Audit and Assurance

DMCC Authority (DMCCA) Introduces New Company Regulations 2020

December 19, 2019 Comments Off on DMCC Authority (DMCCA) Introduces New Company Regulations 2020

The Dubai Multi Commodities Centre (DMCC) is considered as the leading free zone of the United Arab Emirates and has played a crucial role in attracting global and local businesses. With the presence of a stable political environment and an understanding, the Government has made this free zone the poster boy for setting up a business in Dubai.

 

Dubai Multi Commodities Centre (DMCC)

The Government felt the need to attract more and more businesses from all over the world to the United Arab Emirates. In line with this decision, the Dubai Government came up with the idea of the formation of the Dubai Multi Commodities Centre (DMCC). This free zone is situated in the Jumeirah Lake Towers in Dubai and serves more than 16,000 clients.

 

The DMCC is considered as a huge destination for the businesses and provides state of the art infrastructure and high-class business services to them so that they can flourish and reach their maximum potential. There are many industries in which the businesses can be set up in the Free Zone, such as:

  • Precious Metal Business
  • Coffee Business
  • Tea Business
  • Pearls
  • Agriculture Business
  • Metals Business
  • Financial Intermediation
  • Spice Business
  • Import and Export Business
  • Real Estate Business
  • Communication Business
  • Transportation and Communication Business

DMCCA Company Regulations 2020

Recently the DMCCA announced a new and updated set of rules and regulations for the Free Zone. These new regulations will allow greater ease in setting up the business in the Free Zone and will also enable flexible operations of the company. The increased flexibility will also help in the expansion of the company when required.

The significant amendments in the updated DMCCA Company Regulations 2020 include

  • Malleable and simple Mission, Vision and Objectives of the company so that the rules and laws of the company are more flexible and can be shaped as and when required.
  • An increased ability to transfer the incorporation of the company into the Free Zone.
  • The introduction of a new Dormant Status for the company.
  • The introduction of various share types which help the administration of a company to decide the structure of the business.

The assistance from the world’s top three law firms led to a new and updated framework for the Free Zone. The updated regulations of the Free Zone will allow the companies to operate using the internationally considered best practices. They will ensure that DMCC does not lose any of its competitive edges.

Advantages of setting up a Company in DMCC

The DMCC Free Zone has been stated as the Number One Global Free Zone for consecutively four years by the FDi Financial Times Magazine. There are many advantages to setting up a company in the DMCC Free Zone. These advantages are:

1. Strategic Positioning

The Free Zone is accessible from all over the world. The busiest airport in the world, the Dubai International Airport, is very nearby to the Free Zone which allows the free movement of both goods and people to and from the various parts of the world.

2. Infrastructure

The Free Zone of DMCC is built upon 200 hectares of land and comprises 66 towers. The Free Zone comprises of almost 92,500 residents and employees. The DMCC Free Zone also provides the option of renting or owning state of the art offices and residences in the Free Zone.

3. No Restriction on Currency

There is no restriction on the type of currency used in the Free Zone. There is also an option of repatriation of the capital of the business as well as any profit earned by the company.

4. Exemption from Taxes

The biggest and best advantage of setting up a business in the DMCC Free Zone. Nopersonal or corporate tax is levied on a company if the said business is set up in the free zone.

5. Conducive Business Environment

The DMCC Free Zone comprises of their administrative faculty, which means that the Free Zone administration is free to develop their own rules and regulations which will not be affected by the decisions of the UAE Government.

6. One-Stop-Shop for Licensing

DMCC provides a one-stop-shop for licensing, which makes it very easy for foreign people who are coming from all over the world to set up a company in the United Arab Emirates.

With the recent update of the company regulations, the DMCC aims to attract several people to come and set up a company in the Free Zone. If you are looking for a Reputed Accounting Firm which will help a company in the DMCC to reach its full potential and handle all the financial requirements of the company, do have a look at the services provided by JAXA Chartered Accountants. For more details on the services offered by us, Contact Us, we will be happy to help you.