The UAE has now become a destination for entrepreneurs and investors. Whatever their financial capabilities and budget, they can start any type of commercial activity there. This is due to the different living conditions, the multiplicity of its requirements, and the increase in its expenses. It is also due to the different types of investment and its needs between each emirate and another in the Emirates. And its multiple. Establishing a company in Dubai South offers investors an exciting investment opportunity in one of the fastest growing regions in the UAE. Dubai South creates a distinctive economic environment with tax exemptions and advanced infrastructure, which contributes to facilitating incorporation procedures. From choosing a company type and submitting a license application to contract attestation and bank account opening, seamless processes provide opportunities for investors to achieve sustainable success. With an emphasis on organization and advanced technologies, companies in Dubai South can benefit from a leading business environment and thrive in a diverse and advanced international market.
How to establish a company in Dubai South
To establish a company in Dubai South , you must follow the following steps:
- Determine the type of company: Select the type of company you wish to establish in Dubai South, such as a local company (LLC), sole proprietorship, public joint stock company, or free zone company.
- Choosing a company name: Choose a name for the company and make sure that it is compatible with Dubai’s laws and regulations and that it is not similar to the names of other existing companies.
- Hiring a legal advisor: Collaborate with a local legal advisor who specializes in establishing companies in Dubai South. A legal advisor will guide you through the process and ensure compliance with laws and legal procedures.
- Preparing the required documents: The documents required to establish the company must be prepared, such as company contracts and other required legal documents. The required documents may require signatures of the founders and attestation by the relevant authorities.
- Submitting the application: Submit the required documents and applications to the competent authority in Dubai South. You may need to pay registration and licensing fees.
- Obtaining licenses: After reviewing the documents and applications, your application will be processed and the necessary licenses to establish the company in Dubai South will be issued.
- Opening a bank account: After obtaining the licenses, you must open a bank account for the company in one of the recognized banks in Dubai South.
- Employee Visas: If you intend to employ employees, you will need to submit work visa and employee residency applications to the relevant authorities in Dubai South.
Conditions for establishing a company in Dubai South
Despite all the facilities provided by Dubai South in establishing companies, there are some conditions for establishing a company in Dubai South, which are as follows:
In terms of number of shareholders:
A company can be established in the Dubai South area with only one shareholder. The company\\\’s capital is divided into 300 dirhams, and the value of each share is one dirham, and there is no need to pay a minimum capital.
In terms of management:
The company is managed by a director and a maximum of 7 directors can be chosen. The directors can be located anywhere in the world, but the general manager must be a resident of the United Arab Emirates. This is because he will be the daily link with all the authorities of the Dubai South region, especially in cases of Emergency.
In terms of licenses:
The cost of issuing a regular commercial license is ten thousand dirhams, in addition to registration fees, virtual office or rental costs, professional fees, and annual renewal fees. Dubai South authorities also offer offers in lump sums depending on the needs of your business.
In terms of offices:
Each company must have its own registered office. Dubai South authorities offer different options, ranging from a “Smart Desk” facility to large offices in the business park.
In terms of visas:
After completing the establishment of the company and issuing the license, the shareholder can apply for a residence permit in the UAE, which is valid for three years.
In order for your passport to be stamped, you must travel to the United Arab Emirates, take a medical test and stay in the country for a period of not less than two weeks. You must visit the Emirates at least once every six months to maintain residency, and you can also sponsor your family members directly.
Types of companies allowed in Dubai South
In Dubai South, there are several types of companies that can be established. Here are some of the main types of companies allowed in Dubai South:
- Limited Joint Stock Company (LLC): A Limited Joint Stock Company is a common form of company in Dubai South. It consists of partners who have limited liability for the company\\\’s debts, and requires a local partner who owns a share of at least 51% of the capital.
- Sole Proprietorship: Dubai South allows the establishment of sole proprietorships, where the sole owner and manager of the company is one individual. A sole proprietorship has flexibility in management and decision making.
- Public Joint Stock Company: This type of company allows raising capital from public investors through the sale of public shares. This type of company is organized according to the laws and regulations for joint stock companies in Dubai South.
- Free Zone Company: Dubai South Free Zones are an excellent opportunity to establish companies, as many different company models are offered in these zones. Companies in free zones enjoy complete independence, which allows foreign investors 100% ownership of the company without the need for a local partner.
Costs of establishing a company in Dubai South
The costs of establishing a company in Dubai South are limited to several expenses, which are as follows:
- The cost of obtaining a business license.
- The cost of the office location or the location through which you conduct business, whether rented or purchased.
- The cost of matters also related to the furniture and decoration of the office or the company in which you do business.
- The cost of obtaining work permits for sponsored employees and obtaining the required visas for them under the name of your new company.
- The cost of opening a new bank account in a bank in the name of the company and then depositing the minimum capital depending on the type of your business activity.
- The costs of the legal form of the company, meaning that it is commercial, industrial, or professional, has a fundamental role in determining the cost of establishment. The cost of establishing industrial companies is higher than that of establishing commercial and professional companies.
- The cost of obtaining a commercial license in Dubai.
Free zones in Dubai South
In Dubai South, there are several free zones that provide a distinct investment environment and facilitate doing business. Here are some of the main free zones in Dubai South:
Dubai South Logistics City area:
- It is considered a region specialized in logistics and provides advanced shipping and distribution infrastructure.
- It attracts logistics companies thanks to its proximity to Al Maktoum International Airport and Dubai International Load Centre.
Dubai South Industrial City:
- It provides an ideal environment for industrial companies and factories thanks to the advanced infrastructure.
- It supports industrial activity in various sectors, including heavy and light industries.
Dubai South Business Park:
- It is considered a free zone that combines commercial offices and advanced logistics facilities.
- It facilitates the appropriate environment for small, medium and large companies to establish their offices and workplaces.
Dubai South Exhibition City:
- It is an area specialized in hosting major exhibitions and events.
- It provides an integrated infrastructure that supports the organization of exhibitions and events on a large scale.
Dubai South Medical Wellness District:
- It aims to develop healthcare facilities, medical dispensaries and private clinics.
- It contributes to providing advanced and integrated health services to residents and visitors in the region.
These free zones provide various opportunities for companies to grow and expand in the Dubai market and the surrounding region, and are characterized by advanced infrastructure and strong government support to facilitate business operations.
Licenses required to establish a company in Dubai South
To set up a company in Dubai South, there are usually several basic licenses that are generally required. Here is a list of the main licenses you may need to establish your company in Dubai South:
- Company License: Company registration is required to obtain the appropriate company license depending on the type of company you wish to establish, such as LLC, Sole Proprietorship, or Free Zone Company.
- Business License: You must obtain a license for the business activity you wish to practice. For example, if you want to establish a retail store, you will need a retail license.
- Building License: If you intend to build a commercial building or factory in Dubai South, you may need to obtain a building license from the local authorities.
- Municipality License: You may be required to obtain a license from the Dubai South Municipality to conduct your business activities.
- Work License: If you intend to employ employees in your company, you will have to obtain the necessary work license from the Dubai South Labor Department.
Documents required to establish a company in Dubai South
To establish a company in Dubai South, you usually need to prepare the following documents:
- Registration Application Form: You must fill out the Company Registration Application Form which is available from the relevant authorities in Dubai South.
- Passport photo: A valid passport photo must be submitted for all shareholders and directors concerned with the company.
- Personal photo: A recent personal photo must be submitted to all relevant shareholders and directors.
- Company Contract: A company contract must be prepared that specifies the company structure, objectives, activities and shares of shareholders and directors.
- Company incorporation certificate: You may be asked to provide a company incorporation certificate or legal documents recognized in your country.
- Business Plan: A detailed business plan must be submitted explaining the proposed business activity and the company’s financial, marketing and operational strategy.
- Commercial Address: A valid commercial address in Dubai South must be provided to register the company.
- Certificates of experience and qualifications: You may need to provide certificates of experience and qualifications for the managers and key employees involved in the company.
Advantages of establishing a company in Dubai South
Establishing a company in Dubai South comes with a number of advantages that include:
- Free Zone: Dubai South is a free zone, which means that companies established there enjoy flexible trade policies, laws, and economic advantages. Companies in the free zone enjoy complete freedom of ownership and benefit from preferred customs and tax facilities and privileges.
- Strategic location: Dubai South is located in an important strategic location in Dubai, as it is located near Al Maktoum International Airport and Jebel Ali Port. This makes it a center for international trade, transportation and shipping.
- Advanced Infrastructure: Dubai South provides advanced infrastructure that meets the needs of diverse companies. This includes excellent roads, logistics networks and modern facilities, including commercial buildings, offices and warehouses.
- Ease of Access: Dubai South has easy access to major roads and public transport networks, making it a flexible business hub and easy handling for workers and visitors.
- A hub for innovation and technology: Dubai South works to promote innovation and develop technological industries. The region provides an encouraging environment for startups and leading technology companies.
- Investment and Trade Opportunities: Dubai South offers extensive investment and trade opportunities in a variety of sectors, including logistics, industry, aviation, technology, and real estate investment.
- Multicultural Business Environment: Dubai South has a dynamic and multicultural business environment, attracting talent and companies from all over the world.
