Advantages and conditions of establishing a company in Dubai South

Establishing a company in Dubai South represents a strategic step that opens endless doors of opportunities and advantages to entrepreneurs. This emerging urban area offers a variety of advantages and conditions for setting up a company in Dubai South that make it an ideal destination for aspiring companies. In this article, we will highlight some of these advantages and conditions for establishing a company in Dubai South, an investment option conducive to success.

One of the prominent features of Dubai South is its strategic location that makes it a vital center for global trade. The area is located next to Al Maktoum International Airport, one of the largest airports in the world, allowing companies easy access to regional and global markets.

In addition, Dubai South provides a sophisticated and modern work environment that includes a variety of commercial complexes and innovative office spaces. This infrastructure features advanced technology and cutting-edge infrastructure, providing an ideal environment for business development and fostering innovation.

Tax exemptions are also one of the major advantages of establishing a company in Dubai South . The free zone provides attractive tax exemptions, such as not imposing income tax and not imposing fees on profit transfers, which contributes to achieving significant financial savings and enhancing profitability.

In addition, Dubai South provides multiple facilities for international trade, including simplified customs and fast export and import procedures. This helps companies speed up their business operations and save time and effort.

Establishing a company in Dubai South

Dubai South is one of the most prominent free zones in Dubai, providing an ideal environment for establishing companies thanks to its strategic location and the advanced facilities it provides. Established as a global hub for trade and logistics, Dubai South is home to a wide range of commercial and industrial activities.

Establishing a company in Dubai South allows investors to benefit from multiple benefits, such as full tax exemptions on profits, full ownership by foreigners, and the freedom to transfer capital and profits. In addition, the region provides modern infrastructure that includes advanced business centers, storage spaces, and integrated logistics facilities, making it an excellent choice for companies seeking to grow and expand into new markets.

The regulatory process for setting up a company in Dubai South is easy and efficient, as investors can submit their applications online and obtain the necessary licenses quickly. The region also provides various support services to investors, such as legal advice, assistance with employment procedures, and flexible solutions for expansion.

Thanks to all these advantages, Dubai South is an ideal environment for companies looking for a global investment center that provides multiple opportunities for growth and innovation, and achieves a balance between operational effectiveness and high profitability.

Advantages of establishing a company in Dubai South

Establishing a company in Dubai South is one of the most important things that investors desire, and this is because the Dubai South region is one of the most important free zones in Dubai, and this is thanks to its many advantages, some of which we will mention in the following points:

• Complete exemption from taxes, whether corporate or income tax.
• Fully allowing foreign ownership without the need for a sponsoring partner.
• Tax exemption on import and export.
• Flexibility and facilities in office rental.
• Availability of many different commercial activities.
• Ease and convenience in the required documents and papers.
• There are no restrictions on currency.
• There are warehouses for storage.
• Competitive prices for setting up companies.

Steps to establish a company in Dubai South

Here are the steps for establishing a company in Dubai South :

1. Market study and research: Study the market in Dubai South to understand the demand for your products or services, competition and available opportunities.
2. Choose the type of company: Determine the type of company you wish to establish, whether it is a sole proprietorship, a limited liability company, or a joint stock company.
3. Choosing a Company Name: Choose an appropriate and unique name for your company and ensure that it has not already been used and that it complies with local regulations and laws.
4. Preparing the required documents: Prepare the documents required to establish the company, such as the personal data of the founders, the business plan, potential agreements, etc.
5. Submitting an application for incorporation: Submit an application for incorporation of the company to the relevant authority in Dubai South, and submit all required documents.
6. Waiting for Approval: Wait for your company incorporation application to be approved, and you may need to provide additional information or conduct interviews before receiving approval.
7. Payment of fees: Once approved, pay the fees required to establish the company and obtain the necessary licenses.
8. Receiving the license: Once you pay the fees, you will obtain a license to establish the company and can officially start working.
9. Establishing the organizational structure: Establish the company’s organizational structure, appoint managers, and define jobs and responsibilities.
10. Compliance with local legislation: Ensure you adhere to all local laws and legislation in Dubai South to operate your company legally and properly.

Types of business licenses available in Dubai South

In Dubai South, there are several types of business licenses that companies can obtain according to their business activity and needs. Here are some common types of business licenses in Dubai South:

• Limited Liability Company (LLC) License: The LLC license is one of the most common types in Dubai South. This license can be suitable for companies that want to conduct business in diverse areas such as retail, services and manufacturing.
• Public Joint Stock Company (PJSC) License: The PJSC license is used to establish public joint stock companies in Dubai South. These companies are open to investment by the public and support fundraising from shareholders.
• Private Joint Stock Company (PSC) License: Private joint stock companies are permitted to be established in Dubai South through a PSC license. This license is suitable for companies that wish to establish partnerships with government agencies or government companies.
• Sole Company License: Individuals can obtain an individual company license to conduct business in Dubai South. An individual is allowed to own and operate the business alone without partners.
• Free Enterprise License: The Free Enterprise License allows individuals to establish and operate a company without the need for partners. Individuals can obtain this license to conduct business independently.
• Economic Company License: The Economic Company License allows companies to deal in multiple activities within Dubai South. This license can be suitable for companies that want to provide a variety of services or products.

Conditions for establishing a company in Dubai South

Establishing a company in Dubai South requires compliance with some specific conditions and requirements. Here are some of the main requirements for establishing a company in Dubai South:

1. Company type: You must specify the type of company you wish to establish, whether it is a limited liability company (LLC), a public joint stock company (PJSC), a private joint stock company (PSC), or other recognized types.
2. Required capital: The capital required to establish the company must be determined according to the type and activity you desire. This depends on market trends and the requirements of stakeholders.
3. Choosing a name: A name must be chosen that is appropriate and does not conflict with other companies located in Dubai South. You must ensure that there is no similar or identical name in the commercial register.
4. Business Partners: Business partners must be identified and their equity shares determined. Expatriate partners must submit their passports and health and professional insurance papers.
5. Office Location: The company’s main office must be located in Dubai South and a permit must be obtained to use the place as the company’s headquarters.
6. Activity licensing: The company’s activity must be determined and the necessary licenses must be obtained from the relevant authorities. You must ensure that the chosen activity is permitted in Dubai South.
7. Legal procedures: The necessary legal procedures for establishing the company must be completed by submitting the required documents to the competent authorities and paying the prescribed fees.
8. Bank account: A bank account must be opened in the name of the company in one of the recognized banks in Dubai South. This requires submitting the required documents and complying with the bank’s requirements.

The cost of establishing a company in Dubai South

The cost of setting up a company in Dubai South is affected by several factors, including the type of company and the size of the planned business, but a general cost estimate can be provided based on the basic elements that are usually part of setting up a company in Dubai. Aspects that can affect the cost:

• Licensing and registration fees: These fees vary based on the type of company and business activity chosen. These fees may range from several thousand to several tens of thousands of UAE dirhams.
• Legal and advisory services fees: You may need to use the services of legal advisors or accountants during the company formation process, and this can increase the cost.
• Rental fees: If you plan to rent an office or work space, you will need to pay monthly or annual rental fees, which can be high in areas like Dubai.
• Additional Service Fees: You may also need to pay additional fees for services such as municipal services and technical and technical support services.
• Registration and insurance costs: You may also need to pay costs to register the company with the relevant government agencies and insure employees and assets.

Licenses required to establish a company in Dubai South

To establish a company in the Dubai South area, you need to obtain a number of necessary licenses and permits. Here is a list of the basic licenses you may need:

1. Trade License: Requires a company-specific business license that allows you to conduct a specific business. You must specify the type of activity you wish to practice and register it in the license.
2. Company Registration: The company must be registered with the relevant regulatory authorities in Dubai South, such as the Dubai Department of Economic Development (DED) or the Dubai General Authority for Free Zones and Economic Zones (DAFZA). You will need to submit the required documents and pay the prescribed fees.
3. Building Permit: If you intend to build a commercial building or company office in Dubai South, you may need to obtain a building permit from the relevant authorities. This requires submission of building plans, required documents, and payment of prescribed fees.
4. Environment and Health Permit: You may need to obtain an environmental and health permit if you work in a sector that requires consideration of environmental and health safety, such as food and public health.
5. Advertising Permit: If you intend to carry out advertising activities for the company in Dubai South, you may need to obtain an advertising permit from the relevant authorities. This requires compliance with laws and regulations relating to advertising.

Types of business licenses available in Dubai

In Dubai, there are several types of business licenses that companies can obtain depending on their business activity and specific requirements. Here are some types of business licenses available in Dubai:

1. General Trade License (General Trade): Allows its holder to practice all types of approved businesses including retail and wholesale.
2. Import and Export License: Allows the company to carry out import and export operations of goods and products.
3. Brokerage and Distribution License: Allows the company to perform commercial brokerage and distribution of goods and products.
4. Industry License: Allows the company to produce and manufacture products within Dubai.
5. Professional Services License: Allows the company to provide professional services such as legal, medical, engineering, and other consultations.
6. Restaurants and cafés license: Establishments are allowed to operate restaurants, cafés, and food stores.
7. Construction and Civil Engineering License: Allows companies to provide construction, civil engineering, and contracting services.
8. Tourism and Travel License: Allows companies to provide tourism, travel and medical tourism services.
9. Logistics and transportation services license: Allows companies to provide transportation, logistics, and storage services for goods.
10. Technical services and information technology license: Allows companies to provide technical services and develop software and information technology.

Documents required to establish a company in Dubai

To establish a company in Dubai , the type of documents required depends on the type of company and the region in which you intend to establish it, whether it is in the free sector or the private sector. Here is a general list of basic documents you may need:

• Company Registration Application: A company registration application form that can be obtained from the Department of Economic Development (DED) or the free zone of your choice.
• Copy of Passport: A certified copy of the passport of all shareholders and directors of the company.
• Personal photographs: Recent passport size photographs of all shareholders and directors.
• Memorandum and Articles of Association: A certified copy of the company’s Memorandum and Articles of Association, which specifies the type of company and details of shareholders and directors.
• Lease Contract: A lease contract for the office or headquarters in which the company will operate, approved by the relevant authority.
• Trade name reservation certificate: A trade name reservation certificate from the Department of Economic Development, or the free zone you choose, which proves that the trade name is available and has not been previously used.
• Business activity details: An accurate description of the business activity that the company will undertake, which must be compatible with activities permitted by local authorities.
• Additional approvals: Some commercial activities may require additional approvals from the relevant authorities, such as the Ministry of Health or the Telecommunications Regulatory Authority, as the case may be.
• Power of attorney: If necessary, an official power of attorney proving the authority of directors or employees to represent the company in legal transactions.
• Registration fees: Pay the fees required to register the company, which vary according to the type of company and region.

At the end of this article, we realize that establishing a company in Dubai South represents an important strategic step towards taking advantage of distinct investment opportunities in the Emirates. It provides investors with the opportunity to benefit from its strategic location near Al Maktoum International Airport, and advanced development areas that support business and facilitate access to global markets.

By adhering to the legal and administrative terms and requirements, investors can build a sustainable and successful business in a stimulating business environment that offers unparalleled tax breaks and facilities. No matter what type of company they wish to establish, Dubai South provides the infrastructure and support needed to achieve success and sustainable growth.

In short, establishing a company in Dubai South is a smart strategic decision that opens doors to vast opportunities in a growing global market. It is an opportunity for investors to build their economic future with confidence and optimism, and to make the most of the unique investment environment that Dubai South offers.

The most frequently asked questions about establishing a company in Dubai