A Complete Guide to Starting a Business in the DMCC Free Zone
The Dubai Multi Commodities Centre (DMCC) Free Zone is still an appealing option for business owners and entrepreneurs looking to make a name for themselves in Dubai’s vibrant commercial environment. DMCC Free Zone, located in the heart of Dubai, is one of the world’s most prominent and fastest-growing free zones. It specializes in facilitating the trade of commodities such as gold, diamonds, precious metals, tea, and more. Additionally, DMCC provides an environment conducive to a wide range of industries, including finance, technology, manufacturing, and professional services, and provides an excellent platform for both domestic and foreign ventures due to its advantageous location, top-notch infrastructure, and business-friendly regulations. This comprehensive guide will walk you step-by-step through the process if you’re thinking about establishing your business in the DMCC Free Zone in 2023.
Understanding DMCC Free Zone
DMCC Free Zone, located in the heart of Dubai, is one of the world’s most prominent and fastest-growing free zones. It specializes in facilitating the trade of commodities such as gold, diamonds, precious metals, tea, and more. Additionally, DMCC provides an environment conducive to a wide range of industries, including finance, technology, manufacturing, and professional services.
Choosing Your Business Activity
Before diving into the setup process, determine your business activity. DMCC offers a diverse list of permissible activities. Whether you’re starting a trading company, a tech startup, or a service-oriented business, ensure your chosen activity aligns with the free zone’s regulations.
Legal Structure and Business Type
- Select a suitable legal structure for your business:
- Free Zone Company (FZCO): Allows single or multiple shareholders and directors.
- Branch of a Foreign or UAE Company: Enables existing companies to expand their presence.
- Subsidiary: Ideal for businesses planning to expand their operations within DMCC.
- Business Name Registration
Choose a unique and meaningful business name that reflects your activity. Ensure it adheres to DMCC’s naming guidelines. Reserved and approved business names are typically valid for six months.
Gather the required documents:
- Passport copies and UAE residence visas of shareholders and directors.
- Memorandum of Association (MOA) for FZCO.
- Specimen signature of authorized signatories.
- No Objection Certificate (NOC) from sponsors if shareholders or directors are on UAE residence visas.
- Business plan outlining your venture’s goals, objectives, and strategy.
- Choosing a Business Premises
DMCC offers a variety of commercial spaces to suit different business needs:
- Flexi Desk: Shared office space for individuals or startups.
- Serviced Office: Fully furnished private office spaces.
- Commercial Property: Dedicated office or retail spaces for larger businesses.
- License Application and Submission
- Submit your license application through the DMCC member portal:
- Fill out the application form accurately.
- Attach the required documents.
- Pay the relevant fees and charges.
Background Checks and Approvals
DMCC will conduct background checks on shareholders, directors, and the proposed business activity. Upon successful verification, you’ll receive an initial approval.
Lease Agreement and Final Documentation
Sign the lease agreement for your chosen business premises within DMCC. Once signed, you’ll receive a no-objection letter (NOC) to proceed with the licensing process.
- Licensing and Registration
After the NOC, you can finalize the licensing process:
- Pay the remaining license fees.
Obtain your business license and commercial registration from DMCC.
- Opening a Corporate Bank Account
With your license in hand, you can open a corporate bank account in the UAE. Most banks require a business license, passport copies, and additional documentation.
- Visa Processing
If required, apply for UAE residence visas for shareholders, directors, and employees. The number of visas depends on the office space leased.
- Setting Up and Commencing Operations
Furnish your chosen office space, set up the necessary infrastructure, and begin your business operations within the DMCC Free Zone.
The cost for business setup in DMCC Free Zone in 2023 will vary depending on the type of business you are setting up, the number of shareholders, and the duration of the license. However, the cost of business setup requires a minimum share capital of AED 50,000 per company, while the cost to register a business typically starts at AED 9,000. Other charges, such as those for a license or a visa, are not included in this.
Here are some additional tips for reducing the cost of setting up a business in the DMCC Free Zone:
- Choose a lower-cost license: There are a variety of different licenses available in the DMCC Free Zone, with different fees associated with each one. Choose the license that best suits your business needs and budget.
- Take advantage of government incentives: The UAE government offers a number of incentives for businesses that set up in free zones, such as waiving visa fees or providing financial assistance.
- Do your research: There are a number of different companies that can help you set up a business in the DMCC Free Zone. Compare their fees and services before choosing one.
If you are planning for a business setup in Dubai, We at BusinessLink provide more affordable business packages that are customized to your unique needs and financial situation and provide the framework and assistance required to launch and succeed in your entrepreneurial journey in 2023 and beyond. Get a custom quote for your business by contacting us.