Dubai South is one of the most prominent investment destinations in the UAE, providing an advanced and integrated business environment that combines economic advantages and modern facilities for investors. Strategically located near Al Maktoum International Airport, Dubai South is part of Dubai Vision 2020, which aims to enhance economic growth and expand the business sector. Establishing a company in Dubai South represents a great opportunity for entrepreneurs and investors from all over the world, whether they wish to establish commercial, industrial, or service companies. In this article, we will learn about the procedures and costs of establishing a company in Dubai South.
What distinguishes Dubai South is its focus on innovation and sustainability, as it provides companies with advanced infrastructure and distinguished logistics services that contribute to facilitating operations and growth. The free zone in Dubai South provides various investment opportunities, from full foreign ownership to tax exemptions, making it an ideal destination for companies seeking to launch into regional and international markets.
In addition, Dubai South offers a flexible business environment that facilitates establishment procedures, reducing administrative burdens and saving valuable time for investors. With services such as ready-made offices, work visas, and integrated logistics, investors can focus on growth and expansion instead of dealing with administrative complexities.
In this article, we will discuss the basic steps to establish a company in Dubai South, the benefits this free zone offers to investors, and the most important factors that make it a distinctive destination for businesses.
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ToggleAdvantages of establishing a company in Dubai South
Establishing a company in Dubai South offers many advantages that make it a distinctive choice for many businessmen and investors. Here are some of the most prominent of these advantages:
Strategic location: Dubai South is located near Al Maktoum International Airport, which provides easy access to local and global markets. It is also close to Jebel Ali Port, one of the largest ports in the world.
Low costs: Dubai South offers competitive company establishment and operating costs compared to some other free zones in Dubai, which enhances its attractiveness to investors.
Tax exemptions: The region provides tax exemptions of up to 50 years on corporate profits, which helps increase investment returns and reduce the financial burden on companies.
Ease of Procedures: Dubai South is one of the free zones that facilitates the procedures for establishing companies, saving investors time and effort. There are integrated services of facilities and modern infrastructure to support businesses.
Stimulating business environment: Dubai South aims to attract start-ups in various fields such as logistics, trade, and services. It also provides a suitable environment for companies seeking growth and expansion.
Advanced infrastructure: Dubai South provides modern infrastructure that includes logistics facilities, business centers, and residential facilities, making it a convenient place to live and work.
Flexibility in ownership: Foreigners can establish companies in Dubai South with 100% ownership without the need for a local partner, which contributes to enhancing international business opportunities.
Procedures for establishing a company in Dubai South
To establish a company in Dubai South, you must follow specific procedures and obtain the necessary licenses. Here are the general steps for establishing a company in Dubai South:
Choose the type of company: Determine the legal structure of the company such as a limited company, partnership, or sole proprietorship.
Choose the company name: Choose a unique name for the company and ensure that it complies with the company naming laws in Dubai.
Determine the business activity: Determine the company\’s main activity and subsidiary activities, if any.
Determine the financial contribution: Determine the capital required to establish the company.
Draft legal documents: Prepare the necessary legal documents such as the articles of association and bylaws.
Submit a license application: Submit the company establishment application and the required documents to the competent authority in Dubai South.
Get approvals: Wait for the necessary approvals from local authorities and relevant entities.
Sign contracts and agreements: Once approved, sign the final contracts and agreements.
Business bank account: Open a business bank account in the name of the company.
Tax registration: Register the company with the tax authorities and comply with tax obligations.
Health and labor insurance: Ensure that the company is registered with the health authorities and labor insurance.
Obtaining building permits (if required): If you are planning to build a building or facility, you may need building permits from local authorities.
Costs of establishing a company in Dubai South
The costs of establishing a company in Dubai South vary based on several factors, including the type of business and the size of the company, as well as the requirements for the company’s location and the size of the office space required. Here are some aspects that affect the costs of establishing a company in Dubai South:
Licensing and registration: To obtain a commercial license in Dubai South, a fee is required to register the company and obtain the necessary licenses. The fees vary based on the type of business and the details of the chosen activity.
Facilities and infrastructure: Offices and facilities are provided to companies in Dubai South according to their needs. Rental costs for office space depend on the size of the office and the duration of the contract, with small or large spaces available as needed.
Support services: The costs of establishing a company include support services such as internet, electricity, and the provision of basic utilities, in addition to cleaning and maintenance services.
Legal and accounting advice: Companies may require legal and accounting advice to meet licensing requirements and comply with local regulations. These are costs that should be factored into the establishment budget.
Labor: The costs of hiring employees in Dubai South can be part of the establishment costs, as salaries and health insurance fees are paid for employees, in addition to fees related to work visas.
Insurance: Some companies may need to pay insurance costs, such as property insurance or accident insurance, depending on the nature of the activity and the size of the company.
In conclusion, establishing a company in Dubai South is a strategic and profitable step for investors looking to enter the growing business market in the UAE. With its ideal location near Al Maktoum International Airport and Jebel Ali Port, Dubai South provides an ideal environment for growth and expansion, as it represents a global logistics hub and a vital commercial destination.
The facilities offered by Dubai South, such as tax exemptions, full foreign ownership facilities, and fast-track establishment procedures, contribute to making it an ideal destination for local and international investors alike. The supportive business environment, represented by providing innovative services, contributes to promoting startups and small and medium enterprises, which enhances the opportunities for sustainable growth and innovation.
Moreover, Dubai South offers a modern and advanced infrastructure, making it easier for companies to operate in an efficient and flexible environment. It includes business centers and advanced commercial facilities that support various types of business activities, including trade, services, and technology.
Thus, deciding to establish a company in Dubai South opens up many opportunities for investors to innovate and grow in a dynamic and profitable market. In short, Dubai South is not just an investment destination, but a strategic growth center, representing the ideal choice for those seeking to achieve success in a global and sustainable business environment.
The most important frequently asked questions about the procedures and costs of establishing a company in Dubai South
Can foreigners establish a company in Dubai South?
Yes, foreigners can establish companies in Dubai South with up to 100% ownership in most commercial activities within the free zone, without the need for a local partner.
Are there tax exemptions when establishing a company in Dubai South?
Yes, companies in Dubai South benefit from tax exemptions for a period of up to 50 years, which encourages long-term investments and reduces the financial burden on companies.
Do companies need a local partner to establish a company in Dubai South?
No, companies in Dubai South do not need a local partner, as the free zone allows foreigners to own the company 100%.
What documents are required to set up a company in Dubai South?
The required documents usually include a copy of the passport, a commercial registration certificate (if the activity is commercial), a business plan, and approval from the competent authorities for the business activity. Requirements may vary depending on the type of company and activity.