DMCC Free Zone

6th February 2014

Krysta Fox
Director of Free Zone
1 OVERVIEW
DMCCs foundation

Made for trade

DMCC is the Dubai Government authority committed to
develop trade. Its mandate; to provide the platforms for
collective enterprise. From our regulatory frameworks, to
attracting businesses to our Free Zone, we are made for
trade, providing the platforms necessary for our members to
appreciate their assets.
About DMCC Free Zone

Fastest growing and largest Free Zone in the

UAE
About DMCC Free Zone

Representing 138 countries

Operating across more than 450 business
activities
2 FREE ZONE TEAM
Free Zone Leadership Team

Krysta Fox Director of Free Zone

Ahmad Hamza Director of Operations

James Bernard Director of Business

Development

Amer Musa Legal Registrar

Hassan Nasser Director of Compliance

Omar Paul Operational Excellence

Managers in Front Office

Belal Jassoma Products & Services Development

Shany Masood Legal Affairs & Mediation

Saed Ajjawi Member Services

Amer B Moussa Contact Centre

Mohammed Mohammed Key Accounts

Managers in Back Office

Mohammed Al Falasi Service Delivery

Maryam Haidar Registration & Licensing

3 WE ARE LISTENING TO OUR MEMBERS
JLT or DMCC

60%
Of respondents were confused about the JLT or
DMCC brand

Source: Brash Brands survey, 2013

Member Services

42%
Of members would like to see faster processing
of Free Zone services

Source: DMCC Customer Satisfaction Survey, 2013

Member Services

22%
Were NOT satisfied with the license renewal
process

Source: DMCC Customer Satisfaction Survey, 2013

Contacting us

31%
Said it was difficult to contact DMCC by phone

Source: DMCC Customer Satisfaction Survey, 2013

Online systems

1/4
Would like at least one aspect of the member
portal (Dubai Trade) improved

Source: DMCC Customer Satisfaction Survey, 2013

Networking

72%
Of members want DMCC to help them make
connections through networking

Source: DMCC Customer Satisfaction Survey, 2013

Communication

60%
Did not know about the Free Zone newsletter

Source: DMCC Customer Satisfaction Survey, 2013

Networking

>80%
Satisfaction across all aspects of the DMCC
Knowledge Series

Source: DMCC Customer Satisfaction Survey, 2013

Overall Satisfaction

78%
Were satisfied with DMCCs customer service

Source: DMCC Customer Satisfaction Survey, 2013

4 OUR COMMITMENT
DMCC Free Zones commitment

Continuous innovation and delivery

Put simply we want our members to believe

they have joined the best free zone in the
world

We promise to make every interaction

purposeful, clear, simple, timely & consistent
Our aspiration

100%
Were satisfied with DMCCs customer service
5 ADDRESSING OUR MEMBERS FEEDBACK
What are we changing?

One DMCC Free Zone

More flexible license activities

One price list

Enhanced member tools portal, website

Digital licenses and letters

5a DMCC FREE ZONE
DMCC Free Zone
What are we doing?

The Free Zone will be called DMCC Free Zone

All new companies will be issued under DMCC

All existing JLT companies will change to DMCC

Jumeirah Lakes Towers is a location, but NOT a

Free Zone license
DMCC Free Zone
The result of this will be:

Less confusion

Focus on one strong brand

Continued growth and international recognition

to the benefit of all members
DMCC Free Zone
Implications for our Free Zone members

28th Jan Launched new DMCC brand

29th Jan All new companies registered as DMCC
Notified JLT companies of suffix change from
JLT to DMCC between 01.06.14 and 31.12.14
1st Jun Commence process of changing company
suffix from JLT to DMCC

31st Dec Deadline for suffix change

5b STREAMLINING LICENSE ACTIVITIES
Streamlining license activities
What are we doing?

Harmonizing license activities with DED

One license for each License Type: Service,

Industrial, Trading

Standard 6 activities in each activity group

Unlimited activities on the same license type

Streamlining license activities
The result of this will be:

Greater flexibility for all members

Easier for members and Free Zone team to

identify the relevant business activities

Greater clarity when a 3rd party approval is

required
Streamlining license activities
Implications for our Free Zone members

29th Jan All new companies set up with new activities

27th Feb Existing members notified of new activities

to be implemented from 1st April and given
until 6th March for feedback

1st Apr New license types allowing unlimited

activities with the same license type
All existing members licenses converted to
new activities
5c ONE PRICE LIST
Rationalising prices
What are we doing?

Implementing one price list for all members

from 1st April 2014

Giving DMCC companies the option to renew

at current rate for 2 years
Rationalising prices
What you need to know

AED 1,000 on initial name reservation

AED 9,010 on application
AED 2,010 for MoA
AED 20,010 for up to 6 license activities in one group
AED 1,510 for each additional activity in the same group
Additional AED 20,010 for activities in another group
Visa In-Country AED 4,510
Visa Out-Country AED 3,310
Rationalising prices
The result of this will be:

Fairer pricing for all members

Greater flexibility to add new activities on the

same company license
Rationalising prices
Implications for our Free Zone members

29th Jan All new applicants pay new company set up

price. No difference between commodities
and non-commodities

1st Apr Application fee commences for all new

applicants

New price list effective for all members and

all services
5d ANYWHERE, ANYTIME, ANY DEVICE
Anywhere, Anytime, Any Device
What are we doing?

New DMCC website is live

Implementing new member portal

Online licenses, letters & certificates

Tracking of all requests, complaints and

feedback
Website
What are we doing?

DMCC website is live

Check our Applications Guidelines for step by

step guidance and access to templates and
forms

Review rules & regulations

Register for events

Website
Online services
What you need to know

All service applications on line

Amendments

Renewals

Visas including employment contracts

Online certificate verification
What you need to know

Members will print their own licenses, letters

and register extracts online

Other authorities will be able to check the

authenticity of digital documents at
www.dmcc.ae by entering the document serial
number

Stamping will be available on request

Contacting us
What you need to know

All correspondence and status updates tracked

and viewable on the portal

Our front and back office on one integrated

system full history!

One email address CustomerCare@dmcc.ae

Member Portal
Implications for our Free Zone members

Late Mar Start sending new log on details to members

1st Apr Member portal goes live

May Available on any device, anywhere, anytime

Anywhere, Anytime, Any Device
The result of this will be:

Greatly improved online experience

Faster turnaround times for members

Less duplication and repeating of information

5e AND MORE
And more
What are we doing?

Strengthened teams where needed

Implemented online license renewal

DMCC immigration branch opens in JLT in 2Q

Company incubation centre this year

Offering enhanced Serviced Offices this year

And more
What are we doing?

Many more Knowledge Series events

Monthly newsletter!

Mediation services successful

6 REMINDERS
Stay Compliant
Its important

Inform DMCC before making any changes that

affect your company registration or license
details, such as shareholding, address or
license activities.
Ensure all people working for your company
have an approved employment contract and
are authorised by DMCC (Apply online in
advance.
Renew your company license on time.
Submit audited financial statements on time.
6 TO SUM UP.
Summary

Jan 29th
Only DMCC Free Zone licenses issued.
Summary

Apr 1 st
New member portal goes live
Migrate to harmonized activities
Digital licenses, letters, extracts
One pricing system
Summary

Jun 1 st
Start changing JLT companies to DMCC suffix
Summary

Dec 31st
Deadline for JLT companies to change to DMCC
suffix
Thank you

DMCC Free Zone

7 CHEAT SHEET, EXAMPLES AND Q&A
 Cheat sheet

Customer New clients Existing DMCC Existing JLT

Impact on JLT applications received N/A JLT companies suffix will be
company name after 28.01.14 converted changed to DMCC by
to ABC DMCC. 31.12.14 if not done by
company before that date.
No charge.
Impact on From 29.01 new clients Existing DMCC clients pay Existing JLT clients will pay
company will all become DMCC. the new license fee of the same fee as previously
licensing New prices apply. 20,010 Dhs pa to renew their license at
AED 20,010 per annum
Those with existing May renew for 2 years at
application pay old the old rate of 15,010.
prices. (pay by 28.2.14)
Impact on visas N/A New visa applications and New visa price from
renewals at the new price 01.04.14, which is lower
from 01.04.14 than previously.
Key clients receive a 10% discount on visas >50, and 20%
discount on visas >100, 30% above 200.
Example 1 - Question
ABC DMCC company wants to set up a
subsidiary to trade in precious metals, metal
ores, steel and non-ferrous metal products;
petroleum products and multiple agricultural
products.

What license/s will they need and what will

they pay?
 Example 1 - Response
Activity Type Trade in precious metals Trade in petroleum products Trade in agricultural products

Category G-Wholesale & retail trade G-Wholesale & retail trade

51-Wholesale trade & commission

Division 51-Wholesale trade & commission trade
trade
512-Wholesale of agricultural raw
Group 514-Wholesale of non-agricultural products, waste & scrap materials, live animals, food,
beverages and tobacco
5142-Wholesale of metals 5141-Wholesale of solid, liquid & 5121-Wholesale of agricultural raw
Class
and metal ores gaseous fuels & related products materials and live animals
5142-01 Metal Ores
Trading
5142-02 Basic Steel
5121-06 Grains, Cereals &
Products Trading
5141-01 Crude Oil Trading Legumes Trading
5142-03 Basic Non
Activity 5141-03 Refined Oil Products 5121-15 Tobacco Trading
Ferrous Metal Products
Trading Plus 5 more activities
Trading
5142-04 Non-
Manufactured Precious
Metal Trading

No of activities 4 2 7
Example 1 Response contd
Fee component AED Notes

Registration 10,010

Memorandum &Articles 2,010

License 1 1st Group 20,010 6 activities in group 514

License 1 2nd Group 20,010 6 activities in group 512

Plus additional activity 1,510 +1 activity in group 512

TOTAL 53,550
Example 2 - Question
XYZ DMCC company wants to trade in a broad
range of products covering agricultural raw
materials, household goods, metal products,
and machinery and equipment.

What license is required?

Example 2 Response

In this example the company will be performing activities across

up to 6 groups in the Division 51 Wholesale trade and
commission trade.

There is a General Trading license that covers these type of

businesses. It is cost effective and provides the necessary
flexibility for companies to carry out their business. The company
may perform any and all of the almost 400 activities that fall into
Division 51.
Example 2 Response (continued)

It includes the following Groups:

Wholesale on a fee or contract basis
Wholesale of agricultural raw materials, live animals, food,
beverages and tobacco
Wholesale of household goods
Wholesale of non-agricultural intermediate products, waste and
scrap
Wholesale of machinery, equipment and supplies
Other wholesale

In order to meet Dubai Customs requirements the company

license will clearly state which activities are being performed.
Furthermore, any 3rd party approvals required for a particular
activity must be met.
Example 3 Question

XYZ JLT company wants to renew their license

which is due on 1st June 2014.

Do they have to change their company suffix?

Example 3 Response

The company is not required to change the suffix until

31.12.14.

Up until that date they may voluntarily change at no cost.

On 31.12.14 DMCCA will automatically change them to

DMCC suffix.
Example 4 Question

Our company is large and I am applying for the

51st employee visa under our company.

How much will I pay?

Example 4 Response

Step 1 - Apply for the visa online on the DMCC portal

Step 2 - Pay for the visa online.

DMCCs system will detect that this visa will be the 51st
employee with an active visa in the company. A 10%
discount will apply.

Price Visa price (in country) 4,510

Less 10% discount (451)
Price payable 4,059
 Company suffix change
Question Response

If I am a JLT We do not consider the change to be a company name change. It is simply a suffix
company and my change from JLT to DMCC.
existing license is
for 3 years, do I DMCC will automatically issue all suffix change documents to every JLT company on
have to change 31.12.2014, giving every company adequate time to plan for the changeover of
the company company name.
name to DMCC?

We encourage companies to change the suffix prior to that date.

How does a Most commercial contracts provide for company name changes.
company name
change affect my Your new company license will clearly show the previous company name suffix and
contracts? the new one.

DMCC is giving all companies until 31.12.2014 to prepare for the suffix change.
 Company suffix change
Question Response

What happens to DMCC is working with DNRD to gain confirmation that all JLT companies will be able
my employees to transfer the visas and establishment card to the new company name upon
visas and the renewal.
company
establishment Therefore they do not have to cancel or replace any visas or cards until their expiry.
card?
What happens to Your lease with DMCC will automatically transfer to the new company suffix, without
my DMCC lease any further documentation required.
agreement?

Will the new Yes, the Approvals team will reserve the company name as ABC DMCC, as soon as the
company name member advises DMCC that they would like to transfer to the DMCC suffix. But not
with DMCC be before 1st June.
reserved?
 Licensing activities change
Question Response

What are the Firstly, all of our members will come under the one licensing structure. Previously
benefits of the there were separate structures for JLT companies and DMCC companies.
new licensing
structure? Not only is the new system simpler for our members, but it is also brings DMCC in line
with international economic classification systems.

Our members will be able to add all the activities within one license type without
having to obtain a new license. The first 6 activities in each group are included in the
standard license fee and new activities in the same or new group can be added for
AED 1,510 each.
How does the DMCC has adopted the DED framework which is based on the united Nations
new licensing International Standard Industrial Classification of All Economic Activities. Not only is
structure work? this simpler for our members, but it is also important for all governments to be able
to measure the economic contribution from various sectors.

There are five levels to the system, with each becoming more detailed. These are:
Category, Division, Group, Class, Activity
 Licensing activities change
Question Response

How have the Previously licenses were issued under a four level structure: Type, Segment 1,
license Segment 2, Activity. The Types of licenses included Trading, Services or Industrial.
categories
changed? The system has served its purpose, but increasingly as the Free Zone diversified, it
has become difficult to manage.
What are the The Trading, Services and Industrial licenses still apply. The new categories are:
new categories? C Mining & quarrying
D Manufacturing
F Construction
G Trading and repairing
H Hotels and restaurants
I Transport, storage and communications
J Financial intermediation
K Real estate and business services
M Education
N Health and social work
O Community, social & personal services
 Licensing activities change
Question Response

What is a general There are some special cases, such as a General Trading license where a company
trading license? may carry out any and all of the activities within Division 51 Trading of Goods (Except
vehicles).

This is a significant benefit to our DMCC companies, many of which operate across
diverse trading sectors.
Where can I see New applicants can select license activities from the online web form.
a list of the Existing members should contact DMCC Contact Centre for more information.
license
activities?
 Pricing change
Question Response

How does DMCC The pricing is broadly based on two parts: 1. New set up costs and 2. Ongoing fees
pricing work? for services.

New set up costs include a one off registration fee, and an annual license fee. New
companies and subsidiaries also pay a one-off fee for preparation of Memorandum
and Articles of Association fees.

Visa, letters and other services are in accordance with DMCC price list and are
payable per service.
How do the Most companies will have one license with up to 6 activities.
license fees
work? Some companies are more diverse in their operations, and for that reason, DMCC
offers a flexible pricing structure to accommodate additional licenses and license
activities.

General Trading, Hotels and Business Centre licenses are priced differently to
standard licenses.
 Pricing change
Question Response

What are the Registration is AED 10,010 (of which, AED 2,000 is payable on application and is non-
prices? refundable)
License is AED 20,010 for up to 6 activities in one license group, and AED 1,510 for
any additional activities in the same group.
Preparation of Memorandum and Articles is AED 2,010

Hotels, General Trading and Business Centre fees are AED 30,010 for registration, and
AED 50,010 for the license.
My license price For around 40% of our members base, the annual license fee has increased by AED
has gone up by 5,000. To those members, we have offered to renew their license for the next 2
more than 30%. years at the existing price.
How can you
justify that? At the same time, we have responded to members feedback by improving our
licensing structure and enabling clients to add unlimited new license activities within
the same activity group for AED 1,510 per activity per annum. Previously, our
members would have had to obtain a new license in many cases. We believe that
demonstrates a better solution for our members.
 Pricing change
Question Response

Why would I stay We believe that DMCC Free Zone is an excellent place from which to do business and
with DMCC if the external studies support this. DMCC represents real value for money.
price has gone
up? There are many benefits of operating from DMCC including its prime location,
networking opportunities among 8,000+ member companies, industry clustering,
value added services. Most companies renew for AED 20,010 per annum.
What is DMCC We have introduced a number of initiatives aimed at reducing the cost of doing
doing to reduce business for our members. One example is the use of online company registers
the cost of doing wherever possible to avoid the costly and lengthy process of obtaining notarized and
business? attested documents for new subsidiaries and branches. In most cases this will save
companies up to AED 8,000.
 Electronic documents
Question Response

How do The documents are available to the member online.

electronic
documents work? When the member presents the document to a 3rd party, that person can verify the
authenticity of the document by entering the document serial number at
www.dmcc.ae
What if a 3rd No problem. Just bring a copy of your electronic document to the Free Zone and we
party insists on a will add an authenticity stamp.
physical
document