DOING BUSINESS IN DMCC FREE ZONE IN 2022
Since 2003, Bejarano ADF Consultants Group PLC has assisted our Clients with Dubai Multi Commodities Centre (DMCC) Free Zone business registration. Our project management services include i) company registration ii) obtaining operations licences iii) DMCC office rental solutions iv) corporate bank account opening v) employee recruitment vi) work and residency visa strategies.
| Compare different DMCC FZ entities | LLC / Subsidiary | Branch office |
|---|---|---|
| Best use of company | All products and services | All products and services |
| Can do proprietary crypto-currency trading | Yes | No |
| Can do crypto-currency trading for customers? | No | No |
| How soon can you invoice Clients/sign sales contracts? | 4- 6 weeks | 7 to 8 weeks |
| How soon can you hire staff? | 4- 6 weeks | 6 weeks |
| How soon can you sign a lease agreement? | 3 weeks | 3 weeks |
| How long to supply corporate bank account numbers? | 5 weeks | 5 weeks |
| Corporate tax on annual net profits? | 0% | 0% |
| Limited liability entity? | Yes | No |
| Does our Client need to travel for company/branch setup? | No | No |
| Minimum directors required? | 1 | 1 |
| Minimum shareholders required? | 1 | Parent company |
| Resident company secretary/manager required? | No | Yes |
| Sponsorship by a local citizen required? | No | No |
| Regulated by which government body? | DMCC FZ Authority | DMCC FZ Authority |
| Estimate cost for a Commercial or Service business licence | US$5,500 | US$5,500 |
| Government grants available? | No | No |
| Minimum paid up share capital? | US$13,615 | None |
| Corporate bank account location? | Emirates NBD | Emirates Islamic Bank |
| Can secure trade finance? | Yes | Yes |
| VAT payable on sales to local customers? | 5% | 5% |
| Dubai de-registration fee | US$3,950 | US$3,950 |
| Estimated Government de-registration fees | US$1,350 | US$1,350 |
| Liquidator fee for DMCC company de-registration | US$2,950 | US$2,950 |
| Assistance to close the corporate bank account | US$1,550 | US$1,550 |
| Average total engagement costs? | US$28,786 | US$30,500 |
| Average total engagement period? | 12 weeks | 12 weeks |
DMCC Free Zone company registration summary
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How to start a company in DMCC, Dubai?
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Advantages of DMCC Free Zone company registration
- A DMCC Free Zone company pays zero income tax;
- There are no import or export duties within the Free Zone;
- It is easy to repatriate capital and profits abroad;
- 100% foreign ownership is allowed;
- DMCC Free Zone company registration requires just one shareholder and one director. Both can be the same individual;
- A qualifying DMCC company can operate ‘onshore’ in Dubai without needing to i) register a mainland entity or ii) appoint a mainland agent;
- DMCC Free Zone has fewer restrictions on staff recruitment and work visa applications than ‘onshore’ Dubai companies;
- DMCC’s location on the city’s Sheikh Zayed Road puts it within less than one hour’s drive to Abu Dhabi, and minutes from Jebel Ali Port and Maktoum International Airport;
- DMCC offers commercial and residential properties to buy, with a freehold option;
- In 2020, DMCC was awarded the Global Free Zone of the Year title from Financial Times’ fDi Magazine for a record sixth consecutive year;
- Online portal and effective online solutions for customer services;
- Flexible office solutions including serviced offices, flexi desks, and shared offices.
- DMCC free zone is one of front runners in UAE’s vision of being a crypto friendly country. It is the first free zone in UAE that offers specific licenses for proprietary crypto trading businesses.
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Disadvantages of DMCC Free Zone company registration
- Establishing a DMCC Free Zone company can be expensive because:
- The average annual DMCC licence is US$5,500 for a service or trading business, and US$13,615 for a general trading licence. The licence must be renewed annually;
- Each DMCC company must inject a minimum paid up capital of US$13,615 (AED50,000) into the corporate bank account immediately after company incorporation;
- Before company registration is complete, DMCC companies must lease office space within the Free Zone, with the cheapest annual flexi-desk rent an estimated US$6,000.
- Employee visa approvals for DMCC companies depend on factors including i) nature of the Client’s business and ii) office size. Consequently, multi-national Clients needing many UAE employees will have to rent a large, expensive unit.
- All companies registered in the UAE must i) create and maintain a register of their ultimate beneficial ownership (UBO) and ii) submit UBO data to the relevant registrar or licensing authority.
- Expensive rental of office spaces.
- Establishing a DMCC Free Zone company can be expensive because:
