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Dubai CommerCity Free Zone

A Bird’s Eye View on Dubai CommerCity Free Zone:

Dubai CommerCity Free Zone is the pioneer and leading freezone which is devoted to e-commerce in the Middle East, North Africa and South Asia (MENASA) region. It is a joint venture between Wasl Asset Management (WAM) Group and the Dubai Airport Free Zone Authority (DAFZA). It provides a unique e-commerce ecosystem to global and regional brands. It can be termed as an ideal regional hub for e-commerce businesses.

The investment put in this project is around AED 3.2 billion ($ 1 Billion), which is spread over an area of 2.1 million square feet approximately and is situated in the Umm Ramool area in Dubai. It is said that Dubai CommerCity will also offer storage options and a pay-as-you-go payment model to ensure ‘cost efficiency’ and ‘flexibility’.

It has leased 51 percent of the logistics warehouses to companies operating across IT, fashion, jewellery and electronics. In a gist – It is enabling the “e” in commerce.

Dubai CommerCity is divided into three clusters, each with its own innovative design namely: –

ClusterWhat is it all about?
Business ClusterIt is home to modern landscaped buildings with Grade A premium offices
Logistics ClusterIt consists of state-of-the-art dedicated and multi-client warehouse units with scalable pay-as-you-go pricing models
Social ClusterIt houses restaurants, cafes, exhibition halls and events.


What are the types of licenses available for business set up in Dubai CommerCity Free Zone?

Following are the available license categories in Dubai CommerCity Free Zone:

License TypeWhat it allows?
Trade LicenseAllows for import, export, re-export, distribution and storage.
Service LicenseIs for service-based businesses.
Industrial LicenseAllows for light manufacturing, assembly and packaging.
E- Commerce LicenseAllows trading goods and services online.
General LicensePermits general trading, import, export, storage and distribution.
Dual License with DEDThis license allows trading without physical premises on the mainland.


What are the company types and what is the procedure for setting up a business and obtaining a license in Dubai CommerCity Free Zone?


Company Types:

Company Type Particulars
Freezone Company (FZCO)Dubai CommerCity’s regulations require a minimum of one (1) shareholder and a maximum of 50 to form a company.
The minimum share capital for a Dubai CommerCity company is AED 1,000.
PLCThis type of entity is suited to a company that wishes to list and/or offer its shares (IPO) on a securities market.
Branch OfficeThe branch office of an existing company
No share capital required


Steps to set up a business in Dubai Commercity Free Zone:

Step 1Choosing the business activity
a) Portal
b) E-commerce
c) Commercial or service
Step 2Choosing the license type
Step 3Choosing the company type
Step 4Choosing the space
a) Office space
b) Ware housing and industrial space
c) Cold storage


Steps to obtain a license in Dubai CommerCity Free Zone:

1Deciding on the legal structure
2Deciding on the location of getting the license
3Deciding on the Trade name
4Applying for the license by paying the fees for obtaining license, registering trade name and business set up
5Obtaining the initial certificates
6Drafting Memorandum of association
Drafting local service agent
Registering an office in Dubai CommerCity
Completing the import/export requirements
Creating a bank account


Points on renewal of Dubai CommerCity Free Zone License done

  • Cost of Renewal is less expensive than that of cost of incorporation.
  • Audited financials on annual basis are to be submitted.
  • Payment for renewal along with the signed lease agreement for the next year to be submitted.


What is the procedure for liquidating a business in Dubai CommerCity Free Zone?

Before Liquidation following steps to be accomplished:

1Cancellation of the visas
2Termination of lease agreement
3Closure of the bank account
4Clearance from Customs in case you had a trading activity in the license


What are the Competitive advantages of setting up business in Dubai CommerCity Free Zone?

  • The free zone provides opportunities for manufacturers, distributors and global e-retailers
  • No taxes on personal income or capital gains
  • No corporate taxes
  • No duties on import or export of goods
  • Provision of 100% foreign ownership
  • 100% repatriation of capital and profits
  • It’s a gateway to regional markets
  • It offers world class infrastructure


Is there any requirement for a Free Zone enterprise to appoint Auditors and submit an Annual Financial statement?

Yes. Each Free Zone Enterprise must appoint an independent auditor that is registered and licensed in the UAE. Audited financial statements must be submitted annually.


Why Spectrum Auditing?

Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.

Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration and de-registration of your company in Dubai CommerCity Free Zone. Call us today for any kind of assistance at +971 4 2699329 or email us at info@spectrumaccounts.com to get all your queries addressed. Spectrum is your partner in your success.


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