FAQs

Who is DMCC?

DMCC, a strategic initiative of the Government of Dubai, was established in 2002, with a mandate to provide the physical, market and financial infrastructure required to set up a commodities market place in Dubai. DMCC offers a unique opportunity for market participants in a wide range of commodities industries in four broad sectors including precious commodities (gold, diamonds, coloured stones and pearls), energy related sectors, steel and base metals and soft agricultural commodities (tea, cotton and others). The Centre aims to attract key players throughout the entire value chain of each of these commodity sectors, together with a range of support industries such as finance, logistics, consulting and insurance. DMCC was the first UAE free zone authority to offer freehold business premises, in addition to all other standard free zone services. These comprise a 50-year holiday on personal and income taxes, full foreign ownership of business and a one-stop shop facility for processing of all documentation including immigration and licensing needs.

What do I need to do to change my company suffix from JLT to DMCC?

Click on theSuffix Change Portal Guidefor a full set of instructions and frequently asked questions.

What are the main benefits of setting up a Free Zone company with DMCC?

In summary, DMCC Free Zone companies enjoy 0% corporate and personal tax for 50 years, 100% foreign ownership, simple set up process, assistance with sponsorship of employees and many other UAE government related services, which incorporate a wide range of affordable property choices.

Do I need a UAE Partner to form a company?

One of the many advantages of setting up a company in DMCC is that it offers 100% foreign ownership. You do not need a UAE Partner to form a company at DMCC unless your business is a pharmacy. In this instance, the Ministry of Health requires a UAE National shareholder in order to issue the required No Objection Certificate (NOC).

What documents are required to open a new company?

There are different phases that the client go through and each phase has its own required documents.
Pre-approval:

• Know Your Client Form (KYC).
• Proof of Residential Address.
• Passport Copy.
• Emirates ID (If UAE resident).
• NOC from Sponsor (If UAE resident).
• Business Plan (Applicable to some activities).
• Undertaking related to activities (Applicable to some activities)
• Copy of the Certificate of Registration of the parent company (only applicable for corporate shareholders).
• Copy of the Certificate of Incumbency of the parent company (only applicable for corporate shareholders).
•  Copy of the Memorandum and Articles of Association of the parent company (only applicable for corporate shareholders).

Pre-Registration:

• Specimen Signature Form for each shareholder and company appointed officer (a system generated document to be signed in the presence of MSE or notarised).
• Shareholder/Board Resolution/Branch Resolution (a system generated document to be signed in the presence of MSE or notarised and attested in the UAE Embassy or Appostilled).
• Standard Undertaking Letters (Copy).
• Memorandum and Articles of Association (MoA) (a system generated document to be signed in the presence of MSE or notarized – not applicable for branch).
• To bring the original passports for verification for each shareholder and company appointed officer (original to be sighted at DMCC or notarised).
• Certificate of Registration of the parent company (notarised - only applicable for corporate shareholders).
• Certificate of Incumbency of the parent company (notarised and attested in the UAE Embassy or Appostilled - only applicable for corporate shareholders).
•  Memorandum and Articles of Association of the parent company (notarised - only applicable for corporate shareholders).

Pre-Licensing:

• Current Dated Tenancy Contract.

*Original should be sighted at DMCC.
*It must be under the exact registered company name.
*It should be valid for at least one year from the date of submission.
*If the property is owned by the company, the company stamp should be on the tenancy contract.
*It has to be signed by both the Landlord and Tenant.
*Tenancy must mention the area size and location details.
*The minimum area size is 50 square meters.

• Current Dated Certificate of Ownership from the Building Developer or Title Deed (Original should be sighted at DMCC).
• Certificate of Conformity from Concordia under the registered company name. (Applicable only for Retail Activity/Space).

 
Post-Licensing:

• Original Specimen Letterhead for the company with the company’s stamp on it.   Company Name & Address to be stated as per the DMCC license. Specimen Letterhead for the company should mention that ‘’Company is registered & Licensed as a FREE ZONE Company under the Rules & Regulations of DMCCA’’ and fixed on all company’s letterhead either footer or header.
• Original Letter of Appointing Auditors (addressed from Auditors in Dubai to DMCC confirming their appointment by the company).
• Shares Certificates (to be stamped & shareholders copies to be submitted to DMCC - not applicable for branch).
• Personnel Secondment Agreement (to be signed & both original copies should be returned to DMCC).
• Bank letter confirming the share capital deposit (not applicable for branch).

What is a share capital?

Share Capital refers to the portion of a company's equity that has been obtained or will be obtained by a shareholder for cash or an equivalent item of capital value. It is also called subscribed capital or subscribed share capital. The share capital is calculated as:
Number of total shares divided by Unit value of each share (also known as par value)

Is it mandatory to have an office to open a new company?

Yes, it is mandatory, below are the property options:

• Flexi Desk
• Serviced Office
• Physical Office for lease
• Physical Office for sale
• Retail Space (shop) for lease
• Retail Space (shop) for sale  

How many shareholders are required to form a limited liability company?

There must be a minimum of one shareholder and a maximum of fifty shareholders.

What is the minimum number of company directors?

The minimum number of company directors is one director, which is mandatory for all types of companies except branch companies; while the maximum number of directors is six directors.

Can I be a partner in more than one company?

Yes, you can be a partner/shareholder in multiple companies.

Does the share capital have to be paid up?

Yes, the share capital needs to be deposited in the company bank account within 3 weeks from the date of the trade license being issued. It may be withdrawn immediately thereafter.

Can I take a license without renting any facility?

No, this is not allowed. However DMCC has a wide range of Business Centre products to suit all budgets. Please contact DMCC for detailed information.

Can we reserve the name of the company?

Yes, you will be asked to provide one preferred and three alternate company names. DMCC will always aim to reserve your first choice and will ensure that there are no other companies of the same name or a name similar enough to be indistinguishable. You may wish to check the Dubai Economic Department website to see if your preferred name is available within Dubai. In most cases DMCC will then be able to reserve the name for you. Please be aware there are certain words that may not be used and these are clearly mentioned on the application. The name of all new companies will end in DMCC. Some existing companies end in JLT, however JLT licenses are no longer offered since February 2014. Please note that branch companies always adopt the name of the parent followed by the suffix DMCC Branch.

I currently have a company in another UAE Free Zone, can I transfer that to DMCC?

No you cannot transfer a company or license from any Free Zone to another; you will need to set up as a new company. However, we can aim to give you the same company name and activity. Please contact our Member Services Team to discuss further.

Does a client need to provide a power of attorney?

It is not mandatory for clients to have power of attorney (POA) unless they require someone to represent them before the authorities if they are not available. A Power of Attorney (POA) is a written legal authorization by an individual(s) to another individual(s) to represent or legally act on their behalf. In the case of company affairs, the powers may vary from incorporating the company to any post incorporation amendments; where the POA holder represents the individual(s) before the authorities to sign the Resolution and Memorandum and Articles of Association among other documents. A POA remains in force until revoked, or for a limited time period.

Do you have formats of the resolutions required for formation of company?

Yes, suggested formats are available for downloadhere

Are there any fees when submitting the Company Setup online application?

Yes, there is an initial application fee of AED 1000 for company setup online application. 
 

What are the pricing rules for licenses and activities?

There are three types of licenses; Services, Trading and Industrial. Each license carries an annual fee of AED20,000 (Different Pricing for Industrial license, General Trading, Business Centre and Hotel would apply)

Within each license type, up to 6 activities in the same division (activity code beginning with the same first 2 digits i.e. 50xx-xx) can be included in the fee of AED20,000 annually.
Additional activities over 6 activities beginning with the same first 2 digits (i.e. 50xx-xx) can be added for a fee of AED1,510 per activity annually.
Additional activities that begin with the same first 1 digit (i.e. 51xx-xx) can be added for a fee of AED10,000 annually, and this allows up to 6 activities from that same new activity division (2 digit group i.e. 51xx-xx).

Additional activities that begin with completely different first 2 digits (i.e. 74xx-xx) can be added for a fee of AED20,000 annually, and this allows up to 6 activities from that same new activity division (2 digit group i.e. 74xx-xx).

Any activities that are from a different license type (Services, Trading and Industrial) will require a new license, at a fee of AED20,000 annually regardless of the code. (Different Pricing for Industrial license would apply)

If a company wishes to operate from two different buildings in JLT, a different license is required for each location.

Any amendment to license activities, will incur a one-time administration fee of AED1,510.

What kinds of activities are allowed in DMCC?

DMCC licenses allow a wide range of business activities, from commodities to retail outlets, consultancies to beauty salons. DMCC is able to license most of the activities that are allowed by the Dubai Economic Department. The full list is available under General Information in these Applications Guidelines. The major categories include; A.) Agriculture B.) Fishing C.) Mining & quarrying D.) Manufacturing E.) Electricity, gas & water supply F.) Construction G.) Trading and repairing H.) Hotels and restaurants I.) Transport, storage and communications J.) Financial intermediation K.) Real estate and business services M.) Education N.) Health and social work O.) Other community, social and personal services

If I have a Free Zone company, can I do business outside the Free Zone?

Yes, your company may conduct business outside of the UAE without restriction, provided it is legal. If you wish to trade within the UAE (known as “Onshore”) there are two main methods for doing so. The first one is to trade directly with an LLC company that has an import/export license. As part of the terms of trade they would need to clear any goods through customs. Secondly, you may enter into an agreement with a logistics company that would clear the goods and deliver them to the mainland.

For services companies wishing to provide services to a company outside the free zone, the general rule is that the services must be provided within the Free zone. There are certain exceptions, such as recruitment services where stricter rules apply.

What Types of Licenses Does DMCC Issue?

Do I need to pay Customs duty to bring the goods to DMCC?

Free Zone licensees are allowed to import goods or equipment into the Free Zone from a foreign country without payment of customs duties. While Free Zones are physically within the borders of the UAE, they are outside the customs borders. Customs duty is only paid when goods are moved out of the Free Zone; that is, imported into the UAE. Numerous warehousing facilities are available in the port for companies that wish to store and re-export their goods. A deposit is payable to the full value of the customs duty, which is refunded on re-export. DMCC recommends that its members contact Dubai Customs to ensure they are completely familiar with all requirements. It is important to ensure that customs records are kept in good order otherwise penalties may apply. Please visit www.dubaicustoms.gov.ae and go to the Free Zone section under Declaration & Clearance.

What import and export duty applies to goods?

The Customs duty for most items is calculated on the CIF value at the rate of 5%. Imports of liquor/alcohol are subject to a 50% customs duty on their CIF value while imports of tobacco products draw a 100% duty on their CIF value. Many essential items such as staple foodstuffs and pharmaceuticals are given duty-free status. Gold and diamond traders benefit from a special arrangement between Dubai Customs and DMCC. Diamonds may be imported at a rate of 1% service fee, and gold is imported at a rate of 0.32% service fee, both payable to Dubai Customs. Due to the changing nature of customs it is always advisable to refer to www.dubaicustoms.gov.ae, wherein the duties applicable are available according to HS codes.

What are HS codes?

The Harmonized System Codes (HS Code) is a standard issued by the World Customs Organization (WCO) to unify the classification of the goods. These are six digit codes for identifying different products across the world. For example the code for natural pearls is structured as follows: Section XIV: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin. Chapter 71: Natural or cultured pearls, precious stones, precious metals, metals clad with precious metal, and article thereof; imitation jewellery, coin. Heading 71.01 Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set; pearls, natural or cultured, temporarily strung for convenience of transport. Code 7101.10 Natural pearls. A full record of HS codes are available through Dubai Customs.