Establishing a company in Dubai South for foreigners and Gulf nationals falls under the development plan adopted by the UAE authorities to make the Dubai South Free Zone an investment destination sought by investors to benefit from all the investment advantages that the region is distinguished by.

Company formation in Dubai South For foreigners and Gulf nationals, Dubai South is a modern vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum under the main modern development plan in the Emirate of Dubai South to make it a modern and distinctive residential and investment area.

Dubai South is designed to be an economic environment that supports all businesses and accommodates up to one million people while providing the necessary services to meet the needs of both individuals and establishments. In the following lines in this article, we discuss the features of Company formation in Dubai South for foreigners and Gulf citizens.

In our article, we will explore the process of establishing companies in Dubai South for foreigners and Gulf nationals, focusing on the procedures, challenges and opportunities available in this developing area of ​​Dubai.

Establishing a company in Dubai South for foreigners and Gulf citizens

Company formation in Dubai Southalso known as Dubai South, can be a profitable investment move for foreigners and Gulf nationals. Here are the general steps to set up a company in this area:

1. Legal advice: Before starting the company formation process, it is recommended to consult a local legal advisor who specializes in commercial laws in Dubai South. The legal advisor will help you understand the procedures and legal requirements for company formation.
2. Select company type: You should choose the appropriate company type for your business, such as a local company (LLC), a free zone company, or an overseas branch, according to your business needs and goals.
3. Specify the business activity: Determine the business activity you intend to practice, which must comply with local regulations and legislation in Dubai South.
4. Select location and head office: Locate your company’s head office in Dubai South, whether in free zones or other business-specific areas.
5. Submit the necessary documents: Prepare and submit the documents required for company registration, such as passport and ID copy for shareholders and directors, necessary contracts, and other required documents.
6. Obtaining government approvals: After submitting the documents, they will be reviewed and processed by the relevant government authorities, and you will have to obtain the necessary approvals to establish the company.
7. Signing contracts and agreements: Sign the necessary contracts between shareholders, managers and relevant government agencies, to define the rights, obligations and conditions related to the establishment and operation of the company.
8. company Registration: After fulfilling all conditions and approvals, the company is officially registered in Dubai South, and the registration certificate is delivered.
9. Opening a bank account: Open a company bank account in an approved local bank, to manage the company’s financial transactions effectively.
10. Compliance with laws and regulations: The Company shall comply with all local and international laws and regulations applicable in Dubai South and the Emirates.

Establishing a company in Dubai South requires adherence to specific legal and administrative procedures, and can provide significant opportunities for investment and growth in this developing region.

Company formation in Dubai

Company formation in Dubai It represents a strategic investment step towards success in a dynamic and advanced business environment. Dubai has a well-developed infrastructure and a favorable legal and tax system, making it a preferred destination for entrepreneurship and investment. When considering setting up a company in Dubai, investors should consider several important aspects.

Firstly, investors should choose the appropriate company type according to their business objectives and needs, whether it is a local company (LLC), a free zone company, or a subsidiary company. Then, they should check the local laws and regulations for company formation, and submit the required documents to the relevant authorities.

Next, the business activity that the company is interested in practicing must be determined, and a suitable location for the head office must be determined in one of the approved commercial areas. This is followed by the necessary procedures to obtain government approvals and officially register the company.

After establishing the company, investors should open a bank account for the company, market the services or products to local and international customers, and do not forget to comply with all local laws and regulations, and take advantage of government support available to companies.

In short, setting up a company in Dubai requires careful planning and consideration of all legal and regulatory aspects, but it represents an exciting opportunity for investment and growth in one of the most prosperous cities in the world.

Types of commercial licenses available in Dubai

In Dubai, there are several types of business licenses available to establish companies and conduct business activities. Here are some of the common types of business licenses in Dubai:

• Limited Liability Company (LLC): It is a company that allows investors to establish a local company with limited liability. Foreign investors can enjoy up to 49% ownership in the company, with a local partner owning the remaining percentage.
• Company in the free zone: Dubai’s free zones are a preferred environment for setting up businesses, offering favourable customs and tax policies, and maintaining 100% foreign ownership without the need for a local partner.
• Mainland Company: It allows companies to operate in the local and international market, and is subject to local regulations and laws. This license requires a 51% local partner.
• Partnership: It allows several individuals to cooperate in conducting business, and it can be of the nature of a personal partnership (General Partnership) or a limited partnership (Limited Partnership).
• Public Joint Stock Company: Allows companies to raise capital by selling shares to the public, with each shareholder’s ownership percentage being the number of shares he owns.
• Private Joint Stock Company: Allows companies to raise capital by selling shares to a limited group of shareholders, subject to local regulations and laws.

Taxes applied to companies in Dubai

In Dubai, taxes are generally low compared to many other countries, making it a preferred destination for business formation and investments. Here is an overview of the taxes applicable to companies in Dubai:

1. Corporate tax: In the UAE, corporate tax is applied to companies operating in certain sectors, such as banking, oil and gas companies. The tax rate is usually 50% of profits.
2. Value Added Tax (VAT): Value Added Tax (VAT) was introduced in the UAE from 1 January 2018, and is a 5% tax on most goods and services.
3. Real estate transaction tax: Real estate transaction tax (usually 4%) applies to real estate transactions, such as the sale, purchase and rental of real estate.
4. Capital gains tax: Capital gains tax is applied when selling assets owned for less than one year. The tax rate is applied according to federal law.
5. Penalties and fines taxes: Penalties and fines are imposed on companies that do not comply with local laws and regulations, such as not filing financial reports on time.

Expected costs of establishing a company in Dubai

Costs of setting up a company in Dubai It can vary greatly depending on the type of business, the size of the business and the services required. Here is a list of the expected costs that may be involved in the process of setting up a company in Dubai:

• Licensing and registration fees: These fees include the costs of registering the company in the commercial register, determining the business activity, and obtaining the necessary licenses. These costs may vary depending on the type of company, location, and business activity.
• Legal consultation fees: You may need legal advice to help you understand the legal and regulatory procedures and determine your options. Documents and agreements are carefully reviewed to ensure compliance with local and international laws.
• Head Office and Real Estate Costs: These costs include renting or purchasing a corporate office, and real estate costs may vary depending on location, size of space, and available amenities.
• Professional Services Fees: These fees may include the costs of financial and accounting consulting, tax and accounting audits, insurance and valuation services and other professional services.
• Labor and health insurance fees: These costs may include the costs of hiring employees, their health and social insurance, and retirement, and these costs are estimated based on the number and type of employees required by the company.
• Recruitment and visa fees: You may need to pay fees to bring in foreign employees and the costs of obtaining the necessary visas for them, in addition to the costs of renewing visas periodically.
• Marketing and advertising costs: These costs include developing marketing and advertising strategies, creating a website, digital marketing and other advertising campaigns to attract customers.

Necessary steps to open a company bank account in Dubai

Here are the necessary steps To open a company bank account in Dubai:

1. Choose a bank: Research local and international banks that offer services that suit your business needs in Dubai. Make sure to choose a bank with a good reputation and convenient financial services.
2. Contact the bank: After selecting a bank, contact your local bank branch in Dubai or your bank’s commercial agent.
3. Filling out forms and applications: Fill out the forms and applications provided by the bank to open a new account for the company, and make sure to submit the applications completely and accurately.
4. Signing the agreement: After the bank receives and verifies the documents, you will need to sign the account opening agreement in the presence of authorized officials from the company.
5. Deposit the necessary capital: You may be required to deposit the necessary capital for the company into the new account based on the bank’s requirements.
6. follow up with the order: After submitting the documents and applications, follow up on the application status to ensure that all procedures are going smoothly, and you can inquire from the bank about any step you need to take.

Advantages of establishing a company in Dubai

Company formation in Dubai It provides investors with multiple opportunities and offers a range of advantages, including:

• Advanced investment environment: Dubai offers a sophisticated and dynamic investment environment that encourages innovation and economic growth. This environment enhances investment opportunities in various economic sectors.
• Excellent geographical location: Dubai is located at the intersection of major sea and air routes, making it a hub for global trade and easy access to regional and global markets.
• Advanced infrastructure: Dubai has a sophisticated infrastructure including airports, ports, and a sophisticated transportation network, which facilitates transportation and distribution operations and enhances international communications.
• Favorable legal and tax regime: Dubai’s legal and tax system provides a favourable legal environment that protects investors’ rights and encourages economic growth, with no taxes on personal profits and personal income.
• Workforce Diversity: Dubai has a very diverse workforce, providing companies with a wide range of skills and experiences to choose from.
• Cultural and linguistic diversity: Dubai has a culturally and linguistically diverse community, which helps facilitate communication with clients and partners from all over the world.
• Government support: The Dubai government provides comprehensive support to companies, through business and innovation support initiatives and programmes, and government facilities available to investors.

At the end of this article, which discussed the process of Company formation in Dubai South For foreigners and Gulf nationals, it can be said that the UAE in general, and Dubai South in particular, provides an advanced investment environment full of opportunities for entrepreneurship and expanding commercial activity.

Dubai South features modern infrastructure and advanced facilities that make it a preferred investment destination for individuals and foreign and Gulf companies. In addition, it provides investors with specialized legal and administrative services that facilitate the process of establishing and operating companies efficiently and smoothly.

No matter what type of company you want to establish, whether it is a free zone company, a limited liability company or other, Dubai South offers a variety of options and opportunities to achieve success and growth in the local and regional market.

Top Frequently Asked Questions About Company Formation in Dubai South