Business entities in DMCC Free Trade Zone in 2023

To legally conduct business in the UAE, the majority of our multi-national Clients register a DMCC subsidiary LLC. Some foreign companies choose a branch office.

• The DMCC limited liability company (LLC)

  • The DMCC LLC is preferred by international investors and entrepreneurs. This company can be established by individual shareholders, or as a subsidiary of a foreign company;
  • This entity requires i) at least one shareholder and one director, who can be the same individual and need not be resident in UAE and ii) a minimum paid-up share capital of AED50,000 (US$13,615);
  • Each LLC must also i) secure office space and a lease agreement within the Free Zone and ii) appoint a DMCC-approved audit firm.

• The DMCC branch office

  • Foreign companies looking to do business in DMCC Free Zone, but who do not wish to set up a subsidiary LLC, can establish a branch office;
  • A branch office has no minimum paid-up capital requirement, but must obtain a licence specific to its activity;
  • The branch office activity and scope of operations is defined by the parent company. A branch cannot therefore engage in an activity not provided by the parent.

• Doing business onshore Dubai through a DMCC company

  • Since April 2020 DMCC Free Zone companies are allowed to conduct business in Dubai without needing a local agent;
  • Eligible DMCC entities looking to operate in Dubai must i) obtain a no-objection certificate (NOC) from DMCC Free Zone Authority and ii) obtain a Commercial Permit from Dubai Economic Development (DED) to operate locally;
  • An eligible DMCC company with a mainland branch or subsidiary, or a DED company with the same shareholder as a DMCC entity, are allowed to operate from DMCC Free Zone premises without restriction.

• Table of comparison between DMCC Free Trade Zone resident entities

  Summary of different DMCC FZ entities	DMCC LLC	DMCC Subsidiary LLC	DMCC Branch
  Operations and logistics
  Doing business in DMCC/mainland permitted?	Yes	Yes	Yes
  Allowed to sign contracts with local Clients?	Yes	Yes	Yes
  Allowed to invoice local Clients?	Yes	Yes	Yes
  Can rent Free Zone office premises?	Yes	Yes	Yes
  Allowed to import raw materials?	Yes	Yes	Yes
  Allowed to export goods?	Yes	Yes	Yes
  Accounting and tax
  Corporate tax rate?	0%	0%	0%
  Corporate bank account?	Emirates NBD	Emirates Islamic Bank	FAB
  Statutory audit required?	Yes	Yes	Yes
  Annual financial statements submitted?	Yes	Yes	Yes
  Access to DTAAs?	Yes	Yes	Yes
  Company law
  Issued capital required?	US$13,615	US$13,615	None
  Resident director required?	No	No	No
  Resident bank signatory required	No	No	No
  Local shareholder required?	No	No	No
  Minimum number of directors?	1	1	1
  Minimum number of shareholders?	1	1	Parent company
  Individual shareholders allowed?	Yes	Yes	No
  Corporate director(s) allowed	No	No	No
  Corporate shareholders allowed?	Yes	Yes	Yes
  Public register of shareholders and directors	Yes	Yes	Yes
  Immigration
  Can the entity hire expatriate staff?	Yes	Yes	Yes
  How long to get work permit approved?	5 weeks	5 weeks	5 weeks
  Fees and timelines
  How long to set the entity up?	2 months	2 months	2 months
  How long to open corporate bank account?	5 weeks	5 weeks	5 weeks
  Estimate of engagement costs	US$28,786	US$28,786	US$30,500
  Draft invoice	View invoice PDF	View invoice PDF	View invoice PDF