Dubai is the perfect place for entrepreneurs and enterprise owners to set up shop or businesses. The government has made it very easy for them to go through the company registration process by making it one of the simplest processes in the world, and at a cost so low that it is almost free! Apart from this, Dubai is considered as the center of trade, business cooperation, infrastructure & communication in the Middle East countries.
Based on the three economic zones- mainland, freezone & offshore, Business Setup Services in Dubai provides a diversified platform to the local business person or foreign entrepreneurs.
Extending business facilities to foreign investment, the government has established a free zone area. DMCC(Dubai Multi Commodities Center) is one of the best free zones in Dubai & the premier free trade zone in the world. DMCC free zone business setup is a business setup that provides a lot of benefits for both expats and local residents in Dubai.
In today's article, we will share a step-by-step guide of business setup in the DMCC free zone.
What is DMCC Free Zone
DMCC is considered as the world’s number one free zone for company formation & best suited for foreign business owners, freelancers, or entrepreneurs. Established in 2002, now 12000 companies operate in DMCC free zone, Dubai. It is located at one of the luxurious places of Dubai- the Jumeirah Lake Towers. Located at the heart of Dubai, it is a suitable platform for the start-up or the small-sized building because of some supportive factors like the location, work environment & variety of business network
The DMCC Free Zone offers tremendous advantages to its members. One such advantage is the 100% foreign ownership. This means that the company can be fully owned by foreigners, and there are no restrictions on the nationality or residency of shareholders or directors. This makes it much easier to establish and run a business as an expat than it would be if you were required to have UAE citizenship or residency status.
DMCC business formation facilitates import, export & manufacturing of soft agriculture- tea, coffee & spices, precious metals sector- gold, diamond, pearl & colored stone.
Advantages of DMCC Free Zone Business Setup
DMCC free zone caters to all the needs & requirements for all types of businesses & shops. You will get not only a big brand name, but also you will get advanced facilities-
- Zero corporate & personal tax
- Multiple licenses for the company activities
- 100% foreign ownership
- 100% profit remittance
- Don’t need a long list of requirements for obtaining the license
- Offer lucrative business opportunities & investments
- No currencies restriction
- Friendly & secure business environment
- Fast & easy business setup
- Full profit retention
- No import & export tax charge
- Good communication & networking opportunities- events, workshops & exhibitions
Company Formation in DMCC Free Zone
To start a business in the DMCC free zone is very straightforward & easy, you need- one shareholder with any nationality, physical space & minimum capital depending on the business size. The following basic steps need to be followed for the new business owners & entrepreneurs for company formation in DMCC free zone
Select legal Structure
At first, you have to select the corporate infrastructure based on the business types & activities. Three types of corporate infrastructure are:
- Free Zone Establishment(FZE)- Requires a shareholder with a minimum capital of AED 50K
- Free Zone Company (FZC) - Requires two to five shareholders with a minimum capital of AED 50K
- Branch Of A Company- Requires no capitals
Select & Register The Company Name
While choosing your company name you should keep in mind that, you may not choose any random name which is -
- Not related to any religious or political name
- If the business name refers to a person, he/she needs to be a partner of that business.
- Name that doesn’t hurt any public moral
- Name that is legally relevant to the specific business activity
Whether you want to set up a business in DMCC Free Zone, or an offshore company registration in Dubai, a reputed and trusted company formation partner like KWS can surely help you from start to finish.
Select Business Activities to Obtain License
DMCC offers four types of license according to business activity
- Trade license for import, export, distribution, sorting of all types of products.
- Service license for practicing or carrying out any service specified in the license.
- Industrial license for implementing industrial activity like manufacturing products.
- Commercial license for trading any goods or services.
Business owners are allowed to run up to 6 business activities per license. Owners can obtain a dual license which basically allows them to expand the business to the mainland zones of Dubai without any shareholder with an affordable price.
Submit Application & Related Documents
The next step is to submit an application form to the DMCC center paying AED 1015. It may take 7 working days for the approval of the application. Besides this, owners have to submit related documents for verification & application approval purposes. The following documents are:
- A valid copy of passport & visa of company shareholder/ manager/director.
- Proof of permanent residence address [ it can be any utility bill]
- Proper Business plan
- NOC for the UAE resident
- Documents of the parent company in the case of opening branch office
- 3rd party approval
After providing the application form with all the legal documents, the DMCC authority will issue a lease agreement & license according to the license request with the specific registration & license fee. And you are ready to get started with your brand new company in the DMCC free zone.
The above process is very easy & seamless as it will take a maximum of 1 week. But it may appear difficult sometimes for outsiders or new business owners. In this circumstance, you can connect with any business setup service that can assure you to help you in this entire process with proper experts.
For more business consulting advice contact KWS Middle East. KWS Middle East is a leading company formation consultants in Dubai that provides- any kind of business setup services in Dubai, Offshore company formation in Dubai, business support(Trade license, Visa service, Legal Translation service, Trademark Registration, Company liquidation, Finding local sponsors) & so on.