In Dubai, there are several free zones that provide particular locations for the establishment and operations of various industries, they also assist them in the growth & development of their business. One of the most significant free zones is the Dubai Multi Commodities Centre (DMCC).
DMCC provides many advantages and beneficial services to its members, and recently they have introduced 2 new services that will help companies achieve their maximum potential. The latest announcement which was very much important was made by DMCC, that it has now partnered with the Department of Economic Development (DED) to provide new benefits for the Mainland companies.
The DMCC made 2 Announcements which are as follows:
- No objection certificate (NOC) to operate Onshore:
Previously all free zone companies were allowed to trade and conduct business activities only inside the designated free zone, and these companies could not take part in any of the mainland business activities. But, from 14 April the member companies with specific license activities are now allowed to provide their services outside the designated free zone without obtaining a trade license from the department of economic development.
If the company wants to operate onshore, the company will be required to approach the DED and provide a no-objection certificate that has been provided by the DMCC. After showing the NOC, the company needs to fulfill the requirements of operating onshore. The procedural NOC will be valid for 90 days from the date it is issued.
One of the eligibility criteria is the license activity. Only companies with certain approved service activities can apply for the permit, including the following:
- Consultancy in the lifestyle sector (e.g. Spa & Fitness consultancy, health planning consultancy)
- Events management
- IT related consultancy (e.g. cybersecurity, data entry, internet, IT)
- Management consultancy
- Accounting and bookkeeping.
The full list of services can be found here.
Conditions & Requirements
After having obtained the permit from the DMCC, the DMCC Company has to approach the DED to obtain the respective commercial permit.
- Dual License Office Permit:
All DMCC licensed companies occupying office space in DMCC and wishing to share the same office address with its subsidiary in Dubai mainland (branch office or limited liability Company with common shareholders as in the DMCC Company) can now apply for a Dual License Permit.
Such a permit would allow both companies – the DMCC company and its subsidiary (or its branch office respectively) – to use the same office space in the DMCC and hence to operate from one location. Such permits can only be applied for by DMCC companies with a trading or service license and by those with office space (not in a business center).
–Conditions & Requirements:
After obtaining the permit from the DMCC, the company has to apply for a dual license for its branch office or subsidiary with the DED. It should be noted that all rules and regulations of the DED concerning the registration and licensing of a branch or LLC will remain unchanged and will be applicable.
Already existing dual license initiatives – for example of the Dubai Airport Free Zone Authority – are only applicable to new establishments in Dubai mainland. This means that existing licenses of subsidiaries cannot be converted into dual licenses.
So, these are the new announcements made by DMCC.
The new initiatives will strengthen DMCC’s position within Dubai’s Free zones and it will also increase the attractiveness for existing companies.
Service companies established in the DMCC which are licensed for the pre-approved activities have now the possibility to legally carry out their business in the Dubai mainland. The dual license permit will enable DMCC companies and its branches/subsidiaries to share a common office and hence to reduce administrative fees and expenses. Especially in the current economic situation, such initiatives will be welcomed by many companies struggling to keep up their administrations in several locations.