Advantages and conditions of establishing a company in Dubai South

Advantages and conditions for establishing a company in Dubai South. Dubai South is considered one of the most prominent economic regions in the United Arab Emirates, as it provides a distinguished investment environment that combines modern infrastructure and a strategic location. Establishing a company in Dubai South opens wide horizons for investors and entrepreneurs thanks to the many advantages offered by this region. In cooperation with Itqan Company, investors can benefit from extensive experience in the field of establishing companies and providing the legal and administrative support required to ensure a successful start-up of business.

Among the main advantages of establishing a company in Dubai South is the proximity to Al Maktoum International Airport and Jebel Ali Port, which facilitates import and export operations and enhances communication with global markets. In addition, Dubai South provides a variety of modern facilities and services that meet the needs of various industries, from manufacturing to logistics and technology.

In terms of conditions, establishing a company in Dubai South requires following a set of legal and administrative procedures that ensure compliance with local laws and regulations. In cooperation with Itqan Company, investors receive detailed guidance and full support in every step of the establishment, from choosing the appropriate type of company to submitting the required documents and obtaining the necessary licenses.

Cooperation with Itqan Company ensures a smooth and easy experience in establishing the company, as the company provides integrated services that include strategic planning, financial management, and legal support, which enables investors to focus on growing their business and achieving success in a promising investment environment such as Dubai South.

Advantages and conditions of establishing a company in Dubai South

Advantages of establishing a company in Dubai

Establishing a company in Dubai South is one of the most important things that investors desire, and this is because the Dubai South region is one of the most important free zones in Dubai, and this is thanks to its many advantages, some of which we will mention in the following points:

1. Strategic location: Dubai South is located near Al Maktoum International Airport, which is considered one of the largest airports in the world in terms of capacity. It is also close to Jebel Ali Port, making it a major logistics center that facilitates transportation, shipping and export operations to global markets.

2. Advanced infrastructure: Dubai South provides a modern and advanced infrastructure that includes distinguished industrial, commercial and logistical facilities. These facilities cater to various industries, making it an attractive destination for businesses of all sizes and sectors.

3. Stimulating business environment: Dubai South offers a stimulating business environment characterized by flexibility and openness. Dubai South Free Economic Zone offers numerous incentives such as full tax exemption on income and profits, 100% full foreign ownership, and no restrictions on currency conversion and profits.

4. Low operational costs: Compared to other areas in Dubai, Dubai South offers lower operational costs, enabling companies to achieve significant savings on rental, utility and service costs. This helps in improving the profitability and competitiveness of companies.

5. Strong government support: Dubai South enjoys strong government support aimed at promoting economic growth and attracting investments. The government provides incentives for startups and large projects, in addition to facilitating legal and administrative procedures.

6. Diversity of economic activities: Dubai South offers a variety of economic activities in which companies can invest. From light and heavy industries to logistics, technology and trade, the region offers multiple opportunities for growth and expansion in various sectors.

7. High quality of life: In addition to the economic advantages, Dubai South provides an excellent living environment for workers and investors. This environment includes high-end residential facilities, advanced educational and health services, green spaces and integrated entertainment facilities, making it an ideal destination for working and living.

8. Innovation and Technology: Dubai South is considered a hub of innovation and technology, hosting many startups and innovative companies in the fields of technology, artificial intelligence, and digital services. The region supports technology companies by providing a stimulating environment for creativity and innovation.

In short, establishing a company in Dubai South provides businesses with the opportunity to benefit from multiple advantages including strategic location, advanced infrastructure, business-friendly environment, and government support, making it an ideal choice for aspiring investors and entrepreneurs.

Conditions for establishing a company in Dubai

There are several conditions approved by the Dubai South authorities that must be met in order to establish a company in Dubai South, which are as follows:

• Choosing the type of company: The conditions necessary to establish a company in Dubai South are determined based on the type of company to be established, whether it is a free zone company, a branch of a foreign company, or a local company. The investor must choose the appropriate type for his business activity.
• Obtaining approvals and licenses: The investor must obtain all necessary approvals and licenses from the competent authorities in Dubai South. This includes submitting an application to establish the company, submitting the required documents, and obtaining final approval from the competent authorities.
•  Preparing legal documents: Establishing a company in Dubai South requires preparing a set of legal documents, such as the company’s articles of incorporation and articles of association, copies of the passports of partners or shareholders, and no-objection certificates from the competent authorities if they are required.
• Paid-in Capital: The paid-up capital of the company must be determined which may vary based on the type of company and business activity. The capital is deposited in the company’s bank account upon incorporation.
• Selection of business location: The company must select a suitable business location in Dubai South and submit a lease contract for the office or facility that the company will use. The chosen location must be compatible with the company’s business activity.
•  Registration with government agencies: The incorporation process requires registering the company with the relevant government agencies, such as the Department of Economic Development (DED) in Dubai South, and obtaining the necessary commercial and economic licenses.
• Tax Registration: The company must register with the local tax authority and obtain a tax number if this is required by local laws and regulations. This may include registering for Value Added Tax (VAT) if the company qualifies.
• Health Insurance and Residence: Companies in Dubai South must provide health insurance to employees and obtain residence permits for foreign workers working for the company. This process includes submitting applications to the relevant authorities and fulfilling legal requirements.
•  Compliance with Laws and Regulations: Businesses must comply with all local laws and regulations related to the business, including labor, environmental, safety, and health laws. This includes compliance with regulations and continuous updates to laws.
•  Hiring a consulting company: To ensure a smooth establishment process and compliance with all conditions, investors are advised to seek the help of a specialized consulting company such as Itqan Company. Itqan provides integrated services that include legal and administrative support, and guidance in every step of establishment.

Costs of establishing a company in Dubai

The costs of establishing the company include government fees necessary to obtain licenses and approvals from the competent authorities in Dubai South. These fees include company registration, issuance of licenses, and various approval fees, in addition to the following points:

• Administrative costs: Administrative costs include expenses associated with preparing legal documents, such as articles of incorporation and articles of association, and fees for notarization and authentication of documents. It also includes the costs of submitting applications and following up on procedures with government agencies.
• Office rental fees: The company must rent an office or facility in Dubai South. Rental costs vary based on location, office size, and available amenities. These fees also include costs for office-related services such as electricity, water, and internet.
• Paid-in capital costs: The company must deposit the paid-up capital in a local bank account. The amount of capital required varies based on the type of company and business activity, and may require a capital deposit certificate to be provided as part of the incorporation process.
• Health insurance and residence permits: Costs include providing health insurance for employees and obtaining residence permits for foreign workers. These costs include insurance fees and fees for issuing and renewing residence permits.
• Tax Registration: If the company qualifies, it must register with the local tax authority. Costs associated with this registration include fees for obtaining a tax number and value-added tax (VAT) registration fees if required.
• Using a consulting company: Many investors prefer to use specialized consulting companies such as Itqan Company to facilitate the establishment process. The costs of this service include legal and administrative consulting fees, and providing support at every step of the establishment.
• Initial operating expenses: The initial costs of operating a company in Dubai South include expenses for equipping the office or facility, purchasing furniture and equipment, and hiring initial workers. These costs vary based on the size and type of business.

Steps to establish a company in Dubai

Establishing a company in Dubai South begins with determining the appropriate type of company for the desired business activity. Options include a Free Zone Company, a branch of a foreign company, or a local company. You must choose the legal structure that best suits your business needs, in addition to the following steps:

• Determining the business activity: Determining the business activity is an essential step as the investor must choose the appropriate activity from the list of activities permitted in Dubai South. The chosen business activity affects the type of licenses required and subsequent procedures.
• Company name: An appropriate trade name must be chosen that complies with local laws. The name must be unique and not used by other companies in Dubai. After choosing the name, it is reserved and it is verified that it meets the required conditions.

Preparing legal documents

This step includes preparing the necessary documents to establish the company, such as:

1. Memorandum of Association and Articles of Association.
2. Copies of passports of partners or shareholders.
3. No objection certificates (if required).

• Submitting an application for incorporation: The application for incorporation of the company is submitted to the Dubai South Free Zone Authority. The application includes all required documents and information about the company and partners.
• Obtaining approvals and licenses: After submitting the application, approvals must be obtained from the relevant authorities. This step includes reviewing documentation and checking compliance with local laws. After approval, the necessary licenses to conduct business activity are issued.
• Opening a bank account: The company must open a bank account in one of the local banks in Dubai. The paid-up capital is deposited in the bank account and a capital deposit certificate is obtained.
• Renting an office or facility: The company must rent an office or facility in Dubai South. A notarized lease contract must be submitted to the authorities as part of the establishment procedures. The rented location must correspond to the type of business activity.
• Tax Registration: If the company qualifies, it must register with the local tax authority and obtain a tax number. This may include registering for Value Added Tax (VAT) if the company meets the required criteria.
• Health Insurance and Residence Permits: The company must provide health insurance for its employees and obtain residence permits for foreign workers. This step includes submitting applications to the competent authorities and fulfilling legal requirements.
• Compliance with Laws and Regulations: The company must comply with all local laws and regulations related to the business. This includes compliance with labor, safety, health, and environmental regulations.
• Hiring a consulting company: To ensure that the process runs smoothly, it is recommended to seek the help of a specialized consulting company such as Itqan Company. Itqan provides integrated services that include legal and administrative support, and guidance in every step of establishment.

Establishing a company in Dubai South offers unique investment opportunities that combine a strategic location, advanced infrastructure, and strong government support, making it an ideal destination for investors and entrepreneurs. By providing a stimulating business environment and competitive operating costs, Dubai South contributes to enhancing business growth and expansion in various sectors.

Despite the many advantages, setting up a company in Dubai South requires following a set of legal and administrative conditions and procedures to ensure full compliance with local laws. Cooperation with specialized consulting companies such as Itqan Company plays a vital role in facilitating this process and providing the necessary support to investors, ensuring the smooth and successful establishment of companies.

In conclusion, establishing a company in Dubai South is a strategic step that opens wide doors for growth and expansion in an encouraging and safe investment environment, where investors can benefit from modern infrastructure, a distinctive geographical location, and strong government support to successfully achieve their business goals.

Frequently asked questions about establishing a company in Dubai