What is the best way to do business in the United Arab Emirates? What type of company is suitable for the most effective business? We will tell you about the companies of Dubai Multi Commodities Center (DMCC). This zone exists since 2002 and represents a unique association of business structures. Currently, it unites more than 15 000 companies and more than 92 500 employees.
Companies of this type are registered in the free economic zone (Free Zone Company), after which they are entitled to carry out economic or commercial activities both in the territory of the free economic zone and outside it. The basis for doing business is the license obtained.
The obvious advantages of DMCC include the absence of taxation (with the exception of the recently introduced value-added tax at the minimum rate of 5%), the lack of currency control, the convenient location, the high level of data confidentiality, the possibility of obtaining a certificate of residence and the right for the issuance of resident visas.
DMCC companies can obtain one of the following licenses: general trading, industrial, commercial or service license.
The legislation of the UAE imposes quite high requirements on the authorized capital of such companies. So, for one founder, the minimum share in the authorized capital is 10,000 AED. But the minimum capital of the company must be at least 50,000 AED. In some cases, depending on the type of company’s activities, more stringent requirements are imposed on the minimum amount of the authorized capital. In addition, in the case of obtaining a general marketing license, the minimum amount of the authorized capital must be at least 1,000,000 AED.
Who can be the founder of DMCC? According to the legislation of the UAE, both natural and foreign persons can be founders. The law limits the maximum number of founders (shareholders) – 50. The company can have one to six directors, while there are no requirements for citizenship or residency of such persons.
The question of the office premises is very interesting. DMCC allows either to lease a real office or workplace in the DMCC business center – the so-called Flexi Desk Facility. Time to use the workplace is 16 hours per month. Depending on the type of license, certain requirements are set for the minimum area of the rented real office.
It is necessary to pay attention to the types of activity that registered companies can engage in. The list of activities is very diverse, for some special permits are required, for example, to create a school or open a medical center. There are no special permits for some kinds of activities. As a rule, up to 6 types of activity can be combined in one license of a company.
We help to choose the best type of activity from the list of possible ones, also to co-operate several activities in the same license, so that the introduction of the business covers all the directions necessary for you.
Registered companies are required to maintain appropriate accounting records and undergo an annual financial audit, the results of which are sent to the competent authorities of the DMCC.
DMCC companies can also receive a certain number of resident visas. For companies with a real office, their number depends on the size of the room at a rate of 10 square meters per visa, for companies with a workplace – the maximum number of visas is three.
Of course, the initial registration is only the first stage, in the course of carrying out economic activities, many questions and tasks arise. What is the role of our consulting agency in business processes? We give consultations, explain, arrange documents, do everything to ensure that both the initial registration and further activities fully comply with the requirements of the law. We also suggest the best ways to organize and conduct business, give advice on optimizing the expenditure while maintaining the original commercial goals and objectives.