Set up a Company in Dubai Multi Commodities Centre Free Zone
Set up a Company in Dubai Multi Commodities Centre Free ZoneUpdated on Wednesday 26th April 2023
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The United Arab Emirates represents one of the best places to invest into a business, as the legislation for foreign investors is very welcoming. One of the most attractive places to open a business in Dubai is Dubai Multi Commodities Center Free Zone, also known as DMCC, which offers great investments opportunities in terms of taxes and business environment. Our lawyers in Dubai can provide you with complete details in this matter regarding the legal aspects you need to consider and they can also guide you when opening any type of company.
Dubai Multi Commodities Centre Free Zone
The DMCC Free Zone was established in 2002 as a center for supporting commodities market in Dubai. With an attractive legislation for foreign companies, DMCC has become the trading center for the following commodities: precious jewelry (diamonds, gold, and pearls), energy, metals and agricultural products. Foreign investors interested in company registration in DMCC should know that the center offers a variety of logistics and financial services, necessary for most of the companies. Our attorneys in Dubai can provide you detailed information on the business market in DMCC. At the moment, there are more than 11,000 companies registered in DMCC Free Zone, with more than 85,000 persons working and living in this region.
You can work from a co-working space or rent an office after getting a freelance visa for Dubai. Generally speaking, freelancing means having your own resources, which is why if you are foreigner and you don’t have sufficient space where you live, these two options can be good choices.
Corporate tax exemptions and incentives in DMCC
DMCC can be considered a tax haven, as the companies incorporated here can benefit from various tax exemptions. DMCC has 0% corporate tax under certain conditions, allows 100% foreign ownership, does not apply an income tax and does not impose restrictions on capital repatriation. The rules mentioned above are applicable for the first 50 years after the company’s incorporation in DMCC. In case your company has operations in the field of pharmaceutics, the DMCC legislation no longer allows a 100% foreign ownership; our Dubai lawyers can offer you more details on this procedure applied in this case. A company can receive a permit to function in DMCC in the case of the following incorporation types:
• limited liability company (with one/multiple shareholders);
• branch of a company.
The investment visa for Dubai, sometimes referred to as the partner visa, is a great option for foreign citizens who want to launch a business in Dubai or make an investment in an already-existing company. They may also sponsor family members while residing and working in the UAE. The visa is valid for 3 years.
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.
We have prepared a video about how to establish a company in DMCC, with the help from our advisors:
If you need further information on the registration of a company in DMCC Free Zone, please contact our Dubai law firm for assistance.