A Bird’s Eye View on Dubai South Free Zone:
Dubai South Free Zone formerly Dubai World Central Free Zone is well known as “THE CITY OF YOU” is a well-planned (master planned) city based on happiness of an individual. It is termed as emirate’s flagship urban project and is adjacent to the Jabel Ali Sea Port. It covers around 145 square kilometers in terms of area and this is almost twice the size of Hong Kong Island. It is launched as a government project in the year 2006.
In a nut shell, It is an economic platform that supports the activities such as logistics, aviation, commercial, exhibition, humanitarian, residential.
It comprises 8 integrated districts namely, The Al Maktoum International Airport, Logistics, Aviation, Exhibition, Residential, Commercial, Humanitarian, and Golf districts. It is the shelter to Al Maktoum International Airport – and is host landmark events such as World Expo 2020 and the Dubai Airshow.
Q) What precisely is the Dubai South Free Zone Master Plan?
Aviation: Dubai South has a world-class, integrated aviation and aerospace ecosystem that is designed to serve the holistic needs of both these industries and related sectors.
Logistics: Dubai South is the city of supremely efficient Logistics solution.
Business Park: The Business Park offers flexible office spaces – from start-ups to SMEs and large corporations – in diverse sectors. It also features a business center that provides office solutions operating 24/7.
Real Estate: Dubai South offers wide range of housing options.
Q) What are the types of licenses available for business set up in Dubai South Free Zone?
Following are the available license categories in Dubai South Free Zone:
- Industrial License
- Logistics License
- Trading and General Trading License
- Service License
- Education License
Q) How to setup a business, what are the business types and what are the documents required for the setup in Dubai South Free Zone?
Business Centre: The Business Centre at Dubai South is expertly designed to facilitate the growth of every business from start-ups to SMEs. Offering complete turnkey business services and cost-effective office solutions it is perfectly aligned to suit global business needs.
| Steps | Particulars | |
| Step 1 | Apply for Pre-Qualification and make a booking | Basic contact details |
| Type of company | ||
| Type of unit | ||
| What is the business? | ||
| Initial fee set up of AED 2000 | ||
| Step 2 | Complete the application | Add 3 choices of the company |
| Share capital information | ||
| Unit information | ||
| Activities which the newly setup company intend to perform | ||
| Information about the parent company | ||
| Appointing Shareholders (If LLC) | ||
| Appointing General Manager (For both LLC and Branch Companies) | ||
| Appointing Director/Chairperson (If LLC) | ||
| Upload any other documents if required by the authority | ||
| Step 3 | Submit the application | Review the application |
| Submit for approval | ||
| Step 4 | Payment of fees and submit the original documents | Original documents either personally or through courier |
| Step 5 | Registration complete | Registration certificate and license will be issued |
Commercial Business:
Branch: A Branch is a representative office of a legal entity which already exists outside of the Dubai South Free Zone (local or international). A Branch does not have a separate legal personality, and it derives its power and authority from the parent entity. A Branch must have a General Manager who is responsible for the day-to-day operation of the Branch, but it will not have a board of directors or company secretary. A Branch must retain the same name as the parent entity and end with the designation (Branch).
| S.no | Particulars |
| 1 | Foreign language documents translated to English/Arabic should be done by legal translators, notarized and attested |
| 2 | Certificate of Incorporation (Notarized, attested and legalized) |
| 3 | Memorandum & Articles of Association of Parent company (Notarized, attested and legalized) |
| 4 | Board Resolution to establish a branch (Simply signed) |
| 5 | Board Resolution giving Signatory authority or Power of Attorney for 3rd Party (simply signed, attested & legalized) |
| 6 | Certificate of Good standing, Valid Trade License or equivalent (Notarized, attested and legalized) |
| 7 | Passport copy of the General Manager |
| 8 | Additional documents may be required as deemed necessary. |
Limited Liability Company (LLC): A Limited Liability Company is a new legal entity with its own legal personality. The liability of its members (shareholders) is limited to the value of the share capital they hold in the company. A limited liability company must have Shareholders, Directors, a Company Secretary and a General Manager.
| S.no | Documents Needed |
| Individual Shareholders | |
| 1 | Passport copy of Shareholder(s) / Director(s) / Secretary & GM |
| 2 | Memorandum & Articles of Association |
| 3 | Legal document required for Registration |
| Corporate Shareholders | |
| 1 | Foreign language documents translated to English/Arabic should be done by legal translators, notarized and attested |
| 2 | Certificate of Incorporation (Notarized, attested and legalized) |
| 3 | Board Resolution to establish company (Simply signed) |
| 4 | Board Resolution giving Signatory authority or Power of Attorney for 3rd Party (simply signed, attested & legalized) |
| 5 | Certificate of Good standing, Valid Trade license or equivalent (Notarized, attested and legalized) |
| 6 | Passport copy of Director / Secretary / Manager |
| 7 | Additional documents may be required as deemed necessary. |
Q) What are the setting up costs in Dubai South Free Zone?
| Package | Visa slots | Amount in AED |
| Smart desk | 2 | 30900 |
| Smart office | 3 | 40900 |
| Permanent smart desk | 2 | 45900 |
| Permanent smart office | 3 | 86000 |
| Executive office | 1 visa per each 9 sq meters | 1300-1600 per sq meter per year |
Note:
- Dubai south free zone offers a Flexi desk Facility that gives the investor the eligibility to obtain up to Two Visas.
- Executive office 1 visa per each 9 sq meters 1300-1600 AED per sq meter per year
- Immigration and visa related fees have to be paid separately.
Q) How is the renewal of Dubai South Free Zone License done?
- Cost of Renewal is less expensive than that of cost of incorporation.
- Audited financials on annual basis are to be submitted.
- Payment for renewal along with the signed lease agreement for the next year to be submitted.
Q) What is the procedure for liquidating a business in Dubai south Free Zone?
Before Liquidation following steps to be made:
| S.no | Particulars |
| 1 | Cancellation of the visas |
| 2 | Termination of lease agreement |
| 3 | Closure of the bank account |
| 4 | Clearance from Customs in case you had a trading activity in the license |
Q) What are the Competitive advantages of setting up business in Dubai South Free Zone?
- A simple and easy incorporation process with feasible rates.
- 100% on foreign ownership.
- 100% profits and capital repatriation.
- Top class infrastructure.
- 0% tax as well as no duty tax for imports and exports.
- No currency restrictions.
- The most cost-efficient free zone in Dubai.
Q) Is there any requirement for a Free Zone enterprise to appoint Auditors and submit an Annual Financial statement?
Yes. Each Free Zone Enterprise must appoint an independent auditor that is registered and licensed in the UAE. Audited financial statements must be submitted annually.
Corporate tax applicability to the companies in Dubai South Free Zone:
Corporate tax law is going to be applicable for all the companies registered in UAE including the free zones in UAE. The UAE Corporate tax is going to be effective for the financial year beginning on or after 1 June 2023 for the businesses in UAE. Corporate tax will be levied at zero percent on the taxable income (adjusted net profit) of the businesses in the free zones as long as they comply with all the regulations of the respective free zone and do not do any business with the mainland companies, otherwise there is a possibility of levying 9% corporate tax on the taxable income (adjusted net profit) in excess of AED 375,000. Hence companies in the Free Zones need to make sure that they are complying with all the regulations of the free zone and do not do any business with the mainland entities to enjoy the benefit of zero percentage of UAE corporate tax.
{NOTE: Kindly note that the authenticity of this article is limited to the day of publishing this blog. As policies and rules pertaining to each free zone keeps changing from time to time based on the necessity of the respective authority, it is hereby advised you to check the website of the concerned free zone directly to get the latest update on the same. We do not assume any liability if you have taken any decision based on the information provided in the article. We have ensured that the presented information to the visitor is legible to the maximum extent possible so that all the information is available in one page, at one go. Thank you.}
Q) Why Spectrum Auditing?
Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.
Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration and de-registration of your company in Dubai South Free Zone. Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.
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