Dubai Multi Commodities Centre is the largest free trade zone in the United Arab Emirates. Furthermore, it is the most rapidly growing place with more than 19.000 registered companies. It was formed in 2002 by the Government of Dubai intending to establishing a business center for commodity correlated businesses. To run operations the authorities provide different DMCC license types to classify each business.
The DMCC business setup process is straightforward. And with the support of a consultancy agency, it can be much easier. In short, investors just have to present the necessary documents and applications to the authorities. The main documents you should have are:
- Company registration application form.
- Outline of the company.
- Passport copy and photo of every member of the organization.
- Company name registration and chosen business activity.
- Leasing agreement of the company’s office space.
Usually, foreigners can begin their DMCC free zone company setup from afar. Nonetheless, they have to be present to sign the required paperwork and complete the formation process with the authorities.
Business Licenses for DMCC
There are four common DMCC license types in Dubai. The type of license that you select has to be the one that is right for your business, as it will depend on your company’s nature and activities.
- Trading License: This type of license is necessary for buying and selling products. It covers businesses that carry out activities such as sales, general stores, export, and import. When having a trading license investors can conduct many business activities while having the flexibility to trade within the region.
- Industrial License: With this DMCC license type is provided to companies in charge of manufacturing processes that convert natural materials and other resources into final products. An industrial license covers companies that work with gold and precious metals and stones.
- Service License: When having a service license individuals can offer a wide variety of services to many industries. For example, businesses that provide medical services, repair services, or beauty salons.
- Holding License: With this DMCC license type, entrepreneurs can hold separate assets and shares in other establishments. Frequently, holding companies means having a controlling possession interest in other trades, property, real estate, stock, trademarks, and more.
Benefits of DMCC Business Setup
Frequently, the United Arab Emirates offers many benefits for entrepreneurs and investors that are looking for a DMCC free zone company setup. Interested individuals must learn about the perks of having a DMCC company. Some of the advantages are:
- Quick and easy company formation in DMCC.
- Access to trading, consultancy, and other perks such as lower DMCC trade license costs.
- No corporate or personal income tax rate.
- Effective immigration services.
- Diversity of allowed business activities.
- Variety of DMCC business setup packages to effortlessly run operations.
- 100% foreigner ownership of the company and zero restrictions.
- Organizations have limited liability without share capital required.
- Offers the prospect to trade with other Free Zones and Mainland companies.
- Permits operations outside of the United Arab Emirates.
- It is not required to have a physical business center in the region to conduct business.
- The chance to open a bank account.
DMCC Company Structures
At the present time, beginning a DMCC business setup requires entrepreneurs and investors to choose one of the company structures there are. The most popular corporation entities in this Free Zone are:
- DMCC Limited Liability Company: This type of structure accepts the owner of the corporation to stay protected from debts, liabilities, or other difficulties that may appear when conducting a company. Company formation in DMCC allows LLCs to take advantage of repatriation of the income, exception of export and import duties, and way more.
- Branch Offices: Thanks to a DMCC business setup, foreigners can develop their businesses into new regions in the United Arab Emirates. Having a DMCC trade license provides individuals with the opportunity to trade in this Free Zone. Opening a branch office in Dubai allows investors to expand high-brand values and well-established companies.
- Holding Companies: Company formation in DMCC provides entrepreneurs with the chance to found holding companies. Consequently, investors can integrate and hold investments or other products in subsidiaries. In the same way, holding companies can possess and control the residual shares of their subsidiary organizations. Also, these companies are not in charge of their legal liabilities.
Modern Infrastructure Facilities at DMCC
On the other hand, Dubai provides modern infrastructure facilities for your company after you acquire a DMCC trade license.
- Firstly, DMCC haves warehouses, offices, apartments, hotels, and other places that could appeal to financiers and customers to the region.
- Secondly, the Dubai Multi Commodities Centre offers modern office solutions that are suitable for every single business. As a result, investors can hold executive spaces, co-working spaces, private offices, and more.
- Thirdly, it also offers a wide variety of residential alternatives for entrepreneurs to get acquainted after their company setup in the region. Generally speaking, it provides flexibility on the rental period, full-time availability, and manageable rates.