How to Set Up an Entity in the United Arab Emirates (Dubai Multi Commodities Centre)

Setting up an entity in the United Arab Emirates (UAE)—specifically within the Dubai Multi Commodities Centre (DMCC)—is appealing for companies seeking a reputable, internationally recognised free-zone hub with strong regulatory standards, world-class infrastructure, and access to global markets. Compared with Dubai Meydan Free Zone’s low-cost digital setup, Dubai Internet City’s specialised tech-sector ecosystem, the broad mainland operating scope of a Dubai LLC, and Abu Dhabi’s more traditional, government-driven licensing model, DMCC offers a premium, sector-agnostic free-zone environment designed for international trade and diversified commercial activities, making it one of the most established and globally recognised options for foreign investors.

While the DMCC setup process is more structured than in some lighter-touch free zones, it remains relatively streamlined thanks to digital application systems, clear licensing rules, and strong administrative support. The main challenges involve preparing required documentation, meeting office-space requirements, and ensuring compliance with UAE federal tax obligations. In return, businesses gain full foreign ownership, access to a globally recognised business environment, and strong operational autonomy once established.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in the UAE?

Opening an entity in the UAE in the DMCC means incorporating a legal business within the DMCC free-trade zone under its regulatory framework. Once approved, the company receives a trade licence, certificate of incorporation, and corporate registration, allowing it to operate legally within the free zone and engage in the activities listed on its licence.

Entity overview in the DMCC

Here is a summary of the key aspects of company formation in DMCC:

Step-by-step guide: How to open an entity in the UAE

Step 1: Choose the right structure

DMCC offers three main structures, each suited to different business needs. An FZ-LLC is the most common option and is ideal for companies that require an independent legal entity, plan to sponsor employee visas, or expect to carry out active commercial operations.

A FZE is designed for single-shareholder setups or holding structures and provides the same liability protections with a simplified ownership model. Companies that prefer to maintain continuity with an existing foreign entity may opt for a Branch Office, which does not require separate share capital but leaves the parent company fully liable for the branch’s activities. Your choice of structure will determine your compliance obligations, visa quota, and the range of business activities you can conduct within the free zone.

Step 2: Verify business name availability

You must reserve your company name through the DMCC portal, ensuring it meets the authority’s naming requirements. Check your name availability using the DMCC portal. The name must accurately reflect your business activity, avoid religious, political, or sensitive terminology, and be sufficiently distinct from existing registered names. DMCC applies stricter naming rules for regulated or specialised activities, and in some cases may request additional justification if your proposed name implies licensing in a regulated sector. Name approval is generally quick, but additional review may occur when special permissions or external regulator involvement is required.

Step 3: Prepare incorporation documents

DMCC requires a clear and complete application package. Typical documents include:

• DMCC online application and pre-approval form
• Passport copies, proof of address, and passport photos for all shareholders and directors
• Business plan (for certain regulated or high-risk activities)
• Memorandum and Articles of Association (MOA/AOA), drafted to reflect ownership structure and management rights
• Specimen signatures and authorised signatory appointments
• Office lease agreement, flexi-desk subscription, or service licence space confirmation

In some cases, DMCC may request additional documents such as corporate documents for shareholder companies, board resolutions, or third-party approvals for regulated activities.

Step 4: Register with DMCC

Once your documentation is prepared, you submit it through the DMCC online portal along with the applicable government fees. DMCC reviews the submission and may request clarifications if needed. After approval, the authority issues your certificate of incorporation, trade licence, establishment card (which is required to hire employees and process visas), and share certificates for FZ-LLC or FZE entities. These documents formalise the creation of your company and allow you to begin operating under the approved licence categories within the free zone.

Step 5: Register for tax and social security

After incorporation, companies must register with the Federal Tax Authority (FTA) for:

• Corporate tax: Registration with the Federal Tax Authority is mandatory for all UAE companies, including DMCC entities, regardless of revenue or whether they expect to earn qualifying income. Every company must obtain a Corporate Tax Registration Number (TRN) and file returns as required
• VAT: Registration is required once a business exceeds the mandatory VAT threshold of AED 375,000 in taxable supplies or imports over the previous 12 months, or is expected to exceed it in the next 30 days. Companies may also opt for voluntary registration at AED 187,500, which allows recovery of input VAT
• Customs registration: Businesses involved in import or export must register with the Federal Customs Authority to obtain a customs code, enabling the clearance of goods and access to applicable free-zone customs incentives

DMCC companies do not contribute to UAE social security for expatriate employees, but UAE nationals are subject to GPSSA contributions.

Step 6: Open a corporate bank account

Banks in the UAE follow strict KYC and due diligence protocols. You must provide:

• Valid trade licence & incorporation documents
• Passports and KYC details for all owners
• Proof of business activities (contracts, website, business plan)
• Office lease documentation
• Minimum account opening balance (varies by bank)

The process often takes 1–4 weeks, depending on the bank’s risk assessment and the nature of your business.

Step 7: Set up payroll and employment compliance

To hire employees, your company must:

• Activate its DMCC establishment card
• Register on the UAE immigration and labour portals
• Open a WPS-compliant payroll file (mandatory for free-zone employee salary payments)
• Draft compliant employment contracts in line with the UAE Labour Law
• Provide statutory benefits, including end-of-service gratuity
• Ensure visa renewals, medical insurance, and payroll reporting are kept up-to-date

DMCC provides access to visa processing and employment-related services via its member portal.

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Post-registration obligations

After incorporation, DMCC companies must maintain compliance with UAE and DMCC regulations:

• Tax and financial reporting: File annual corporate income tax returns, VAT returns where applicable, and maintain audited financial statements if required by licence type. IFRS is the standard reporting framework
• Corporate registers: Keep accurate shareholder, director, and ultimate beneficial owner (UBO) records and notify DMCC of any changes
• Compliance tracking: Monitor all tax, licence, and regulatory deadlines to avoid penalties or suspension
• Licences and renewals: Renew trade licences, office leases, and establishment cards annually
• Recordkeeping: Maintain financial, HR, and operational records for the minimum period required under UAE law—typically 5 to 10 years, depending on document type
• Employment law compliance: Ensure all employment contracts, payroll submissions, visa renewals, and insurance requirements align with UAE Labour Law and DMCC rules

Taxes and financial considerations

You're responsible for:

• Corporate income tax: 0% on qualifying free-zone income for eligible entities; 9% on non-qualifying income
• VAT: 5% VAT applies to taxable supplies; registration is mandatory at statutory thresholds
• Payroll/social contributions: No social security contributions for expatriates; UAE nationals require GPSSA contributions. End-of-service benefits apply to all employees
• Accounting standards: Financial statements must follow IFRS and may require an audit depending on the licence type and activity

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in the UAE?
Typically, 1–3 weeks, depending on documentation and office approvals. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
AED 50,000 (≈ USD 13,600) for most entities; AED 1,000,000 for General Trading.

Can foreign companies own 100% of an entity in the UAE?
Yes, DMCC allows full foreign ownership with no local partner.

Do I need a local director or representative?
No, a local director is not required unless specified by a regulated activity.

How much does it cost to register an entity?
AED 20,000–50,000+, depending on licence type, office costs, and visa needs. Find out the setup cost with our Entity Setup Calculator.

Can Deel help me open an entity in the UAE?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.