Establishing a company in Dubai South is a distinct investment option for many businessmen and investors seeking a sophisticated business environment that supports growth and expansion. Dubai South is one of the most important free zones in Dubai, offering significant benefits to investors, such as tax exemptions, 100% foreign ownership, and streamlined logistical procedures. However, before commencing the incorporation process, there are a set of conditions that investors must adhere to to ensure the project’s success. First, the business activity the investor wishes to establish must be compatible with those permitted in Dubai South, as the free zone determines the types of activities that can be practiced based on local and global market needs. Second, the investor must submit a clear business plan outlining the commercial objectives and business strategy to be pursued in Dubai South. Third, it is necessary to submit the necessary documents, such as a valid passport for all partners and investors in the project. Opening a company in Dubai, along with other documents such as a lease for the site or office within Dubai South, are essential steps that help define the scope of work in the free zone. In addition, investors must ensure that the invested capital complies with the requirements set by Dubai South, as these requirements vary depending on the type of company and activity. In general, Itqan is committed to providing investors with the necessary support throughout all stages of establishing a company in Dubai South, from selecting the appropriate business activities to completing all legal and administrative procedures.

Basic Steps to Establishing a Company in Dubai South

Establishing a company in Dubai South is a strategic step for many investors seeking to benefit from the diverse economic advantages offered by this free zone. Dubai South is one of the UAE’s most prominent investment destinations, providing a business-friendly environment thanks to its strategic location connecting Dubai to vital global hubs. Dubai South offers significant facilities to investors, including 100% foreign ownership, tax exemptions, and comprehensive support throughout the establishment process. In this context, we will review the basic steps to establish a company in Dubai South.

The first step to establishing a company in Dubai South is to determine the type of company and the business activity you wish to pursue. The activity must be compatible with those permitted in the free zone. After determining the activity, a clear business plan must be submitted explaining the business objectives and anticipated activities, in addition to submitting the required documents such as partners’ passports and a copy of the free zone lease.

The investor must then apply for a trade license from the relevant authorities in Dubai South. Some activities may require additional documents, such as security or environmental approvals, depending on the type of business.

After obtaining a trade license, the investor can begin setting up a business office and hiring the necessary staff. They can then obtain the necessary visas to reside and work in the UAE. Completing these steps in collaboration with specialists like Itqan helps expedite the process and ensure compliance with all legal requirements.

Types of Companies That Can Be Established in Dubai

Dubai is one of the most prominent investment destinations in the region, offering an ideal environment for starting and growing businesses. Thanks to its strategic location, in addition to ongoing government support, investors can establish multiple types of companies in Dubai according to their needs and interests. The type of company that can be established depends on the type of business activity, the company’s location (in a free zone or in the Dubai mainland), and the legal structure chosen by the investor.

In this context, we present to you the types of companies that can be established in Dubai:

Limited Liability Company (LLC): This is one of the most common types in Dubai and allows investors to establish a company with limited capital. In this type of company, investors must have a local partner who holds 51% of the company’s shares, while foreigners hold 49%.
Private Joint Stock Company: This type of company can be established for investors who wish to issue private shares and raise more capital. Private joint stock companies are subject to more flexible profit distribution laws.
Sole Proprietorship: A company established by a single individual who holds full responsibility for all aspects of the company. It can be established in mainland Dubai or in free zones that permit this type of company.
Free Zone Company: Companies with 100% foreign ownership can be established in many of Dubai’s free zones. These companies enjoy several advantages, such as tax exemptions and ease of obtaining licenses.
Holding Company: Allows the establishment of a holding company that owns and manages shares in other companies. These companies can be useful for managing multiple projects within a single structure and can be established in specific areas.
Branch Company: Foreign investors are permitted to establish a branch of an existing company in Dubai. The branch can be fully owned by the foreign investor or may require a local partner, depending on local laws. Free Zone Limited Liability Company: Many free zones in Dubai allow the establishment of limited liability companies with tax exemptions and other benefits. In these companies, foreign investors can own 100% of the company’s shares.
Representative Office Company: Foreign investors can establish a representative office in Dubai to represent the interests of the parent company without directly conducting business in the UAE.
Each type of company requires specific legal documents and procedures that must be followed carefully.

Benefits Dubai Offers to Investors

Establishing a company in Dubai has a strong reputation as a global business and investment hub, offering numerous benefits that make it an attractive destination for investors from around the world. Here are some of the benefits Dubai offers investors:

Tax Exemptions: Dubai offers attractive tax benefits, including exemptions from personal and corporate income taxes in many free zones. Additionally, there are no taxes on profits or capital gains in some free zones, making Dubai an ideal destination for investors seeking a flexible tax environment.
Full Foreign Ownership: Dubai offers foreign investors the ability to own 100% of companies in many free zones, allowing them complete control over their businesses without the need for a local partner.
Ease of Access to Global Markets: Dubai’s strategic location between Asia, Europe, and Africa makes it a global business hub, making it easy for investors to access vast markets by sea and air.
Advanced Infrastructure: Dubai offers advanced infrastructure in the fields of transportation, energy, technology, and communications. This infrastructure includes Dubai International Airport, Jebel Ali Port, and an advanced logistics network that facilitates the movement of goods and services.
Political and Economic Stability: Dubai provides a stable environment for investors thanks to its political and economic stability. The government supports investment initiatives and provides flexible legislation that contributes to protecting investor rights.
Government Incentives: The UAE government offers numerous programs and initiatives to support startups and small and medium-sized enterprises, such as financing facilities, tax exemptions, and other incentives for new investors.
Ease of Business Setup: The process of establishing a company in Dubai is fast and flexible, with clear procedures that can be completed in record time compared to many other global destinations.
Access to a Diverse Labor Market: Dubai enjoys a diverse and well-qualified labor market from around the world. Investors can attract employees from a variety of disciplines and nationalities, which contributes to improving business efficiency.
Transparency and Credibility: Dubai is one of the most prominent cities committed to transparency in business operations, which enhances investor confidence and provides a safe environment for conducting business.
Opportunities in Diverse Sectors: Dubai focuses on developing a diverse range of sectors, such as technology, tourism, trade, real estate, and energy, providing investors with multiple opportunities to diversify their investments across various fields.
Digital Economy and Innovation: Dubai focuses on innovation and technology, with initiatives supporting the digital economy, such as smart cities and artificial intelligence, opening the way for technology investors to benefit from an innovative and business-friendly environment.
These advantages make Dubai one of the most attractive destinations for investors globally, providing a business environment and competitive advantages that contribute to business success.

Our Company’s Role in Establishing a Company in Dubai

In conclusion, establishing a company in Dubai South is a strategic step for investors looking to enter the UAE’s vibrant and opportunistic market. By complying with the terms and regulations set by the free zone, investors can ensure their company is established legally and properly, contributing to the long-term success of their business. Dubai South is a free zone with numerous advantages, including significant business facilitation, local government support, and commercial and financial incentives. For a smooth and successful establishment, investors must work with specialized partners such as Itqan, which provides comprehensive consulting and ongoing support throughout the company establishment process, from selecting the right business activity to obtaining the final license. Itqan ensures that administrative and legal procedures are facilitated and provides integrated solutions to meet investors’ needs in line with the standards set by Dubai South. Furthermore, Itqan assists investors in providing all required documents, including the business plan and necessary approvals, which contributes to expediting the establishment process and overcoming any potential obstacles. Through this collaboration, investors can launch their businesses with confidence and peace of mind, while benefiting from the ideal business environment offered by Dubai South, contributing to success and sustainable growth.

Frequently Asked Questions About Starting a Business in Dubai

What is Dubai South and what makes it unique for establishing a business?
Dubai South is a free zone located in Dubai and is considered one of the most prominent investment destinations in the UAE. It offers extensive business facilities, such as 100% foreign ownership, tax exemptions, advanced infrastructure, and significant government support.

What are the basic steps to establishing a business in Dubai South?
The steps include selecting the type of business activity, submitting the required documents such as passports and copies of lease contracts, and submitting a clear business plan. The application is then submitted to the relevant authority in Dubai South to obtain a trade license.

Do I need a physical office to establish a company in Dubai South?
Yes, most investors require a physical office or office space within Dubai South. Virtual offices can also be chosen for some activities, depending on the type of activity.

Can I later transfer my company activity in Dubai South?
Yes, in some cases, it is possible to change the business activity after incorporation, but the approval of the relevant authorities in Dubai South is required. The transfer process may require submitting new applications.

What are the costs of establishing a company in Dubai South?
Costs vary depending on the type of activity, office space, and the number of employees required. In general, costs in Dubai South are competitive compared to the benefits offered by the area.

Can I obtain work visas within Dubai South?
Yes, residency and work visas are granted to investors and employees of companies established in Dubai South, in accordance with applicable regulations.