Key Benefits
- 100% foreign ownership and unrestricted capital repatriation
- 0% VAT on imports and no duties within the zone
- 0% corporate tax on qualifying income (subject to QFZP regime compliance); all other income is taxed at 9%
- High reputation among banks — opening a local business account is notably faster than in lesser-known free zones
Category | Example Activities | Features |
Trading | Import-export, general trading, commodities, crypto brokers | General Trading requires AED 1M capital |
Service | Consulting, IT, marketing, asset management | Often allowed with flexi-desk setup |
Industrial | Light manufacturing, gold refining, packaging | Requires physical facility or warehouse |
As of October 2024, new licenses include SPV, Holding, Single/Multi-Family Office, and Freelance structures.
Share Capital Requirements
- Standard — AED 50,000 per company and at least AED 10,000 per shareholder
- General Trading — AED 1 million
- Gold/Precious Metals Trading (non-industrial) — Typically AED 50,000 is accepted, but DMCC requires proof of relevant experience and deposit within 30 days
- From 2024 onward, deposits up to AED 50,000 can be submitted directly via the DMCC portal; higher amounts require a bank transfer
- Submit a business plan outlining sourcing and compliance methods
- Comply with DMCC Responsible Sourcing Guidance (OECD-based)
- Register on the Tradeflow platform if collateral financing is planned
- Obtain a Customs Business Code via Dubai Trade for import/export
Additional Regulators & the “CIRA/SIRA” Clarification
In certain industries, a DMCC license alone is not enough — additional approvals are required:
Sector | Authority / Registry | Requirements |
Security Systems | SIRA (Security Industry Regulatory Agency) | Mandatory company and personnel certification, training courses |
Import/Export | Dubai Customs | Business Code registration before declarations |
VAT / CT | FTA (Federal Tax Authority) | VAT registration required if turnover exceeds AED 375,000 |
Crypto / VA Services | VARA (for operations outside DMCC Crypto Centre) | Pre-approval and capital adequacy required |
Financial Services | DFSA or Central Bank UAE | Prudential norms, director remuneration, compliance setup |
ESR & UBO Reporting | Ministry of Economy | Annual filings required for DMCC-registered companies |
— Typical timeline: ~10 working days with full documents
Benefits & Risks
- “Tier-1” reputation — favorable for banking and compliance
- 600+ activities, easy to adapt to new business niches
- Allows internal SPV/holding chains within the same zone
Caveats
- Higher licensing and office costs than emerging zones
- Strict compliance: annual audits, ESR, sourcing due diligence
- Losing QFZP status results in 9% corporate tax on all income
Our Practical Tips
- Model your revenue to ensure most of it qualifies for QFZP status
- Pre-identify a compliance officer, especially for gold/crypto activities
- Prepare banking scenario — supplier/client letters improve approval
- Consider SPV/Holding options to minimize dividend and transaction costs
You Succeed
