Establishment of companies in the Dubai South Free Zone

Learn about establishing companies in the Dubai South Free Zone because the Dubai South Free Zone is considered one of the leading economic destinations in the United Arab Emirates, as it provides an ideal environment for establishing companies and attracting foreign and local investments. This region is characterized by its strategic location near Al Maktoum International Airport and Jebel Ali Port, making it a distinguished logistics center linking global markets. Dubai South also offers flexible facilities and advanced infrastructure, including industrial, commercial and residential areas, in addition to integrated government services that facilitate the process of establishing companies in the Dubai South Free Zone . These features enhance the attractiveness of Dubai South as an ideal destination for entrepreneurs and investors looking to expand their businesses in the regional and global markets.

Establishing companies in the Dubai South Free Zone

Itqan Company is considered one of the leading companies in providing company establishment services in the Dubai South Free Zone. Itqan offers integrated and comprehensive solutions to investors and entrepreneurs looking to start their businesses in this vital region. Its services include helping clients choose the right type of company, providing legal advice, and handling government procedures and documents necessary to establish a company. Thanks to Etqan’s deep experience, clients are able to benefit from guidance and counsel throughout the establishment process, including obtaining the necessary licenses and providing office or industrial space that meets their business needs. In addition, Itqan helps clients take advantage of the many benefits that Dubai South Free Zone offers, such as full tax exemptions and 100% foreign ownership freedom. These services enhance companies’ ability to launch quickly and efficiently in a market characterized by high competition and promising opportunities. By choosing Itqan, clients are guaranteed continuous support and smooth management of their company establishment process, enabling them to focus on developing their business and achieving sustainable success.

Advantages of establishing a company in the free zones in the Emirates

Free zones in the Emirates have many advantages that make them an attractive destination for establishing companies, the most prominent of which are:

1. Tax exemptions : Free zones grant complete exemption from taxes on income and profits for periods of up to 50 years or more, allowing companies to retain a greater proportion of their profits.
2. Full foreign ownership : Laws in free zones allow full ownership of companies by foreigners, without the need for a local partner.
3. Ease of incorporation : Free zones offer simplified and quick procedures for establishing companies, including online submission of applications and the minimum required documents.
4. Capital transfer : Free zones allow the full transfer of capital and profits abroad without restrictions, giving companies great financial flexibility.
5. Advanced infrastructure : The free zones have an advanced infrastructure that includes logistical facilities, modern offices, and specialized industrial areas, which facilitates business operations.
6. Market Access : The UAE is strategically located between Europe, Asia and Africa, providing companies located in free zones with easy access to multiple markets.
7. Flexible procedures : Free zones provide comprehensive support services that include legal and commercial consultations, in addition to government services dedicated to facilitating operations.
8. Industrial diversity : Free zones in the UAE offer broad opportunities for a variety of industries, from financial services and technology to heavy industry and trade.

Procedures for establishing a Dubai South Free Zone Company

Establishing a company in the Dubai South Free Zone requires following a set of formal steps and procedures. Here are the main steps to establishing a company in this region:

1. Choosing the type of company : You must determine the type of company you wish to establish, whether it is a limited liability company, a branch of a foreign company, or a representative office.
2. Determine the commercial activity : The commercial activity that the company will undertake must be determined and the appropriate activities must be chosen from among the activities permitted in the free zone.
3. Choosing a company name : You must choose an appropriate trade name that complies with local laws and regulations, and not repeat existing names.
4. Submitting a registration application : Submit an official application to register the company with the Dubai South Free Zone Administration, attached with the required documents.
5. Submitting documents : It requires submitting a set of documents, such as copies of the founders’ passports, incorporation contracts, business plans, and other required documents.
6. Obtaining approvals : After submitting the application and documents, you will need to obtain the necessary approvals from the relevant authorities in the free zone.
7. Payment of fees : Pay the fees required to establish the company and obtain licenses.
8. Signing the lease contract : If office or industrial space is needed, a lease contract must be signed for the required space in the free zone.
9. Obtaining the license : After completing all steps and paying the fees, the commercial license is issued to the company.
10. Opening a bank account : After obtaining the license, a bank account can be opened for the company in one of the approved banks.
11. Filing a tax return : Although there are tax exemptions, there may be a need to file some periodic returns.

These steps provide a general framework, and some details may vary depending on the type of business and the type of company you wish to establish.

How can you establish a company in the free zone?

Establishing a company in a free zone requires following specific steps to ensure compliance with local laws and regulations. Below are the general steps for establishing a company in a free zone in the UAE:

1. Determine the type of company

Choose the type of company that suits your business needs, such as:

• Limited Liability Company (LLC)
• Branch of a foreign company
• Representative office

2. Choosing a business activity: Determining the commercial or industrial activity that the company will undertake. You must ensure that the activity is available in the selected free zone.

3. Choosing a company name: Choosing a business name that complies with regulations and must be unique and not used by another company. The name must be submitted to obtain approval from the free zone authority.

4. Submit a registration application

Submit an official application to register the company with the free zone authority, attached with the required documents. These documents may include:

• Copies of passports of founders and directors
• A business plan outlining the business activity
• No objection certificate from the current sponsor if the founder is residing in the UAE

5. Obtaining approvals: Obtaining the necessary approvals from the relevant authorities, including approval of the trade name and activity.

6. Capital deposit: In some free zones, capital must be deposited in a company bank account. The minimum capital may vary based on the type of business and the type of company.

7. Signing the lease contract: Securing a headquarters for the company in the free zone, whether it is an office or an industrial unit. A lease contract must be signed for the required space.

8. License issuance: After all conditions are met, the company’s commercial license is issued. The required fees must be paid to obtain the license.

9. Opening a bank account: Opening a bank account for the company in one of the approved banks in the Emirates.

10. Registration in health insurance and insurance: In some cases, employees must be registered in health insurance and provide the required insurance.

11. Legal and tax obligations: Despite tax exemptions, there may be a need to submit some periodic returns or reports.

12. Commencement of operations: After completing all procedures and obtaining the necessary licenses, the company can begin conducting commercial activity.

It is important to note that these steps may vary slightly depending on the specific free zone and type of business. It is always preferable to check the exact requirements with the chosen free zone authority or through a specialist legal advisor.

Conditions for establishing a company in the Dubai South region

Establishing a company in Dubai South requires compliance with a set of conditions and requirements aimed at regulating the business and ensuring compliance with local laws. Here are the most important conditions required to establish a company in Dubai South:

1. Foreign ownership : Foreign investors can own 100% of the company’s shares in the free zone, without the need for a local partner.
2. Company type : You must specify the type of company to be established, such as a limited liability company, a branch of a foreign company, or a representative office.
3. Commercial activity : The commercial activity that the company will undertake must be determined and the permitted activities must be chosen by the free zone administration.
4. Trade name : An appropriate trade name must be chosen that is not used by other companies in the Emirates, and that complies with local regulations.
5. Minimum Capital : Minimum capital requirements vary depending on the type of company and business activity. You must ensure that the capital requirements specified by the free zone administration are met.
6. Required documents : Submit a set of documents, which may include:
   • Copies of passports of founders and shareholders.
   • The company’s articles of incorporation and articles of association.
   • A business plan detailing the business activity.
   • No objection certificate from the current sponsor if the founder is residing in the UAE.
7. Company headquarters : The company must have a physical headquarters in the Dubai South area, whether it is an office or an industrial facility.
8. Licenses : Obtaining all necessary licenses from the competent authorities, including commercial and professional licensing.
9. Legal and financial obligations : Comply with all legal and financial obligations, including payment of fees and required insurances.
10. Security approval : In some cases, companies may require security approval before starting activity.
11. Compliance with laws : Compliance with all local laws and regulations related to the establishment and operation of companies in the free zone.

These conditions may vary slightly depending on the type of company and commercial activity, so it is always preferable to verify the exact requirements with the management of the Dubai South Free Zone or through specialized consultations.

In conclusion, it can be said that establishing a company in the Dubai South region represents a golden opportunity for entrepreneurs and investors looking for a business environment that is stimulating and supportive of growth. Thanks to its strategic location and advanced infrastructure, as well as the many facilities it offers, Dubai South is an ideal destination for establishing and expanding a business. The free zone offers unique competitive advantages, such as tax exemptions and full foreign ownership, making it an attractive option for many industries and sectors. Thanks to continuous support from government agencies and integrated services provided by companies such as Itqan, startups and existing companies can achieve sustainable success and exploit diverse economic opportunities in the UAE and beyond. Choosing Dubai South as a location to establish your company can be a strategic step towards a bright and successful future.