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Costs of establishing a company in the Dubai South Free Zone

٢٤ يونيو Costs of establishing a company in the Dubai South Free Zone

What are the costs of establishing a company in the Dubai South Free Zone? Dubai South is one of the most prominent free zones in Dubai, providing an ideal environment for business and investment. Establishing a company in this area represents a golden opportunity for many businessmen and investors, given the facilities and services it provides that support business growth. However, many people wonder about the costs associated with the establishment process, which include government fees, licensing costs, and office rents. Therefore, in this article, we will review the details of the costs of establishing a company in the Dubai South Free Zone , and explain the various factors that affect these costs, which helps investors make informed decisions when starting their projects.

Costs

Costs of establishing a company in the Dubai South Free Zone

The costs of establishing a company in the Dubai South Free Zone are affected by several main factors, including:

  1. Company Type: Costs vary depending on the type of legal entity to be established, whether it is a limited liability company, a branch of a foreign company, or any other type.
  2. Government fees: These fees include the cost of registering the company, the costs of obtaining the necessary licenses, and the annual license renewal fees.
  3. Rent: Rental costs depend on the location and size of the office. The free zone offers a variety of office options, which affects costs.
  4. Staff costs: include salaries and social benefits for employees, as well as visa fees and recruitment costs.
  5. Additional services: such as legal and consulting services, accounting services, and office fit-out costs.
  6. Materials and Equipment: The costs of purchasing equipment and furniture necessary to operate the business.
  7. Insurance: Some businesses may require an insurance policy, which increases costs.
  8. Taxes: Although free zones often offer tax benefits, any other taxes or fees that may apply should be considered.

All of these factors affect the overall costs of starting a company, and investors should conduct a comprehensive financial planning study before making a decision.

Requirements for establishing a company in the Dubai South Free Zone

Establishing a company in the Dubai South Free Zone requires a set of requirements and procedures, which include:

  1. Select the type of company: You must specify the type of legal entity, whether it is a limited liability company, a branch of a foreign company, or any other type of business entity.
  2. Choosing the business activity: The activity that the company will carry out must be determined, and it must be ensured that it is consistent with the activities permitted in the free zone.
  3. Submitting a registration application: It requires submitting an official application to establish the company, along with submitting the necessary documents such as: a copy of the passport of the founders and directors. And a personal photo of the founders.
  4. Determine the company name: A trade name must be chosen that complies with local laws, and must be unique and not previously used.
  5. Preparing legal documents: The articles of association and the articles of incorporation must be prepared, which define the structure of the company and the rights and duties of the founders.
  6. Obtaining the necessary licenses: These include commercial licenses and licenses for specific activities.
  7. Providing capital: It is necessary to ensure that the capital required to establish the company is available, which may vary depending on the type of company and activity.
  8. Opening a bank account: A bank account must be opened for the company to deposit capital and facilitate financial transactions.
  9. Registration with the relevant authorities: After completing all procedures, the company must be registered with the relevant government authorities to obtain the final licenses.
  10. Obtaining Visas: If you have employees, you must obtain the necessary visas for them. These requirements help ensure that a company is legally and orderly established in the Dubai South Free Zone.

The importance of establishing a company in the Dubai South Free Zone

Establishing a company in the Dubai South Free Zone is of great importance to many investors and businessmen, for the following reasons:

  1. Distinctive investment environment: The free zone provides a business-friendly environment, with numerous facilities that encourage growth and investment.
  2. Tax incentives: Investors in free zones enjoy tax exemptions on profits, which helps increase returns and reduce costs.
  3. Full Foreign Ownership: The free zone allows foreign investors to own 100% of the company’s shares, giving them complete control over their business.
  4. Ease of procedures: Establishing companies in the free zone is characterized by the presence of fast and flexible procedures, which helps investors start their businesses in a short time.
  5. Advanced Infrastructure: The free zone has an advanced infrastructure that includes business service centers, logistics facilities, and modern technology facilities.
  6. Access to global markets: Dubai is a strategic business hub that provides access to the markets of the Middle East, Asia and Africa, enhancing opportunities for expansion and growth.
  7. Diversity of business activities: The free zone offers a wide range of business activities, allowing investors to choose the field that suits their expertise and interests.
  8. Government Support : Companies in the free zone receive ongoing government support, including technical and advisory assistance, which facilitates the process of establishment and growth.
  9. Providing business networking opportunities: The free zone is a meeting point for investors and businessmen from various sectors, providing opportunities for cooperation and partnerships.
  10. Intellectual Property Protection: The free zone supports intellectual property rights, ensuring the protection of innovations and business ideas.

These factors combined make establishing a company in the Dubai South Free Zone an attractive option for investors seeking success and growth in a competitive environment.

Costs

Conditions for establishing a company in the Dubai South Free Zone

Establishing a company in the Dubai South Free Zone requires adherence to a set of conditions and standards, including:

  1. Determine the type of company: Investors must determine the type of legal entity they wish to establish, such as a limited liability company or a branch of a foreign company.
  2. Choosing the business activity: The business activity under which the company will be established must be consistent with the activities permitted in the free zone, which include a variety of sectors.
  3. Submitting the required documents: It requires submitting a set of documents, such as: a copy of the passport of the founders and managers. And a personal photo of the founders.
  4. Determine the company name : The trade name must be unique and not previously used, and comply with the naming laws in force in the UAE.
  5. Availability of the required capital: Capital requirements vary depending on the type of company, and it is necessary to ensure that the required amount is available before starting the incorporation process.
  6. Preparing the Articles of Association: The Articles of Association and the Articles of Association must be prepared, which specify the organizational structure and the rights and duties of the founders.
  7. Obtaining the necessary licenses: Investors must obtain commercial licenses and licenses specific to the specific activity before starting operations.
  8. Providing office space: Legal office space must be available in the free zone, and offices can be rented from the responsible authorities.
  9. Submit a business plan: Some activities may require the submission of a detailed business plan that outlines the company’s goals and strategies.
  10. Registration with the relevant authorities: Investors must register the company with the relevant government authorities to obtain the final licenses.

These conditions help ensure that the process of establishing companies in the Dubai South Free Zone is legal and organized, which facilitates the achievement of business goals.

In conclusion, setting up a company in Dubai South Free Zone represents an exciting and attractive opportunity for investors and entrepreneurs seeking to achieve success in a distinguished business environment. This free zone offers a range of benefits, including tax incentives, 100% foreign ownership, and advanced infrastructure, which contribute to facilitating the procedures for establishing and growing. With the availability of government support and an encouraging business environment, investors can exploit these opportunities to build successful and sustainable projects. Therefore, taking the step of setting up a company in Dubai South is a smart investment that can open the doors to new and vast possibilities in the global market.

Frequently asked questions about establishing a company in the Dubai South Free Zone