Download the PDF here.

The PDF above details the DMCC License cost and all the costs involved in Setting up a General Trading Company in the Dubai Multi Commodities Centre.

Characteristics of a DMCC General Trade License Company

  • The company can be wholly owned by one shareholder or have several shareholders (individual or body corporate).
  • The business activity can cover the trading (import/export) of different categories of goods and products.
  • The business activity does not require local warehousing or local distribution within the UAE.
  • A DMCC General Trading (Code: 5219-04) business activity includes trading all categories of products available in the DMCC, except for categories being specifically regulated (find the DMCC list of activities here). Please note that if the categories of products to be traded are already determined, it is possible to opt for the relevant specific trading license rather than for a general trading license. The specific trading license can cover up to six (6) categories of products at no extra cost and requires reduced amounts in terms of license cost and minimum share capital.
  • Governing bodies requires a Minimum of one (1) Board member that can also act as Manager and Director of the company. 
  • Incorporation time averages between 2 to 3 weeks.


Requirements for setting up a Trade License Company in the DMCC

  • The company must have a basic staffing structure, including one member, and operate from a physical office space that could be individual or shared.
  • The company must possess a Minimum Share Capital of AED 1,000,000 to be deposited to the bank prior to obtaining the license. It has to provide a bank statement with a bank stamp within three weeks of issuing the license to the DMCC portal.
  • The company can utilise this share capital to settle its expenses.
  • The Mandatory Insurance Requirement includes Workmen’s compensation, Standard medical insurance (for each employee), and Third-party liability insurance.
  • The required documentation includes filling the DMCC online application form, a passport copy, proof of residential address, and details of an office address in the DMCC.
  • Current banking policies require at least one authorised signatory for opening bank accounts to be a UAE resident. If the authorised signatory is the local manager, the latter should receive a POA duly approved by the Dubai Courts indicating that he has full authority over the opening, operating and closing of the bank accounts. 
  • A DMCC registered auditor must make an audit report and submitted annually with the authority when renewing the license.


Holding underlying companies with a DMCC Trading License

The company will be regarded in the DMCC as an operational company. Please note that if the company intends to hold other underlying companies, it might be requested to receive a specific approval to that end from the DMCC. Another possibility would be to set up a special purpose vehicle in another free zone to act as a holding company.


Estimated cost for the Company Incorporation of a General Trade License Company in the DMCC

Application: AED 1,035

License: AED 50,285

Registration: AED 29,020

Establishment Card necessary to hire staff: AED 1,825

Articles of Association: AED 2,000

Minimum Share Capital: AED 1,000,000 


Please note that if the categories of goods to be traded are already determined, it is possible to opt for a specific trading license in respect of the said categories (e.g. fruits, vegetables, sweets, etc.) rather than a general trading license. The specific trading license can cover up to 6 categories of products at no additional cost and requires reduced amounts in terms of license price cost and minimum share capital. 


Estimated cost for setting up the IT and Marketing of a General Trade License Company in the DMCC


Estimated IT Costs

Please note that this cost estimate corresponds to a basic IT setup and can be adjusted as per the level of sophistication needed. 


Laptop per employee: from AED 2,800

Landline phone per unit: from AED 700

Basic Switch: from AED 4,000

Back-up: from AED 18,000

Firewall: from AED 4,000

IT Installation: from AED 20,000


Estimated Marketing Costs

Corporate identity (1 to 4 pages website, brand name, logo, business cards, etc.): from AED 55,000


Estimated monthly cost for office utilities in the DMCC

Gas, electricity and water: AED 500 and AED 800, depending on actual use.

Chiller: Flat fee of AED 400 + additional use charge between AED 700 and AED 900, depending on actual usage.

Internet and landline: AED 2,700.


Running Costs Estimate of a General Trade License Company in the DMCC

Monthly salaries estimates in DMCC

Trading Director: from AED 30,000

Personal Assistant: from AED 10,000 

Accountant: from AED 15,000

There is an extra of around 25% of recruiter fee based on yearly salary. In lieu of an internal accounting function, it is possible to appoint an accounting firm.


Visas

3-Year Visa: AED 3,800

Medical test: AED 320 

Emirates ID issuance: AED 475

Visa Insurance premium: between AED 160 and AED 570, depending on the employee salary band.


Annual Insurances

Health Insurance: from AED 1,000 (minimum coverage)

Workmen Compensation Insurance and Third Party Liability Insurance: between AED 1,500 and AED 2,000.


Other Additional costs

Accounting and Bookkeeping (monthly): AED 500, depending on the size of the books, it is possible to delegate the payroll function to the accounting firm by adding an extra fee.

Annual audit: AED 16,000, depending on the number and size of the transactions, and the quality of the auditor

Structuring and advisory cost estimate: Must be discussed and agreed upon the number of services required. 

For additional information you can open the original presentation in PDF format here.

Our Experience

lecocqassociate provides a full range of financial regulatory, corporate and commercial advice in relation to the structuring and incorporation of entities. The group is gaining a reputation for outstanding service in the areas of data protection and online reputation management, as well as cyber security, blockchain and crypto asset regulation.

This article is for information purposes only. It does not constitute professional advice or an opinion. Please contact us at info@lecocqassociate.com for any questions.

Romain Rolland
Romain Rolland
Associate