Dubai is known as the business capital of the Middle East thanks to its liberal economy and a Government which is progressive in thought. Its cosmopolitan culture also makes Dubai attractive to foreign entrepreneurs for Company setup in DMCC.
To encourage more foreign investment which they realized would be the driving force for the economy, the government established several special economic zones in Dubai called freezones, with more liberal regulation and minimal taxation. Let us take a brief look at one of these special zones, the Dubai Multi Commodities Centre or DMCC.
Started in 2002, the DMCC was incorporated under the legislation passed by the Chairman of the PCFC on 01.05.2002. Company formation in DMCC can be in one of these segments: commodities, gold, pearls, diamonds, tea, cotton, minerals and metals. The business will be incorporated as a DMCC company, with the minimum capital specified at the time by the DMCC authorities.
Advantages of Company Setup in DMCC :
- You can start business with just one shareholder; no limit on maximum numbers, however, subscription needs to be AED 50,000 above the standard minimum capital.
- You can operate out of privately developed properties
- No income or corporate for a minimum of 50 years
- No restriction on ownership or capital repatriation
- Minimal paperwork
- Licenses granted for a comprehensive range of services
- Office space and land can be purchased or leased at very reasonable rates
- Versatile office solutions
- Provision of speedy immigration and other Government services
- Conducting events, workshops and sector specific clubs for networking opportunities
- Provision of training on latest trade regulation developments and standards of compliance
Company Setup in DMCC is easy, these are the steps
- Decide what type of company you want – branch of local or foreign company, limited liability company: either as a newly formed entity with single or several shareholders, or as a fully owned subsidiary of a foreign or local company.
- Select the business activities as per your business plan – whether you want to do trading, service or industrial activity.
- You can also consider additional customized license structures like the Single Family Office option which helps in managing the wealth of a family.
- Choose the company name.
- Submit application with required paperwork like passport copy, residence proof, business plan, and other documents as may be required according to your type of business.
- To make things even easier for businesses, online applications are also allowed.
Once your business setup in Dubai or Dubai Multi Commodities Centre, you gain access to a broad range of ancillary services from the Zone authorities like international courier services, commemorative certificates, insurance schemes for health, employee compensation and third party liability, exclusive credit cards for members of DMCC, and more.
The DMCC will also be starting a tech hub to help startups to function in a collaborative atmosphere among likeminded business people, with negligible upfront expenses. This round the clock tech hub will have offer training, workshops, a programmers’ ‘coding cave’, and more.
To provide easy access to the central registry of ownership for stored commodities in Dubai, an electronic system called the DMCC Tradeflow was started in 2012. Its main intention was to encourage commodities trade by providing more security to both warehouse owners and traders through various methods. The online platform also provides a secure platform for e-trading, accessible from anywhere in the world.
Any business consultants in Dubai will tell you that company formation in DMCC means being part of a vibrant and fast growing economy; so make full use of it!
Here is an infographic that accompanies the article about Company Setup in DMCC:
(Click infographic to enlarge.)
