How to Setup a Company in Dubai South?

What is Dubai South?

Dubai South (previously known as Dubai World Central) is a designated geographical area in Dubai with a free zone status where certain taxes or restrictions on business, employment or trade do not apply. It is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. Dubai South consists of residential areas, Business Park, Al Maktoum International Airport and World Expo 2020 site. A lot of new projects are being launched within Dubai South; hence, number of businesses and investments are increasing gradually.

What Types of Entities/Companies I Can Setup at Dubai South?

There are two types of legal entities can be registered in Dubai South Free Zone:

• DWC Limited Liability Company (DWC-LLC) – All new companies are registered as a DWC - LLC under Dubai South. Liability of shareholders in DWC-LLC is limited to the extent of the share capital of the company. Both individuals and legal entities can be a shareholder in DWC-LLC.
• Branch of Existing Local or Foreign Entity - A branch is a legal entity that is separately registered but considered as part of a parent company. A parent company holds 100% ownership of a branch, which has to have the same name and conducts the same business activities as its parent company does. Both local and foreign entities can register their Branches under Dubai South.

What Types of Licenses I Can Apply for at Dubai South?

There are different types of licenses available in Dubai South depending on your business activity:

• General Trading license –allows trading, import, export and re-export of almost all types of products (except for few types of products).
• Normal Trading License - allows trading, import, export and re-export of some specific products.
• Service/Consulting License - allows providing specific services or consultancy activities such as management, marketing, IT consultancies etc.
• Logistics License – allows to provide logistics services.
• Educational License – allows providing educational services.
• Aviation License – allows carrying out aviation related activities.

How Much It Costs?

Annual license fees at Dubai South are as follows:

• General Trading License: AED 20,000 per year
• Normal Trading License: AED 10,000 per year
• Service/Consulting License: AED 10,000 per year
• Logistics License: AED 10,000 per year
• Educational License: AED 10,000 per year
• Aviation License: AED 10,000 per year

In addition, for registering a company in Dubai South, you need to rent an office or a shared desk (the “Smart Desk”) in Dubai South’s business center. However, the Smart Desk option is available only under normal trading and service licenses.

Annual rental cost for ready fitted out offices may start from AED 1,100/m2. Shell and core offices space that can be configured to your specifications may cost starting from AED 800/m2 per year.

What is the Company Formation Process?

Initially all company formation forms and legal documents should be filled, signed by authorized signatories and submitted along with all required documents to Dubai South. If the shareholder is a corporate entity, then certified copies of all incorporation documents of the parent company and a board resolution to establish a company or branch should be submitted to Dubai South. If the parent company is a foreign entity, then the board resolution should be attested by the UAE Embassy and the UAE Ministry of Foreign Affairs.

Once all legal requirements of Dubai South are met, Registrar of Companies approves the name and registers the company conditionally, following which the company should lease an office or a desk. After finalizing with an office or a desk, the company should pay all the due fees to Dubai South. Following the payment, the Registrar issues the incorporation documents and the license.

Dubai South is a strategic initiative of the Government of Dubai. Once completed, it will be the largest and a leading global trade, business and aviation hub in the world. It is a continuation of Dubai’s legacy as a connection point between the East and the West. Due to the new Al Maktum International Airport and World Expo 2020, many interesting new projects are being launched and many business opportunities are being created within the free zone.

Do you want to setup your company in Dubai South? Please contact us for more details.