Many entrepreneurs hope to launch their business in Dubai Multi Commodities Centre (DMCC). It seems like a great start. But many startups face rejection or delays — even when they think everything is in order. Knowing the common problems can help you avoid them.
1. Failure in Due Diligence and Security Checks
Before approval, DMCC reviews applicants’ background closely. That includes immigration history, legal or financial cases, and any record of misconduct. Applicants from certain countries, or with dual citizenship tied to risk jurisdictions, face extra scrutiny.
If you hide past issues or provide false information, your application is likely to be rejected. Honesty and full disclosure are essential.
2. Incomplete or Incorrect Documentation
Missing or wrong paperwork causes many rejections. Common issues include:
- Passports, visas, or identity documents that are expired or invalid
- Business plans and legal agreements that don’t match the proposed business activity
- Articles of association or partnership agreements that are unsigned or not properly certified
Even small errors or inconsistencies can halt approval. Ensure every document is accurate and up to date before submission.
3. No Proof of Financial Stability
DMCC wants to see that your business is real. If you submit weak financial records, no investment proof, or no bank history, your application may be declined.
Provide bank statements, investment proof, or past financial history. Show you have funds to run the business and meet obligations.
4. Signature Mismatch or Forgery Risk
Documents must carry proper signatures matching official IDs. Any mismatch or suspicion of forgery leads to automatic rejection.
Make sure the signature on application papers matches passport and ID records. Avoid any ambiguity.
5. Missing Required Approvals or Inspections
Some business activities require extra approvals from authorities — for example, trading, food services, import-export, or regulated goods.
If you don’t get these sector-specific clearances, DMCC will reject or delay your license. Always check if your activity needs added approvals.
6. Trade Name or Business Activity Issues
The trade name you choose must follow UAE naming rules. Names too similar to existing ones, using restricted terms, or mismatched with your activity can cause rejection.
And your business activity must match what’s on your licence application. If you apply for retail but intend consultancy, that mismatch can get you rejected.
7. Office or Physical Address Problems
DMCC often requires proof of a valid office space or physical address. If your lease is not properly registered, the address is invalid, or the space does not meet free-zone requirements, the registration may fail.
Providing a correct Ejari-registered lease, or a valid office contract, is key.
8. Choosing a Business Activity That Needs Extra Permits
Certain sectors are sensitive: trading regulated goods, import/export, or financial services. These might need added permissions.
If your application lacks those permits, DMCC may reject you. Always check the licensing requirements for your specific activity.
How to Avoid These Pitfalls
- Do not skip background checks. Be honest about past legal or immigration history.
- Prepare a full document pack: valid passport/ID, attested agreements, proper business plan, and financial proof.
- Pick a trade name and activity that match rules and your actual plan.
- Secure proper office lease or address proof.
- If your business area needs extra approvals, get them before submitting your application.
- If you are unsure, seek professional help to review all paperwork and requirements.
Final Thoughts
DMCC offers great opportunity for entrepreneurs. But even one wrong or missing document can block your path. The review process is strict and detailed.
For smooth success, pay close attention to documentation, approvals, and transparency. Careful preparation of your file and compliance with regulations can save time, cost, and frustration.
If you want expert guidance for Company formation in Dubai, including in DMCC, consider working with experienced consultants. They help you prepare a clean application and avoid common mistakes. That increases your chances of getting approved the first time.
Ready to set up your business without delays?
AR Associates handles documentation, approvals, and every step of your setup. Get expert guidance and avoid costly mistakes. Contact AR Associates today and start your company the right way.
