The Dubai South free zone sits close to Al Maktoum Airport and Expo City. In the free zone comparison published on this site it is listed as best suited to aviation, logistics and e-commerce businesses, with setup costs from AED 14,000 and a formation time of 4 to 7 days.
First Idea Consultant LLC has worked on UAE company formation since 2015 and handles all UAE free zones, including Dubai South. If you are still deciding which zone to register in, start with our Dubai free zone license page, which covers the route as a whole.
Dubai South business setup at a glance
- Best for: aviation, logistics and e-commerce
- Setup cost: from AED 14,000
- Speed: 4 to 7 days
- Key advantage: close to Al Maktoum Airport and Expo City
Those figures come from the free zone comparison published on this site, not from a quote for your business. Treat them as starting points. What a free zone company costs depends on the activity you license, the number of residence visas and the workspace product you take. Government fees and requirements can change without prior notice, and license, visa and immigration approvals are subject to the relevant UAE authorities.
How Dubai South compares with other Dubai free zones
| Free Zone | Best For | Setup Cost | Speed | Key Advantage |
|---|---|---|---|---|
| Meydan | Startups and consultants | From AED 12,500 | 3 to 5 days | Premium location, quick digital setup |
| IFZA | SMEs and traders | From AED 12,900 | 3 to 5 days | Cost-effective with global credibility |
| DMCC | Trading and enterprises | From AED 20,000 | 5 to 10 days | World-class infrastructure and compliance |
| DIFC | Financial and legal firms | From AED 50,000 | 10 to 15 days | Global financial hub and strong regulation |
| Dubai South | Aviation, logistics and e-commerce | From AED 14,000 | 4 to 7 days | Close to Al Maktoum Airport and Expo City |
| DAFZA | Aviation and import-export | From AED 15,000 | 5 to 8 days | Direct airport access and bonded warehousing |
| JAFZA | Manufacturing and logistics | From AED 15,500 | 5 to 10 days | Access to Jebel Ali Port |
| Dubai Silicon Oasis | Tech and innovation startups | From AED 14,000 | 4 to 7 days | Built-in tech ecosystem and R&D incentives |
For an indicative figure, use the cost calculator, or see our packages for how a formation package is itemised.
Who a Dubai South free zone license suits
If your business moves goods by air, stores and distributes them, supplies the aviation sector, or sells online and ships physical stock, the location argument is straightforward. If none of that applies, the comparison gives the zone no clear edge over the cheaper or faster options above, and you should choose on cost, activity list and visa quota instead. Also worth reading: the e-commerce license and the general trading license.
Office space and visas
Dubai’s official investment portal states that there are no compulsory physical office space requirements for free zone companies, and that free zones provide virtual and flexible desk solutions for business licenses. If you do lease office space, it must be inside your own free zone. Each authority sets its own workspace products, so options and cost differ by zone.
Most Dubai free zone authorities also cap the number of visas issued to each business. A company increases its quota either by moving to larger offices or by applying to the authority, which decides at its discretion, so check the quota attached to a workspace product before you sign.
After the license, the company needs an establishment card. In Dubai this is issued by the General Directorate of Residency and Foreigners Affairs. It is the immigration record carrying the company’s details, and it opens the immigration file so the company can sponsor visas.
Selling to the Dubai mainland
A free zone license does not by itself authorise trading inside the Dubai mainland market. Under Dubai Executive Council Resolution No. 11 of 2025, a free zone establishment may conduct activities outside the free zone and within the emirate only after obtaining a license or permit from the Department of Economy and Tourism. Article 12 sets AED 10,000 per year for a license to establish a branch operating out of the free zone, and AED 5,000 for a temporary permit.
In October 2025 the Dubai Business Registration and Licensing Corporation, part of DET, launched the Free Zone Mainland Operating Permit with the Dubai Free Zone Council. It is valid for six months at AED 5,000, renewable for the same fee, and the initial phase covers non-regulated activities including technology, consultancy, design, professional services and trading. Companies using it pay 9 per cent corporate tax on the related revenue and must keep separate financial records for mainland activity. If most of your customers will be inside the UAE, weigh this against a Dubai mainland license before choosing a free zone.
Corporate tax and VAT
Free zone companies are within the scope of UAE Corporate Tax and must register. The rates are 0 per cent on taxable income up to AED 375,000 and 9 per cent above it. A free zone company meeting the conditions to be a Qualifying Free Zone Person pays 0 per cent on its Qualifying Income and 9 per cent on the rest. The conditions include adequate substance in the free zone, transfer pricing documentation, audited financial statements, and non-qualifying revenue below the lower of AED 5 million or 5 per cent of total revenue.
Two points are often reported wrongly. A Qualifying Free Zone Person does not also get the AED 375,000 nil band. And whether a given zone is treated as a Free Zone or a Designated Zone for tax purposes is set by Cabinet decision, so confirm the current position for Dubai South with the free zone authority. The voluntary VAT registration threshold is AED 187,500, and the Federal Tax Authority administers both taxes.
Working with First Idea Consultant
We have been setting up UAE companies since 2015 and cover all emirates, all free zones and all offshore jurisdictions, so we have no reason to push you towards one zone. Amir Aslam is our named expert for company formation and banking. Banking, accounting and tax services are available separately at additional cost, and bank account opening is subject to the selected bank’s KYC, compliance review and final approval.
Message us on WhatsApp for a Dubai South quote, or call +971 56 500 6694. Tell us your activity and visa count and we will send you a written quote.
What clients say
Very professional company. Amir is a friendly and approachable professional who provided excellent guidance throughout the entire process of setting up our company and bank accounts. Everything was handled efficiently and clearly, which made the experience smooth and stress-free. Highly recommended.
Ronald Bakker
One of our 67 Google reviews. The rest are on our reviews page.
Frequently asked questions
Dubai South license cost: how much is it to set up a company?
Dubai South free zone setup cost starts at AED 14,000 in our free zone comparison. The final figure depends on your activity, visa count and workspace product, and government fees can change without prior notice. Ask us for a written quote against your actual requirement.
How long does Dubai South company formation take?
The comparison lists 4 to 7 days, mid-range among the Dubai free zones. That is the formation timeline; residence visa processing runs afterwards, and all approvals are subject to the relevant UAE authorities.
Do I need a physical office in Dubai South?
No. Dubai’s official investment portal states there are no compulsory physical office space requirements for free zone companies. Any office you do lease must be within your own free zone, and the workspace product you choose affects your visa quota.
Can a Dubai South company sell to customers on the Dubai mainland?
Not on the free zone license alone. Resolution No. 11 of 2025 requires a license or permit from the Department of Economy and Tourism. The Free Zone Mainland Operating Permit costs AED 5,000 for six months, renewable, and brings 9 per cent corporate tax on the related revenue.
Can I register the company without travelling to Dubai?
Company formation and the residence visa are separate questions. Whether the incorporation itself can be completed remotely is set by each free zone authority, so confirm the current position for Dubai South before you plan around it. The residence visa cannot be completed remotely in any case, because the medical fitness test and Emirates ID biometrics both have to be done in person in the UAE. See business setup remotely.
Speak to us about business setup in Dubai South
First Idea Consultant LLC, Park Regis, ParkLane Tower - Office 812 - Business Bay - Dubai - United Arab Emirates. Call or WhatsApp +971 56 500 6694, or use our contact page. More on our about us page.
