Dubai Multi Commodities Centre (DMCC)

There is no minimum capital requirement for establishing a company in DMCC. While you need to specify a share capital amount in your company documents, DMCC does not require you to deposit this amount in a bank account. However, it's advisable to set a reasonable share capital that reflects your business scale and potential future banking requirements, as banks may have their own minimum balance requirements for corporate accounts.

DMCC allows for 100% foreign ownership, with no requirement for a local sponsor or service agent. The company can have a minimum of one shareholder (individual or corporate entity) and a maximum of 50 shareholders. Corporate shareholders must provide their certificate of incorporation, board resolution approving the DMCC company formation, and other corporate documents. Individual shareholders need to provide passport copies, proof of address, and a bank reference letter in some cases.

All DMCC registered companies must submit audited financial statements annually. These financial statements must be prepared by a DMCC-approved audit firm and submitted within 90 days after the end of the financial year. The audit must comply with International Financial Reporting Standards (IFRS) or other acceptable accounting standards. The audit requirement applies to all companies regardless of size or activity, including those that have been dormant or have not yet commenced operations.

The number of visas available depends on your office space type and size. Virtual offices typically allow 1 visa, while flexi-desk packages allow up to 3 visas. For physical office spaces, the visa allocation is generally calculated at a ratio of 1 visa per 9 square meters of office space. Additional visas beyond your initial quota may be requested subject to DMCC approval. Companies can also apply for dependent visas for family members of employees, subject to meeting minimum salary requirements and other criteria.

DMCC companies have access to a wide range of banking options in the UAE, including local, regional, and international banks. Most major banks offer specialized corporate accounts for free zone companies with services such as multi-currency accounts, trade finance, cash management, and online banking. The account opening process typically takes 2-4 weeks after license issuance, and requirements vary by bank but generally include the company's trade license, articles of association, board resolution, and shareholders'/directors' identification documents. Some banks may require an initial deposit and/or minimum balance maintenance.

Yes, DMCC companies can conduct business globally, including within the UAE. However, for direct business activities in the UAE mainland (outside free zones), some additional requirements may apply. DMCC companies can freely export and import goods, provide services to UAE mainland companies, and contract with government entities through a local distributor or agent. For establishing physical retail presence on the mainland, a separate mainland license or partnership with a mainland entity would be required. For services, DMCC companies can generally provide them to mainland clients without restrictions.

DMCC licenses must be renewed annually. The renewal process requires submission of an application 30 days before expiry, along with the payment of renewal fees. Required documents include the current trade license, lease agreement renewal, audited financial statements, and confirmation of current shareholders and directors. Companies must also ensure all DMCC regulations have been complied with, including any updates to company information. Failure to renew on time may result in penalties, and licenses expired for more than 12 months may require a new registration process.

DMCC companies enjoy 0% corporate and income tax on business activities. However, they are subject to Value Added Tax (VAT) at the standard rate of 5% if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 per annum. VAT registration is optional for businesses with supplies between AED 187,500 and AED 375,000. DMCC companies must also comply with Economic Substance Regulations (ESR) if conducting relevant activities, which requires demonstrating adequate economic presence in the UAE. Additionally, companies must adhere to Country-by-Country Reporting (CbCR) requirements if part of a multinational group with consolidated revenue exceeding AED 3.15 billion.