Did you know over 21,000 companies and about 200 new ones form monthly in the DMCC or Dubai Multi Commodities Centre? The DMCC free zone company setup is in Jumeirah Lakes Towers (JLT). It was started in 2002, and many entrepreneurs prefer the DMCC free zone to start a company. Many businesses are growing in the DMCC.
You are on the right path if you plan to start a business in UAE. In this blog, Shuraa will briefly guide you through getting the required documents and the cost and benefits of starting a company in DMCC.
Benefits of DMCC Free Zone Company Formation
The benefits of the DMCC Free Zone Company setup are as follows:
1. 100% Foreign Ownership
DMCC encourages entrepreneurs to control their businesses completely by allowing 100% foreign ownership. This independence helps entrepreneurs develop new ideas, move quickly, and make smart choices, which are crucial when dealing with tough competition in business.
2. Meeting People from Everywhere
Being part of the DMCC Free Zone means you're in a big group with businesses worldwide. This mix of different cultures and ideas is like a garden where good things can grow. You can work together, learn from each other, and find new ways to grow your business and find customers.
3. Easy Setup Process
DMCC makes setting up a business easier. They help you deal with all the complicated paperwork and support you. This means you can spend more time on your business and less on paperwork. It helps you start selling your products or services faster and makes your business run smoother.
4. Saving Money with Friendly Taxes
The good tax rules in the DMCC Free Zone are great for businesses. They keep more money in the company, which helps with having enough cash for growth, new projects, and staying competitive worldwide.
5. Doing More with Dual Licensing
A dual license is a big help if your business does different things. It lets you work in multiple areas or markets, like having more than one way to make money. This can help reduce risks and take advantage of new chances to grow, making your business stronger and able to last longer.
6. Great Location for More Business
The DMCC Free Zone in Dubai is in a great spot. It makes it easy to reach important markets and business centres. Being here helps people see and find your business easily, making it cheaper to move things around and saving money. Plus, it helps your business grow faster and reach more customers.
7. Flexibility with Your Earnings
You can freely move your earnings around, which gives business owners flexibility. This means you can manage your money well, invest it into the business, pay dividends, or spread it across different assets.
How to set up a business in DMCC?
To register a DMCC Free Zone company, you need to follow the steps mentioned below.
1. Select a name for your Business
The first step before starting a business is to select one name. Once you list the names, you must get approval from the DMCC website. Choose a name which resonates with the nature of your business.
2. Define Activity and Legal Entity
Once you have chosen a name for your Business, After naming your company. Then the next step is choosing your business activity and the appropriate license type.
DMCC Free Zone offers licenses for trading, services, industrial operations, and more. Also, decide on the legal structure—options include LLC, branch office, or FZE, each with its benefits and requirements.
3. Get the Approval
Once you have sorted out your company name, activity, and legal entity, apply for initial approval from the DMCC Authority. Submit important documents like passport copies, business plans, and proof of address. Consider getting help with Shuraa with business setup service for smoother processing.
4. Set Up a Corporate Account
After getting the initial approval, open a corporate bank account for your financial management. Choose a bank that aligns with your business needs and offers suitable services. A business setup service provider can assist in easing up the account opening process.
5. Choose a Workspace
Select a physical location for your office based on your business needs. DMCC Free Zone provides various options, from flexi desks to executive offices. When choosing, consider factors like space requirements, budget, and amenities.
6. Get Final Approval
Get final approval from the DMCC Authority. Additional licensing approvals from other authorities may be necessary depending on your business activity. Make sure all required documents are submitted and comply with any further requirements.
Documents Required for DMCC Free Zone Company Setup
Here’s a checklist of documents you’ll need for your DMCC Free Zone Company Setup:
- A copy of your passport (plus UAE residence visa/Emirates ID, if applicable)
- Online Pre-Approval Application Form
- Copies of parent company documents
- Proof of residential address in your home country (e.g., utility bill or bank statement)
- Confirmation of office space (post-registration)
Licenses Offered by DMCC Free Zone Authorities
In the DMCC Free Zone, entrepreneurs can get different types of licenses that fit their needs:
One great thing about getting a DMCC license is that you can do up to 5 activities in the same category under one license. This makes running your business smoother and more efficient.
Another advantage is dual licensing, which means expanding your business to the mainland or onshore. To do this, you need both a DMCC and a mainland license.
DMCC also allows trading in crypto commodities, which is helpful for businesses dealing in things like gold, diamonds, and precious stones. It's a popular choice for companies wanting to succeed in today's fast-paced market.
DMCC Free Zone License Cost
The DMCC Free Zone License Cost starts from 10,000 to AED 50,000. However, the ultimate cost of the license may change. It's based on the license type, specific business activities, and other relevant considerations. Understanding these costs makes the process smoother and helps you enter a DMCC Free Zone company.
DMCC Free Zone License Renewal
Renewing your business license in the DMCC-free zone is a breeze and won’t break the bank. Once you’ve passed the initial renewal, ensure you have an annual audit report handy.
To seal the deal on your renewal, you must pay the fee and send in your signed lease agreement for your space. The best part? You don’t have to be physically in the UAE to do it; your appointed agent can handle it for you.
Here’s a rundown of renewal costs:- 1-Year License Renewal: AED 20,265*
- 2-Year License Renewal: AED 40,530*
- 3-Years License Renewal: AED 60,795*
- 5-Years License Renewal: AED 101,325*
Business Liquidation Process in DMCC Free Zone
Shutting down a business in the DMCC-free zone is as straightforward as setting it up. Like renewal, you don’t have to be there in person; you can appoint someone to handle it. To finish the process, you only need to pay the government fee.
The liquidation process usually takes about a month and includes these steps:- Cancelling visas
- Ending the lease agreement
- Closing the bank account
DMCC Company Formation with Shuraa
Incorporating their company in the Dubai Multi Commodities Center Free Zone is a strategic move for entrepreneurs aspiring to start a prominent presence in the UAE. The DMCC Free Zone offers an advantageous business growth and success environment, giving different benefits, the best business opportunities, and an upfront startup process.
Following the steps outlined in this blog and teaming up with a business setup service like Shuraa Business Setup can ease the challenges of launching a business in the DMCC Free Zone. Contact us for a complimentary consultation and start your business in Dubai.
