DUBAI SOUTH FREE
Costs for: Dubai South Free Zone
About Dubai Multi Commodities Centre (DMCC)
The Dubai South Free Zone is one of the most vibrant business environments in Dubai, providing a supportive and inclusive framework for all kinds of business activity, with a significant emphasis on sectors such as trading and logistics. The positioning of this free zone being connected to ports and airports makes it stand out from the rest. It is really great that Dubai South has this unique position to provide great opportunities for the international trade, travel and logistics. By doing this, Dubai South became the best choice for people who wanna do international trade, travel, and logistics. It is more like a gateway to the rest of the world.
The hosting of Expo 2020 is a major role highlighting Dubai South which is anticipated to have a huge turnout of 25 million visitors. The free zone is like a central business destination for people all around the world, and it’s where everything happens. Expo 2020 is an amazing event that will bring a lot of people to Dubai South. The integration of business and culture in Dubai South Free Zone makes it an excellent choice for entrepreneurs seeking to expand their horizons while taking in the stunning cultural activities happening around them.
Benefits of setting up a company in: ADGM – Abu Dhabi Global Market Free Zone
Dubai South Free Zone is a versatile business destination, accommodating various activities to cater to the diverse needs of entrepreneurs and companies. The free zone’s flexibility extends to various sectors, fostering an environment conducive to growth and innovation.
Dubai South Free Zone: Business Formation
Dubai is getting increasingly popular as an entrepreneurial hub. It’s amazing that the number of business licenses issued in the past year was over 70,000, which is almost twice as many as before! This is really impressive. This increase in trend implies that Dubai’s economy is doing great and its business environment is thriving, especially in the Free Zones area.
Out of all the options, Dubai south Free Zone is frequently chosen by entrepreneurs due to its benefits. Dubai South is well-known for providing many benefits and being easy to use. It’s a great place to start and grow a business.
This is a guide for people who want to be part of the successful business community in Dubai. This is going to help you form your business fast with less paperwork and less waiting time. Knowing how to set up a business in this Free Zone is really important for anyone who wants to start a business. So firstly, we have to understand the basics of starting a business in Dubai South before we can actually start it.
What Is the Dubai South Free Zone?
Before venturing into the intricacies of starting a business in one of the parts that make up Dubai South Free Zone, it is first important to look at what this represents. 2006 established Dubai South Free Zone was quickly recognized as one of the best options for creating businesses in Dubai.
Fast growing, it stands out among the other regions and is rightly known as one of Dubai’s newest and most dynamic free zones.
One major advantage of Dubai South is its location; it lies between Abu Dhabi and mainland Dubai.
The fact that the free zone is near Al Maktoum International Airport will enable companies to move goods and products quickly.
The fact that we are close to major transportation hubs simplifies our logistics operations.
The infrastructure within this free zone is well integrated, increasing its appeal.
Many roads converge in this region, assisting quite a lot when navigating.
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The Dubai South Free Zone is one of the best free zones for businesses; it’s strategically located with very good transport links, so people can easily succeed in their business.
These key points are crucial for getting a grasp of the advantages and possibilities when starting a business in this active area.
What Business Activities Are Allowed in Dubai South?
Dubai South, like other free zones, imposes specific restrictions on the types of business activities that can be undertaken within its jurisdiction. It’s crucial for prospective business owners to adhere to these local requirements to successfully establish and operate their companies. In Dubai South, the permissible business activities are categorized into distinct groups:
Commercial Activities: Businesses engaged in buying and selling goods fall under the category of commercial activities. This encompasses a wide range of trading operations, providing opportunities for entrepreneurs involved in the import and export of various products.
Service or Consulting Activities: Dubai South allows businesses to offer services or consulting expertise within its free zone. This opens avenues for consultancy firms, service providers, and professionals to establish themselves and cater to a diverse clientele.
E-commerce Business: The rise of e-commerce is duly acknowledged in Dubai South, with provisions for businesses engaged in online trading. Entrepreneurs looking to operate in the digital marketplace can find a conducive environment within the free zone.
Manufacturing Businesses: Entrepreneurs involved in manufacturing activities can also find a home in Dubai South. This includes companies engaged in the production of goods, fostering a diverse industrial landscape within the free zone.
Freelance Permits: Dubai South facilitates the issuance of freelance permits, allowing individuals with specialized skills to operate as freelancers within the free zone. This provides flexibility for professionals to offer their expertise independently.
It’s important to note that depending on the nature of the business, entrepreneurs may be required to demonstrate their experience in the field. In certain cases, having a relevant degree may be a prerequisite for initiating the business setup process. This requirement ensures that businesses within Dubai South maintain a certain level of expertise and professionalism.
A key point of consideration is that unrelated activities cannot be combined under the same license. Additionally, the combination of service and commercial activities within a single license is not permitted. Adhering to these guidelines is essential for a smooth and compliant business setup process within Dubai South Free Zone.
Company Structure in Dubai South Free Zone
Dubai South Free Zone offers several types of company structures to its clients. This will allow them to align their organizational structure depending on the size and formality of the business they run. The available company structures in Dubai South include:
One Shareholder: Entrepreneurs who want full control and ownership of their business should look at a company with only one shareholder. This gives a high level of autonomy and makes decisions easy for small to medium-sized enterprises.
Two or More Shareholders: It is very easy to form companies with more than one owner in Dubai South. The structure can be advantageous for businesses that want to make collective decisions and own things collectively.
Local Branches of Companies Already Present in the UAE: It allows companies that have been already established in other parts of the UAE to set up local branches within the Dubai South Free Zone. This structure enables firms to stretch their market within the free zone but remain connected with what they are already currently doing in their home country.
Foreign Branches of Companies Outside the UAE: The Dubai South Free Zone offers a great chance for foreign companies to register their branches in the UAE. This free trade zone structure allows foreign businesses to enjoy a range of benefits associated with operating within this area as they access the larger UAE market in which it is located.
Benefits of Starting a Dubai South Free Zone Company
There are numerous benefits associated with investing in an enterprise in Dubai South Free Zone, which makes it a great place for entrepreneurs to consider. Here are some compelling reasons to consider establishing your company in this dynamic business hub:
Hub for Business
Dubai South Free Zone is an excellent place to start a business as it offers quick accessibility from other countries and easy connectivity with various sections in Dubai. This place is really good for international trade and businesses since they are easily accessible and it has a conducive environment.
Dubai South is unique among other business environments because entrepreneurs can own and run their own businesses. Many firms want to be autonomous and owners.
Zero Tax Requirements
I believe the best benefit available to entrepreneurs in Dubai South Free Zone is that they don’t charge taxes. This now means entrepreneurs can take home more of their profits and invest them back into growing their businesses. So this means that organizations operating in these free zones will not need to pay taxes. This tax relief enhances the profitability of businesses in free zones.
Flexible Office Solutions
The Dubai South Free Zone offers different business solutions for various needs and flexible office spaces for businesses. If your organization needs to have its own office space or requires shared office premises and virtual offices, the free zone has solutions tailored to what you require.
Fewer Nationality Restrictions
Dubai South Free Zone is known for less strict visa and business ownership policies compared to other regions. The business environment is very inclusive for foreigners who are entrepreneurs or owners of businesses and have an easier time getting visas and sponsoring dependents.
The Dubai South Business Set-Up Process
The Dubai South Free Zone business setup process requires several important steps and the business owner needs to be physically present during some stages. Here’s an overview of the process:
Physical Presence Requirement
Well, it turns out that it is required for business owners to personally appear for commencing the incorporating process within Dubai South Free Zone. This is really important because it’s necessary for signing documents. If the owner is not able to attend personally, an option available is to appoint someone to act on their behalf through power of attorney. But, it should be mentioned that whoever is given power of attorney must first be authorized by the Ministry of Foreign Affairs before they must obtain authorization from the UAE embassy as well.
Steps for Business Setup
Whether the business owner is personally present or represented by someone with power of attorney, the following steps need to be completed:
Pre-Approval:make it sure to approve your business formation before starting it up. This step is necessary to legally open and start operations within the Dubai South Free Zone.
Visit the UAE: After obtaining pre-approval from the concerned authorities, the business owner must visit the free zone. I am excited to inform you that on the appointed day, the verification of signatures will take place followed by the signing of the new lease agreement. This step is a crucial part of setting up the business.
Pay Your Business Fees: After doing all the paperwork, the final step is to pay the government. This payment is hurdle which has to be crossed in order to get legal authorization for the business.
Document Verification and Legalization
It is very important to get the owner or an authorized person to sign the documents and verify them. This ensures that the paperwork is real and meets the legal needs.
What Are the Documents Required to Set Up a Business in Dubai South Free Zone?
When setting up your business in the Dubai South Free Zone, gathering the necessary documents for a smooth application is crucial. The required documents include:
Business License Application Form: A completed business license application form is a fundamental document that outlines the details of your business and its intended activities within the Dubai South Free Zone.
Business Plan (Required for Service-Related Businesses): Service-related businesses must typically submit a plan outlining their proposed operations, strategies, and financial projections.
Visas and Passports of Managers and Shareholders: Copies of the visas and passports for all managers and shareholders involved in the business setup process are essential for identification and verification.
Photocopy of Emirates ID: A photocopy of the Emirates ID for relevant individuals must confirm their identity and legal status in the UAE.
Signed Copy of DWCBC Terms and Conditions: Compliance with the Dubai South (DWCBC) terms and conditions is necessary, and a signed copy of these terms and conditions should be included in the application.
Specimen Signature Form: A specimen signature form is often required to verify the authenticity of signatures on official documents.
Memorandum of Articles of Association: The Memorandum of Articles of Association outlines the internal rules and regulations governing the company and its shareholders.
Once you have gathered these documents, you can submit them for pre-approval. The pre-approval process typically takes around fifteen days. After receiving pre-approval, the subsequent step is obtaining the business license, which takes approximately ten days. The timeline may vary based on how promptly the required documents are compiled and the application process initiated.
What to Know About Dubai South Residence Visas
As part of setting up your business in Dubai South, obtaining a Dubai residence visa is crucial. The good news is that the associated costs for a Dubai residence visa are relatively low. However, the costs may be slightly higher if you were in the UAE at the time of your visa application.
Here are some key points to consider regarding Dubai residence visa costs and requirements:
- Dubai residence visa costs are generally reasonable, making it an affordable option for business owners.
- If you apply for a visa while already in the UAE, the costs may be slightly higher.
Basic Medical Insurance:
- To obtain your Dubai residence visa, you must secure basic medical insurance. This is a mandatory requirement for visa issuance.
- The provision of medical insurance ensures that individuals have access to essential healthcare services during their stay in Dubai.
- Once issued, the Dubai residence visa is typically valid for three years. This provides a relatively extended stay for individuals associated with the business.
No Investor Designations Required:
- Unlike other jurisdictions, Dubai South Free Zone does not mandate specific investor designations for shareholders to obtain a residence visa.
- This flexibility simplifies the visa application process and ensures business owners and shareholders can secure their residence visas without additional investor-related requirements.
How to Liquidate a Dubai South Business
Even if you are not physically present in Dubai South Free Zone, closing down your business in this place is an easy task. By doing this, it’s possible to delegate responsibilities and not have to do them personally. The next step is to cancel all visas related to the business. This includes not just employee visas but also dependent visas. Now that the business is shut down, it is important to end the lease agreement with the landlord and close the bank account for the business. It is essential to obtain clearance from Customs if your business license involves trading activities. The liquidation process requires about 4,000 AED, which is a government fee. After paying the fees and completing all the steps, the liquidation process of the company generally takes one month to complete.
Launch a Business in the Dubai South Free Zone
So now that you have this guide on Dubai South company formation, you have all the steps you need to create a successful business in the Dubai South Free Zone. This seems like the perfect time to start a business and experience the success that comes with having a profitable venture.
Why wait? Take the first step today. Hey there! If you’re looking to start your new business in Dubai, then Contact GCS Group for assistance. They’re good at what they do and can help you get started! We’re eager to help you navigate the challenging Dubai South Free Zone environment with the help of our experts.