Guide to Dubai Multi Commodities Centre (DMCC)
The Dubai Multi Commodities Centre (DMCC) is a free trade zone that has become one of the world's most prosperous free trade zones. With more than 1000 business activities and different licences, DMCC brings together more than 22,000 businesses from all sectors and has become home to many business sectors and benefits enterprises launching operations there.
Sectors of DMCC
There are different activities that an enterprise can conduct at DMCC, namely: Gold and Diamonds, Agricultural commodities, Energy, Financial Services, R&D, Innovation (ideal for technology-based startups), E-commerce, Media, and Education.
DMCC- Types of Businesses
Businesses can establish various company structures through DMCC, including the following:
1. Limited Liability Corporations (LLCs): LLCs are perfect for companies operating autonomously.
2. Branch offices: Branch offices are appropriate for businesses that are already well-established abroad.
3. Establishments within a free zone (FZE): Companies intending to operate inside the free trade zone should use FZEs.
Advantages of setting up Business in DMCC
1. Office solutions:
DMCC provide companies with different choice of commercial property, office buildings and business centre accommodation to rent, hire or lease, to suit any size and type of business.
Having a vibrant community, DMCC offers companies a highly cooperative network of contacts, abilities, and knowledge to promote growth.
3. Full foreign ownership:
DMCC offers 100% foreign ownership of all business activities
4. Business Activities:
DMCC provides many commercial services, such as logistics, banking, and visa processing.
5. Tax advantages:
Businesses operating within the DMCC are exempt from personal and corporate income taxes.
6. Repatriation of profit:
DMCC allows companies to repatriate 100% of their profit.
7. Range of services:
DMCC offers various services to businesses, including visa processing, banking, and logistics, that can help companies to streamline their operations and focus on their core activities.
8. Networking opportunities:
DMCC is home to over 18,000 companies from more than 170 countries, making it a hub for international trade. It creates business networking opportunities, leading to new partnerships and business opportunities.
9. Ease of business:
DMCC has a straightforward business setup process, making it easier for companies to get up and run efficiently.
DMCC- Types of licences
If you plan to set up a company in DMCC, you must obtain a licence and apply for activities related to your business, like event management, media, or education. Here are the types of licences required for businesses in DMCC:
1. Trading Licence:
A trading licence is for businesses buying and selling goods, wholesale or retail trading, import and export, or general trading.
2. Service Licence:
Businesses providing services in consulting, IT services, marketing, or other professional services.
3. Industrial Licence:
Businesses engaged in manufacturing or industrial activities, production, or assembly of goods.
4. National Industrial Licence
A national industrial licence is for businesses engaged in manufacturing or industrial activities within DMCC, and UAE nationals own 51% or more of the shares. This licence suits companies manufacturing, producing, or assembling necessary goods for the UAE economy.
5. Branch Licence:
A branch licence is suitable for businesses that want to establish a branch of an existing company in DMCC. This licence is ideal for businesses that want to expand their operations to DMCC without setting up a separate entity.
6. Dual Licence:
A dual licence allows businesses that want to operate in both DMCC and mainland Dubai. This licence will enable companies to operate in both environments and is suitable for businesses engaging in commercial activities outside the free trade zone.
DMCC- Business setup process
Here's a step-by-step guide on the business setup process and papers required for setting up a business in DMCC:
- Choose your business activity: The first step in setting up a business in DMCC is to decide on the type of activity you want to engage in.
- Select a company name: Before proceeding with the business setup process, choose your preferred company name.
- Choose your legal structure: DMCC allows businesses to choose from various legal structures.
- Apply for a licence: Once you have decided on your business activity and legal structure, you must apply.
- Submit documents: Once you have reserved your company name, you must submit the necessary documents.
- Sign lease agreement: DMCC requires businesses to have a physical office within the free trade zone. Once you have submitted your documents, you must sign a lease agreement for your office space.
- Obtain visas: Once you have signed your lease agreement, you can apply for visas for yourself and your employees. DMCC offers a range of visa options, including employment and investor visas.
- Get additional approvals: Depending on your business activity, you may need other approvals from relevant authorities.
- Start your business: Once you have obtained all the necessary approvals and visas, you can start operating your business in DMCC.
In conclusion, the Dubai Multi Commodity Centre (DMCC) is a hub for international trade and a top site for companies wishing to grow their operations because of tax advantages, world-class infrastructure, access to foreign markets, and networking possibilities.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business' evolution.