UAE · DMCC Free Zone company formation for non-residents

Why founders choose DMCC

DMCC is a Dubai free zone built around commodities and trading, and it now hosts consultancies, tech firms and holding companies too. A DMCC company gives you a UAE legal entity, an office address in Jumeirah Lakes Towers and a route to residence visas.

DMCC is a large, established zone that banks and trading partners tend to recognise. Costs and office rules differ between zones, so we compare DMCC with other options when you ask for a quote.

It suits businesses that need a real Gulf presence. It does not suit someone who only wants a holding shell with no office, because DMCC requires at least a flexi-desk and annual audited accounts.

Foreign owners can hold 100% of the shares. DMCC regulates the company under its own company regulations, and the UAE federal tax rules apply on top.

Shareholders, officers and office

One shareholder is enough, and it can be an individual or a company. The company needs 1 to 6 directors under the DMCC Company Regulations. In practice DMCC also asks each company to name a manager and a secretary (confirm with your specialist).

Every DMCC company needs space in the zone. A flexi-desk in the DMCC Business Centre is the lightest option and carries a small visa quota. A dedicated office raises the quota.

Share capital and any activity-specific approvals depend on what the company will do. Some commodity and regulated activities carry extra conditions, so we confirm the requirements for your activity before you apply (confirm with your specialist).

• Shareholders: 1 or more, any nationality
• Directors: 1 to 6
• Manager and secretary: requested by DMCC
• Office: flexi-desk or leased unit

Corporate tax and the qualifying free zone rules

UAE corporate tax applies to free zone companies under Federal Decree-Law No. 47 of 2022. The standard rates are 0% on taxable income up to AED 375,000 and 9% above that.

A Qualifying Free Zone Person pays 0% on qualifying income. To qualify, the company keeps adequate substance in the zone, earns qualifying income, files audited accounts and meets the transfer pricing rules. Non-qualifying revenue must stay below 5% of total revenue or AED 5,000,000, whichever is lower.

If non-qualifying revenue goes over that limit, the company loses the status for that tax period, and 9% applies to taxable income above AED 375,000. Losing the status can also affect the following four tax periods. We look at your customer mix before you commit.

Every company registers with the Federal Tax Authority and files a corporate tax return within 9 months of its tax period end. VAT registration is mandatory once taxable supplies pass AED 375,000.

Small Business Relief and other rules

Small Business Relief lets a resident business with revenue of AED 3,000,000 or less elect to be treated as having no taxable income. On 7 August 2026 the Ministry of Finance extended it, by Ministerial Decision No. 131 of 2026, to tax periods ending on or before 31 December 2029.

A Qualifying Free Zone Person cannot use Small Business Relief. For a small DMCC company, the choice between the two routes is worth a short call with your specialist.

The UAE ended economic substance reporting for financial years starting on or after 1 January 2023. The corporate tax substance test for the 0% rate still applies.

How DMCC setup works, step by step

Setup starts with your activities. DMCC licenses specific activities, and the list you choose drives the approvals, the office type and sometimes the capital. Getting this right first saves weeks later.

Next, DMCC reviews each shareholder, director and beneficial owner. Once approved, the company is registered, the lease or flexi-desk agreement is signed and the trade licence is issued. Most files take 2–4 weeks from KYC approval.

After the licence, the company applies for an establishment card, which lets it sponsor visas. Each visa holder then completes a medical test and Emirates ID biometrics in the UAE. We also register the company for corporate tax with the Federal Tax Authority.

• Choose activities and office package
• KYC and DMCC approval
• Registration, lease and trade licence
• Establishment card and visas
• Corporate tax registration

Registers and ownership disclosure

DMCC keeps the company's shareholders, directors and officers on file. The UAE requires every company to keep a register of ultimate beneficial owners and file it with its registrar, which for you is DMCC.

The beneficial owner register is not public. Authorities can access it, and banks will ask you for the same information during onboarding.

A beneficial owner is, broadly, anyone who owns or controls 25% or more of the company, or who otherwise exercises ultimate control. Changes must be reported to DMCC promptly, so tell us before you transfer shares or appoint new directors. Your privacy is protected within the law: the register stays with the authorities, and it is disclosed to them as required.

Running a DMCC company each year

Each year you renew the trade licence and the office lease, keep accounting records and submit audited financial statements to DMCC. You also file your corporate tax return, and VAT returns if registered.

Visas run on their own cycle, and each one needs renewing before it expires. We keep one calendar for the licence, lease, audit, tax return and visas, so you see every deadline and its cost well ahead of time.

The UAE is no longer on the FATF grey list, which it left in February 2024, and the EU removed it from its high-risk third country list in 2025. This has made banking and counterparties easier, but banks still decide account by account.

We introduce you to suitable banks and prepare the application. The bank decides, and a resident manager and a real office help.