What is DMCC?
DMCC is a free zone in Dubai that was established in 2002. It stands for Dubai Multi Commodities Centre and is home to over 17,000 companies from various industries, including trading, logistics, and finance. DMCC is located in the Jumeirah Lakes Towers area of Dubai and offers a range of benefits to companies that choose to set up there.
Why set up a company in DMCC?
There are several benefits to setting up a company in DMCC, including:
Tax Benefits: Companies in DMCC are exempt from corporate and personal income tax, as well as import and export taxes.
Business-friendly Environment: DMCC offers a business-friendly environment that encourages entrepreneurship and innovation.
Strategic Location: Dubai is strategically located between Asia, Europe, and Africa, making it an ideal location for businesses that want to operate globally.
Infrastructure: DMCC offers state-of-the-art infrastructure, including modern office spaces, high-speed internet, and world-class transportation links.
How to set up a company in DMCC?
Setting up a company in DMCC is a relatively straightforward process. Here are the steps involved:
Choose a company type: DMCC offers several company types, including Free Zone Limited Liability Company (FZ-LLC), Branch Office, and Representative Office.
Choose a business activity: You will need to choose a business activity for your company from DMCC's list of over 600 activities.
Choose a company name: Your company name must be approved by DMCC before you can register your business.
Obtain a license: You will need to obtain a license from DMCC before you can start operating your business.
Register your business: Once you have obtained your license, you can register your business with DMCC.
Set up your office: You will need to set up your office in one of DMCC's designated office spaces.
When setting up a business in DMCC, there are several costs to consider, including:Registration Fees: DMCC charges registration fees for setting up a new company, which vary depending on the type of company you choose. For example, the registration fee for a Free Zone Limited Liability Company (FZ-LLC) is AED 30,000 (approximately USD 8,170), while the registration fee for a Branch Office is AED 10,000 (approximately USD 2,723).License Fees: All companies operating in DMCC are required to obtain a license, which must be renewed annually. License fees vary depending on the type of business activity you choose, and can range from AED 11,000 (approximately USD 3,000) to AED 20,000 (approximately USD 5,450).Office Rent: When setting up a business in DMCC, you will need to rent office space in one of the designated office buildings. Office rent in DMCC can vary depending on the location, size, and type of office space you choose. Prices can range from AED 1,500 (approximately USD 410) per square meter per year to AED 2,800 (approximately USD 764) per square meter per year.Visa Fees: If you plan to hire employees for your business, you will need to apply for visas on their behalf. Visa fees can vary depending on the type of visa you require, and can range from AED 3,000 (approximately USD 820) to AED 5,000 (approximately USD 1,360) per visa.Miscellaneous Fees: There may be other fees associated with setting up a business in DMCC, such as legal fees, bank account opening fees, and insurance fees. These fees can vary depending on your specific needs and requirements.
It is important to note that these costs are subject to change, and may vary depending on a number of factors, such as the size and nature of your business, the location of your office, and the type of services you require.
Frequently Asked Questions about DMCC Company Setup
Q: How do I set up a DMCC company?
A: To set up a DMCC company, you need to submit an application form, along with the required documents and fees, to the DMCC authority. You can apply online or in person at the DMCC Customer Service Centre.
Q: How long does it take to set up a DMCC company?
A: It usually takes about 3-5 business days to process the application and issue the license for a DMCC company.
Q: What is DMCC registered company?
A: A DMCC registered company is a business entity that is registered and licensed to operate within the Dubai Multi Commodities Centre (DMCC) free zone in Dubai, UAE.
Q: What type of company is DMCC?
A: DMCC is a free zone authority that provides a business-friendly environment and infrastructure for companies engaged in the trade of commodities such as gold, diamonds, and oil, as well as other sectors like technology and finance.
Q: Is DMCC tax-free?
A: Yes, DMCC is a tax-free zone in Dubai. Companies registered within the DMCC free zone are exempt from corporate and personal income taxes, customs duties, and other taxes and fees.
Q: Which is the cheapest free zone in the UAE?
A: There are several free zones in the UAE that offer affordable business setup options, such as RAKEZ and Ajman Free Zone. However, the exact cost of setting up a company may vary depending on the type of business, the size of the company, and other factors.
Q: Is a DMCC company an LLC?
A: A DMCC company can be structured as a limited liability company (LLC), a branch of a foreign company, or a free zone establishment (FZE).
Q: How much does it cost to start a free zone company in the UAE?
A: The cost of setting up a free zone company in the UAE depends on various factors, such as the type of company, the size of the company, and the location of the free zone. Typically, the cost can range from a few thousand dollars to tens of thousands of dollars.
Q: Can a free zone company do business in Dubai?
A: Yes, a free zone company can do business in Dubai, but there are certain restrictions and regulations that must be followed. Free zone companies are allowed to do business outside the free zone as well as within the UAE with the help of a local distributor or agent.
Q: Which free zone is best for eCommerce in Dubai?
There are several free zones in Dubai that are ideal for eCommerce businesses, such as Dubai South, DMCC, and DAFZA. Each has its unique advantages, and you should carefully consider your business needs before selecting a free zone.
Q: Can Freezone sell online?
Yes, a free zone company can sell products and services online. In fact, eCommerce businesses are particularly suited to free zones, which offer numerous benefits, including 100% foreign ownership, tax exemptions, and easy access to a large and diverse consumer base.
In conclusion, DMCC company setup offers several benefits to businesses, including tax benefits, a business-friendly environment, a strategic location, and state-of-the-art infrastructure. Setting up a company in DMCC is a relatively straightforward process, and with over 17,000 companies already operating in the free zone, it is clear that DMCC is a popular choice for businesses looking to establish a presence in Dubai.