How do I set up a DMCC company?

If you’re considering business setup in the UAE, then setting up a company in the Dubai Multi Commodities Centre (DMCC) offers numerous advantages. With its prime location, world-class facilities, and flexible business activities, DMCC provides a thriving environment for entrepreneurs and businesses. In this article, we will explore the process of setting up a DMCC company and highlight the key benefits it offers. If you need assistance with business setup services in the UAE, feel free to reach out to Skwer Group at info@skwergroup.com.

DMCC Business Facilities

Situated in the vibrant Jumeirah Lakes Towers (JLT) area, DMCC offers a self-contained city within Dubai. Boasting convenient access to metro stations and major highways, DMCC is strategically located. The area provides a comprehensive infrastructure that caters to diverse needs, including business centers, offices, clinics, schools, and sports clubs. When setting up a company in DMCC, you can choose from four types of facilities:

• Flexi-desk facility: This option offers a cost-effective solution with the minimum required office space for efficient operations and cost optimization.
• Serviced desk or office: An ideal choice for businesses in need of a fully equipped and serviced workspace, providing convenience and flexibility without the hassle of administrative tasks.
• Executive office in JLT business towers: Situated within the prestigious JLT business towers, this option offers a professional and prestigious environment for companies seeking a prominent presence.
• Warehouse in JAFZA Free Zone: Tailored for trading and logistics businesses, leasing a warehouse in the neighboring JAFZA free zone grants easy access to a robust logistics infrastructure and international trade opportunities.

DMCC Activities

DMCC offers a wide range of business activities, catering to various industries and sectors. From traditional trading and professional services to cutting-edge ventures like crypto commodities trading, DMCC provides ample room for innovation and growth. Entrepreneurs can also establish retail businesses within the JLT area, making DMCC an attractive alternative to mainland company setup. As a DMCC company owner, you have the advantage of being a 100% owner, providing greater control and ownership over your business. DMCC allows you to engage in up to six business activities from the same group, offering opportunities for diversification.

The DMCC hosts a diverse range of companies, encompassing:

• Commodity trading companies: Engaged in trading various commodities like gold, silver, oil, and gas.
• Logistics companies: Offering logistics services, including warehousing, transportation, and freight forwarding. The DMCC serves as a prominent logistics hub for the Middle East and North Africa region.
• Financial services companies: Providing a range of financial services such as banking, insurance, and asset management.
• Technology companies: Developing and delivering technology solutions for the commodities and related sectors.

DMCC License Costs

When setting up a DMCC company, the major fees involved include the DMCC license, one-time registration fees, and facility rent. Here’s an itemized breakdown of the costs:

Post-Licensing in DMCC Free Zone

After obtaining a DMCC license, there are certain post-registration formalities and compliance requirements that need to be fulfilled. These include demonstrating the company’s capital, appointing auditors, stamping share certificates, and conducting an office inspection if one has been rented. These steps ensure adherence to DMCC regulations and maintain transparency within the free zone.

In addition to these formalities, there are specific post-licensing requirements that DMCC companies must comply with. This includes paying annual fees to the DMCC, which amount to AED 10,000 for a service license and AED 20,000 for a trading license. Companies are also required to submit annual reports to the DMCC authorities, providing a summary of their financial performance and compliance status. Furthermore, maintaining a physical presence within the DMCC is essential for companies to uphold their license.

To ensure smooth compliance with these post-licensing requirements, DMCC offers the expertise of experienced professionals who can guide and assist companies in meeting their obligations.

DMCC Company Setup

Setting up a DMCC company typically takes 2 to 4 weeks, depending on the nature of your business. Half of the procedure can be completed remotely, but a personal visit by the shareholder is required to sign the company’s legal documents. During the company formation process, you must deposit the share capital into a corporate bank account within 60 days of licensing. The required documents for DMCC business setup include:

• Copy of the passport.
• Utility bill.
• Curriculum Vitae (CV).
• Business plan for specific activities.

DMCC Visa and License Renewal

Visa validity for both company owners and employees in DMCC is 3 years. The renewal process for DMCC licenses is cost-effective compared to the initial incorporation. It involves paying for the license and facility fees, with no one-time registration fee. Annual audit reports are required for all companies within the DMCC.

DMCC Dual License

The DMCC Dual License is a valuable option for companies as it allows them to operate in both the DMCC Free Zone and the mainland UAE. This license provides access to the mainland UAE market, reduces compliance requirements, and offers increased operational flexibility. It is an ideal choice for companies looking to expand their reach and take advantage of business opportunities in the UAE while enjoying the benefits of reduced compliance obligations.

Company Amendments

Minor amendments in DMCC can generally be handled remotely. However, transferring shares requires a personal visit by the owner or a Power of Attorney. The average cost for any amendment is around AED 4,000. During the license renewal process, certain amendments can be made free of charge, such as adding or removing business activities.

DMCC Company Liquidation

Liquidating a company in the DMCC involves several steps, including a final audit, newspaper advertising, closure of bank accounts, termination of lease, cancellation of visas, and cancellation of the license. The liquidation process can take 2 to 5 months, with government fees of approximately AED 10,000. Skwer Group’s business setup consultants can handle the liquidation process on your behalf.

Key Takeaway

Setting up a DMCC company in the UAE provides a range of benefits, including a prime location, flexible business activities, and a supportive business environment. If you’re considering business setup in the UAE, DMCC is an excellent choice. Reach out to Skwer Group at info@skwergroup.com for professional assistance with business setup services in the UAE.