Company Setup in the DMCC Free Zone: Rules and Regulations
Are you interested in setting up a company in the Dubai Multi Commodities Centre, or DMCC, Free Zone? As Dubai’s dedicated commodities marketplace, the DMCC Free Zone is one of the Emirate’s premier commercial areas. It also happens to be the home of our Head Office in Dubai. If you’d like to join us as one of the thousands of DMCC Free Zone companies, here’s what you need to know.
What is the DMCC Free Zone in Dubai?
The Dubai Multi Commodities Centre opened in 2002 in the heart of the Jumeirah Lake Towers district in the centre of Dubai. Today, it is one of the top Free Zones in the world, boasting an “A” rating for the Standard and Poors (S&P) credit agency and has the distinction of being named the #1 Free Zone in the world five times by the Financial Times’ fDi magazine.
There are more than 17,000 entities that are part of the DMCC with an average of 170 joining their ranks daily. DMCC members can take advantage of Dubai being an eight-hour plane ride or less from 60% of the world’s population, and the DMCC’s positioning as a gateway for trade through its marketplaces for several goods. Some of the most well-known exchanges are for diamonds and gold (responsible for a combined annual 75 billion USD), base metals and crops (agro). There are also commodities markets for coffee, spices and the DMCC Tea Centre that controls 53 million tonnes of tea and is responsible for 60% of the world’s tea re-export market.
The DMCC Free Zone authority does not exclusively offer commodities exchanges to its members. There are financial services to facilitate commerce for members. These include the DCCC, the Free Zone’s long-established clearinghouse, as well as the https://uae-eu.com/blog/uae-new-steps-bolster-gold-trade.htmlonline platform that lets you register the ownership of commodities held in a facility or free port in the UAE. Their subsidiary, DGCX, or the Dubai Gold Commodities Exchange, is the Middle East’s largest, most diversified commodity derivatives exchange. Finally, in partnership with Shariah Capital, the DSAM, or Dubai Shariah Asset Management is a joint venture between them and a division of the DMCC to develop commodity-focused investments that fall under the Islamic finance framework (meaning they comply with Shariah law).
What types of licences and corporate structures are available?
Just like with all Free Zones in the UAE, the DMCC’s available licences are tailored to the activities promoted within the Free Zone. All firms that opt for Dubai company formation in the DMCC Free Zone apply for a DMCC Licence that covers all corporate activities that have to do with commodities and other trades and services that relate to the commodity trade. If your activities do not correlate with those stipulated in the DMCC Licence, we recommend opting for a different Free Zone because most Free Zone regulations do not allow you to transfer your domicile from one jurisdiction to another. As for the type of entity, you can choose between the following corporate structures at the DMCC: new company, wholly-foreign owned subsidiary, branch or representative office.
Why set up a company at the DMCC?
Just like any Free Zone company in Dubai or anywhere else in the UAE, a DMCC Free Zone company grants you 100% foreign ownership of your enterprise. You can also repatriate all your profits and capital to your country of origin, as well as be exempt from import duties, which is especially useful for those involved in trading. If you need facilities, you can access them via leasehold or freehold agreements, offering you flexibility regarding infrastructure.
There is also a 50-year tax holiday for income and personal taxes guaranteed for those who register a company at the DMCC. This benefit further incentivises the favourable financial outcomes of these enterprises in the UAE. Plus, there are low energy tariffs you can access from the DMCC for more efficient business costs.
Not only does the DMCC offer world-class facilities to run your business, but it also has fantastic properties to make it your home from the Jumeirah Lake Towers and the under-construction Uptown Dubai development. Just steps from your flat in these towers you can find over 600 retailers including over 300 restaurants and coffee shops that have brands you can see in the UK such as Café Nero and Jazz @ Pizza Express.
Are you ready to join us at the DMCC?
As members of the DMCC Free Zone, our team has the privileged position of offering expert guidance on how to establish your footprint in this premier Free Zone. We will work with you to process your company licence, DMCC Free Zone visa and of course give you a detailed quote to help you calculate the cost of opening your enterprise in the DMCC Free Zone. If you’re ready to take the next step, don’t hesitate to reach out to our expert team today.