Business Setup In The Dubai CommerCity Free Zone

Are you considering launching an e-commerce business in the Middle East, Africa, or South Asia? Look no further than Dubai CommerCity, the first Free Zone dedicated to e-commerce in the region.

In this guide, we’ll explore the strategic benefits of setting up a business in Dubai CommerCity (DCC). This designated area not only offers a state-of-the-art infrastructure tailored for digital trade, including advanced logistics and office facilities but also provides a dynamic community for networking and growth. 

Ready to tap into the booming e-commerce market? Keep reading to learn more about what the Dubai CommerCity Free Zone offers and how our business setup services can help streamline your entry into this vibrant economic hub.

What is Dubai CommerCity Free Zone?

Dubai CommerCity (DCC) is a trailblazing Free Zone, offering a strategic and supportive environment for businesses looking to tap into the burgeoning e-commerce market. 

Strategically designed to tap into the region’s rapid digital commerce growth, which is outpacing the global average, this Free Zone spans 2.1 million square feet and is supported by an investment of around $1 billion. This designated area provides a comprehensive ecosystem for digital trade, including state-of-the-art logistics and office facilities, tailored business setup services, and a vibrant community for networking. It is tailored to accommodate the diverse requirements of online businesses ranging from startups to well-established enterprises.

Dubai CommerCity is cleverly divided into three distinct clusters to cater to the comprehensive needs of modern businesses:

1. The Business Cluster spans over 240,000 square metres and comprises 12 office buildings with modern, innovative designs. Each building complies with the Leadership in Energy and Environmental Design (LEED) program, promoting sustainability through using renewable energy and reusable water. This cluster offers premium Grade A offices with flexible leasing options that can scale according to your business needs.
2. The Logistics Cluster includes dedicated warehouse storage space of varying sizes to accommodate the specific needs of e-commerce businesses. It features a shared multi-client warehouse operated by our partners, utilising a pay-as-you-go pricing model. The cluster provides end-to-end warehousing services, including order management systems, streamlined customs clearance processes, and last-mile delivery services. The facilities are equipped with the latest logistics technology to ensure efficiency in the movement of goods and are designed with rooftop PVC solar panels to generate clean energy.
3. The Social Cluster is a vibrant hub of activity, home to diverse food halls, cafés, restaurants, art galleries, and open spaces. Positioned at the heart of Dubai CommerCity, it offers facilities perfect for taking a break from the office environment or grabbing a coffee. The cluster also includes display centres for businesses to showcase their products and multi-purpose halls for conferences, art displays, or fashion shows.

However, Dubai CommerCity isn’t just about the physical space; it provides a comprehensive digital commerce ecosystem. You’ll find bespoke company formation and e-commerce license packages, e-commerce strategy consulting, and guidance on regional e-commerce regulations.

Location and Accessibility

Dubai CommerCity enjoys a prime location in Umm Ramool, at the heart of the regional trade route. This central positioning offers unparalleled access to over 2 billion people within a two-hour flight radius. Its adjacency to Dubai International Airport is a deliberate choice, enabling swift e-commerce fulfilment across the region and enhancing the logistical capabilities of businesses within the Free Zone.

Types of Licenses Available in Dubai CommerCity Free Zone

In Dubai Commercity Free Zone you can choose from five types of licenses: the E-commerce License, Trade License, Service License, General Trading License, and Freelance License. DCC also provides an Industrial License for light manufacturing and assembly activities. 

Furthermore, businesses can opt for a Dual License with the Department of Economic Development (DED), which permits operations both within the Free Zone and on the mainland without needing a mainland office.

Steps to Obtain a Business License in Dubai Commercity Free Zone

Step 1: Choose Your Company Type 

The first step involves deciding on the legal structure of your business. Options include:

• Free Zone Entity-Branch: A Free Zone Entity-Branch is ideal for existing companies looking to expand their operations into Dubai. This legal structure has no limits on the number of shareholders and is therefore suitable for a company that wishes to list and offer its shares on a securities market. 
• Free Zone Company (FZCO): A Free Zone Company is suitable for entrepreneurs wanting to establish a new business under the Free Zone’s regulatory framework. This legal structure allows between 1 and 50 shareholders and a minimum share capital of AED 1 (USD 0.27).
• Public Limited Liability Company (PLC): A Public Limited Liability Company is a choice for larger enterprises that may also want a dual license to operate both in the Free Zone and the mainland. This legal structure doesn’t require a minimum share capital.

Step 2: Select the Appropriate License 

Depending on your business activities, you may choose from various licenses:

• Trade License: For buying and selling goods within Dubai CommerCity.
• Service License: For providing services such as consultancy or IT solutions.
• Industrial License: For manufacturing or industrial activities.
• E-commerce License: Specifically designed for online business activities.
• General Trading License: Allows for a wide range of trading activities.
• Dual License with DED: Enables operation in both the Free Zone and on the mainland.

Step 3: Define Your Product and Services 

Choose the facilities that best suit your business needs, such as:

• Office Space: For administrative and management functions.
• Warehouse: For storage and distribution of physical goods.
• Fulfilment Center: To manage inventory and fulfil orders efficiently.
• E-commerce Consultancy: To optimise your online business strategies.
• Recruitment Consultant, Marketing Support, Customer Consultancy: To enhance various aspects of business operations and customer engagement.

DCC’s team is available to assist with these decisions and guide you through the subsequent steps, including choosing the right legal structure for your company and the type of license you will require. The team at DCC aim to facilitate a quick and streamlined setup, with comprehensive support throughout the establishment phase.

Required Documents for Registration

To register, applicants must provide a valid passport copy, passport-size photographs, educational certificates, and medical fitness certificates. 

Timeline and Costs

Setting up a company in Dubai CommerCity can be swift and efficient, typically ranging from 1 to 4 weeks, depending on various factors. The chosen business activities and the readiness of your documentation influence the duration for establishing a company in DCC. Costs are determined by factors such as the chosen setup package, license type, legal structure, and the facilities required for your business. 

Business Infrastructure and Facilities

Office and Warehouse Solutions

The Business Cluster is a showcase of modern design and sustainability, with 12 buildings offering premium office spaces that are not only furnished but also Leadership in Energy and Environmental Design (LEED) certified. For those with inventory management needs, the Logistics Cluster provides a range of warehouse storage solutions. Options include modular LIUs and shared facilities, all utilising solar energy to promote a sustainable, green ecosystem. The warehouses are tailored to e-commerce requirements, offering various sizes and a flexible pricing model managed by partners.

Dubai CommerCity’s Business Cluster offers a range of office options:

• Smart Desk: A dedicated workspace of 7.52 sqm, ideal for those needing unlimited access.
• Fitted Office: Spaces starting from 25 sqm, come with basic fittings, allowing companies the flexibility to customise.
• Premium Office: Fully furnished offices ranging from 50 sqm to 65 sqm, ready for immediate occupation.
• Shell and Core: Offices over 100 sqm, offering a blank canvas to tailor space according to specific business needs.

The Logistics Cluster caters to e-commerce operations with warehouse solutions from 360 sqm to 22,000 sqm, designed for efficient goods flow and reducing carbon footprints. The Social Cluster enhances this setup with its vibrant mix of retail and F&B outlets, ranging from 70 sqm, set in a modern outdoor landscape perfect for networking and casual business interactions.

IT and Telecommunication Services

Acknowledging the critical role of IT and telecommunications in e-commerce, DCC integrates a pre-configured e-commerce platform that supports seamless business operations. This digital commerce ecosystem is enhanced by state-of-the-art technological support and comprehensive logistics services designed to meet high service level agreements and continuous customer engagement.

Support Services and Amenities

DCC enriches the business environment with a range of support services and amenities. Banking, legal consultation, recruitment, and customs assistance streamline the business setup and operation. Specialised services such as performance marketing, e-commerce strategy consulting, and Go-to-Market strategies are tailored to enhance online visibility and operational effectiveness.

Legal and Administrative Framework

Intellectual Property Rights Protection

Dubai CommerCity prioritises the protection of intellectual property (IP), recognising its importance in the e-commerce industry where innovation and brand identity are crucial. The Free Zone’s commitment to robust IP rights protection is a testament to its comprehensive legal framework, providing entrepreneurs and established entities with the assurance that their creative and intellectual assets are secure.

Compliance and Legal Considerations

The Free Zone mandates adherence to its legal framework, which includes stipulations on shareholder numbers and other corporate governance aspects. A one-stop shop simplifies the operational aspects for businesses, offering services that streamline the setup of pick-and-pack spaces, fulfilment centres, and office interiors.

Benefits of Doing Business in Dubai CommerCity

Tax Benefits and Incentives 

Businesses operating within Dubai CommerCity enjoy a significant financial advantage due to the absence of corporate and personal income taxes, import, and export duties. This tax exemption, coupled with the privilege of 100% foreign ownership, significantly lowers operational costs and enhances profitability, allowing international investors to fully own their companies without requiring a local partner.

Market Access and Growth Opportunities 

Dubai CommerCity’s strategic location serves as an ideal hub for international trade, offering unparalleled access to the rapidly growing digital commerce market across the Middle East, Africa, and South Asia regions. The Free Zone’s infrastructure is specifically designed to support the scaling of operations for companies targeting both regional and global markets.

Networking and Business Support 

DCC fosters a collaborative environment conducive to networking and provides comprehensive business support services. This includes tailored advice for e-commerce and omnichannel operations and flexible pricing models to accommodate businesses of varying sizes and scopes.

Proximity to Dubai International Airport 

The close proximity to Dubai International Airport enhances the logistical capabilities of businesses within the Free Zone, offering a competitive edge in terms of delivery speeds and supply chain efficiency. This logistical advantage is crucial for maintaining high customer satisfaction and loyalty in a fast-paced industry.

Comprehensive Business Setup Options 

Dubai CommerCity offers a variety of company setup options, including Freezone Company (FZCO), Public Listed Company (PLC), and Free Zone Entity-Branch, with the ability to lease multiple premises under a single license. Adhering to the ISIC 4 activity list, businesses can include up to 20 activities from four different industry groups under one license, enhancing operational flexibility.

State-of-the-Art Infrastructure 

Dubai CommerCity boasts state-of-the-art infrastructure, featuring modern office spaces, advanced facilities, and robust telecommunications networks that support high-tech business operations. This environment is ideally suited to fostering innovation and efficiency, adding to the Free Zone’s appeal as a premier destination for e-commerce businesses.

Setup in Dubai CommerCity Free Zone

Dubai CommerCity Free Zone is a gateway to e-commerce excellence in the Middle East, Africa, and South Asia. With its bespoke business ecosystem, the Free Zone offers cutting-edge logistics, robust IP rights protection, and a vibrant community for networking—all designed to empower your business. 

Whether you’re starting up or scaling up, Dubai CommerCity provides the strategic advantages and tailored solutions you need to succeed in the digital commerce landscape. Embrace the future of e-commerce with Dubai CommerCity, where your business ambitions are set to soar.