Business Setup Consultants in DMCC Dubai | Company Formation Services

Dubai Multi Commodities Center (DMCC) was established in 2002 and is the leading free zone for commodities trade and enterprise.

DMCC plays an important role in ensuring that Dubai has a global market for various business types. Business setup in DMCC has now become a little tighter compared to previous years as many people are aware of the demand in this place.

The major advantage of the free zone is tax exemption, which is advantageous for startups as their profits can be invested in growing and developing the business. This article will give you insights into the procedure for business setup in DMCC.

Understanding DMCC Free Zone

There are over 21,000 businesses registered in the DMCC, with diverse business genres. These include healthcare, AI innovation, gaming, cryptocurrency, import/export, and more. Here are the benefits of business setup in DMCC:

• One of the key benefits is 100% foreign ownership, allowing investors full control of their businesses without the need for a local partner. This policy, particularly in free zones and select mainland sectors, provides companies with greater autonomy and profit retention.
• Another major attraction is the zero personal tax while no corporate income tax up to a certain income/profit is generated. With these tax obligations, businesses can maximize their revenue and reinvest profits for growth. 
• The corporate-friendly regulatory environment also sets the UAE apart. Streamlined company setup processes, minimal bureaucracy, and investor-friendly policies make it easier to establish and scale businesses.
• Also, there are networking opportunities and industry ecosystems that support growth, with numerous business councils, startup consultants, and trade expos on the floor.

The Role of Business Setup Consultants in DMCC

To resolve legal compliactions

Business setup consultants guarantee that your company complies with Dubai’s legal requirements.

They assist you with acquiring the necessary licenses ( Commercial, professional, Industrial), making sure that you fulfill all documentation, registration, & approval processes, & providing support in comprehending the complexities of the legal system in UAE.

Help in structuring business (Mainland, Free Zone, Offshore)

Dubai offers several business structure options. For choosing the right business structure, consultants are crucial:

Free Zone Companies: 100% foreign ownership, tax exemptions, & ease of setup.

Mainland companies: Facilitates business operations throughout Dubai but usually mandates a local partner or sponsor.

Offshore Companies: Best suited for global trading and asset protection with tax advantages & low regulatory requirements.

Going through the visa procedures & permits

Many business setup consultancies provide visa processing, corporate banking assistance, & public relations officer services to handle government approvals & documentation.

Having an understanding of visa processes and residence permit requirements since they have extensive knowledge of the intricate UAE immigration laws, can handle the application process effectively and help you select the right visa type according to your business requirements, which may save time and prevent expensive errors.

Assistance with company formation, documentation, and banking

A business setup consultant in Dubai can help with company formation and ensure that you fulfill all documentation, registration, & banking by ensuring compliance with legal requirements and obtaining licenses.

Services Offered by Business Setup Consultants in DMCC

Company Formation & Registration

A business setup consultant usually provides services like assessing the client’s business idea, determining potential market prospects, creating an overall business plan, reviewing financial projections, selecting a legal structure, market research, competitor analysis, & defining operational strategies to provide the foundation for a successful business launch.

Licensing & Legal assistance

Registering your chosen trade name & applying for the relevant business license (Commercial, Industrial, or Professional) from the Dubai Department of Economic Development (DED).

Visa and Immigration Services

The process of a UAE visa involves applying for an Employee or investor visa through a PRO service, which may also include the application for a long-term residency permit such as the UAE Golden visa, allowing individuals to live & work in the UAE for a long period without a local sponsor. 

Banking, Finance, & Tax Assistance

When opening a corporate bank account in Dubai, choosing the right bank account for your business is important.

You have to choose carefully. To open a bank account, the required documents are company registration documents, shareholders & director details, proof of business address, and financial statements.

VAT registration tax is added to most goods & services at every stage of production or sale.

VAT registration is mandatory for companies & individuals conducting business to adhere to the FTA guidelines & maintain transparency in their financial deadlines.

Office Space & Business Address Solutions

A virtual office offers an accepted business address at a prime location, such as Dubai, which boosts the image and credibility of a company. Businesses can utilize the address, subject to regulations & laws locally.

Types of Business Setup in DMCC

Dubai Multi Commodities Centre (DMCC) offers various legal structures to accommodate different business needs. Companies can choose from the following options:

• Free Zone Establishment (FZE) – A single-shareholder company with limited liability. Which is suitable for entrepreneurs and sole proprietors. Also ideal for small to medium-sized businesses seeking full control.
• Free Zone Company (FZC) – Requires two or more shareholders. This is a limited liability structure offering flexibility for partnerships. Suitable for joint ventures and businesses with multiple owners.
• Branch Office – An extension of a parent company outside DMCC. There is no need for a separate legal identity. This operates under the parent company’s name. Suitable for international companies expanding into the UAE.
• Subsidiary Company – A separate legal entity owned by a parent company. Which comes under limited liability, allowing financial and operational independence. Ideal for companies seeking a presence in the UAE with independent operations.

Business Licensing in DMCC

There are three different types of licenses depending on the business genre. Trading, industrial, service business license.

To start a business setup consultancy in DMCC, you need a service license. The cost to get a business license depends on various factors like the location, type of industry, and size of the company.

The budget can range from AED 20,000 to AED 50,000 per annum. Adding on to this, the minimum share capital might depend on your chosen business sector and license type. This can range from no share capital required to AED 1,000,000.

Step-by-Step Business Setup Process in DMCC

Business Setup in DMCC is a structured and efficient process. Below is a step-by-step guide:

Choosing Business Activity and Legal Structure

Select the appropriate business activity from DMCC’s approved list.

Decide on the legal structure: Free Zone Establishment (FZE), Free Zone Company (FZC), Branch Office, or Subsidiary.

Ensure the selected structure aligns with business goals and regulatory requirements.

Trade Name Reservation and Approval

Choose a unique trade name that complies with DMCC naming guidelines.

Submit the name for approval to DMCC authorities.

Obtain trade name reservation confirmation before proceeding.

Documentation and Initial Approvals

Prepare required documents, including passport copies, business plans, and shareholder agreements.

Apply for initial approvals from DMCC.

Receive a provisional approval certificate to proceed with licensing.

Business License Application and Issuance

Apply for the relevant Trading, Service, Industrial, General Trading, or E-commerce License.

Pay the necessary fees and submit supporting documents.

Once approved, receive the official DMCC business license.

Office Space and Ejari Registration

Choose office space within DMCC (flexi-desk, shared office, or dedicated office).

Sign the lease agreement and register the office with Ejari (Dubai’s tenancy registration system).

Ensure compliance with office space requirements based on business activity.

Bank Account Opening and Financial Setup

Obtain the necessary legal documents, including the trade license and office lease agreement.

Choose a local or international bank for corporate account opening.

Submit KYC documents and complete compliance checks to activate the account.

Visa Processing and Employee Onboarding

Apply for investor and employee visas through DMCC’s visa services.

Complete medical tests, Emirates ID registration, and residency stamping.

Onboard employees as per UAE labor laws and company HR policies.

Timeline and Duration of the Setup Process

The entire setup process typically takes 2 to 4 weeks, depending on approvals and documentation.

Fast-track options are available for businesses needing quicker establishment.

Continuous DMCC support ensures a smooth setup experience.

By following these steps, your business can efficiently establish a presence in DMCC.

Cost and Fees Involved in Setting Up a Business in DMCC

Ideally, an entrepreneur should have at least AED 5000 to set up a business in DMCC. There are additional costs like office space, gadgets, and other collateral costs.

Office space costs are also a significant factor as businesses must lease a physical office in DMCC. Options include flexi-desk facilities starting from AED 16,000 per year, while private offices can cost anywhere from AED 25,000 to AED 100,000 or more, depending on size and location.

License and Registration Fees

License and registration fees cannot be ignored, as these play a major role in the smooth operation of the business. It is advised to complete the procedure at the beginning so the fine amount imposed can be avoided.

The cost of obtaining a DMCC business license depends on the type of activity chosen, with fees typically ranging between AED 10,000 to AED 50,000 annually. Registration and incorporation fees add to the initial expenses, usually around AED 9,000 to AED 12,000.

Visa Processing and Employee Sponsorship

For companies hiring employees, visa processing and employee sponsorship costs must be factored in. The cost per visa typically ranges between AED 3,500 to AED 7,000, including medical tests, Emirates ID, and residency permits. Additional costs may apply for dependents or multiple employees.

Banking & Accounting Costs

Bank account setup and financial costs include initial deposit requirements, compliance fees, and banking service charges. Many banks require a minimum balance of AED 50,000 to AED 500,000, depending on the account type and financial institution.

Advantages of Hiring a Business Setup Consultant in DMCC

• Time efficiency: Consultants speed up the process by taking care of these for you so you can concentrate on your business activities. All the legal documentations and processes can be managed by these people.
• Cost savings: The business setup consultants do charge for their services, but they prevent you from making costly errors, incurring legal expenses, and wasting time.
• Business strategy support: These people have a well-established network of contracts with legal experts, government representatives, real estate agents, and other parties. This network facilitates the setup process to move faster and may offer useful resources to entrepreneurs.

Challenges in Setting Up a Business in DMCC

Not enough knowledge about business jurisdiction

Choosing the right jurisdiction- Mainland, free, or offshore is crucial when setting up a business in Dubai since each has its laws that affect business operations, rights of trade, and profitability. With more than 40 free zones alone, a wrong choice can limit growth and revenue.

Employee visa hiring complications

Business owners and employees need the correct visa to operate in the UAE. The visa process can be time-consuming and requires several approvals.

Difficulties in opening a corporate bank account

Opening a corporate bank account in Dubai is challenging due to the strict regulations, unclear bank policies, and high demand, leading to delays in verification and approvals.

How to Choose the Right Business Setup Consultant in DMCC

Choosing the best choices among so many options is crucial. To choose the best business setup consultant, here are a few factors:

• Experience & Expertise – Look for the business’s existence in the field and how many years these people have been serving. Talk to the clients they worked with and get to know on which particular aspects they’re expert.
• Reputation & Reviews – The testimonials will be displayed on the website; take reference from them, meet in person for a chat, and get to know more about the services they provide.
• Cost & Transparency – Check if the price meets the best of the expectations and is reasonable. 

Conclusion

Business setup consultant in DMCC is an advantageous business idea. As DMCC is the business hub, people need to be advised about how to set up businesses in their own field of expertise.

And this is exactly what these consultants focus on, to improve and easy process. Navigating through legal requirements, licensing, visa processes, and employment contracts are essential factors that need attention to detail.

All these hurdles can be handled by these consultants, which eases the pressure on the owner/entrepreneur, allowing them to focus on the improvement part.

Arnifi is a digital-first Corporate service provider helping companies enter the Middle East region, starting with the UAE and Saudi Arabia markets.

Founded and backed by professionals from Amazon, Souq, and other large companies operating in KSA, the team understands what it takes to succeed as a startup in both the UAE and Saudi Arabian markets, apart from going through the setup process multiple times.

Arnifi will provide a truly digital experience to entry and scale up of companies in both UAE and Saudi Arabia. Discover tailored solutions and strategic partnerships that propel your business forward.

Business Setup Consultants in DMCC Dubai: FAQs