DMCC

1. What are the permitted activities in DMCC?

Dubai Multi Commodities Centre or DMCC is a trusted name in the global commodities trade that offers market, financial, and physical infrastructure for hub creation. It offers a license to different businesses. Thus many companies register with DMCC who offers licenses according to the permitted activities. These licenses allow activities within the free zone. According to the DMCC guidelines, any company can register to conduct different activities to obtain and hold different licenses.

All these licenses come with different costs that range from 32,000 AED to 82,000 AED. These licenses are provided at the time of registering in the DMCC free zones based on different activities. In short, the permitted activities in DMCC are according to the multiple licenses issued to the various businesses.

2. What is the cost of renewals in DMCC?  

All businesses operating in the free zone require DMCC registration. DMCC charges different prices for different types of licenses or the standard trading and service fees. These include:

• One-year license renewal: 20,265 AED
• Two-years license renewal: 38,503 AED
• Three-years license renewal: 54,715 AED
• Five-years license renewal: 81,060 AED

Many companies have to pay late fees if they fail to renew their license in the DMCC. These late fees charges are:

• Late fees for 0-30 days for license renewal: Zero
• Late fees for 31-60 days for license renewal: 2,500 AED
• Late fees for 61-90 days for license renewal: 5,000 AED

3. How long will it take to set-up a company in DMCC?

The DMCC team further helps different businesses to guide them throughout the set-up process. It is crucial for any organization to deeply go through the DMCC details and regulations before applying to set-up a branch or business. The average time taken to set up a company in DMCC is ten days. The key steps that decide the time taken to set-up a company in DMCC include:

• The first step is to decide on the different license types and the business activities available on the DMCC website. These license types include trading license, general trading license, service license, and industrial license.
• Businesses can put their queries to DMCC, and the expert team creates and offers access to the unique portal. This portal is used to start the online application process.
  
• Businesses have to fill the online application, pay the first application fee of 1,035 AED, and then submit the application.
• DMCC completes the company name’s reservation, management, and approval of compliances.
• The next step is to pay the registration and sign the legal documents. Provisional approval is issued by the DMCC, and the company setup can be completed from any corner of the world.
• The final step is to sign and submit all documents for the new office space. Businesses get an online license.

4. What is the procedure for a family visa?

DMCC offers business set-up services in the free zones in Dubai. It is quick and easy to start a business from scratch in the free zones. Many people feel the need to settle in Dubai on a family visa. There are two ways to get a UAE family visa, including the expatriate’s sponsorship or the sponsorship from the employer. The procedure to get a family visa in Dubai involves:

• The first step is to obtain an entry permit for the family. The applications for the entry permit for the families are submitted to the General Directorate of Residency and Foreigners Affairs (GDRFA). It accepts online and in-person applications from the licensed typing centers of the GDRFA.
•  The applications for an entry permit for the family can be sent to the Federal Authority or Identity and Citizenship. It can be done on their online portal or using different mobile apps.
• After getting a family permit, the next step is to apply for a UAE family visa. It is a type of residence visa that any person can file on their family’s behalf.
• These applications are sent to the relevant emirates of the General Directorate of Residency and Foreigners Affairs (GDRFA).

5. How many employees can I hire in my free zone company?

The free zone offers multiple opportunities to different businesses. However, all free zones come with certain business restrictions that ensure transparent and viable policies for all. The number of employees in the free zone company is decided by the relevant emirate authority. Thus, the relevant number of visas is issued to the employees. Any business can increase the number of employees by paying additional license fees. Thus, the number of the employee visas permitted indicates the allowed company employees in any free zone company:

• The business with a Flexi-desk set-up can apply for up to three visas.
• The business with a serviced office can apply for up to five visas.
• The business with a physical office can apply for one visa per nine square meters.
• A limited liability company or a company branch can apply for up to 24 visas.
• Individual freelancers can apply for a single visa only.

6. Is there a minimum capital requirement for company formation in DMCC?

Every company has to abide by the share capital regulations that come with a minimum capital requirement for any company forming in the DMCC. The share capital is the portion of the company’s equity that can be obtained by a shareholder by an equivalent item of capital value or cash. It is easy for any business to calculate its share capital by dividing the number of total shares by the unit value of every share.

Thus, the minimum capital requirements for any company to work in the free zone are 50,000 AED. Further, the company should have a minimum of one million AED share capital to apply for the general trading license. The companies with a share capital of less than one million AED firstly have to apply for the increase in the share capital before applying for a general trading license. The share capital should be deposited within three weeks from the date of the issuance of the trade license.

7. What type of business licenses does DMCC provide?

DMCC offers a free zone license for core commodity trading like gold, precious metals, diamonds, plastics, pearls, base metals, steel, etc. The other commodities include different raw materials, energy, oil, textiles, food, and chemicals. All different license types come with different fees that vary according to the first or second year of operations. The different types of business licenses that are provided by the DMCC include:

8. What facilities are provided by DMCC?

Once a company is registered in the DMCC, it is mandatory for the businesses to rent an office to maintain the license. The visa eligibility of any business depends on the size of the facility. It is one visa issuance per 9 square meters. The facilities provided by the DMCC to different businesses are:

•  Flexi-desk facility: The required facility size should be 20-30 square meters with an annual cost of 18,457 AED.
• Small-fitted office facility: The required facility size should be 120-230 square meters with an annual cost of 34,421 AED.
  
• Business Center Office facility: The required facility size should be 20+ square meters with an annual cost of more than 50,000 AED
• Physical office for lease facility: The required facility size should be 50-250 square meters with an annual cost of more than 80 AED per square meters.
•  Physical office for sale facility: The required facility size should be 50-250 square meters with an annual cost of more than 700 AED per square meters.
• Retail shop facility: The required facility size should be 110-350 square meters with an annual cost of 2,00,000 AED.

 This information has been provided by DMCC