Have you ever wanted to start a business in Dubai? The DMCC free zone makes it easy and fast to launch your company in a tax-free environment. This guide will walk you through everything you need to know.
What is DMCC?
DMCC stands for the Dubai Multi Commodities Centre. It is the fastest growing and biggest free economic zone in the UAE.
Some key facts about DMCC:
- Established in 2002 by the Government of Dubai
- Home to over 17,000 global companies
- The world’s most interconnected free zone
- 0% tax environment
- Fastest growing and largest free zone in the UAE
DMCC offers major perks like 0% tax, 100% business ownership, fast setup, and a strategic location.
The Benefits of Starting a DMCC Company
There are many excellent reasons to launch in DMCC:
Own and Control Your Company Fully
- You can have 100% ownership of your DMCC business as the sole proprietor.
- You do not need an Emirati partner or sponsor.
Pay 0% Tax
- DMCC firms enjoy full exemptions from paying corporate tax and personal income tax.
- This saves you a lot on costs.
Quick and Straightforward Setup Process
- It only takes 2 weeks on average to set up your DMCC company.
- The application process is very smooth and efficient through DMCC’s investor-friendly systems.
Residence Visas Available
- Once established, your DMCC company can sponsor residence visas for you, your employees and families.
- The process is relatively fast and easy.
Step 1 – Prepare Your Documents
To begin DMCC company formation, you will need to prepare certain documents:
- Copy of your passport
- Proof of address (e.g. utility bill)
- Reference letter from your bank
- Copy of another company license if you are a director elsewhere
- NOC letter if you work at another Dubai company
Make sure these documents are authenticated as needed.
Step 2 – Choose Your Office Space
You’ll need to lease workspace in a DMCC-approved building:
- Search and book offices online via the DMCC portal.
- Options range from flexi-desks to entire floors.
- Prices depend on your budget and business needs.
- The business centre team can advise you on the best options.
Step 3 – Obtain Initial Approval
Next, you submit your license application to DMCC for review. This includes:
- Completed DMCC application form
- Payment of application fees
- Copies of your prepared documents
DMCC will process your application and issue an initial approval letter by email usually within 5 working days.
Step 4 – Set Up Your Business
Once DMCC approves, you can:
- Set up your new office space
- Apply for utilities like internet and phone lines
- Install any special equipment needed
- Hire staff if required
DMCC’s business support team will guide you.
Step 5 – Get Your Trade License
The final step is to submit additional documents to get your official DMCC trade license:
- Lease agreement for your office
- Proof of hiring staff or using a third party for manpower
- Pictures of your company plaque and office layout
After about 1-2 weeks, your license will be issued. Then your DMCC company is fully registered and active!
What Does it Cost to Set Up in DMCC?
The total costs involved in launching a DMCC entity are:
Registration & Licensing Fees
- Business activity license fee: from AED 9,100 – AED 70,000 depending on your industry
- Flexi desk fees: from AED 5,500 per desk annually
- Trade license issuance fee: AED 10,000
Professional Fees
You may need a DMCC company agent. Their services cost around AED 15,000 – AED 35,000.
Office Rent
- Desk rental starts from AED 18,000 per desk annually
- Full office floors rent for AED 65 – AED 100 per square foot
In total, budget AED 100,000 to AED 200,000 to launch your DMCC company.
Key Compliance Rules
As a DMCC firm, you must follow various guidelines like:
Submit Audits : Annual audited accounts must be filed with DMCC within 6 months of your year-end.
Follow Emiratization Rules : Based on your sector, you may need to ensure a certain % of employees are UAE nationals.
Comply with Data Protection Laws: Sensitive customer data must be stored securely and handled properly. Fines apply for breaches.
Conclusion
Starting a company in DMCC is straightforward and very beneficial. Within just 1-2 months, you can be fully operational while enjoying 0% tax, full ownership and a strategic Dubai location!
Connect with a specialist DMCC consultant to begin your setup process today.
FAQs
DMCC allows a wide range of business activities across various sectors, including trading, services, manufacturing, and more. However, certain restricted activities may require special approvals.
Yes, DMCC allows 100% foreign ownership of companies, meaning you do not need to have a local UAE partner or sponsor.
Yes, once your DMCC company is established, you can sponsor employment visas for your employees and their families to work and reside in the UAE.
No, DMCC companies can freely repatriate their profits without any restrictions or additional taxes.
DMCC companies must submit audited financial statements annually within six months of their financial year-end.
Yes, DMCC companies can open corporate bank accounts with local and international banks operating in the UAE, subject to the bank’s requirements and procedures.
