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The cost of establishing a company in Dubai South

The cost of establishing a company in Dubai South

٢٧ أبريل The cost of establishing a company in Dubai South

Knowing the cost of establishing a company in Dubai South is a strategic step that attracts many entrepreneurs and investors from all over the world. Dubai South, also known as Dubai Aviation City, is a free zone established to support Dubai Vision 2021 and attract foreign investments. The area extends over a large area and is located near Al Maktoum International Airport, making it a vital center for logistics and transportation operations.

When considering the cost of setting up a company in Dubai South, there are many factors to take into consideration. These factors include government fees, the cost of renting or purchasing real estate, licensing and registration costs, and other operational expenses. The total cost also depends on the type of company being established, whether it is a limited liability company, a branch of a foreign company, or a free zone company.

First, investors must pay company registration fees and annual licensing fees. These fees vary based on the size and type of company, as well as the industry or business specializations required. In addition, there are free zone fees related to the rental of office or industrial space.

Secondly, the cost of renting office or industrial space in Dubai South varies based on the location and space required. The area offers a variety of options, from small coworking to large offices and warehouses. Businesses can choose spaces that suit their needs and budgets.

Third, there are operational expenses to consider such as salaries, utility costs (electricity, water, internet), and logistics fees. Dubai South provides an integrated business environment, where companies can benefit from advanced infrastructure and specialized services to facilitate their daily operations.

In addition, companies may need to pay recruitment and visa fees for workers and employees. These fees vary according to the nationality of the employees and the level of jobs, and increase as the number of employees the company needs increases.

When you combine all these factors, the cost of setting up a company in Dubai South can be relatively high, but it offers many advantages such as a strategic location, advanced infrastructure, and a supportive business environment. These factors make Dubai South a preferred destination for ambitious companies seeking to expand into global markets and take advantage of the growth opportunities available in the region.

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The cost of establishing a company in Dubai South

The cost of establishing a company in Dubai South

Establishing a company in Dubai South, also known as Dubai Aviation City, is a strategic move that attracts many entrepreneurs and investors thanks to its prime location and advanced infrastructure it offers. Dubai South is a free zone that extends over a wide area near Al Maktoum International Airport, making it a vital center for logistics and commercial operations. But establishing a company in this region involves a set of costs that investors must take into account.

Government fees and licensing costs
The first step in the process of establishing a company in Dubai South is to pay the government fees related to registering the company and obtaining a license. These fees vary based on the type and size of the company. Small and medium-sized companies may face lower costs compared to larger companies that require special licenses. Furthermore, there are annual renewal fees that must be factored into the company’s ongoing operational costs.

Renting real estate and office space
The cost of renting office or industrial space in Dubai South varies based on the location and space required. The area offers a variety of options, from small coworking to large offices and warehouses. Businesses can choose spaces that suit their needs and budgets. Rental costs also depend on the proximity of the spaces to vital facilities such as Al Maktoum International Airport and logistics centres.

Operating Expenses
Operating expenses include salaries, utility costs such as electricity, water, and Internet, and logistics fees. Dubai South provides advanced infrastructure and specialized services that facilitate companies’ daily operations. These services include integrated transportation and logistics, which are essential for companies that rely on the movement of goods intensively.

Recruitment and visa costs
Companies need to pay recruitment and visa fees for workers and employees. These fees vary based on the nationality of the employees and the level of jobs required. The cost of these fees increases with the increase in the number of employees and their specializations. Companies should consider visa and renewal costs as part of their operating budget.

Additional Fees and Services
In addition to the fees mentioned, there are additional costs such as insurance, consulting services, and legal fees that companies must consider. Advisory services may include financial planning, legal support, and human resources services. These services may be necessary to ensure compliance with local laws and achieve operational efficiency.

Advantages

Advantages of establishing a company in Dubai South

Advantages of establishing a company in Dubai South

Establishing a company in Dubai South offers many advantages that make this region an attractive destination for entrepreneurs and investors. Dubai South, also known as Dubai Aviation City, is a free zone established to support Dubai Vision 2021 and promote the economic diversification of the emirate. The region extends over a large area near Al Maktoum International Airport, and has a developed infrastructure and a strategic location that makes it an important logistical and commercial center. Here are some of the key advantages of setting up a company in Dubai South:

1. Strategic location:
Dubai South is located near Al Maktoum International Airport, which is one of the largest airports in the world, which facilitates international shipping and transportation operations. This strategic location gives companies quick access to regional and global markets, and makes it ideal for companies that rely on logistics and supply chains.

2. Advanced Infrastructure
Dubai South is characterized by a modern infrastructure that includes highways, ports, and advanced logistical facilities. This infrastructure effectively supports business and industrial operations and helps companies improve their operational efficiency and reduce logistics costs.

3. Economic incentives
Dubai South offers a range of economic incentives to companies, such as exemption from corporate and individual taxes, freedom to transfer funds, and no restrictions on foreign ownership. These incentives make the investment environment in Dubai South attractive to foreign investors and support economic growth.

4. Ease of establishing a business.
The procedures for establishing a company in Dubai South are considered smooth and simple, while reducing bureaucracy and accelerating administrative processes. The region provides integrated services for companies, including legal and administrative support, making it easier for investors to start their businesses quickly and effectively.

5. Integrated work environment
Dubai South offers an integrated work environment that includes business centers, industrial areas, and recreational and residential facilities. This environment makes it an ideal place to live and work, as workers can access all their needs in one place, enhancing productivity and job satisfaction.

6. Availability of competencies and human resources
Dubai South attracts a diverse range of competencies and skills from different parts of the world thanks to its geographical location and cultural diversity. This diversity in human resources enhances innovation and development within companies.

7. Strong government support
: Companies in Dubai South enjoy strong government support in facilitating procedures and providing the necessary advice and services to emerging companies and investors. This support helps companies face challenges and achieve success in a competitive environment.

8. Global Business Environment
Dubai South is a global business environment that includes a variety of industries and sectors such as aviation, logistics, manufacturing, and services. This diversity provides opportunities for cooperation and strategic partnerships between different companies.

9. Easy access to markets
Thanks to its geographical location, Dubai South is considered a gateway to regional and international markets. Companies can easily access emerging markets in the Middle East, Africa and Asia, opening up significant opportunities for expansion and growth.

Procedures for establishing a company in Dubai South

Establishing a company in Dubai South requires following a set of structured procedures that ensure compliance with local laws and regulations and facilitate the process of starting a business. Dubai South, also known as Dubai Aviation City, is a free zone that offers many benefits to businesses and investors. Here are the main steps to establish a company in Dubai South:

1. Choosing the type of company
Before starting the incorporation process, investors must determine the type of company they want to establish. Options include limited liability companies (LLC), branches, subsidiaries, or free corporations (FZCO and FZE). Each type of company has different requirements and procedures.

2. Choosing the business activity
Determining the business activity that the company will undertake is an essential step. Investors must choose the activity from the list approved by the free zone authority. It can include commercial, industrial, and service activities.

3. Choosing a company name:
Choosing an appropriate name for the company that is in line with the rules of the free zone. The name must be unique and not used by other companies, and must reflect the nature of the company’s business activity. After choosing the name, you must verify its availability and reserve it with the Dubai South Authority.

4. Submitting an application for incorporation.
The application for incorporation of the company must be submitted to the Dubai South Authority, accompanied by the required documents. Documents usually include:

  • Establishment application form.
  • A copy of the passport and personal photos of shareholders and directors.
  • A copy of the business plan.
  • The company’s articles of incorporation and articles of association.
  • No objection certificate (NOC) if the shareholders reside in the UAE and work for other entities.

5. Initial approval
After submitting the application, the Dubai South Authority reviews it and issues initial approval if all requirements are met. This approval allows investors to proceed with further incorporation procedures.

6. Preparing the Memorandum of Association
The Memorandum of Association and Articles of Association of the company must be prepared and signed before a notary public. The contract explains the company’s details, such as capital, rights and duties of shareholders, and the company’s goals.

7. Renting an office or commercial space
The company must rent an office or commercial space within Dubai South. Various options are available, including shared offices, private offices, and warehouses. The lease contract must be signed and a copy of it must be submitted to the Dubai South Authority.

8. Payment of fees
You must pay the fees related to establishing the company, which include registration fees, licensing, and other service fees. These fees vary based on the type of company and business activity.

9. Obtaining a commercial license
After paying the fees and submitting all required documents, the Dubai South Authority will issue the commercial license. This license is considered the official permit for the company to conduct its business in the free zone.

10. Opening a bank account
After obtaining the commercial license, the company can open a commercial bank account in a local bank. Opening an account requires submitting a trade license, articles of incorporation, and other relevant documents.

11. Obtaining employee visas
The new company can apply for residence visas for employees and managers. This process requires submitting visa applications to the Dubai South Authority and meeting health and security requirements.

12. Compliance with Laws and Regulations
After establishing a company, investors must comply with all local laws and regulations, including submitting annual financial reports, renewing the business license, and paying annual fees.

Conditions for establishing a company in Dubai South

Establishing a company in Dubai South requires compliance with a set of conditions and standards set by the free zone authority to ensure that investing companies comply with local laws and regulations and contribute to the local economy. Dubai South, also known as Dubai Aviation City, is a free zone that provides an ideal environment for business thanks to its advanced infrastructure and strategic location. Below are the main conditions for establishing a company in Dubai South:

1. Determine the type of company
Investors must choose the type of company they wish to establish. Options include:

  • Free Zone Company – FZCO
  • Free Zone Establishment – ​​FZE
  • Branch of a foreign company
  • A branch of a local company

2. Selecting a commercial activity:
The commercial activity must be selected from the list approved by the Dubai South Authority. Available activities include commercial, industrial, and service. It is important to choose the activity carefully to ensure obtaining the necessary licenses.

3. Providing capital
The necessary capital must be provided to establish the company. The minimum capital required varies based on the type of company and business activity. Some companies may require greater registered capital if they engage in higher risk activities or need significant investments in infrastructure.

4. Choosing a company name
The company name must be unique and not used by other companies. The name must reflect the nature of the business and not contain prohibited or inappropriate words. The name must be verified and reserved with the Dubai South Authority.

5. Submitting the required documents:
A set of documents must be submitted to register the company, including:

  • Establishment application form
  • Copies of passports and personal photographs of shareholders and directors
  • Detailed business plan
  • The company’s articles of incorporation and articles of association
  • No objection certificate (NOC) if the shareholders reside in the UAE and work for other entities

6. Renting an office or commercial space
The company must rent an office or commercial space within Dubai South. Options include shared offices, private offices, and warehouses. The lease contract must be signed and a copy of it must be submitted to the Dubai South Authority.

7. Obtaining the necessary approvals.
Some commercial activities may need additional approvals from the relevant government authorities. This requires submitting separate applications and obtaining approvals before a trade license is issued.

8. Payment of fees
You must pay the fees related to establishing the company, which include registration fees, licensing, and other service fees. These fees vary based on the type of company and business activity.

9. Registration and obtaining a commercial license
After submitting all documents and paying fees, the Dubai South Authority reviews the applications and issues the commercial license. This license is considered the official permit for the company to conduct its business in the free zone.

10. Opening a bank account
After obtaining the commercial license, the company can open a commercial bank account in a local bank. Opening an account requires submitting a trade license, articles of incorporation, and other relevant documents.

11. Obtaining employee visas
The new company can apply for residence visas for employees and managers. This process requires submitting visa applications to the Dubai South Authority and meeting health and security requirements.

12. Compliance with Laws and Regulations
After establishing a company, investors must comply with all local laws and regulations, including submitting annual financial reports, renewing the business license, and paying annual fees.

Our company’s role in knowing the cost of establishing a company in Dubai South

Concluding our discussion on the cost of setting up a company in Dubai South, it becomes clear that this process requires careful planning and significant financial investment. Costs range from government fees, property rental costs, and other operational expenses. However, the benefits and advantages that Dubai South offers, such as its strategic location, advanced infrastructure, and economic incentives, make it an attractive destination for investors.

For those who want to establish a company in Dubai South in a smooth and efficient manner, they can benefit from the services of specialized companies such as “Itqan” Company. Itqan Company provides comprehensive support to entrepreneurs, from initial consultations to document preparation and registration, which greatly facilitates the process and ensures full compliance with local laws and regulations. By cooperating with Itqan Company, investors can focus on developing their business and achieving their goals without worrying about administrative complexities.

Establishing a company in Dubai South with a specialized partner like Itqan enhances your chances of success, as they provide the experience and knowledge necessary to navigate the dynamic business environment of the free zone. This partnership represents a strategic step towards achieving sustainable growth and prosperity in one of the most competitive and exciting markets in the world.

Frequently asked questions about the cost of establishing a company in Dubai South

What factors affect the cost of setting up a company in Dubai South?

The main factors that affect the cost of setting up a company in Dubai South include the type of company, business activity, government fees, cost of renting office or industrial space, special licenses required, and recruitment and visa costs.

Are there specific government fees for establishing a company in Dubai South?

Yes, there are government fees that include initial registration fees, annual license fees, and renewal fees. These fees vary based on the type of company and specific business activity.

How much does it cost to rent an office in Dubai South?

The cost of renting an office in Dubai South varies based on the location and space required. Prices range from small shared offices to large offices and warehouses. Costs can vary greatly, so it’s best to get quotes from real estate providers in the area.

Does Dubai South provide economic incentives for establishing companies?

Yes, Dubai South offers multiple economic incentives such as exemption from corporate and individual taxes, freedom to transfer funds, and no restrictions on foreign ownership. These incentives make the free zone attractive to investors.

What documents are required to establish a company in Dubai South?

Required documents include an incorporation application form, copies of passports and personal photos of shareholders and directors, a detailed business plan, the company’s articles of incorporation and articles of association, and a no-objection certificate (NOC) if the shareholders are residents of the UAE and work for other entities.