Multi Commodities Centre Free Zone (DMCC) is the largest free zone in Dubai and it was founded by the government in 2002 with the purpose of providing a trade corridor for diamonds and stones, jewelry and energy commodities through Dubai. Dubai DMCC encompasses today more than 15,000 companies and their number is still growing. The Dubai Multi Commodities Centre’s credit rating is “A”, according to Standard and Poor’s.
If you are interested in setting up a company in Dubai Multi Commodities Centre Free Zone, you can rely on our company formation specialists in Dubai for registering the chosen business form.
Services in Dubai Multi Commodities Centre Free Zone
The core purpose of establishing the DMCC was to create a premium environment for companies that are involved in commodities services. The DMCC has strict legislation harmonized with international regulations in order to provide world-class business services. The main services foreign companies can benefit from are: a developed infrastructure, financial services, and real estate services, as well. Entrepreneurs wanting to start a company in a Dubai free zone can benefit from registration and licensing services, work and immigration services and a customer care service.
If you have any questions about the activities which can be completed in DMCC, our Dubai company formation advisors will answer them.
Activities to be completed in DMCC Free Zone
Dubai Multi Commodities Centre is the fastest growing Dubai free zone and its location within the heart of the city makes it a great option for those interested in operating in the trading sector. Those who want to open companies in Dubai and decide for free zone companies can choose the DMCC free zone and operate in various industries among which:
- import and export of goods within the free zone (free zone companies can only operate in the economic zones they are set up in);
- logistics activities which can imply the national and international transportation of goods;
- FMCG activities which imply the wholesale or retail of various commodities within the free zone;
- warehousing and storage activities, considering DMCC provides for generous spaces for warehousing;
- specific activities related to the trading of gold, silver, and other precious metals which require special licenses in Dubai mainland;
- financial activities in the Dubai Gold and Commodities Exchange, a subsidiary of DMCC.
No matter the type of activity you plan on completing in Dubai Multi Commodities Centre Free Zone, our company registration agents in Dubai can help you with the entire business incorporation procedure.
Requirements for opening a business in DMCC
One of the main reasons for setting up a company in Dubai Multi Commodities Centre Free Zone is related to the fact that there are no sponsorship requirements in terms of ownership. This means that a foreign investor will have full control over the company. However, the company will only be able to operate within the free zone.
The requirements for opening a company in DMCC are the same as for any other business in Dubai, meaning, it must prepare the same set of documents as when incorporating a company with the Dubai Trade Register.
The Articles of Association of the free zone company will be the most important documents which will be filed with the Dubai Multi Commodities Centre Authority upon incorporation.
Other requirements which need to be respected when operating in Dubai Multi Commodities Centre Free Zone are related to filing proof of residential address in the free zone or in the Jumeirah Lake Towers district and certain approvals depending on the types of activities to be completed.
In the case of subsidiary companies or branch offices, the parent company will be required to file a copy of their Certificate of Registration and Articles of Association.
No matter the type of company you want to set up, it will be necessary to appoint a local agent to handle the incorporation procedure with the free zone’s authority. We remind foreign investors that we can also help them open a company in Dubai if that option suits their interest.
The video below offers information on the Dubai Multi Commodities Centre Free Zone:
Company registration in the Dubai Multi Commodities Centre Free Zone
Dubai Multi Commodities Centre Free Zone can host limited liability companies and branch offices for foreign and UAE companies. In order to open a limited liability company or a branch office, the following requirements must be met:
- the start-up capital for a subsidiary or a new company is 50,000 AED and it must be paid in full three weeks prior to the incorporation and it can be withdrawn right after;
- the company must have at least one shareholder, two up to seven directors who can have any nationality and residency;
- companies can obtain services, commercial trading, and general trading licenses;
- companies are required to have a natural person as a manager;
- companies must have a registered office.
Documents required to open a company in DMCC
Foreign investors interested in starting a company in the Dubai Multi Commodities Centre have three options:
- a limited liability company;
- a subsidiary;
- a branch office.
The documents required to set up a company in the DMCC are:
- copies after the passport of the applicant;
- proof of residence;
- a business plan proposal;
- a No-Objection letter from the UAE sponsor.
In the case of branch offices and subsidiaries, the applicant must also submit a translated and certified copy of the documents of incorporation. Also, the applicant must reside in the Dubai Multi Commodities Centre.
Hiring employees in DMCC Free Zone
It is quite easy to hire personnel for one’s company in Dubai Multi Commodities Centre, no matter if these are residents or non-residents of Dubai. For the latter, residence and work permits will be required. The procedure of obtaining residence permits for foreign employees is completed with the DMMC Authority and the visa is issued in a matter of days.
Considering the latest changes in the employment legislation, our local consultants can offer more information on the requirements related to hiring employees in Dubai.
Benefits of companies established in the Dubai Multi Commodities Centre Free Zone
Companies established in the DMCC benefit from:
- full foreign ownership;
- tax-free repatriation of capital gains and profits;
- exemption for corporate taxation;
- exemption from personal income taxation;
- no tax for import and export duties;
- the possibility of opening a bank account with a Dubai bank;
- the possibility of obtaining residence and work permits for both employees and shareholders;
- own real estate properties in the DMCC.
Dubai is a very attractive destination for investors wanting to start new businesses, especially in the free zones.
Why set up a company in Dubai Multi Commodities Centre?
As mentioned at the beginning of this article, Dubai Multi Commodities Centre Free Zone is the largest special economic area in the Emirate, however, it is also the most prolific one. Located right in the center of the city, DMCC is an excellence center in terms of commodities trading and numerous local and foreign companies operate here.
In numbers, Dubai Multi Commodities Centre:
- registered a 12% economic growth in 2018, one of the highest increases since the establishment of the free zone;
- was named the Global Free Zone of the Year 2018 by Financial Times (the report evaluated 60 free zones all over the world);
- the DMCC Coffee Centre was the most important project launched by the free zone authority, with a total value of 367 million AED;
- the number of companies registered in the free zone in 2018 increased with more than 1,600;
- Dubai Multi Commodities Centre’s economy represents 10% of Dubai’s Gross Domestic Product.
If you want to set up a business, you can contact our company incorporation agents in Dubai.