Everything you need to know about DMCC free zone license
Written By Antima – 14th April’21
DMCC provides everything you need to start, grow, and expand your business. It is like a home to a thriving community, cutting-edge infrastructure, world-class services, and a magnificent array of real estate options, all within a small distance of great air, sea, and road connections to the rest of the globe. You’ll find everything you need in the heart of Dubai, in the Jumeirah Lakes Towers neighborhood.
DMCC is in a class by itself, with its Free Zone designation, state-of-the-art commercial and residential buildings, and top-tier commodities and financial services. Furthermore, continuing investment in the most networked, innovative infrastructure and top business services makes trading from here simple. Anywhere in the globe, efficiently and simply.
Each firm must get a license for a certain type of activity/operations while enrolling in the DMCC free zone. It is illegal to undertake any business operations on the free zone’s land without first obtaining a license from the Emirate’s government.
The following are the several types of DMCC licenses:
Trading License – Allows just the specified groups of products to be traded.
General Trading License- It enables you to trade any permissible item.
Service License – enables you to do the services listed in the license as well as consultancy services.
Industrial License – This sort of DMCC license permits you to carry out light manufacturing operations that are defined in the license.
Companies registered with the DMCC that carry out activities listed under various licensing categories must apply for separate licenses for/in each category. Licenses for the above-mentioned activities are only valid in the free zone.
The cost of a DMCC license is determined by its kind.
DMCC Free Zone provides one, two, and three-year licenses. A 2 year validity period license comes with a 5% discount on the total license price, while a 3 year validity period license comes with a 10% reduction on the total license fee.
Obtaining and renewing DMCC license
To acquire and maintain a license, the applicant must have:
1. valid business registration with the DMCC Administration; a valid rental agreement or freehold title to real estate; and a valid rental agreement or freehold title to real estate.
2. Should not contradict any part of the DMCC Rules or any other relevant laws, rules, or regulations in Dubai, as well as any sections of UAE federal legislation In addition, the company’s kind of business should exactly fit the DMCC license’s operations.
From the date of issuance, licenses are valid for at least 12 months. Licenses must be renewed at least 30 days before the existing license’s expiration date. Failure to comply with this condition will result in the imposition of a tariff penalty, as well as the permanent revocation of the license, or termination of a company’s DMCC registration.
The firm must do the following when applying for license renewal:
- Continue to meet all of the criteria that were in place when you originally got your license;
- be able to show that you’re in excellent financial shape by providing your most recent audited financial statements or audit report.
- confirm that the company does not owe the DMCC Administration any rent arrears, charges for utilizing the JLT Infrastructure, penalties, or other costs.
- DMCC license renewal costs must be paid following the rates.
Cancellation of DMCC License
The DMCC administration has the authority to revoke a license immediately after receiving written notice from the firm, or at the company’s request.
There are a variety of grounds for canceling a DMCC trade license or any other sort of license:
- The corporation was found to have given false or misleading information about its business and activities.
- The firm broke the terms of the appropriate license, as well as any other regulatory requirements.
- The firm violates one or more of the DMCC Rules.
- The firm acts in a way that shows it doesn’t care for the DMCC Rules, the DMCC Administration, or the DMCC, or any other applicable laws.
- The corporation does not run or perform any business.
- The firm failed to submit the application or renewal papers that were required
- The firm failed to pay any DMCC Administration fees, rent, penalties, or other charges.
- The company acts in a way that, in the view of the DMCC Administration, harms the Administration’s reputation and interests, the free zone’s interests, or the interests of other businesses or the general public.
How Radiant Biz helps you
In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.
We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.