- January 1, 2022
- Posted by: DBS
- Category: Business Setup Services in Dubai
Business Set Up in DMCC Dubai
In the present scenario, it is very important for businessmen to have a business set up in Dubai. This can be done through DMCC (Dubai Multi Commodities Centre), which is one of the most trusted and reliable authorities that play a significant role in providing assistance to people who want to set up business in DMCC Dubai.
Dubai, the leading business hub in UAE, is also a fast-developing city that offers excellent business opportunities to new entrepreneurs. Dubai has been ranked as one of the best cities in the world for doing business.
DMCC is a not-for-profit company to empower trade and economic development and facilitation of the private sector and government and to attract and retain global investments and commodities trade to Dubai and the UAE.
It is also the first and only commodity center in the world that offers a fully integrated, one-stop-shop for global trade.
The truth is, small businesses often overlook the complications that come with company formation. How many companies require some form of government registration somewhere? As it turns out, each country has its own regulations for this process, and it can be difficult to keep track of them.
Luckily, there is a solution to this problem. The solution for this problem is DMCC Company Formation Services.
Why go for a DMCC Company?
- They have a reliable database
- It’s a licensed one
- Services in DMCC Company Formation Services are available in a wide range
- You can find any service from DMCC
What are the Benefits of Setting Up Business in DMCC Dubai?
Two main benefits of setting up business in DMCC Dubai are its convenience and reliability. Business set up in DMCC Dubai is easier due to the fact that there is only one location where businesses must register, which provides a consistent process that doesn’t change with each country.
The main benefit of setting up business in DMCC Dubai is simply the company’s reliability. If one company’s business is impacted by the instability of another region, it has no effect on DMCC Dubai.
Any company looking to set up a business in DMCC Dubai should first know that there is a one-time and low set up fee for the company. One must also take into consideration the cost of one’s visit to DMCC Dubai for this purpose.
Choosing a company type can help you not only in business set up in DMCC Dubai but also ensure that the company is set up in a format that is suitable for a company’s size and needs. Keeping these factors in mind can help you avoid potential sleepless nights.
How to Set Up a Business in DMCC Dubai?
DMCC requires you to submit certain documents for initial approval before setting up your business
- For UAE residents: passport, visa, Emirates ID, NOC from existing sponsor (if applicable) of all proposed company shareholders, directors, managers, secretaries, and legal representatives.
- A copy of each shareholder’s/director’s/manager’s/secretary’s/legal representative’s permanent residential address.
- DMCC’s permitted activity list may require a business plan.
Once the document has been verified by DMCC, DMCC will send the client’s login details so that they can access the DMCC Portal. One business day is required for this process to be completed.
The next step is to complete the company registration details in the DMCC Portal and pay the AED 1015 application fee.
Documents Required to Register a Company Online
- All prospective business shareholders/directors/managers/secretaries/legal representatives must have a passport.
- Know your client form for all shareholders/directors/managers/secretary/legal representatives of the company.
- Business Strategy (Required for certain activities only).
- NOC from the sponsor for all shareholders/directors/managers/secretary/legal representatives of the firm.
- All company shareholders/directors/secretaries/legal representatives must provide proof of their permanent home address.
- Resolution of Shareholders
- Articles of Association and Memorandum
- Letter of undertaking for a share capital deposit.
In the event that the documents submitted online are approved, shareholders must sign the documents and pay the final payment at the Free zone authority.
Minimum Capital Requirement for Setting Up a Business in DMCC Dubai
DMCC will allow new businesses to operate as a branch without minimum capital requirement provided that the total term financial and trade insurances of the branch cover at least 100 percent of the capital requirement of the parent company and that the parent company qualifies DMCC’s minimum Capital Requirement for any Financial Year.
The minimum capital requirement for setting up a business in DMCC Dubai is AED100,000 (equivalent to USD27,215 at the prevailing exchange rate).
The Minimum Capital requirement is AED100,000.00 for Trade Licenses and AED50,000.00 for Service Provider licenses. The operational costs are 12% of the total Capital Investment for Trade Licenses, and 10% for Service Provider licenses to be paid during the first year of operation. For all three types of businesses (Trade, Service Providers & DITSCAP), partners can be foreign and local except in Service Providers where only UAE nationals may partner the ICC member.
Company Formation Process in DMCC Dubai
DMCC, the Dubai Multi Commodities Centre, is an internationally renowned, multi-commodities service center which provides businesses all over the world with a gateway for their commodity trade and investment activities in Dubai. A company registered in DMCC will enjoy free trade zone status, helping to reduce or eliminate any import or export duties. The process of setting up a company with DMCC is relatively straightforward.
The setup of a new DMCC company takes between 2 and 4 weeks, depending on the business activity. Half of the process can be completed remotely.
For legal documents to be signed by the shareholder, a personal visit to the authority’s offices will be necessary.
A DMCC company is formed by depositing the share capital into a corporate bank account. This procedure must be completed within 60 days of the licensing. You must have at least 50,000 AED in the capital.
Documents needed for setting up DMCC include:
- Passport copy
- Utility bill
- Business plan activities
After registration, there are quite a few formalities to complete:
- Demonstration of company capital to DMCC authority
- Appointment of auditors
- Stamping shares certificates
- Carrying out office inspection
There are promotions offered a few times a year by the free zone when it offers substantial discounts for the formation of DMCC companies.
DMCC Licence Renewal
The cost of company renewal is less than the cost of formation. There will be no one-time registration cost. You will simply have to pay for the license and the facilities. In terms of upkeep, it makes DMCC firms fairly inexpensive.
Even if no economic activity occurred, each entity in the Dubai multi commodities center authority must present an annual audit report. The renewal procedure may be completed without your physical presence by DBS Business setup specialists in DMCC.
Setting up a business in Dubai is not as complicated as it may sound. If you are looking to set up a company in Dubai, make sure that you work with the right agency at the right cost and adhere to all legal regulations. We hope this guide has provided you with insights on how to form a company and business setup in DMCC Dubai and what steps to take if you want to start your own business here. Feel free to visit our blog for more insights on doing business in UAE and talk with us.
Book a free consultation today!
Call us on +97145667485 or WhatsApp on +971551129344.
You may also chat with a live agent on our website https://www.dubaibusinessservices.com/, request a call back on https://www.dubaibusinessservices.com/contact-us/ or visit our office Clover Bay Tower Office 1111, Business Bay Dubai UAE