Dubai South free zone (ex. DWC)

Overview of Dubai South free zone

Dubai South Free Zone, formerly known as Dubai World Central (DWC), is a highly regarded option for setting up a free zone company in Dubai. Established in 2006, it stands as one of the newest and fastest-growing authorities in the region.

Strategically positioned in close proximity to both Dubai and Abu Dhabi, Dubai South offers convenient accessibility. Situated adjacent to Al Maktoum Airport (DWC airport), it presents excellent opportunities for air cargo trading operations.

With its prime location right in front of the Expo 2020 pavilions, Dubai South anticipates a significant influx of visitors for business and leisure purposes.

Transportation to and from the free zone is effortless, with easy access by car and the metro line.

Dubai South is designed to be a comprehensive business hub and a thriving residential community, providing a wide range of facilities. This exceptional combination makes it a preferred destination for establishing businesses in Dubai.

Dubai South Free Zone Facilities

Dubai South Free Zone provides a comprehensive range of facilities to cater to diverse business needs:

1. Flexi Desks: Flexible desk spaces that can be utilized on a short-term basis, providing convenience and flexibility for freelancers or businesses with variable workspace requirements.
2. Flexi Offices: Flexible office spaces that offer the freedom to scale up or down as per business needs, allowing companies to adapt their workspace as their operations evolve.
3. Permanent Desks: Dedicated desks for individuals or small teams, providing a fixed and personalized workspace within a shared office environment.
4. Smart Fully Furnished Offices: Well-equipped offices with modern furnishings and amenities, designed to provide a professional and productive working environment.
5. Executive Offices: Premium offices that offer a sophisticated and prestigious setting for businesses seeking a high-end workspace.
6. Warehouses: Spacious storage facilities suitable for businesses involved in logistics, import/export, and other industries requiring ample storage space.
7. Plots of Land: Options for businesses to acquire plots of land within the free zone, allowing for customized construction and development tailored to specific requirements.

In addition to the diverse workspace options, the business center at Dubai South Free Zone offers convenient services such as phone answering and mail receiving, facilitating efficient communication and correspondence for businesses.

All offices within the free zone are fully fitted out and the rental fees cover utility charges. On average, the rent for office spaces ranges from 1,300 to 1,600 AED per square meter per year, providing transparency and predictability in cost management for businesses operating within the free zone.

Dubai South Free Zone Business Activities 

Dubai South offers a diverse range of business activities for various industries. These activities are categorized into the following groups:

1. Commercial: Business activities related to trading, retail, import/export, and general commercial operations.
2. Service/Consulting: Professional services and consulting activities across different sectors such as legal, accounting, marketing, IT, and more.
3. E-commerce: Activities associated with online retail, digital platforms, and e-commerce operations.
4. Manufacturing: Industrial and manufacturing activities including production, assembly, and processing of goods.
5. Freelance permit: Business activities suitable for individuals offering independent services and expertise.

It's important to note that certain business activities for Dubai South setup may require an attested degree or relevant experience in the respective field. This ensures compliance with industry standards and regulations.

Furthermore, it is not permitted to combine unrelated activities or commercial and service (consulting) activities under the same license. This ensures clarity and focus in business operations within the free zone.
If you cannot find your desired business activity within Dubai South Free Zone, it is recommended to consider DMCC company formation. DMCC offers a wide range of activities that align with those recognized by the Department of Economic Development, but within a free zone area. This provides flexibility and opportunities for business expansion and growth.

Dubai South Free Zone Available Licenses

The available licenses in Dubai South Free Zone are as follows:

Aviation License

This license permits the holder to provide specific aviation-related services.

Logistic License

With this license, the holder is authorized to offer a range of logistics services, including storage, transportation, distribution, sorting, forwarding and clearing activities, order management, and inventory management.

Industrial License

This license allows the holder to engage in light manufacturing activities such as blending, mixing, purifying, assembling, forming, repacking, or wrapping of products.

General Trading

Companies involved in importing, trading, and re-exporting of permitted goods can obtain this license. Special approval may be required for trading activities, which can be obtained by acquiring a No Objection Certificate (NOC) from the relevant departments.

Education License

This license enables the holder to provide educational and social services, educational and training programs, and educational consultancy services.

Trading License

With a trading license, the holder has the authority to import, export, sell, distribute, and store items specified in the license. However, it's important to note that free zone enterprises holding a trading license can only sell finished products in the UAE market through a registered local distributor or commercial agent.

Service License

This license allows the holder to offer services specified in the license within the free zone and across the UAE (although additional local licenses may be required in some Emirates). Service licenses are issued to free zone enterprises that support the logistics industry and cover services such as consulting, software, training, repair, and catering.

Dubai South Free Zone Costs

Dubai South is known for offering competitive and cost-effective options for setting up a company in a Dubai free zone which are among the lowest rates in the emirate. The cost of setting up a business in Dubai South free zone is as follows:

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.

Dubai South Free Zone Business Setup

Setting up a company in Dubai South (DWC) requires the personal presence of the company owner(s). This is mandatory for signature verification purposes. 

However, if it is not possible for the owner(s) to visit in person, an alternative option is available. The owner(s) can appoint a representative through a Power of Attorney, which must be legalized at the UAE embassy and the Ministry of Foreign Affairs.

To obtain a Power of Attorney template, you can reach out to a reputable business setup company in Dubai. They can assist you with the necessary documentation and guide you through the process.

The registration process for company formation in Dubai South (DWC) involves several steps:

1. Pre-approval: This stage involves submitting the required documents and obtaining initial approval for your business setup.
2. Visit for signatures verification: During this step, the owner(s) need to visit the designated authority to verify their signatures.
3. Lease agreement signing: Once the signatures have been verified, you will proceed to sign the lease agreement for your chosen office or commercial space in DWC.
4. Payment: After signing the lease agreement, the required fees and charges for company registration need to be paid as per the applicable guidelines.
5. Licensing: Once the payment is completed, the final step is obtaining the necessary licenses and permits for your business activities.

To prepare for the registration process, you should have the following documents and information ready:

• Copy of the passport(s) of the owner(s)
• Residential address details
• Telephone number
• Email address
• Multiple company name options and a clear description of your desired business activities.

By ensuring you have all the required documentation and information in advance, you can streamline the company formation process and avoid any unnecessary delays.

It is advisable to seek guidance from experienced business setup professionals who can provide personalized assistance and ensure compliance with all regulatory requirements throughout the company formation journey in DWC Dubai.

Dubai South Free Zone UAE Residence Visas

The cost of resident visas in Dubai South is exceptionally reasonable, offering an attractive option for individuals and companies alike. The visa costs in Dubai South are as follows (in AED):

If the applicant is already in the UAE at the time of visa application, the cost will be slightly higher at 3,500 AED per application. Additionally, it is important to note that you will need to obtain health insurance prior to visa stamping in your passport. The minimum cost for basic insurance typically ranges from 600-800 AED.

Visas issued to company owners or employees will have a validity of 3 years. It's worth mentioning that there is no specific "Investor" designation for shareholders of the company in the visa categorization.

Renewal of Dubai South License

The renewal cost for your company will be slightly lower than the initial incorporation. Starting from the second renewal, you will be required to provide annual audit reports.

To renew your company, you need to submit the payment and a signed lease agreement for your facility for the upcoming year. The renewal process can be handled by your agent without your need to visit the UAE.

Dubai South Free Zone Amendments

Dubai South Free Zone offers a wide range of possible amendments, including:

• Name change
• Activity change
• Shareholder/manager/director/secretary change
• Facility upgrade

Some of these amendments may require a personal visit to the free zone or the appointment of a Power of Attorney.

Liquidation of Dubai South Business

Dubai South Free Zone is an excellent solution for those looking to establish a company in Dubai within a reasonable budget. It offers a viable option for individuals from high-risk nationalities to open businesses and obtain resident visas for themselves and their families.

This free zone is particularly suitable for companies engaged in cargo trading through Al Maktoum Airport or JAFZA port, both of which are nearby.

We highly recommend Dubai South Free Zone to companies ready to take a significant step into the UAE market or for those requiring it for immigration purposes.

Benefits of Dubai South Free Zone Company

• The most cost-efficient Free Zone in Dubai
• Part of the Expo 2020 site
• Affordable cost of resident visas
• Favorable chances of obtaining security approval for high-risk nationalities
• Designated Free Zone
• Well-equipped offices at a low cost (1,600 AED per sq meter per year, including utilities)
• Metro access
• Proximity to Al Maktoum International Airport
• Business center services (phone call handling, meeting rooms, correspondence receiving)
• Residential area surrounding the Free Zone