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LLC Registration in DMCC FEZ
Limited Liability Company Registration  in DMCC Free Zone, Dubai.
Company registration in FEZ DMCC, Dubai

Limited Liability Company Registration in DMCC Free Zone, Dubai. Service offer

The Emirate of Dubai is located on the Arabian Peninsula, in the south of the Persian Gulf. Among the seven emirates that make up the UAE, it is the most populated one and second largest after Abu Dhabi. Dubai has more than 20 free zones. DMCC Free Zone offers the possibility of registering Dubai onshore (free zone) companies that can operate both within and outside the UAE. Such companies are granted a licence (special authorization from the Emirate’s Authority) according to the type of activity that they will be engaged in. Establishing a free zone company implies the possibility of obtaining residence visas for shareholders/employees, as well as their families, which is an indisputable advantage.

Major advantages of doing business in the UAE

No corporate tax;
Stable banking system;
Ability to work with US dollars;
Quick company registration;
Ability to create substance in the country of registration;
Ability to obtain a residence visa for the company’s shareholders and employees.

Budget for setting up business in DMCC Free Zone

Services
Fees (USD)
Company registration in DMCC Free Zone, including licence, rent of flexi desk, company formation services, and E-channel registration[1]. This fee is applicable in the case of: - single shareholder; - type of licence – service; - office – flexi desk. Other options – upon request
19 200
E-channel deposit (refundable, returned in the case of licence revocation)
AED 5 000 / USD 1 370
Obtaining a residence visa (cost of one visa – investor visa), including: - payment of all government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport); - preparing necessary documentation; - accompanying the applicant and transport costs (trip to the hospital and migration authority)
4 200
Assistance with bank account opening (irrespective of the outcome of application). Corporate account (for legal entity)
2 500
Total:
27 270

COMPANY REGISTRATION

Company registration in DMCC includes the following steps:

1) Selecting

company name to be checked for availability (at least two names), which name:
  • must not be identical or similar to the name of an existing company;
    • can use Latin characters;
      company structure (director, shareholders, secretary and manager);
      type of licence

      DMCC Free Zone has three types of licence:

      Service licence – allows the holder to provide the type of services specified in the licence.

      Examples of service licences: business consulting, marketing consulting, project consulting, IT consulting, etc.

      Trading licence – allows the holder to import, export, sell, distribute and store goods specified in the licence.

      Examples of trading licences: general trading, e-commerce, trading in certain types of goods: 3 to 5 types.

      Industrial licence – allows the holder to import raw materials for production, processing and/or assembly of specified products. Finished products can be exported outside the UAE.

      Examples of industrial licences: processing licence, assembly licence, packaging licence, production licence.

      Some licences require approval from the relevant regulator: for example, a number of production licences require approval by the UAE Environment and Protected Areas Authority or a specific ministry.

      2) Paying fees

      3) Providing documents for directors / shareholders / attorneys

      (either originals or notarized copies):

      internal and international passports;
      proof of address (unless the internal passport contains an address stamp);
      CV.

      The shareholders need to additionally provide personal data in the form of a letter: phone, email, residential address, country of residence, mother’s name, marital status, religion, and citizenship.

      Company officers’ prior visit to the UAE is NOT mandatory for company registration. It is also irrelevant how old the UAE entry stamp is.

      For Compliance purposes, the shareholders will also need to sign a Client Questionnaire Form and a Contract for administration.

      Preparation and Submission of Documents for Company Registration

      The following documents are prepared for submission to the registration authority:

      Application for company registration (signed by the shareholder);
      No Objection Letter (from the sponsor) – where there is a valid UAE visa issued by another company;
      Memorandum & Articles of Association.

      Before registering a company, the Free Zone authority must check the shareholders and directors of the company (Security Check). At this stage the Free Zone may request additional documents, for example, a police clearance certificate. The check normally takes 2 to 4 business days.

      Once the check is done, the company is registered. Upon registration, the Free Zone authority issues the following documents:

      • Certificate of Incorporation indicating the registration number and date, type of licence, details of shareholder and share capital of the company;
        • Licence for the declared type of business (valid for 1 year);
          • Office lease agreement (for 1 year);
            • Share Certificate;
              • Memorandum & Articles of Association.

                A company seal is also issued.

                The total time to register a company in DMCC is 15 days, on average

                Upon registration of the company, you can proceed with visas and bank account opening. A company can open a bank account both at a UAE bank and at a foreign bank – please contact your GSL consultant for details.

                IMPORTANT: Since the UAE is not party to the Hague Convention of 5 October 1961, which abolishes the requirement for legalization of foreign official documents, and does not apostille documents, it is necessary to submit the documents of a local company for legalization to the consulate of a country where they will be used

                The fees for translation, notarization, legalization and apostille are charged additionally.

                VISA APPLICATION

                The UAE does not have such concept as a residence permit. UAE migration rules require the issuance of residence visas which in practice are similar to a residence permit.

                A residence visa can be obtained on the following grounds:

                • based on owning a UAE onshore company – investor visa;
                  • by making an employment contract with a UAE onshore company – work visa.

                    The number of residence visas depends on the business package chosen during registration of the company.

                    An investor visa is normally issued for 3 years, a work visa – for 2 years. Upon expiration, a visa can be renewed.

                    Application for residence visas includes the following steps (a visa can only be applied for after registration of the company):

                    1. Opening an Establishment Card (the migration file of the company) – 5-10 days. This document is necessary for the company to be able to apply for residence visas in the future.

                    2. Submitting documents for a residence visa and obtaining an Entry Permit (permission to enter the country) – 5-7 days.

                    To obtain a residence visa, an individual must enter the UAE with an Entry Permit.

                    If at the time of issuing of Entry Permit the applicant is already in the UAE, then in order to complete the issuance of a residence visa without leaving and re-entering the country, it is necessary to change the status of the visa. The service of changing the status of a visa is provided upon request and is subject to additional charges.

                    3. Visiting the UAE to obtain a residence visa – in most cases, a visa can be obtained within 5 working days.

                    The applicant needs to:

                    • undergo a medical examination (blood test and chest X-ray);
                      • submit biometric data (retina and fingerprints scan).

                        After receiving a passport with a residence visa inserted into it, one can leave the country.

                        4. Obtaining a resident ID card - ID Emirates.

                        The card is issued a few days after the issuance of a visa. Personal presence is not required to receive it.

                        IMPORTANT: One is not required to reside in the UAE permanently, but a residence visa will be cancelled if one stays outside the UAE for more than 6 months

                        The fees for obtaining a residence visa in DMCC Free Zone start from USD 4200. Please contact your consultant for more details on the application.

                        COMPANY STRUCTURE

                        Directors

                        The director can be an individual over 21 years of age. There are no requirements as to the residence of the director. A corporate director can only be appointed subject to approval of the Registrar.

                        The minimum number of directors is 1, the maximum number is not set by the Free Zone.
                        Details of directors are not accessible to public.

                        Secretary

                        The secretary can be either an individual (over 21 years of age) or a legal entity.

                        There are no requirements as to the residence of the secretary.

                        The maximum number is 1 and it can be the same person as director.
                        Details of the secretary are not accessible to public.

                        Manager

                        The manager can only be an individual over 21 years of age.

                        There are no requirements as to the residence of the manager. It can be the same person as director / shareholder.
                        Details of managers are not accessible to public.

                        Members

                        Both individuals and legal entities can be shareholders. There are no residence requirements.

                        DMCC does not require a company to necessarily have a local shareholder in its structure.
                        Details of shareholders are not accessible to public.

                        Share Capital

                        The standard minimum share capital of a DMCC company is AED 50 000; however, some types of licences may require a higher share capital.

                        The share capital must be paid into the company’s bank account in the UAE within three weeks of issue of the company’s licence. It can be subsequently withdrawn at any time.

                        A company may issue different classes of shares.
                        Bearer shares are not permitted.
                        The capital can be denominated in UAE Dirhams (AED) only.

                        Registered Office

                        Upon registration the company and the Free Zone authority sign an office lease agreement; the address of such office is considered the official registered office address of the company.

                        DMCC offers various office packages depending on the needs of clients in terms of type and number of licences, number of visas, the need for substance and placement in the Free Zone: from flexi desk (a separate room or workstation in first-class business centres) to warehouses.

                        SUBSEQUENT ADMINISTRATION OF THE COMPANY

                        Corporate Tax

                        Companies registered in UAE free zones are exempt from corporate tax, capital gains tax, property tax and other taxes, except VAT.

                        VAT

                        From 1 January 2018, the UAE introduced a Value Added Tax.

                        VAT as a general consumption tax applies to all transactions with goods and services unless such transaction is exempted or taxed at 0% rate.

                        The standard VAT rate in the UAE is 5%.

                        There is no obligation to register for VAT unless sales turnover within the country exceeds the registration threshold, which is AED 375 000 (~ USD 100 000) in the UAE.

                        Registration as a VAT taxpayer is required in the following cases:

                        • there is reason to believe that the taxable turnover in the next 30 days will exceed the registration threshold (for example, a contract has been made);
                          • at the end of the month, the taxable turnover for the previous 12 months actually exceeded the registration threshold;
                            • the company receives services to be included in the return using the reverse charge method, in excess of the registration threshold.

                              It is possible to initiate a voluntary registration after exceeding the threshold of taxable transactions in the amount of AED 187 500 (~ USD 50 000).

                              Registration with the UAE Federal Tax Administration and allocation of the company’s Tax Reference Number (TRN) takes 20 business days, on average.

                              Upon registration with the Federal Tax Administration and allocation of the VAT number, a company must quarterly (or monthly in the case of annual turnover exceeding AED 150 000 000 ~ USD 40 830 900) prepare and file a VAT return, and pay the resulting VAT within 28 days of the VAT period end.

                              Before registering a company, we recommend that you consult a specialist of the non-resident audit department and a tax adviser to assess the company’s tax burden and discuss subsequent administration of the company.
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                              Financial Statements and Audit

                              Every company registered in DMCC Free Zone must keep accounting records sufficient to confirm its financial position and reflecting up-to-date information about the assets and liabilities of the company. It is also necessary to prepare annual financial statements of the company and have them audited.

                              The company’s first accounting period begins on the date of incorporation and lasts at least 6 months but not more than 18 months. Every subsequent accounting period lasts exactly 12 months from the end-date of the previous period.

                              At each reporting date, company directors must prepare financial statements of the company, including auditor’s report, and present them to the annual general meeting within three months of the financial year-end.

                              Before registering a company, we recommend that you consult a specialist of the non-resident audit department and a tax adviser to assess the company’s tax burden and discuss subsequent administration of the company.
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                              Renewal

                              A company must annually renew its licence, by paying a relevant fee, and its lease agreement.

                              The company’s renewal date is the anniversary of the issue of the licence. To avoid penalties, payment must be made two weeks before the renewal date. In the case of late payment, the Free Zone authority reserves the right to charge fines, as well as suspend the licence.

                              The company renewal costs include renewal of the office lease agreement and of the licence. Upon renewal, an updated licence is issued.

                              Fees[2]

                              Services
                              Fees (USD)
                              Company registration in DMCC, including licence, rent of flexi desk, and company formation services. The cost of package may vary depending on the number of shareholders, type of licence, and size of office (the office size dictates how many residence visas a company can have). This fee is applicable in the case of company with a single shareholder and eligible for 3 residence visas (minimum package). Other options – upon request
                              19 200
                              E-channel deposit (refundable, returned in the case of licence revocation)
                              AED 5000/USD 1370
                              Annual renewal of the company, including licence, rent of flexi desk and company renewal services. This fee is applicable in the case of company with a single shareholder and eligible for 3 residence visas (minimum package). Other options – upon request
                              15 800
                              Obtaining a residence visa (cost of one visa – investor visa), including: - payment of all government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport); - preparing necessary documentation; - accompanying the applicant and transport costs (trip to the hospital and migration authority)
                              4 200
                              Renewal of a residence visa (cost of one visa – investor visa). Renewal of a residence visa (investor visa is issued for 3 years) requires taking the same actions and paying the same fees as upon initial application
                              4 200
                              Assistance with bank account opening (irrespective of the outcome of application). Corporate account (for legal entity)/Personal account (for individual)
                              2 500/2 500
                              Compliance fee
                              250
                              Keeping company’s accounting records. Maintaining a systematic archive of company documents and providing them to the client upon request
                              200 / hour[3]
                              Preparing financial statements, conducting audit, and submitting financial statements to the Free Zone authorities
                              400 / hour
                              Tax advice on VAT and other matters
                              300 / hour
                              VAT registration
                              1 200
                              Preparing and submitting VAT returns
                              200 / hour

                              [1] The cost of package may vary depending on the number of shareholders, type of licence, and size of office (office size dictates how many residence visas a company can have).

                              [2] The fees are valid as at September 2021.

                              [3] The fees for preparing financial statements and conducting audit are charged based on the time spent at hourly rates ranging from USD 100 to 400, depending on the type of work and qualification of a specialist involved, but not less than USD 1900 – fees for audited financial statements with a minimum number of transactions.

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