What you need to know about the transitional period for DMCC member companies

Dubai Multi Commodities Centre (DMCC) is one of the leading free zones in the United Arab Emirates, which attracts a diverse range of businesses from around the world. As DMCC transitions into a new phase, member companies need to be aware of the changes that will take place during this transitional period. In this article, we will discuss what you need to know about the transitional period for DMCC member companies.

The Transitional Period:

The transitional period for DMCC member companies began on January 2, 2022, and will continue until December 31, 2022. During this period, DMCC will be implementing a new legal framework that will replace the current Memorandum and Articles of Association. This new legal framework is designed to streamline the governance structure of DMCC and improve the overall efficiency of the organization.

What Changes Can Member Companies Expect?

One of the most significant changes that member companies can expect during the transitional period is the introduction of new regulations and procedures. DMCC has already published a series of guidelines to help member companies prepare for these changes, including guidelines on company formation, licensing, and compliance.

Another major change that member companies can expect during the transitional period is a shift in the governance structure of DMCC. Under the new legal framework, DMCC will be governed by a Board of Directors, which will be responsible for overseeing the operations of the organization. This Board will be comprised of both elected and appointed members, and will be responsible for setting the strategic direction of DMCC.

What Steps Should Member Companies Take?

To ensure a smooth transition, member companies should take a number of steps during the transitional period. These steps include:

1. Staying informed: Member companies should stay up-to-date with the latest developments regarding the new legal framework. This can be done by regularly checking the DMCC website and attending any relevant events or workshops.
2. Reviewing company structures: Member companies should review their current company structures and ensure that they comply with the new regulations. This may involve restructuring the company or making changes to the company's Articles of Association.
3. Obtaining necessary licenses: Member companies should ensure that they have obtained all the necessary licenses and permits required under the new regulations.
4. Reviewing compliance policies: Member companies should review their compliance policies and procedures to ensure that they comply with the new regulations.
5. Seeking professional advice: Member companies should seek professional advice from legal and financial experts to ensure that they are fully prepared for the changes that will take place during the transitional period.

Conclusion:

The transitional period for DMCC member companies is a time of significant change. By staying informed, reviewing company structures, obtaining necessary licenses, reviewing compliance policies, and seeking professional advice, member companies can ensure a smooth transition and continue to operate successfully within the DMCC free zone.