DMCC Company Formation – Dubai Multi Commodities Centre (DMCC) is a government entity instituted in 2002 to enhance the flow of enterprise, trade and commodities through Dubai by providing the required suitable market, corporal, financial infrastructure and services. The DMCC was awarded fDi’s Global Free Zone of the Year title for two consecutive years in 2015 and 2016 respectively. It is one of the largest Dubai Free Zones with over 13,000 registered companies.
Company formation in DMCC Free Zone supports a variety of business activities and is quick and easy to form a business. The industries are based on four broad sectors comprising precious commodities (diamonds, gold, pearls and precious stones), energy-based sectors, base metals and steel, and soft agricultural products (coffee, tea, cotton and others).
Advantages of DMCC Company Formation
There are several attractive benefits in forming a DMCC company in Dubai
- Complete Foreign Ownership, not required to have a UAE partner
- Strategic Location
- Quick and Easy setup
- No corporate and personal tax for fifty years
- Multiple activities under one license
- Can be a shareholder in numerous companies
- Minimum of one and a maximum of 50 shareholders
- Shareholder can hold any position in the office
- Access to a comprehensive range of commercial property choices within JLT
Extensive range of business activities are allowed in the DMCC
Types of Licenses issued by the DMCC
The types of licenses offered for company formation in DMCC are:
- Trade License
To perform trading activities as stated in the License
- Service License
To perform service activities as indicated in the License
- Industrial License
To perform light manufacturing activities as specified in the License
According to the Dubai DED, there are eight steps to start a business in Dubai:
- Decide on a business activity
There are over 2,000 business activities to choose from in Dubai; they fall into various groups and classes including professional, commercial, industrial and tourism activities.
- Legal Form
A legal form is a portrayal of the nature of the business being set up. The type of business and its activities, the nationality and number of owners, are to be considered before selecting a legal form.
- Trade Name
The general trade name guidelines should be followed when choosing a name for the business or establishment. The name can be applied online or through the authorized service centres.
- Initial Approval Certificate
It is mandatory to apply for an Initial Approval Certificate, as it is a document stating that the Dubai DED has no objection in starting a business in Dubai.
- MOA and LSA agreement (if necessary)
Based on the company’s legal form, the establishment partners may require drafting and sign a Memorandum of Association (MOA). In certain cases, a Local Service Agent (LSA) is needed to sign with a UAE national (Emirati), who will represent the firm with regards to licensing and conformity.
- Business Location
Every organisation in Dubai must have a physical address, such as an office. A tenancy contract should be signed with the landlord and the contract registered with Ejari (a registration system introduced by the Real Estate Regulatory Agency) for attestation.
- Licensing Approvals
There are certain trade activities that require distinct licensing approvals by different departments of the government. For instance, to establish a medical centre, it is required to also acquire licensing approvals from the Dubai Health Authority (DHA).
- Business License Collection
Once all the previous steps are completed, all required documents should be submitted via the DED eServices website or the service centres located in Dubai.
The business can now commence its operations.