Your Guide to Business Setup in Dubai South Free Zone

Dubai has long been a global hub for trade and business, and the Dubai South Free Zone stands out as one of the most strategic locations for international companies. Known for its world-class infrastructure, proximity to the Al Maktoum International Airport, and seamless integration with Jebel Ali Port, Dubai South offers businesses unparalleled access to global markets. In this guide, we’ll take you through everything you need to know about business setup in Dubai South Free Zone, from its benefits to the step-by-step process.

What is Dubai South Free Zone?

Dubai South Free Zone is an integrated logistics and aviation hub designed to support trade, logistics, and manufacturing industries. Covering an area of 145 square kilometers, it forms part of the Dubai government’s vision to create a world-class business and logistics hub that can connect regional and international markets. This free zone is not only attractive to large enterprises but also SMEs and startups looking to leverage the strategic location, business-friendly environment, and flexible setup options.

Key Highlights of Dubai South Free Zone

• Proximity to Al Maktoum International Airport, one of the largest airports in the world
• Integrated logistics corridor with seamless access to Jebel Ali Port
• Strategic location connecting the Middle East, Africa, and South Asia (MEASA)
• Business-friendly environment with flexible licensing and tax incentives
• Wide range of business activities including logistics, aviation, manufacturing, e-commerce, and services

Benefits of Setting Up a Business in Dubai South Free Zone

Dubai South Free Zone offers a variety of benefits for businesses that are looking to expand globally or establish a regional hub in the UAE.

1. 100% Foreign Ownership

As with most free zones in the UAE, Dubai South Free Zone allows foreign investors to own 100% of their business without needing a local sponsor. This is particularly attractive for entrepreneurs who wish to retain full control over their company’s operations.

2. Tax Incentives

One of the primary advantages of setting up in Dubai South is the favorable tax environment. Businesses enjoy zero corporate and income taxes for a specified period. Additionally, companies are exempt from import and export duties, significantly reducing operational costs.

3. Strategic Access to Global Markets

Dubai South’s proximity to both Al Maktoum International Airport and Jebel Ali Port makes it a prime location for businesses engaged in logistics, shipping, and international trade. This strategic location offers easy access to global markets, enhancing the efficiency of supply chains.

4. State-of-the-Art Infrastructure

Dubai South is designed to offer businesses world-class infrastructure, including modern offices, warehouses, and advanced logistics facilities. This makes it easier for companies to set up and operate efficiently, without worrying about facility-related challenges.

5. Ease of Business Setup

Dubai South Free Zone provides businesses with streamlined processes for company registration, licensing, and visa applications. This efficient setup process helps businesses get up and running in a short time, with minimal administrative hurdles.

6. Wide Range of Business Activities

Businesses from various sectors can establish themselves in Dubai South Free Zone. These include aviation, logistics, e-commerce, general trading, IT, and professional services. The free zone offers a wide range of license options to accommodate different business activities.

Types of Licenses Available in Dubai South Free Zone

Choosing the right license is crucial when setting up a business in Dubai South. The free zone offers various types of licenses depending on the nature of your business activity.

1. Trading License

A Trading License allows companies to engage in import, export, and distribution of goods. This is ideal for businesses involved in logistics, supply chain management, or general trading activities.

2. Service License

A Service License is designed for businesses that provide services such as consultancy, IT, marketing, and other professional services. This is suitable for companies focusing on non-tangible products and expertise-based offerings.

3. Industrial License

The Industrial License is meant for businesses that are engaged in manufacturing or production. This license is typically required by companies involved in large-scale industrial activities such as factories or assembly plants.

4. E-Commerce License

As e-commerce continues to grow, Dubai South Free Zone offers an E-Commerce License specifically for online businesses. This license enables companies to engage in online trading and digital marketplaces.

Step-by-Step Process for Business Setup in Dubai South Free Zone

Setting up a business in Dubai South Free Zone is a straightforward process, but it’s essential to follow the correct steps to ensure a smooth registration.

Step 1: Choose Your Business Activity

The first step is to decide the type of business activity you want to engage in. Dubai South Free Zone accommodates a wide range of activities, but selecting the right one will determine your license requirements.

Step 2: Select a Company Structure

Next, choose the type of company structure. The most common options include:

• Free Zone Limited Liability Company (FZ-LLC): An independent legal entity with one or more shareholders.
• Branch of a Foreign Company: For businesses that are already established outside the UAE but wish to open a branch in Dubai South.

Step 3: Choose Your License Type

Based on your business activity, you’ll need to choose the appropriate license type (trading, service, industrial, or e-commerce). Each license allows you to engage in specific business activities.

Step 4: Submit Required Documents

Prepare and submit the necessary documents for company registration. Typically, these documents include:

• Passport copies of shareholders and directors
• Proof of address
• Company name options
• Business plan (for certain license types)

Step 5: Lease Office Space or Warehouse

You’ll need to lease a physical office space or warehouse in Dubai South Free Zone. The free zone offers various options, including flexi-desks, executive offices, and industrial warehouses.

Step 6: Obtain Initial Approval and Pay Fees

Once your documents are submitted and reviewed, you will receive initial approval from Dubai South Free Zone authorities. After receiving the approval, pay the relevant licensing and registration fees.

Step 7: Receive Your License and Start Operations

After the payment is made and the lease is finalized, you will receive your business license, allowing you to start operations. You can now apply for employee visas and open a corporate bank account.

Cost of Business Setup in Dubai South Free Zone

The cost of setting up a business in Dubai South Free Zone depends on various factors, such as the type of license, the number of visas, and the size of office space. Here’s a general breakdown of common costs:

• License Fee: The annual cost of a license can range from AED 10,000 to AED 50,000, depending on the business activity.
• Office Space: Flexi-desks start at around AED 15,000 per year, while larger office spaces and warehouses may cost significantly more.
• Visa Fees: Each employee visa will cost approximately AED 3,000 to AED 5,000.

Conclusion

Setting up a business in Dubai South Free Zone is an excellent choice for companies looking to tap into global trade markets, benefit from world-class infrastructure, and take advantage of Dubai’s business-friendly environment. With 100% foreign ownership, tax incentives, and strategic access to air and sea logistics, Dubai South Free Zone offers a compelling option for businesses of all sizes.

By following the step-by-step process outlined in this guide and choosing the right license type, you can successfully company setup Dubai most dynamic and future-ready free zones.