DMCC updated its rules and regulations

The Dubai Multi Commodities Centre (DMCC) has announced the implementation of a new set of rules and regulations, effective 2nd January 2020.

The changes to the zone’s regulatory framework are aimed at increasing flexibility and ease of operations in the free zone.

Some key enhancements:

• Updates to Company Share Capital requirements – businesses can now issue different types/classes of shares paid in cash or in non-cash consideration. Specific guidelines are available here and here.
• Flexibility (simplified process) to amend or adopt preferred articles of association
• Easier inbound migration: transfer of non-DMCC entities into DMCC, with all property, rights, and privileges it had before the continuation
• Dormancy: ‘dormant status’ introduced to enable voluntary suspension of a commercial License – members can apply for suspension for a certain approved period. Specific guidelines cover eligibility criteria and application process (see: here).
• Introduction of Certificate of Establishment – all branches of non-DMCC Entities registered in DMCC will be issued a Certificate of Establishment and assigned a Branch Establishment number equivalent to DMCC Entity number. (see specific guidelines here).
• Audited Financials: The timeframe for submission of audited financial statements has been extended to six months after the end of the financial year
• Update on officers required and details: Appointment of Secretary (minimum 1) is now required (optional for branch) – Individual or Corporate Secretary. No maximum of director appointments, minimum remains 1 (no director appointment available for branch). No appointment of Legal Representative available, authorities to be delegated via Power of Attorney.
• DMCC has now defined the responsibilities of the appointed officers through the Officer Guidelines: More information on Officers
• No minimum share capital for the incorporation of companies; however, other factors such as visa application remain – AED 50,000 to be eligible for an investor or partner’s visa.
• Two different visa designations available: Investor and Partner visa
• A qualified individual can now be appointed as a liquidator; previously, only a Chartered Auditing Firm was allowed.

How we could help?
Our team is on hand to help you assess the impact of the new regulation on your existing business, and generally a “corporate health check” of your corporate structure. Feel free to get in touch!

M/HQ has been recognized as“top-performing consultant” by DMCC in all of 2016, 2017, 2018 and 2019.