The company formation in Dubai Multi Commodities Center (DMCC) is a strategic initiative of the Dubai Government to provide a marketplace and necessary financial infrastructure to run a developed commodities marketplace. The DMCC free zone offer various privileges to business such as streamlined legal and regulatory frameworks, and flexible office solutions.
Benefits of Business Setup in DMCC
Before we take a deep dive into company formation within the Dubai Multi Commodities Center (DMCC), here is a list of benefits of operating your business in DMCC.
- Ownership rights
- Corporate Tax exemptions
- Repatriation of capital and profits
- Easy licensing procedures for range of business activities
- Easy lease or sale options available
- Immigration services
- Networking posterities like events workshops and exhibitions
Legal entities operating within Dubai Multi Commodities Center (DMCC)
Limited liability company: one or more shareholders can form a Dubai Multi Commodities free zone limited liability company
Branch company: existing company can establish a branch in Dubai Multi Commodities free zone.
Types of licenses offered in Dubai multicommodity center
Trade license: Under this license a company can import export distribute and store goods in line with rules and regulation of set by DMCC authority.
Industrial license: Industrial license is required to carry out all industrial activity such a manufacturing assembling, packing and exporting final goods.
Service license: A service license gives the business owner the right to operate a specific service. (legal service, audit service)
Stages of company formation in DMCC
Stage 1. decide on which company type to operate
Rules and regulations are different for different ownership types and business establishments. Selecting a legal entity type to run the business is considered important.
If you are confused about the company types then consult business consultants and they will help you identify the type of company for your business.
Stage 2. determine the business activities
While deciding upon the type of legal entity the business should determine a business activity. It is important to check with the respective free zone authority about the permitted activities. The Dubai multi commodities center licensing procedure is different for each activity.
Stage 3. Choosing a trade name:
There are some regulations for choosing a tradename for the company. The key requirements to approve tradenames are:
- It must not be previously registered
- Proposed tradename should be related to the business activity carried
- Must not violate the public morals or public policy
Stage 4. Applying for company registration:
The company registration and licensing process is simple swift and easy. It starts with the submission of the duly filed application form along with supporting documents. An initial approval certificate is required to continue with the business licensing formalities that permit foreign nationals to practice their desired business activity in free zones.
Stage 5. Licensing and visa process:
if all the documents submitted are verified, the required authority will issue the license and start the visa process.
Documents for company formation
Below mentioned are only sample documents required for company formation. The exact documents required may vary depending on the nature of the business and the type of activity carried out by the owner of the business.
- An application forms
- Letter of intent
- A business plans
- Company profile and brochure
The cost involved for company formation
The most important factor in creating a viable business plan for company formation is understanding the estimated cost. The cost mentioned below is just an estimation the actual cost is determined by the government.
Registration cost: Fee for each company registration depends on the proposed structure of the company.
License cost: Each activity of a company, falls under a specific type of License so the cost may vary depending on the type of license.
Visa cost: Cost of each visa varies depending on the status of an applicant’s current location, whether application is taking place inside or outside the UAE.
Type of facilities: cost may vary depending upon the facilities offered.
Company formation assistance for DMCC
Company formation in a new location requires local knowledge of all best possible alternatives available to the business owners. To have a better understanding of company formation the investors and entrepreneurs should team up with reputable business setup consultants to help them acquire the right license and operate efficiently.
Far consulting middle east has handful of experience in DMCC company formation and we have assisted may clients to establish a company in this free zone. We support our clients throughout the process of company registration.
If you want to know how can we help you contact us today.