Establishing a company in Dubai South – The UAE has now become a destination for entrepreneurs and investors. Whatever their financial capabilities and budget, they can start any type of commercial activity there. This is due to the different living conditions, the multiplicity of its requirements, and the increase in its expenses. It is also due to the different types of investment and its needs. Between each emirate and another in the Emirates and their diversity.
We also notice a significant increase in the proportion of the population, an increase in the number of births, and an increase in people heading to the Emirates, which has led to their need for many different and varied services necessary for life. All of this leads to a multiplicity of investments in Dubai, whether they are investors who hold Emirati citizenship and have capital, or they are migrant workers, whether one or the other. It is considered one of the best countries in which you can start a new business or any type of new investment, etc.
How to establish a company in Dubai
Dubai South is considered one of the free zones located in the city of Dubai, which was previously called Dubai World Centre. It also constitutes an integrated ecosystem suitable for all commercial and industrial businesses.
The location of Dubai South, which is very close to Jebel Ali Port and Al Maktoum International Airport, facilitates the work of companies established in Dubai South, especially those whose activity is logistics work. The Dubai South area also offers several warehouses for storage and displays goods at competitive prices compared to other free zones. The shareholder is not required to be present in the UAE in order to establish any investment company himself.
Advantages of establishing a company in Dubai South
The Dubai Answer Zone is considered one of the most important free zones in Dubai that can help inestablishing companiesthere due to its advantages and it is considered one of the most important These features are as follows:
- Complete exemption from all taxes, whether income tax or corporate tax.
- Allowing absolute foreign ownership of 100% foreign ownership.
- Tax exemption on import and export.
- Providing facilities and flexibility in office rental terms.
- Provides a wide range of different business activities available.
- The documents required to establish a new company are not many and specific.
- Do not place any restrictions on the currency.
- Providing competitive prices for establishing any company in the Dubai South region.
- Providing warehouses for storage.
Conditions for establishing a company in Dubai South
Despite all the facilities provided by the Dubai South region in establishing companies, there are some conditions for establishing a company in the Dubai South region which are as follows: :
In terms of number of shareholders:
A company can be established in the Dubai South area with only one shareholder. The company’s capital is divided by 300 dirhams, and the value of each share is one dirham, and there is no need to pay a minimum capital.
In terms of management:
The company is managed by a director and a maximum of 7 directors can be chosen. The directors can be located anywhere in the world, but the general manager must be a resident of the United Arab Emirates. This is because he will be the daily link with all the authorities of the Dubai South region, especially in cases of Emergency.
In terms of documents:
In order to establish a company in DubaiSouth, you must show the following documents:
- Bring a complete form requesting registration and licensing.
- Bring a certified copy of a valid passport (preferably a color copy) of any individual whose name is listed, whether a shareholder, director, general manager, or company secretary, whatever is on the application form.
- If the shareholder is a company, he must bring a notarized copy of the certificate of incorporation, a valid certificate of good standing, or a commercial license (if the company is foreign, the documents must be certified, notarized, and legal).
- In the event that the person who signs the registration and licensing form is not a shareholder, non-manager, non-general manager, or non-secretary in the application, in this case a notarized power of attorney or a resolution from the board of directors itself if the shareholder is a company must be presented confirming that the person signing this The application is actually required to be signed and is responsible for following up on the procedures for establishing the company in the Dubai South region with all Dubai South authorities on behalf of the shareholders.
- Bring two copies of the Memorandum and Articles of Association of the company in Dubai South with the name of the company and the signature of all its shareholders, indicating their names, addresses, and the exact name of each one of them.
In terms of fees:
After submitting all the above documents, the Dubai South authorities must approve the initial name, which may take approximately ten days, and then issue the license, which may take a period of seven working days. The period for establishing the company in general may reach six weeks.
In terms of licenses:
The cost of issuing a regular commercial license is ten thousand dirhams, in addition to registration fees, virtual office or rental costs, professional fees, and annual renewal fees. Dubai South authorities also offer offers in lump sums depending on the needs of your business.
In terms of types of licenses:
- Industrial license for industrial activities.
- Logistics license to carry out logistics services.
- Trading and trading license for import, export, distribution and storage of products.
- Service license for services specified in the license within the Dubai South region.
- Education license for educational, social, training and educational consulting services
In terms of offices:
Every company must have its own registered office. Dubai South authorities offer different options, ranging from a “Smart Desk” facility to large offices. In the business park.
In terms of visas:
After completing the establishment of the company and issuing the license, the shareholder can apply for a residence permit in the UAE, which is valid for three years.
In order for your passport to be stamped, you must travel to the United Arab Emirates, take a medical test and stay in the country for a period of not less than two weeks. You must visit the Emirates at least once every six months to maintain residency, and you can also sponsor your family members directly.
Costs of establishing a company in Dubai South
The costs of establishing a company in Dubai South are limited to several expenses, which are as follows:
- The cost of obtaining a business license.
- The cost of the office location or the location through which you conduct business, whether rented or purchased.
- The cost of matters also related to the furniture and decoration of the office or the company in which you do business.
- The cost of obtaining work permits for sponsored employees and obtaining the required visas for them under the name of your new company.
- The cost of opening a new bank account in a bank in the name of the company and then depositing the minimum capital depending on the type of your business activity.
- The costs of the legal form of the company, meaning that it is commercial, industrial, or professional, has a fundamental role in determining the cost of establishment. The cost of establishing industrial companies is higher than that of establishing commercial and professional companies.
- The cost of obtaining the commercial license in Dubai.
If you wish to establish a company in Dubai in particular and the United Arab Emirates in general, it must be through an agent approved by the Department of Economic Development in Dubai. This method is of great importance in the procedures for establishing a company in Dubai, starting with determining the type of activity you want to practice and carrying out the necessary economic feasibility studies that help you support your choice of the appropriate project and choosing the appropriate trade name for it, in addition to helping you obtain security permits, all the way to helping you prepare All documents required to complete the establishment of your investment project, in addition to helping you facilitate residency procedures for you and your family in the UAE.
In our company, we have business establishment experts in Dubai and the United Arab Emirates, where we help you with all the steps required to establish a company in Dubai, from choosing the field of investment to obtaining permanent residency for you and your family. Do not hesitate now to contact us at any time.
Procedures for establishing a company in Dubai
- Nature of the company’s activity:
This step is one of the most important steps required when thinking about establishing a company in Dubai, as based on this stage, the next path will be completely determined. This step identifies the governmental and non-governmental agencies that should be contacted to prepare the necessary studies and papers and obtain the permits required to start a company in Dubai. Based on this step, the parties associated with the activity and the permitted legal forms will be determined. There are more than 2,000 investment activities available in the UAE, and investment activities are classified into three main types:
Commercial activity: It consists of trade in general, such as wholesale and retail, construction, transportation, storage and communications, financial intermediation, real estate and leasing.
Professional activity: These are activities that depend on mental and physical effort to practice, and include agriculture, fishing, education, health and social work, and community, social, and personal service activities.
Industrial activity: such as manufacturing industries, mining and quarrying, electricity, gas and water.
These also include tourist activities, and if the activity for which you want to establish a company in Dubai is not included among these activities and you have a complete description of this activity, our experts in our company will provide full support to you so that you can choose the activity you desire and complete the procedures for establishing a company in Dubai.
- Legal structure of the company
Choosing the legal structure of the company within Dubai depends on the nationality of its owners and the type of company you intend to establish in Dubai and falls according to the following:
- Joint liability companies: Joint liability companies carry out commercial and industrial activities only.
- Limited Liability Companies: Any industrial, commercial or professional activity, with the exception of legal activities, auditing, and any other type of consulting activities, excluding financial consulting activity, provided that approval is obtained from the authorities regulating this activity.
- Public joint stock companies: Public joint stock partners can engage in commercial, industrial and professional activities.
- Private joint stock companies: A private joint stock company can practice any commercial or industrial activity.
- Civil business companies: Civil business partners engage in professional activities only.
- A branch of a Gulf company, or a branch of a local company: A branch of a Gulf or local company can carry out all the activities listed in the license for the original company.
- Branch of a foreign company: Branches of foreign companies can practice professional activities, commercial representative office activity, and indirect commercial activities such as contracting.
- Branch of a free zone company: A branch of a free zone company can practice commercial, industrial and professional activities as long as the activity of the parent company is licensed within the Emirates.
- Sole proprietorship: An enterprise can engage in commercial, industrial, and professional activities.
- The trade name and its official registration
This trade name of the company in Dubai is what distinguishes one license from another. It is also linked to the company’s structure and activities and has several important conditions imposed by the Department of Economic Development before it approves it: that the trade name does not contain inappropriate words, that it does not violate public taste, and that the company name reflects the commercial activity. Accurately and that the company name accurately reflects the business activity.
- Obtain initial approval
After the previous steps, you must obtain initial approval for your economic activity, which qualifies you to proceed to the following steps in order to obtain approval from the competent authorities for this type of activity.
Here, our company’s experts will handle all the legal and paperwork related to your company before the government agencies for us, and our staff will do what is necessary on your behalf by completing all the steps with the various government agencies from our side and through our company’s work team, which is connected with the competent government agencies in the Emirate of Dubai with its long experience and permanent dealings with them.
- Writing the articles of association and a service agent agreement
- Choose a headquarters for the company in Dubai
After this, a location must be chosen to operate the company in Dubai. All companies must have an existing physical address located in the United Arab Emirates, and meet the specific requirements and land allocation regulations set by the municipality. You can add other licenses in the same location as your existing license, along with important basics to consider.
- Obtaining approvals from the authorities concerned with the facility’s activity
Some activities require obtaining additional approvals from the bodies regulating them, including the Ministry of Economy, the Ministry of Interior, the Ministry of Justice, and approval from Civil Defense if the activity is, for example, related to the activities of selling firefighting equipment, etc.
You will not need additional approvals for activities that fall within the scope of the Department of Economic Development’s specialization, and you can also obtain assistance from the Department of Economic Development regarding additional entities related to your economic activity.
- Obtain the license
After the previous steps, you can receive an activity license to practice your company’s activities in Dubai after attaching the required documents, including the previously mentioned steps that were submitted to the Department of Economic Development and paying the trade license fees. After that, register as a member of the Chamber of Commerce and you will need to join the Chamber of Commerce membership in the relevant emirate, before you can start your economic activity.
We do all of this through our experts in our company, in three easy steps, without any complications, and we are committed to you until your company is established.
