What is DMCC, and what are the steps for registering a company there? What benefits does it offer?

DMCC is one of the most popular free zones in Dubai. Its full name is the Dubai Multi Commodities Centre. It is located in the heart of the emirate, in the Jumeirah Lakes Towers district. Over 25,000 companies from various countries, ranging from startups to multinational businesses, already operate there. The Financial Times has named DMCC the Global Free Zone of the Year for 9 consecutive years.

You can open a business in various sectors, including trading (precious metals and stones), IT, finance, AI, crypto platforms, and e-commerce. Not only will you receive a license, but you will also receive a ready-made office, flexible tax conditions, and support from the zone administration. However, to register a company in the UAE, you must choose the right business type, prepare the necessary documents, and obtain government approval. Therefore, many consult with lawyers before starting a business in DMCC.

Advantages of DMCC for business

DMCC offers the most favorable tax climate. You pay no personal income tax, and corporate tax is 0% in most cases. Furthermore, the Free Zone offers a number of other advantages, including:

• Full business ownership: you retain control and can repatriate profits to your home country;
• A convenient location in the heart of New Dubai, close to the metro and modern infrastructure;
• Flexible office solutions: you can choose a workspace that suits your size and budget;
• Quick setup: the registration process is simple and takes up to ten business days;
• Anytime access: through the Member Portal on the official DMCC website, you can generate reports, schedule meetings, and make payments from anywhere in the world;
• A strong community: over 25,000 companies and 100,000 specialists already work here;
• Many useful connections: businesses from 180 countries and 900 industries are represented in the zone.

The DMCC area encompasses two elite districts, Jumeirah Lakes Towers and Uptown Dubai, and consists of over 25 clusters with infrastructure facilities. Cluster A, for example, includes the Dubai Gate 2 residential complex, the Lagoon Tower, which has hotels and apartments, and a lakeside residence. Office space is available in Clusters B, C, D, E, and others, as well as in the Almas Tower. Two metro stations, DMCC and DAMAC, are located near the FEZ.

Which companies can register with DMCC?

DMCC offers a wide range of opportunities across various industries. The FEZ has created ecosystems that bring together companies operating in related fields. This helps them find partners, share experiences, and grow their businesses faster. You can open businesses in manufacturing, retail, and logistics, as well as implement projects in IT, fintech, and other sectors.

The agricultural ecosystem provides the necessary infrastructure for processing, storing, packaging, and exporting tea and coffee. Warehouses can store up to 5 tons of tea and 9.5 tons of green coffee at a time.

Precious Metals Zone is a hub for gold trading companies. It offers modern individual vaults and a network of jewelry manufacturing facilities. Many entrepreneurs choose DMCC specifically for precious metal trading.

Gem Ecosystem provides secure storage for diamonds and jewelry, cutting-edge lab-grown diamond centers, and spaces for evaluating and trading colored minerals. Participants have access to the Dubai Diamond Exchange, a jewelry design academy, and over 10 industry networks.

Water Center is an innovative ecosystem that ensures the supply of high-quality drinking water. In addition to trading platforms and equipment, it offers training and development programs, research, and personalized business services in the field.

Energy Ecosystem unites over 3,000 companies that specialize in supplying traditional and alternative energy. Through the Energy Club platform, participants can exchange knowledge and ideas and build business connections.

Tech Ecosystem facilitates business development in gaming, blockchain, artificial intelligence, and e-commerce.

Sustainability Hub develops initiatives in environmental, social, and governance areas. Participants have access to comprehensive training modules, knowledge-sharing forums, modern incubators, and other benefits.

License types

Before registering a company in DMCC, you need to choose the right permit. This determines the scope of your business activities. Three types of licenses are available in the free zone:

• Trading. Suitable for buying, selling, or supplying goods. It is also required for financial services companies working with cryptocurrency.
• Industrial. Required for manufacturing goods and providing related services. This includes activities related to processing precious metals and stones, agriculture, and food production.
• Service. Issued to artisans, craftsmen, and companies that provide various services. These include beauty, education, travel, pet care, and more.

There is no fixed cost. The price depends on the chosen license, the scope of activity, and the size of the company. On average, a DMCC license costs between AED 20,000 and AED 50,000 (approximately USD 5,445 to USD 13,600) per year.

The FEZ administration also offers exclusive service packages. These packages include a license, workspace, residence permit processing, bank account opening assistance, and more. For instance, the quick start package, which costs around USD 12,000, includes a license, standard office or coworking space, and a residence visa (residence permit).

Keep in mind that there’s a catch regarding the authorized capital requirement. In some cases, it is not required, while in others, it may be as high as AED 1,000,000 (approximately USD 272,280), especially if you are registering a business in the financial or manufacturing sectors.

DMCC company registration process

Step 1: Select your business type and structure. There are over 900 business sectors available in Dubai. The most popular ones in DMCC include gold trading, commodities, precious stones, energy, and coffee and tea production. Regarding corporate structures, you can register as a Free Zone LLC (FZ LLC), Free Zone Company (FZ Co.), or Free Zone Establishment (FZE).

Step 2: Select and register a name. The name must be unique, include the abbreviation of the corporate form, and reflect the business sector. It must also be approved by the Dubai Department of Economy and Tourism (DET) and the Ministry of Economy. Names of government agencies and officials are not permitted, but a company may be named after its owner or partner, for example. Registration requests containing offensive or obscene language will be denied.

Reservation requests can be submitted to the DET through the Invest in Dubai website or at the nearest accessible service center.

Step 3: Select a business space. DMCC residents have access to workspaces in the Uptown Dubai and Almas Tower complexes that are equipped with everything necessary for running a business. In addition to standard offices, entrepreneurs are offered coworking spaces and Flexi desks (a permanent physical address and business services upon request), Serviced desks (a dedicated workspace with access to shared spaces).

Step 4: Obtain pre-approval. Submit your application to the free zone administration through the business setup service. Attach a business plan, copies of the owners’ and manager’s passports and signatures, and other required documents.

For a detailed list of documents, consult lawyers, who specialize in business registration in the UAE. They can help you avoid any inaccuracies and delays.

Step 5: Obtain a license. After receiving preliminary approval, submit a business registration and licensing application to the DMCC administration. The application should include the following:

• The decision to appoint a director and the power of attorney issued to them;
• A photo and signature sample of the director;
• The articles of association and memorandum of incorporation;
• The capital details.

You must also pay the required fee. After a successful review, you will receive a license allowing you to start a business in DMCC.

After opening a business in the Dubai Free Zone, the company receives an Establishment Card, a document containing basic company information and granting access to government services. The card is issued by the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP). The DMCC administration provides the establishment card service.

Registering your company entitles you to a 5-year UAE residence permit. You can submit the application upon entering the country. Many countries’ citizens do not require a visa to enter the Emirates. You can apply for a residence permit online through the General Directorate of Residency and Foreigners Affairs (GDRFAD) website in Dubai. Alternatively, you can visit a Customer Happiness Center or an Amer Service Center. Your application must include a photo, a copy of your passport, proof of business establishment, and a license. The application processing time takes just 2 days. After approval, you will need to obtain an Emirates ID, which is a local form of identification.

iWorld specialists are ready to provide comprehensive assistance in obtaining a UAE residence permit through business registration. We handle document preparation and interaction with relevant authorities, right up until our clients receive their Emirates ID.

It is advisable to open a business account after obtaining residency, as some banks may require a residence permit. HSBC, Citibank, Commercial Bank of Dubai, and other banks in the emirate offer corporate services. Choose the bank that best suits your needs, and apply online or in person depending on the available services.

Taxes and reporting

All organizations established in DMCC must register for tax purposes. However, there are special considerations regarding corporate taxes.

Qualified Free Zone Persons (QFZPs) are eligible for a zero tax rate. QFZPs are organizations that conduct their primary business in the free zone, meet legal requirements, and do not opt for the standard tax rate.

Only income from qualifying activities is exempt from tax. Eligible activities include manufacturing, processing, trading, logistics, and more. Exempt activities include financial activities, leasing, and insurance, for example. Non-qualified income cannot exceed 5% of total income or AED 5,000,000 (approximately USD 1,361,400), whichever is lower.

If a company is not a QFZP or receives non-qualified income, standard tax rules apply. This means that when income exceeds AED 375,000 (approximately USD 102,000), the corporate tax rate is 9%; otherwise, it is 0%.

Companies registered in DMCC undergo an annual audit and must maintain financial statements detailing income and expenses. The audited consolidated data and audit report are submitted to the free zone administration via an online service no later than 90 days after the end of the financial year.

License renewal

To continue operating in DMCC, you must renew your license on time. You may choose an annual renewal or a permit valid for 2, 3, or 5 years. It’s important not to miss the deadline, as this can result in fines or even license revocation. The renewal process must be completed before the current license expires.

If you have a trading or service license, the basic annual renewal fee is AED 20,265 (approximately USD 5,500). The exact amount may vary depending on the permit type and your sector. DMCC offers various renewal packages, so you can choose the right option for your business and avoid unnecessary costs.

Opportunities for entrepreneurs and investors

DMCC provides access to support, unique infrastructure, and a global network. DMCC also hosts professional forums and industry meetings to help you find clients, partners, and investors. Starting a business in the free zone is an extremely quick process. Although the stated timeframe is 10 business days, project owners report that it often takes only 2-3 days. You can conveniently register remotely through a dedicated online portal, and there’s an electronic account for managing your affairs.

Company liquidation in DMCC

Depending on the situation, you can close a business in DMCC in one of the following ways:

• Quick liquidation: relevant for solvent companies that have no debts or can close them within six months;
• Bankruptcy proceedings: conducted exclusively through the courts;
• Creditor liquidation: termination of operations carried out by those to whom the company owes debt.

In order to close a business, a special request must be submitted through the participants’ portal. At this point, the management’s authority and liability are terminated. After reviewing the application, the DMCC administration publishes an announcement in a local newspaper. The applicant will then receive a notice of final closure and a confirmation letter.

What are the alternatives to DMCC?

Besides DMCC, there are approximately 20 other free zones in Dubai, including:

• Dubai Internet City, which specializes in supporting and developing technology companies;
• Dubai Knowledge Park, a free zone for human resources (HR) management, recruitment, and vocational training organizations;
• Dubai Science Park, which is developing a business ecosystem in the pharmaceutical, healthcare, environmental, energy, and other sectors;
• Meydan is a free zone where business management is conducted entirely digitally and offers over 2,500 areas (consulting, trading, and virtual assets).

DMCC’s main advantage over most other free zones is its versatility and its ecosystems designed to support and unite entrepreneurs. DMCC is also strategically located in Jumeirah Lakes Towers, close to leading financial and transportation hubs. This free zone is ideal for businesses involved in international trade, commodities, or precious metals. It’s also a profitable choice for fintech startups, crypto companies, logistics companies, and investment projects.