Dubai South is one of the most prominent free economic zones in the Emirate of Dubai, as it combines advanced infrastructure and a strategic location that makes it a global business center. Dubai South was established to be an integrated smart city that brings together various economic activities, making it an attractive destination for investors and entrepreneurs seeking to establish their companies in an environment that is stimulating and supportive of growth and innovation.

Dubai South is distinguished by its location close to Al Maktoum International Airport and Jebel Ali Port, which provides easy access to global markets and contributes to facilitating export and import operations. In addition, Dubai South offers a wide range of economic incentives and facilities that make it an ideal environment for establishing companies in Dubai South from various sectors.

In this article, we will discuss in detail the advantages that make Dubai South a preferred destination for establishing companies, in addition to the costs associated with this process and the steps necessary to achieve success in this vital field. We will highlight the key fees and costs and provide a comprehensive guide to help you make the right decisions for setting up your company in Dubai South.

 

Advantages  of establishing a company in Dubai South

Dubai South is characterized by several features that make it an ideal destination for establishing companies in Dubai South and commercial projects. We will discuss below the most prominent of these features:

• Strategic location

Dubai South enjoys a unique strategic location that makes it a focal point for trade and business in the region. It is located near Al Maktoum International Airport, which is considered one of the largest airports in the world in terms of area and capacity, which facilitates the movement of goods and passengers. It is also located near Jebel Ali Port, which is one of the largest ports in the Middle East, which facilitates export and import operations. This strategic location enhances companies’ ability to access global and local markets with high efficiency.

• Advanced infrastructure

The infrastructure in Dubai South is a major factor that attracts investors. The region is designed with advanced infrastructure that includes modern road networks, integrated logistics facilities, and advanced industrial and commercial complexes. In addition, Dubai South provides communications services and modern technology that contribute to facilitating the daily operations of companies. Companies can benefit from a wide range of facilities and services that ensure business runs smoothly and efficiently.

• Economic incentives

Dubai South offers a range of economic incentives that make it an attractive environment for investment. Among these incentives are tax exemptions on income and profits, which are considered one of the most prominent factors that encourage the establishment of companies in the region. Dubai South also provides facilitation in customs procedures and complete freedom to transfer profits and capital. In addition, the region provides ongoing support to small and medium-sized companies through financing and training programs, which enhances opportunities for success and growth.

Combined, these features make Dubai South an ideal place to establish companies and achieve commercial success.

Costs of establishing a company in Dubai South

When considering establishing a company in Dubai South, it is necessary to look at the costs associated with this process to ensure good financial planning and avoid any unexpected surprises. The costs of setting up in Dubai South are reasonable compared to the benefits offered by this vital economic region. Below is a detailed analysis of those costs:

• License fees

License fees are one of the main costs to consider when setting up a company in Dubai South. Fees vary based on the type of business and company size. Fees for issuing a commercial license range from several thousand UAE dirhams and depend on the type of activity and the number of individuals working in the company. This includes registration fees and annual license issuance fees.

• Rental costs

Rental costs in Dubai South vary depending on the location and space required for your business. The area provides a wide range of options to suit various commercial activities, from small offices to large warehouses. Monthly rental rates for office space range from AED 50 to AED 100 per square meter, while warehouse rental costs can reach up to AED 30 per square meter. It is advisable to carefully review the available options to determine the most suitable option according to the company’s budget and requirements.

• Operating expenses

Operating expenses include the ongoing costs that a company must cover after its establishment. These expenses include utility costs such as electricity, water, and communications, as well as staff and technology costs. Businesses should also maintain an emergency budget to cover any unexpected expenses. These expenses can be estimated based on the size of the company and the type of business it is in.

By accurately identifying these costs and good financial planning, companies can achieve a successful and sustainable launch in Dubai South and benefit from the economic advantages and advanced infrastructure provided by this vital economic region.

Steps necessary to establish a company in Dubai

Establishing a company in Dubai South requires following a set of structured steps to ensure compliance with local laws and obtaining all necessary approvals. Below we review the basic steps that must be taken to establish a successful company in this vital region:

• Choose the company type

The first step in the incorporation process is to decide what type of company you want to create. Available options include limited liability companies, sole proprietorships, public or private joint-stock companies, and branches or representative offices of foreign companies. Investors should study the different types and choose the one that matches their business needs and goals.

• Submit the necessary documents

After choosing the company type, a set of official documents must be submitted to the competent authorities in Dubai South. These documents usually include:

1. A copy of the passport for shareholders and directors.
2. A copy of the residence visa (if the shareholders or directors are residents of the UAE).
3. A detailed business plan explaining the company’s activity and objectives.
4. The company’s articles of incorporation and articles of association.
5. No objection certificate from the sponsor (if required).

You must ensure that all documents are translated into Arabic and duly certified.

• Obtaining approvals

Once the documents are submitted, the necessary approvals must be obtained from the relevant authorities. These entities include the Dubai Economic Development Department (DED) and the Dubai South Authority. Some businesses may require additional approvals from other regulatory bodies such as the Ministry of Health or the Roads and Transport Authority.

This stage includes reviewing the submitted documents and ensuring that all legal and technical requirements are met. After obtaining all approvals, investors can proceed with officially registering the company and obtaining the necessary business license to start the business.

By following these basic steps, investors can establish a company in Dubai South in a smooth and orderly manner, enabling them to benefit from the many advantages offered by this vital economic region.

In conclusion, it can be said that establishing a company in Dubai South provides a wide range of advantages that make it a preferred destination for investors and entrepreneurs. Strategic location, advanced infrastructure, and economic incentives are the main factors that contribute to attracting companies to this promising region. In addition, despite set-up costs that include licensing fees, leasing costs, and operating expenses, the potential returns and huge potential for growth make Dubai South an attractive option for any business venture.

The process of establishing a company in Dubai South requires following specific steps that include choosing the type of company, submitting the necessary documents, and obtaining the required approvals, which are necessary steps to ensure compliance with local laws and regulations. By following these steps and taking advantage of the advantages available, new companies can achieve sustainable success and grow in a supportive and evolving business environment.

Ultimately, Dubai South represents a golden opportunity for anyone seeking to establish a company in an environment that embraces innovation and progress. Thanks to the benefits and facilities it offers, Dubai South remains an unparalleled destination for business establishment and economic prosperity.

The most important frequently asked questions about establishing a company in Dubai South