Dubai Media City Free Zone
Dubai Media City Free Zone (DMC) was established in 2000 by governmental decree and it is a regional network for media companies. There are over 1,300 companies established in the DMC Free Zone currently. The Dubai Media City Free Zone legislation is provisioned by an independent entity called Dubai Technology and Media Free Zone Authority (DTMFZA) that enables companies to conduct business activities in a premium environment based on international standards.
Licensing in Dubai Media City Free Zone
In DMC, commercial licenses are issued for free zone limited liability companies, for branch offices and for freelancers according to the Dubai Technology and Media Free Zone Authority regulations. All licenses are issued by the Registration and Licensing Department within the DTMFZA. The permits have one-year validity and they can be renewed yearly. It is also important to know that delaying the renewal of the commercial licenses draws penalties.
DMC commercial permits can also be amended if the Company changes its name, its status from branch office to limited liability Company, if any management, address or business activity changes appear. Also if share transfer or capital injections or reductions appear, they all must be mentioned in the license. Mergers are also permitted between companies in the DMC, while license annulment is possible through an on-line procedure.
Types of companies in the Dubai Media City Free Zone
The Dubai Media City Free Zone offers three types of Company formation: free zone limited liability companies, branch offices and freelancing permits.
The most common type of Company is the free zone limited liability Company (FZ-LLC) that requires the following steps for incorporation:
- file an application for Company incorporation, an application for licensing and a business plan, provide identification papers copies and state the names of the manager, director or directors of the Company and the representative, if there is one;
- the second step will be to submit all the documents with the DTMFZA and wait for the customer confirmation letter (CCL);
- Â once the CCL has been received, it must be signed and returned to the DTMFZA and pay the licensing fee and property lease contract, if there is one;
- Â signing the articles of association of the Company and depositing the share capital;
Once all these steps have been completed, the commercial licenses will be issued.
In order to incorporate a branch office, the process is almost the same, except the Dubai branch office will not be registered as a separate legal entity but as an extension of the parent Company that can be foreign or national.
Freelancers also have the possibility to require a license in order to conduct commercial activities in the Dubai Media City Free Zone. In order to obtain the freelancer permit, the individual must submit a copy of his/her passport; fill an application form and a business plan form. Once the documents are ready, they will be filed with the Dubai Technology and Media City Free Zone Authority and it is required to be paid the fees in order to receive the freelance license.
Benefits of incorporating a Company in the Dubai Media City Free Zone
Companies conducting business activities in the DMC benefit from:
- full foreign ownership
- 100% full exemption from taxes on profits and capital gains repatriation
- 50 years tax-free on personal and corporate incomes
- tax-free custom duties
- Quick and simple registration procedures
- Transparent Company regulations
- Non-stop residence and work permits services
If you want to open a Company, you can contact our experts in opening companies in Dubai for details about the registration process.