This article was updated on June 9th, 2023
This article was updated on June 9th, 2023
This article has been researched and written by Scott Greaves and the team at Creation Business Consultants and has not used AI in generating this article.
Dubai Multi Commodities Centre (DMCC) was established in 2002 and it is situated in the central location of Dubai – Jumeirah Lakes Tower district. This free zone has been recognised as the number one free zone in Dubai and the UAE for several years.
DMCC is the perfect choice for those looking to enter the market and caters to solopreneurs, SMEs, and all the way to the big playing multinational companies. DMCC is a leading choice for companies involved in Gold Trading and companies operating in the Blockchain Crypto industry. There are several business license types currently on offer at DMCC free zone from consulting, and services to trading. Within each DMCC license type, there are a wide variety of business activities that are suitable to each industry type.
DMCC has been the free zone leader regarding integrating digital signatures as part of their process for all new company setups. With the digital signature process, this has increased the speed of signing documentation that is required from our client, shareholder(s) and authorised signatories. As a result, the company setup speed has increased by 50% and a company trade license is issued much quicker. Apart from the increased speed, the digital signature process and video conferencing for identity and document verification, while also simplifying document requirements has been more convenient and helped those that may be unable to travel to Dubai yet want and need a company setup fast and ready for their arrival to the UAE.
When setting up a company in the UAE regardless, if it is in a free zone or mainland / onshore the company must have a business premises and registered office lease. Free zones offer a minimum office facility rental option which is known as a flexi or smart desk. A major pull factor for DMCC business setup is the reduced flexi desk costs. DMCC flexi desk enables five (5) hours usage per month and up to one (1) UAE residency visa eligibility. DMCC regularly run promotions on their flexi desk and office solutions. Therefore, if you want a Dubai business address in a central location at an affordable rate, we suggest contacting Creation Business Consultants Corporate Structuring team to find out the best rates you can avail for this month and 2023.
The free zone introduced a new employee protection insurance programme in association with Dubai Insurance. The aim of this programme is to provide cost-savings for member companies and give greater protection to employees should their employer default on their salaries, end of service benefit or repatriation costs. This scheme is mandatory and has replaced the former bank guarantee security deposit of AED 3,000 per employee. This scheme has helped with the ease of doing business in the UAE and has reduced the cost of hiring new employees in DMCC.
One of the great benefits of having a DMCC registered company is the continuous support on offer to businesses. From webinars, knowledge series workshops, special interest clubs, networking events to exhibitions, DMCC continuously strive towards developing and helping entrepreneurs and companies within its business community.
The most common question new market entrants ask us is if they can get a corporate bank account for their business with a DMCC license. The UAE was removed from the EU blacklist in 2019 and as a result banking policies, procedures and Central Banking regulations have been updated to ensure greater Know Your Client and Anti-Money Laundering processes. If we flash forward to 2023, DMCC is a well-known reputable free zone regulated authority that is widely recognised by local and offshore banks. DMCC has great credibility with the banks. Furthermore, the banks welcome and want to on-board corporate bank accounts for licensed DMCC companies. Once your DMCC company setup is completed an amount of AED 50,000 must be deposited into a local UAE bank. Following on, your chosen local UAE bank will issue a letter to confirm the paid-up capital amount of AED 50,000 was deposited into the company account. This is a mandatory requirement to complete the post-company setup process of banking under DMCC. In addition, we would like to highlight this AED 50,000 that is deposited into the local bank account can be withdrawn straight away and does not need to remain in your company bank account. It is, however, recommended to maintain at least a minimum balance amount in your company bank account to ensure it remains open.
If you are contemplating the idea to start a business or expand a business to Dubai and the UAE. Or if you wish to know more about DMCC company setup option or other company setup options, contact our Corporate Structuring team for a free no commitment consultation at [email protected] or call +971 4 878 6240.