The United Arab Emirates is a very smart choice of destination for new-age investors and entrepreneurs wanting to start new businesses, especially in the free zones. Free zones in the UAE are specifically designed to set up companies with designated licenses and 100% foreign ownership. DMCC is one such free zone that is rapidly growing as a commodity marketplace in the heart of Dubai. Additionally, it is considered the most prestigious Free Zone in the UAE to work, live, and thrive. And, if you have any questions regarding what is the meaning of DMCC in Dubai and the activities involved in DMCC company formation, our company formation advisors at Shuraa will answer them.
What is the meaning of DMCC in Dubai?
DMCC, Dubai Multi Commodities Center, is said to be the largest special economic zone in Dubai. Moreover, it is also one of the most productive free zones in the UAE. The government of UAE established DMCC in the year 2002 to enhance trade flows of goods and commodities through Dubai. It also aims to provide a trade passage for precious stones like diamonds, jewelry, and other energy commodities.
In fact, the Financial Times magazine has crowned DMCC “Global Free Zone of the Year” three times. On the whole, DMCC free zone is home to a lively community, advanced infrastructure, excellent services, and an exquisite choice of properties. At present, it houses over 15,000 companies and is still growing.
The most prevailing trading activities of DMCC include the following:
- Precious stones
- Agriculture-related commodities
- Steel and metals
- Energy resources
Features of DMCC Free zone
- DMCC companies can only trade within the free zone.
- Spacious warehouses and storage facilities are available in the region.
- DMCC encourages logistics activities, which include the transportation of goods both nationally and internationally.
- It also supports FMCG activities which involve the wholesale and retail sale of goods within the free zone.
- Investors can apply for a dual license in the DMCC free zone.
- Any investors who wish to carry out specialized activities related to the trading of precious metals like gold, silver, and more need to procure a special license in the Dubai mainland.
- Dubai Gold and Commodities Exchange, which is a subsidiary of DMCC, allows conducting commercial activities.
- DMCC free zone permits crypto commodities trading.
Benefits of business set up in DMCC
Investors and entrepreneurs prefer DMCC for their business establishment as it has the ability to take their businesses to greater heights. In addition, there are several other reasons to choose DMCC, such as –
- Well-regulated as well as a recognized free zone
- Easy to open a corporate bank account
- Covers multiple business activities under one license
- Easy to acquire permanent residence visas and work permits for employees and shareholders
- Access to global markets
- World-class business services
- Opportunities to expand business
- The secure working environment for companies
- Maintenance of strict legislation procedures
- Harmonized international policies
- Complete ownership of the company
- Picturesque infrastructure
- Financial service support
- Real estate facilities
- Allows capital repatriation
- Zero tax benefits – corporate tax, personal tax as well as import/export duties
- Strategic placement of the free zone
- Office spaces on sale and lease at affordable rates
- Flexible corporate solutions
- Regular networking opportunities
You may like it: Overview: Abu Dhabi Free Zone License
Corporate entities allowed in DMCC company formation
- Limited Liability Company – An entity separate from its shareholders. Hence, the shareholders are not subject to the liabilities of the company.
- Branch of a local or foreign company – A sub-division of an existing company, regulated and supervised by the parent company. The branch performs the same activity and owns the same name as the parent company.
- A subsidiary of a local or foreign company – Unlike a branch, a subsidiary performs different business activities than its Parent institution and can also have a different trading name.
- Joint venture – An entity owned by a combination of individuals, companies, or a mix of both.
- Individual – A venture owned by single or multiple individual shareholders.
Business licenses available in DMCC
- Trading license – This allows companies to import, export, distribute, consolidate, and store almost all kinds of products.
- Service license – Individuals or firms can carry out only those services or consultancy activities itemized in the service license.
- Industrial license – Industrial license permits the companies to carry out light manufacturing activities mentioned in the license.
- Commercial license – With a commercial license, the holder can trade in all kinds of permitted goods.
Documentation requirements
In order to start a business in the DMCC Free Zone, the business owner needs to submit some prerequisite documents that help in validating the legitimacy of the business. These documents may include the following:
- License application form
- Copy of passport of the owner/shareholders
- Articles of Association(AOA)
- Proof of residential address, such as utility bill
- Special approvals, if any
- Copy of Certificate of Registration of the existing company, if any
- Business plan
- No-objection letter from the UAE sponsor
Visa services in DMCC
A company in DMCC can apply for visas only after receiving a valid license for its business operations. Besides, the number of visas it can apply for depends on the size of the office. For instance, one visa per nine square meters. A residence visa is valid for at least three years.
On the other hand, there are certain other things to keep in mind while applying for a visa for a business set up in DMCC. For example,
- Companies without fitted-out offices can only apply for one visa.
- A shareholder applying for an investor visa must hold a minimum of AED 60,000 worth of shares.
- A residence visa holder in DMCC is not permitted to stay out of the UAE for more than 180 consecutive days.
The objectives of the Dubai Multi Commodities Center
- Create a dedicated marketplace in Dubai
- Increase the value and volume of traded commodities
- Expand the local market limit. For instance, refining > manufacturing > trading
- Form industry-specific market
- Update new products and services in the market
- Provide a supportive business environment for new businesses through a determined infrastructure.
- Promote industry growth on a regional level
- Implement international standards for the enhancement of local industry
Winding up
The main purpose to establish the Dubai Multi Commodities Centre was to create an exceptional environment for businesses involved in commodities services. Also, the strict legislation and international guidelines provide world-class business services such as developed infrastructure, financial services, licensing and visa services, customer care, and real estate services to small as well as large corporations.
So, if you are planning for a business set up in DMCC, Shuraa Business Setup is here to help you get started with the right tools and support. Being one of the leading business setup service providers for the last two decades, we can propose the best-customized company formation packages and a variety of the best facilities in DMCC. We can also provide the latest information on all ongoing offers as well as assist you on the whole journey of business establishment. Moreover, our experts ensure to extend professional support even after obtaining the business license.
Hence, to seek more information on what is the meaning of DMCC in Dubai, get in touch with the experienced professionals of Shuraa. You can reach out to us directly at +971 44081900 or chat with our team at +971 50 777 5554. Or, you can simply inquire at info@shuraa.com or visit www.shuraa.com.
