Setting Up In DMCC
How would you like to setup in the largest free zone in the world? The Dubai Multi-Commodities Centre, or DMCC, is an award-winning free zone, with over 15,000 companies and counting.
From multinational corporations to start-ups, an estimated 170 more companies join the community every month – 95% of which are new to Dubai. Regardless of the size and status of such a diverse array of companies, all are united in benefiting from unparalleled access to world-class business services, connections, and infrastructure. DMCC is currently the world’s leading free zone for trade and enterprise in Dubai.
It is located in Dubai’s Logistics Corridor, on Sheikh Zayed road. The free zone is easily accessibly by two Metro stations: the JLT and the Dubai Marina. Here are some of the perks you can look forward to from here.
DMCC was established in 2002, furnished with the physical, market, and financial infrastructure required to establish Dubai as a hub for global commodities trade. Fifteen years later, it continues to live up to that expectation, and to the legacy of international trade that Dubai has managed to carry out from its shores.
DMCC provides services to three main sectors: Commodities, Finances, and Properties.
As the only international commodity centre in the region, it supports commodity trading across certain commodity groups through purpose-built infrastructure, which includes the Diamond and Pearl Exchanges, the DMCC Tradeflow, and the Dubai Good Delivery Standard for Gold.
The four main commodities are gold, diamond, pearl, and tea. DMCC facilitates the trading of these commodities with established Exchanges and facilities for each commodity.
In addition to their expertise in global commodities, DMCC also offers a range of world-class financial services, trading resources, and investment platforms to ease the modern entrepreneur into the free zone.
The Dubai Gold and Commodities Exchange started trading in November 2005 as the region’s first commodity derivatives exchange, and today it is the leading derivatives exchange in the Middle East.
Dubai Shariah Asset Management offers Shariah-compliant commodity-focused investments. It is a joint-venture Islamic finance initiative between Dubai Commodity Asset Management, a DMCC division, and Islamic finance provider Shariah Capital.
DMCC Tradeflow Documenting Commodity Trading in the UAE is an online platform for registering possession an ownership of commodities stored in UAE-based storage facilities. Formerly established as a warehouse receipt system in 2004, it has now evolved to regulating and documenting commodity trading operations in the UAE as part of the Dubai Government.
The DMCC Free Zone is a 200-hectare mixed-use master development that facilitates both business and community living. Its sixty-six towers offer residential, office, and retail property for freehold and leasing.
In addition to the present infrastructure, DMCC is currently working on Uptown Dubai, which will have a built-up area of over ten million square metres. Uptown Dubai is part of DMCC’s efforts to create a well-connected and energized district that is designed to meet Dubai’s next wave of growth.
DMCC COMPANY FORMATION
Advantages of a DMCC Free Zone company
- 100% foreign ownership
- 0% corporate tax for 50 years
- 0% personal income tax
- 100% repatriation of capital and profits
- 0% import or re-export duties
- No currency restrictions
- No restrictions on foreign talent or employees
In addition to this, company formation in the DMCC can derive benefits from the extensive network of double-tax avoidance treaties that the United Arab Emirates has signed with countries worldwide, including countries such as India, Pakistan, Singapore, China, Malaysia, Canada, Germany, Italy, Austria and Holland.
Dubai offers the additional benefits of a very high standard of living and a vibrant expatriate community with people from over 180 nations living and working in the region.
A wide range of business activities can be chosen for DMCC company formation from the following:
- Trading Licenses– allows the holder to carry out trading activities, such as trading in furniture, commodities, electronics etc.
- Service Licenses– allows the holder to carry out services. These include consultancies, research, and service provider licenses.
- Industrial Licenses– allows the holder to carry out light manufacturing activities.
General Trading License – AED 50,285
Trading/Commercial License – AED 20,285
Consultancy/Service License – AED 20,285
Initial Approvals and Trade name – AED 1,105 (one time)
Registration Fee – AED 9,020 (one time)
Memorandum and Articles of Association – AED 2,000 (one time)
The DMCC has a wide variety of office space options, from Flexi-desks to full-fledged offices in the JLT area. The company would be eligible for 1 visa for every 8 square metres of office space.
Flexi-desk space starts at US $ 4,850 (AED 18,000) (with an option for three visas)
Office space – from US $ 22 (AED 70) per sq.ft. per annum
The company will have to apply for an Establishment Card, in order to commence the processing of visas. An additional document required is a Power of Attorney, in case a PRO is appointed.
Establishment Card – AED 1,800 (US$ 490)
Power of Attorney – AED 1,500 (US$ 410)
The next step will be applying for the visas. Here are the approximate costs:
Employment Visa – applicant outside the country – AED 3,390 (US$ 924)
Employment Visa – applicant inside the country, no status change – AED 3,890 (US$ 1,060)
Employment Visa – applicant inside the country, with status change – AED 4,640 (US$ 1,265)
Visa Guarantee (refundable deposit) – AED 3,000 (US$ 818)
Medical Test, Emirates ID – AED 1,240 (US$ 338)
Beyond that, however, the specifics of setting up depends mostly on the type of license you are applying for, and the kind of business you want to run. That’s why it is highly advisable you approach a company formation expert who will help you navigate through the UAE laws and through every part of the application, ultimately ensuring that the entire process will take no more than a few hours of your time.