DMCC Company Setup - DMCC Company Formation

March 25, 2021by Mohammed Rahali

DMCC Company Setup – DMCC Company Formation

In Brief

Dubai Multi Commodities Center Authority (DMCC) is a center of Global trade. DMCC Company setup is relatively easy and should be strongly considered by entrepreneurs & investors looking to expand in the Middle East. This highly reputed DMCC Free zone issues different type of Licenses for trading activities, especially in the sectors of commodities, Gold, Diamond, Precious stones, steel, etc. DMCC perform a range of roles which continue to position Dubai as the preferred destination for global commodities trade and DMCC as the world’s No.1 Free Zone.

 

“DMCC Awarded ‘Global Free Zone of the Year’ for a Record Sixth Consecutive Year”

 

1. WHAT TYPE OF LICENSES ARE AVAILABLE IN DMCC FREE ZONE?

Industrial License – this enables the licensee to import raw materials, then production, re-production, manufacture, package the specified products, and finally export.

Service License – allows service providers production, re-production, transformation and distribution of services. Service license includes rendering services as the primary objective and utilizing associated goods to provide those services.

Trading License – import, export, distribution, consolidation, storage or warehousing of goods specified in the license.

General Trading License – is required for those who wish to import, export, distribute and store no specific product lines. AED 1 million share capital is required.

Type of License Fees in AED
Trading & Service License Starting from AED 20,265
General Trading License Starting from AED 50,265
Business Centre/ Serviced Office License Starting from AED 50,265

2. WHAT ARE THE CONSTITUTION PROCEDURE IN DMCC FREE ZONE?

Steps Timeframe
1. Submission of Initial Inquiry with DMCC:

•Submit initial inquiry with DMCC;

•DMCC will contact applicant and send login details for the DMCC online portal.

1 – 2 working days
2. Portal Registration/Username and Password set-up:

•The applicant’s username and password should be set as soon as the email link is received from DMCC before proceeding with the application

3 working days
3. Application for Name, Activity and CID Approval (Pre-Approval), by uploading of the Information and Documents through the DMCC Portal:

•3 choices of company name;

•Name of bank the applicant plans to use (DMCC requires this information for the bank letter they will issue at a later stage);

•Unit value of the shares;

•License activity details;

•Business Plan – template to be provided;

•Engagement letter – template to be provided.

From each individual shareholder, director and manager:

•Passport copy of the individual Shareholder(s), Director(s), Manager and Secretary – notarized by the notary public or otherwise signed in the presence of a DMCC Legal Administrator;

•Recent utility bill as proof of domicile – copy;

•Specimen signatures of the individual Shareholder(s), Director(s), and Manager – notarized by the notary public or otherwise signed in the presence of a DMCC Legal Administrator;

•KYC form of the individual Shareholder(s), Director(s), and Manager – original;

•No Objection Certificate from the UAE residence visa sponsor if applicable – original;

•Emirates ID copy of the individual Shareholder(s), Director(s), Manager

•Shareholder Resolution for the incorporation of the company (a DMCC template shall be provided) – notarized by the notary public, legalized by the supervising authority and super legalized by the UAE Embassy from abroad OR signed by the shareholders in the presence of DMCC representative.

1 – 2 working days

(provided that all the required information are given beforehand)

Steps Timeframe
From each corporate shareholder:

•Board Resolution for the incorporation of the company (a DMCC template shall be provided) – notarized by the notary public, legalized by the supervising authority and super legalized by the UAE Embassy from abroad;

•Corporate documents (i.e. Registration/Incorporation Certificate or Registrar Extract/Certificate of Good Standing, Trade License, Incumbency Certificate, Memorandum and Articles of Association) – notarized by the notary public, legalized by the supervising authority and super legalized by the UAE Embassy from abroad.

4.Verification of Uploaded Documents and Pre-Approval

•DMCC will verify all the documents uploaded by the applicant.

•DMCC will inform applicant in case there are missing/incomplete or further additional documents required to be uploaded.

10 – 15 working days
5. Submission of Original Documents and Payment of the Registration, MoA, and License Fees:

•Payment of the rest of the registration fee (AED 9,010.00), MoA fee (AED 2,010.00) and License Fee AED (20,010.00);

•Submission of the Original Incorporation Documents (i.e Shareholder/Board Resolution; Specimen Signature Form; KYC Form; Business Plan; etc.).

1 working day

(provided that all the required documents are given beforehand)

6. Verification of Original/Attested Documents for Company Registration

•DMCC will verify all the documents submitted by the applicant in order for them to proceed with the company registration.

10 – 15 working days
7. Issuance of Provisional Approval and Bank Account Opening Letter

•The Provisional approval and bank letter will be issued by DMCC

1 working day
8. Licensing:

•Signing of the Memorandum and Articles of Association (M&AoA).

•Submission of the signed lease agreement for physical office or the signed lease agreement for the flexi desk facility.

Office Requirements:

a. Tenancy Contract for the office valid for at least one year under the name of the new DMCC Company – copy, original must be presented for verification or

DMCC Virtual/Serviced/Flexi Desk Office Contract (subject to approval);

b. Certificate of Ownership from the office developer or tower owner – original or Title Deed – original (shall be returned after verification);

1 – 2 working days
Steps Timeframe
c.  Fit Out Drawings approved by the JLT Property Department Architect – copy, original must be presented for verification;

d. No Objection Certificate (NOC) from Concordia – copy;

e. NOC for the Fit Out Works from the Civil Engineering Department (CED) – copy;

f. NOC /Building Permit issued by the Environment Health and Safety Department (EHS) – copy;

In lieu of items d, e, f and g:

g. Undertaking letter for office fit out stating that the applicant will submit all relevant drawings and NOCs (until such time that these documents are submitted, DMCC will process only 1 visa for either a shareholder or manager) – original.

For retail activity:

h. Interior fit out NOCs from Concordia, EHS and CED – original;

For jewellery companies:

i. Police report issued by the Department of Protective Systems reflecting the licensed tenancy address – original.

9. Issuance of License and other relevant corporate documents:

•License;

•Certificate of Incorporation;

•Memorandum and Articles of Association;

•Share Certificate/s;

•Personnel Secondment Agreement (for countersignature by DMCC once signed by the Manager/Shareholder).

10 – 15 working days
10. Post-Licensing Requirements:

•The Company must submit the following documents to DMCC’s legal department within 1 month from receipt of the corporate documents:

•Personnel Secondment Agreement – original, signed and stamped by the Manager;

•Specimen letterhead – stamped;

•Acceptance Letter of an Auditor – original;

•Share Certificate/s of the Shareholder/s – signed and stamped – copy;

Bank Account statement confirming deposit of the share capital of the company

1 – 2 working days

 

3. WHAT ARE THE OUTPUT OF SETTING UP A COMPANY IN THE DMCC FREE ZONE?

  • Certificate of Registration
  • Trade License
  • Memorandum of Association (MOA)
  • Articles of Association
  • Share Certificate

Download the full article on setting up a DMCC Company below.

 

Notes:

Please note that the above schedule serves only as a guide and does not take into account any delay from the authorities which is beyond our control; The free zone authority reserves the right to request for additional supporting documents at any time throughout the pre-approval and application process. The procedure and requirements may change from time to time without prior notice;

 

4. HOW CAN WE HELP YOU IN SETTING UP A DMCC COMPANY?

If you wish to discuss the many benefits of setting up a DMCC Company, or any other legal entity, feel free to contact us.

For Support and assistance on a DMCC Free zone Business Setup Get in Touch with our Corporate Team Today on +971 4 221 2602 or contact@wincoreadvisory.com.

Wincore specializes in Tax, Corporate and Fiduciary matters. We provide pragmatic, flexible and efficient solutions to individual entrepreneurs, startup businesses, foreign and local SMEs, multinationals, wealthy international families, HNWIs and UHNWIs.

Wincore Advisory Group’s full range of services on : CRS (AEOI) – OECD exchange of information ; Economic Substance Regulations; Trust & Foundation; Asset protectionEstate & Tax Planning; Corporate Services; Sophisticated UAE Sponsorship PlanningDebt Collection Services in UAE; Residency & Citizenship Services ( Foreign second passports).

 

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Mohammed Rahali

Managing Partner | E: m.rahali@wincoreadvisory.com | M: +971 (0) 55 138 9591

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