DMCC license for conducting business on the territory of the free zone

Pauline Familara
Pauline Familara
6 December 2020
DMCC license for conducting business on the territory of the free zone

In time of registering in DMCC free zone, each company must obtain a license for the certain type of activity. It is prohibited to conduct any business activities on the territory of the free zone without license from the government of the Emirate.

DMCC license types include:

  • Trading License – allows trading only the groups of goods specified in the license.
  • General Trading License – allows to trade any permitted goods.
  • Service License – allows to provide services specified in the license and also provide consulting.
  • Industrial License – such type of DMCC license allows the implementation of light production activities specified in the license.

Companies registered in DMCC which activities fall under different license categories must apply for separate licenses for each category of activity. Licenses for the activities of the above categories are valid only in the free zone.

DMCC license cost depends on its type. The first Trading, Service and Industrial License will cost 32 000 AED, while General Trading License will cost 82 000 AED.

Obtaining and renewing of DMCC license

To obtain and hold a license, the applicant must:

  • have a valid company registration in the DMCC Administration;
  • have a valid rental agreement or freehold title to real estate;
  • do not conflict with any aspect of the DMCC Rules and any other laws, rules and regulations applicable in Dubai, as well as aspects of the UAE federal law.

Also, the type of activity of the company should fully match DMCC license activities specified in it.

Licenses are valid for at least 12 months from the date of issue. Licenses must be renewed no later than 30 days before the expiration date of the current license. Failure to comply with this requirement will result in the imposition of a penalty set in the tariffs and may also lead to permanent revocation of the license, refusal to satisfy the application for DMCC license renewal or cancellation of the registration of a company in DMCC.

When applying for a license renewal, the company must:

  • continue to comply with all requirements that apply when you first obtain a license;
  • be able to demonstrate that it is in good financial condition by presenting her latest audited financial statements or audit report.
  • provide proof that the company has no rent arrears, charges for using the JLT Infrastructure, fines or other fees that may be owed to the DMCC Administration.
  • pay DMCC license renewal fees according to the tariffs.

Cancellation of DMCC licenses

The DMCC administration may revoke a license immediately after written notice to the company, or at the request of the company itself.

The following reasons exist for revoking DMCC trade license or other type of license:

  • It was found that the company provided inaccurate or misleading information regarding the business or operations.
  • The company acted in violation of the terms of the applicable license, or any other regulatory provisions.
  • The company violates one or more of the provisions of the DMCC Rules.
  • The company behaves in a way that demonstrates disregard for the DMCC Rules, the DMCC Administration, or any applicable laws.
  • The company does not operate or otherwise does not conduct any business.
  • The company did not submit the requested application or renewal documents.
  • The company did not pay any fees, rent, fines or other fees that are owed by the DMCC Administration.
  • The company acted in a manner that, in the opinion of the DMCC Administration, damages the reputation and interests of the Administration, the free zone or the interests of any other companies or the general public.
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