The Dubai Multi Commodities Centre (DMCC) Free Zone is widely regarded as one of the leading free zones in the UAE and globally. Located in the heart of Dubai, DMCC offers a highly strategic location for businesses aiming to capitalize on the UAE’s dynamic trade environment. Established in 2002 by the government of Dubai, DMCC provides a full range of facilities, regulatory support, and infrastructure that make it an ideal destination for companies looking to set up operations in the UAE. Today, DMCC is home to over 21,000 registered companies from various sectors, including commodities, trade, financial services, and technology.
Why Choose DMCC Free Zone?
1. Strategic Location
The DMCC Free Zone is situated in Jumeirah Lakes Towers (JLT), a prime business and residential area in Dubai. Its proximity to key landmarks such as the Dubai International Airport and Jebel Ali Port makes it an attractive hub for international trade. Businesses can enjoy seamless access to international markets, enhancing opportunities for growth and expansion.
2. World-Class Infrastructure
DMCC offers world-class infrastructure and state-of-the-art office facilities. With purpose-built business centres, DMCC ensures companies have access to premium office spaces, meeting rooms, co-working spaces, and retail outlets.
3. 100% Foreign Ownership
In the DMCC Free Zone, businesses can enjoy full ownership of their companies without the need for a local sponsor. This offers entrepreneurs and foreign investors greater control and flexibility over their operations.
4. Full Repatriation of Capital and Profits
One of the most attractive features of the DMCC Free Zone is that businesses are allowed to repatriate 100% of their capital and profits to their home country without any restrictions. This policy ensures greater financial flexibility for investors.
5. No Customs Duty
There are no customs duties on goods and services within the DMCC Free Zone. This creates an advantage for companies engaged in trading and importing/exporting commodities, reducing overall operational costs.
6. Robust Regulatory Framework
DMCC provides a transparent and robust regulatory environment for businesses, ensuring that companies operate within a well-defined legal framework. The authority also offers ongoing support to businesses in terms of compliance and regulatory issues, making it easier to navigate the complexities of international trade.
Types of Businesses in DMCC
The DMCC Free Zone caters to a wide array of business sectors, allowing entrepreneurs to choose the right type of entity that suits their business needs
Commodity Trading
As a leading hub for commodities, DMCC plays a pivotal role in the trade of precious metals, diamonds, and energy commodities. The free zone has specialized platforms, such as the DMCC Tea Centre and DMCC Coffee Centre, catering to specific sectors.
Financial Services
Financial institutions can also operate within DMCC, benefiting from the region’s robust banking system and tax advantages. DMCC has developed specialized infrastructure to cater to financial and professional services companies.
Technology
The tech industry is rapidly growing within DMCC, with the free zone offering opportunities for startups, fintech firms, and established tech giants to operate seamlessly in Dubai’s thriving tech landscape.
Trading and Distribution
DMCC is a major hub for importers, exporters, and distributors, providing easy access to global markets. The free zone’s logistics infrastructure ensures efficient transport and distribution of goods across borders.
UAE Tax Applicability on DMCC Free Zone
Corporate Tax in DMCC
Starting from June 1, 2023, the UAE introduced a federal corporate tax on businesses at a standard rate of 9% for profits exceeding AED 375,000. However, free zone companies, including those in DMCC, can still benefit from certain tax incentives under the new tax regime, provided they meet specific criteria.
Key Points of Corporate Tax in DMCC:
- Tax-exempt activities: Companies in the DMCC Free Zone that engage in “qualifying” activities, such as international trading of goods and services, can remain eligible for a 0% corporate tax rate.
- Non-qualifying activities: Activities that are outside the scope of qualifying criteria will be subject to the 9% corporate tax.
- Substance requirements: Businesses must meet economic substance requirements to benefit from the tax incentives, ensuring they have sufficient operations and decision-making presence in the UAE.
VAT in DMCC (Value Added Tax)
The UAE has imposed a 5% VAT on goods and services since January 2018. However, businesses operating in the DMCC Free Zone may qualify for VAT exemptions, particularly if they engage in cross-border transactions. Exemptions and zero-ratings are available for businesses dealing in specific commodities or providing international services.
Customs Duty in DMCC
Companies in the DMCC Free Zone benefit from zero customs duty on goods imported or re-exported through the free zone. Goods sold within the UAE mainland, however, are subject to a 5% customs duty.
Benefits of Tax Exemptions in DMCC
