Center. DMCC was established with the aim of providing better infrastructure to the financial market sectors that is required to establish a hub for the global commodities trade. It is the largest free zone in the overall UAE.
Dubai Multi Commodities Center, commonly known as DMCC was established in 2002 by the Government of Dubai. It was formerly known as Dubai Metals and Commodities Center. DMCC was established with the aim of providing better infrastructure to the financial market sectors that is required to establish a hub for the global commodities trade. It is the largest free zone in the overall UAE.
The headquarters of the Dubai Multi Commodities Center is located at Almas Tower in Dubai, United Arab Emirates. The current Executive Chairman & Chief Executive Officer of Dubai Multi Commodities Center is Ahmed Sultan.
The Dubai Multi Commodities Center provides the requirements that are necessary for the investors to set up, develop and conduct trade of their companies in DMCC.
Aims of Company Formation in DMCC-Dubai Multi Commodities Center:
- To establish a dedicated marketplace in Dubai
- Widening of the local market
- Improvisation of the local enterprises and industries through the implementation of foreign standards
- Increase the commodity volume through and within the region
- Increase trade value through and within the region.
- Building a proper infrastructure so as to offer a supportive business environment
- Innovating new products and developing services
- To develop industry-specific market infrastructure
- Facilitation as well as integration of the entire value chain of its key segments
- Promotion of the growth of regional industries.
DMCC is one of the well connected free zone in the world. It is the center of global trade and offers various activities, but specializes in commodity trading, particularly precious metals and stones.
It is also important to note that the magnificent free zone building, Almas (Diamond) Tower, houses the Kimberly office and the UAE Diamond exchange. The DMCC provides its members with modern facilities and infrastructure.
Steps to set up a company in Dubai Multi Commodity Center:
● Decision talking about the type of company: The investors first have to decide about the plot of the company they want to set up.
● Choosing the business activities: The very next step is to choose the activities of the business the owners have invested in.
● Selection of the name of the company: Choosing a proper name for the company is a very need for the establishment of the company. A name indicates the company’s status, aims, and objectives. Hence, an appropriate selection of names is mandatory.
● Applying for the license for business: The most important step for a business setup in the DMCC is to apply for a business license. This license allows a legal and hassle-free trade of the business. The type of license depends upon the background of the business owners by the investors.
● Cooperative Bank account opening: Last but not the least, opening a bank account in a co-operative bank is a must so as to check and handle the transactions of the company and its trade.
On 2nd January 2020 new rules were enacted by the Dubai Multi Commodities Center, updating the DMCC Company Regulations 2003. The purpose of amending the previous rules is with a view of developing and increasing the ease of trading businesses and companies set up in DMCC.
Key Roles are followed by:
- Minimum share capital requirements
- Articles of association
- Share classification
- Cashless consideration
- Buy back shares of a company
- Dividend payments
- Introduction of dormant status
- Migration of companies
- Accounts and audit compliance
- Winding up and insolvency
The new regulations have been welcomed by the new blood and entrepreneur as well as the old businessmen too. In recent years, Dubai Multi Commodities Center has done trading with more than 150000 registered businessmen, also recruiting and giving scope and financial support to the employees.
DMCC is the dedicated global center for more than 13,000 businesses from a wide range of industries and sectors. It has a diverse range of agro, energy, and financial services for diamonds, gold, and base metals. The new investors are keen on expanding their business in the free zone and establishing their settlement. The advanced technology and growing and developing infrastructure offer a big scope for the new investors.
Dubai Multi Commodities Center has now become a hub for the company to build up for new investors, supporting the entrepreneurship and innovation of new products. Dubai Multi Commodities Center is a leading field, developing and growing each and every day in different sectors. Due to its highly profitable pros, setting up of new companies is a good choice for the investors to invest in this region
Advantages Of Setting Up A Company In DMCC
- 100% ownership. No need of a sponsor
- Capital repatriation
- No currency restriction
- Free of personal and corporate taxes
- No agreement to exchange tax information with any country
- Company records will not be disclosed
- The requirements for accounting are simple
- Documentation process is easy
- Properties for rent or sale in JLT are reasonably priced
- There are Flexi-desk & Service desk options which makes the package more cost-effective
- 0% i.e. no VAT, personal or corporate taxes for 50 year
- Simple and hassle-free company setup process
- License procedures are simple and convenient
- Assistance with the sponsorship of employees and many other UAE government-related services, which leads to the incorporation of a wide range of affordable property options
- Offers flexible office solutions
- An advanced industrial infrastructure
Types Of Licenses in The DMCC Free Zone
The license types are as follows:
- General Trading License
- Trading License
- Industrial License
- Service License.
The most commonly issued License for company formation in DMCC, for example, the General Trading License permits the export and import of trading products; distribution, consolidation, and storage of the products.
The service license allows the authority to engage with the consultancy activities and engage with the services that are specified in the license.
The Trading License offers consolidation, distribution, import, and export that are specified in the license.
Documents required for company formation in DMCC:
To establish a company in Dubai Multi Commodities Center, verified and legal documents are required for the framework of company formation. The documents required to set up the company in DMCC are:
- Legal passport copies of all the shareholders and businessmen
- Passport size photocopies
- Visa status or entry stamp
- Legal license issued by DMCC
- No objection certificate from the sponsor
- Properly filled application form
- Office address
DMCC Free Zone License Cost
- Application – AED 1,035 (US$ 281) – One Time
- Registration – AED 9,020 (US$ 2,456) – One Time
- Memorandum of – AED 2,020 (US$ 550) – One Time
- License – AED 20,285*(US$ 5,523) – Annual
- Establishment Card – AED 1,800 (US$ 490) – Annual
3-YEAR RESIDENCE VISA AED 3,335* (US$ 908) + Refundable Deposit of AED 3,000 (US$ 817)
Cost of license:
- The General Trading License has an expense of around AED 84,040
- The Trading License has an expense of around AED 33,040
Other Expenses for company formation in DMCC:
A visa fee of around AED 7,450 has to be provided to the DMCC by the investors. The cost of a visa depends upon the location and the business activities of the investors. Also, amendment of the visas can be done in case of emergency.
Different packages are there for business setup in DMCC. For setting up a company in DMCC, the expenses start from around AED 31,500. The minimum share capital required is around AED 50,000.
It is to be noted that a 5% value-added tax should be added to the expenses.
Activities licensed by the DMCC:
- Transport, storage, and communications
- Electricity, gas, and water supply
- Agricultural activities
- Educational activities
- Health sectors
- Social works
- Mining and quarrying
- Hotels and restaurants facilities
- Financial inter meditation
Office Solutions in DMCC:
Dubai Multi Commodity Centre has multiple selections of different range of office spaces including customized office units. Investors have the option to select between ready-made office units to the entire office floor. There are fully furnished serviced offices, dedicated office desks, and Flexi desk solutions.
Renting an office is a must for applying for a visa as well as for a business license. Per visa offers about 9sq.m of office space.
- For Flexi-desk, 20-30 square m space facility is available. It Costs around AED 18,457
- For Small fitted office, 120-230 square m space facility is available. It Costs around AED 32,421
- For Physical Office for lease,50-250 square m space facility is available, having an expense of around AED 80,000/- onwards.