We think that this Free Zone is one of the best choices if you want to register your company in Dubai. It is located right next to the new Al Maktoum airport and Expo 2020 site. It is about 30 min. drive from the down town of Dubai. A metro line is under construction and is going to be finished within less than a year.
Dubai South consists of a few modern buildings, where you can either have a flexi-desk - desk in a sharing office, or an executive office. Even warehouses are available there.
It would be good to mention that the business center of Dubai South provides virtual office services such as phone calls pickup, mail forwarding and meeting rooms. We have seen people really using the flexi-desk facility unlike in remoted Free Zones.
In order to setup a company, you will need to make a personal visit to the Free Zone. You need to sign incorporation documents in front of Dubai South officials, who will also verify your original passport. If you cannot come, you can provide a Power of Attorney to us or your representative.
You don’t need to take any additional documents apart from the original passport, which makes the registration really hassle free. It usually takes about 2 weeks to have a company registered. There are a few packages in Dubai South: 2 visas, 3 visas or multiple visas in case you rent an executive office. This Free Zone does not have a zero visa package. Having a company registered in Dubai South, you can be sure that it will be welcomed by all UAE banks - it is easier to open an account for a Dubai registered business. It’s also quite important that so-called high risk nationalities, such as Syrians, Egyptians, Turkish and others, usually do not have any difficulties in getting a resident visa through a Dubai Free Zone such as Dubai South. That’s why we always recommend it as the best choice for people from those countries. Company maintenance is fairly easy, but you will have to provide audit reports after 2nd renewal of your company. The audit has to be prepared by a UAE auditing firm. When you are applying for a resident visa, keep in mind, that health insurance will be required. You can go for a simple solution, but make sure that you do it otherwise the visa won’t be stamped into your passport. One more thing about visas - even if you are the owner of the company, you need to provide attested educational certificate in order to get a managerial position in your visa. Otherwise, the position will be lower than managerial - however, to be honest, most people don’t really care about it.
TRADING AND SERVICE LICENSE COSTS IN DUBAI SOUTH FREE ZONE
UP TO 2 VISAS COMPANY
DOCUMENTS FOR DUBAI SOUTH FREE ZONE SETUP
Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.
No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.
Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.
Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.
A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.
VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.
UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.
Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.
We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.
Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.
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