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Company formation in Dubai South

٣٠ يناير Company formation in Dubai South

The UAE has now become a destination for entrepreneurs and investors, regardless of their financial capabilities and budget, as 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 difference in the types of investment and its needs between each emirate and another in the UAE and their multiplicity.

We also notice a significant increase in the population, an increase in the number of births, and an increase in the trend towards the UAE, which has led to their need for many diverse and different services necessary for life. All of this leads to multiple investments in Dubai, whether they are investors who hold Emirati citizenship and have capital or they are migrant workers, whether this or that, it is considered one of the best countries in which you can start a new business or any type of new investment, etc.

How to set up a company in Dubai

Dubai South is one of the free zones in Dubai, which was previously called Dubai World Center. It also constitutes an integrated ecosystem that is suitable for all commercial and industrial businesses.

Dubai South’s location, which is very close to Jebel Ali Port and Al Maktoum International Airport, facilitates the work of companies established in Dubai South, especially those whose activity is logistics. Dubai South also offers several warehouses for storage and offers goods at competitive prices compared to other free zones. The shareholder is not required to be physically present in the UAE to establish any investment company himself.

Advantages of establishing a company in Dubai South

Dubai Free Zone is considered one of the most important free zones in Dubai that can help in establishing companies there due to its advantages, the most important of which are the following:

  • Full exemption from all taxes, whether income tax or corporate tax.
  • Allowing 100% foreign ownership.
  • Tax exemption on import and export.
  • Providing facilities and flexibility in office rental terms.
  • It offers a wide range of different business activities available.
  • The documents required to establish a new company are not many and specific.
  • No currency restrictions.
  • Providing competitive prices for establishing any company in Dubai South area.
  • Providing storage warehouses.

Conditions for establishing a company in the Dubai South area

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, and the company’s capital is divided into 300 dirhams, with the value of each share being 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 because he will be the daily link with all the authorities in the Dubai South area, especially in emergency situations.

In terms of documents:

In order to establish a company in Dubai South, you must show the following documents:

  • Bring a completed registration and licensing application form.
  • Bring a certified copy of a valid passport (preferably a coloured copy) for any individual whose name is listed as a shareholder, director, general manager or company secretary, whatever, on the application form.
  • In the event that the shareholder is a company, a certified copy of the certificate of incorporation, a valid certificate of good standing, or a commercial license must be brought (in the event that the company is foreign, the documents must be certified, authenticated, and legal).
  • In the event that the person signing the registration and licensing form is not a shareholder, director, general manager or secretary of the application, in this case a notarized power of attorney or a decision from the Board of Directors itself must be presented if the shareholder is a company confirming that the person signing this application is actually authorized to sign and is authorized to follow up on the procedures for establishing the company in the Dubai South area with all Dubai South authorities on behalf of the shareholders.
  • Bring two copies of the company’s articles of association and memorandum of association in Dubai South, with the company’s name and the signatures of all shareholders, indicating their names, addresses, and the exact name of each one of them.

In terms of fees:

After submitting all the above documents, the Dubai South authorities must approve the initial name, which may take approximately ten days, and then issue the license, which may take seven working days. The company establishment period in general may reach six weeks. 

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 lump sum offers depending on your business needs.

In terms of license types:

  • Industrial license for industrial activities.
  • Logistics license to carry out logistics services.
  • Trading and commerce license for import, export, distribution and storage of products.
  • Service License for services specified in the license within the Dubai South area.
  • Education License for Educational, Social, Training and Educational Consulting Services

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 a business park.

In terms of visas:

After the company is established and the license is issued, the shareholder can apply for a residence permit in the UAE that is valid for three years.

In order to get your passport stamped, you must travel to the UAE, undergo a medical test and stay in the country for at least two weeks. You must visit the UAE at least once every six months to maintain residency and you can also sponsor your family members directly.

Cost of setting up a company in Dubai South

The costs of establishing a company in Dubai South  are limited to several expenses, which are as follows:

  • Cost of obtaining a commercial license.
  • The cost of the office location or the location from which you conduct business, whether renting or purchasing.
  • The cost of things related to the furniture and decoration of the office or company where you do your 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 the company’s name 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, play 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 .