Dubai South Free Zone, formerly known as Dubai World Central (DWC), is a highly regarded option for setting up a free zone company in Dubai. Established in 2006, it stands as one of the newest and fastest-growing authorities in the region.
Strategically positioned in close proximity to both Dubai and Abu Dhabi, Dubai South offers convenient accessibility. Situated adjacent to Al Maktoum Airport (DWC airport), it presents excellent opportunities for air cargo trading operations.
With its prime location right in front of the Expo 2020 pavilions, Dubai South anticipates a significant influx of visitors for business and leisure purposes.
Transportation to and from the free zone is effortless, with easy access by car and the metro line.
Dubai South is designed to be a comprehensive business hub and a thriving residential community, providing a wide range of facilities. This exceptional combination makes it a preferred destination for establishing businesses in Dubai.
Dubai South Free Zone provides a comprehensive range of facilities to cater to diverse business needs:
In addition to the diverse workspace options, the business center at Dubai South Free Zone offers convenient services such as phone answering and mail receiving, facilitating efficient communication and correspondence for businesses.
All offices within the free zone are fully fitted out and the rental fees cover utility charges. On average, the rent for office spaces ranges from 1,300 to 1,600 AED per square meter per year, providing transparency and predictability in cost management for businesses operating within the free zone.
Dubai South offers a diverse range of business activities for various industries. These activities are categorized into the following groups:
It's important to note that certain business activities for Dubai South setup may require an attested degree or relevant experience in the respective field. This ensures compliance with industry standards and regulations.
Furthermore, it is not permitted to combine unrelated activities or commercial and service (consulting) activities under the same license. This ensures clarity and focus in business operations within the free zone.
If you cannot find your desired business activity within Dubai South Free Zone, it is recommended to consider DMCC company formation. DMCC offers a wide range of activities that align with those recognized by the Department of Economic Development, but within a free zone area. This provides flexibility and opportunities for business expansion and growth.
The available licenses in Dubai South Free Zone are as follows:
This license permits the holder to provide specific aviation-related services.
With this license, the holder is authorized to offer a range of logistics services, including storage, transportation, distribution, sorting, forwarding and clearing activities, order management, and inventory management.
This license allows the holder to engage in light manufacturing activities such as blending, mixing, purifying, assembling, forming, repacking, or wrapping of products.
Companies involved in importing, trading, and re-exporting of permitted goods can obtain this license. Special approval may be required for trading activities, which can be obtained by acquiring a No Objection Certificate (NOC) from the relevant departments.
This license enables the holder to provide educational and social services, educational and training programs, and educational consultancy services.
With a trading license, the holder has the authority to import, export, sell, distribute, and store items specified in the license. However, it's important to note that free zone enterprises holding a trading license can only sell finished products in the UAE market through a registered local distributor or commercial agent.
This license allows the holder to offer services specified in the license within the free zone and across the UAE (although additional local licenses may be required in some Emirates). Service licenses are issued to free zone enterprises that support the logistics industry and cover services such as consulting, software, training, repair, and catering.
Dubai South is known for offering competitive and cost-effective options for setting up a company in a Dubai free zone which are among the lowest rates in the emirate. The cost of setting up a business in Dubai South free zone is as follows:
Package | Visa slots | Price, AED |
---|---|---|
Smart desk | 2 | 30,900 |
Smart office | 3 | 40,900 |
Permanent smart desk | 2 | 45,900 |
Permanent smart office | 3 | 86,000 |
Executive office | 1 visa per each 9 sq meters | 1300-1600 per sq meter per year |
Executive office 1 visa per each 9 sq meters 1300-1600 AED per sq meter per year
Immigration and visa related fees have to be paid separately.
Setting up a company in Dubai South (DWC) requires the personal presence of the company owner(s). This is mandatory for signature verification purposes.
However, if it is not possible for the owner(s) to visit in person, an alternative option is available. The owner(s) can appoint a representative through a Power of Attorney, which must be legalized at the UAE embassy and the Ministry of Foreign Affairs.
To obtain a Power of Attorney template, you can reach out to a reputable business setup company in Dubai. They can assist you with the necessary documentation and guide you through the process.
The registration process for company formation in Dubai South (DWC) involves several steps:
To prepare for the registration process, you should have the following documents and information ready:
By ensuring you have all the required documentation and information in advance, you can streamline the company formation process and avoid any unnecessary delays.
It is advisable to seek guidance from experienced business setup professionals who can provide personalized assistance and ensure compliance with all regulatory requirements throughout the company formation journey in DWC Dubai.
The cost of resident visas in Dubai South is exceptionally reasonable, offering an attractive option for individuals and companies alike. The visa costs in Dubai South are as follows (in AED):
Viza fees, AED | Medical checkup, AED | Emirates ID, AED | |
---|---|---|---|
Owner | 2,600 | 690 | 370 |
Employee | 2,600 | 690 | 370 |
If the applicant is already in the UAE at the time of visa application, the cost will be slightly higher at 3,500 AED per application. Additionally, it is important to note that you will need to obtain health insurance prior to visa stamping in your passport. The minimum cost for basic insurance typically ranges from 600-800 AED.
Visas issued to company owners or employees will have a validity of 3 years. It's worth mentioning that there is no specific "Investor" designation for shareholders of the company in the visa categorization.
The renewal cost for your company will be slightly lower than the initial incorporation. Starting from the second renewal, you will be required to provide annual audit reports.
To renew your company, you need to submit the payment and a signed lease agreement for your facility for the upcoming year. The renewal process can be handled by your agent without your need to visit the UAE.
Dubai South Free Zone offers a wide range of possible amendments, including:
Some of these amendments may require a personal visit to the free zone or the appointment of a Power of Attorney.
Dubai South Free Zone is an excellent solution for those looking to establish a company in Dubai within a reasonable budget. It offers a viable option for individuals from high-risk nationalities to open businesses and obtain resident visas for themselves and their families.
This free zone is particularly suitable for companies engaged in cargo trading through Al Maktoum Airport or JAFZA port, both of which are nearby.
We highly recommend Dubai South Free Zone to companies ready to take a significant step into the UAE market or for those requiring it for immigration purposes.
Up to 2 visas company
LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
---|---|---|---|
Trading / Service license + Flexi desk | no visas | AED 32,396 $8,900 | download breakdown |
Trading / Service license + Flexi Desk | 1 visa | AED 38,595 $10,600 | download breakdown |
Trading / Service license + Flexi Desk | 2 visas | AED 40,863 $11,200 | download breakdown |
Up to 3 visas company
LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
---|---|---|---|
Trading / Service license + Flexi desk | no visas | AED 40,272 $11,050 | download breakdown |
Trading / Service license + Flexi Desk | 1 visa | AED 46,471 $12,750 | download breakdown |
Trading / Service license + Flexi Desk | 2 visas | AED 52,670 $14,450 | download breakdown |
Trading / Service license + Flexi desk | 3 visas | AED 52,952 $14,500 | download breakdown |
INDIVIDUAL SHAREHOLDER
Top 10 questions about Dubai South free zone company
No, a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity.
In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.
Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.
A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.
VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.
The UAE is free from income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.
On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.
The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.
While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.
Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.
You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.
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