When did Federal Decree-Law No. 20 of 2025 take effect?

15 October 2025 per Gibson Dunn and Norton Rose Fulbright. Clyde & Co states 15 November 2025. Several provisions are phased over 12-24 months.

Company Registration in Dubai South

Government Fee

from 12 500 AED

Processing time

from 5 business days

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Dubai

Dubai South is a free economic zone (free zone) established in 2006 in the Emirate of Dubai, UAE. Located in the rapidly developing Dubai South district, the free zone is part of a large-scale project spanning 145 km² and is strategically integrated with Al Maktoum International Airport — one of the largest aviation hubs under construction globally. Its prime location near Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail network positions Dubai South as a pivotal logistics hub, facilitating efficient import, export, and distribution of goods across international markets. The free zone offers a comprehensive business ecosystem designed to support logistics, trade, manufacturing, and service industries. With advanced infrastructure and integration into major transportation corridors, Dubai South provides optimal conditions for businesses of all sizes, from startups to large corporations. Businesses registered in Dubai South are permitted to operate both within the free zone and beyond the UAE. Dubai South issues the following types of business licenses: Commercial (wholesale and retail trade) Professional (provision of services) Industrial (manufacturing) With its strategic location and seamless connectivity with key transport hubs, Dubai South plays a central role in the global logistics ecosystem. Its state-of-the-art infrastructure, including an international airport, seaport, and extensive transport corridors, significantly accelerates delivery processes and minimizes operational costs. This makes Dubai South an ideal choice for companies focused on sustainable growth, international expansion, and long-term success.

What you get:

Access to Local and Global Markets
Strategic Location
Remote Company Registration
Full Profit Control
Wide Range of Business Activities
Infrastructure
Tax and Customs Benefits

About Dubai South

Dubai South is a free economic zone (free zone) established in 2006 in the Emirate of Dubai, UAE. Located in the rapidly developing Dubai South district, the free zone is part of a large-scale project spanning 145 km² and is strategically integrated with Al Maktoum International Airport — one of the largest aviation hubs under construction globally. Its prime location near Jebel Ali Port, Al Maktoum International Airport, and the Etihad Rail network positions Dubai South as a pivotal logistics hub, facilitating efficient import, export, and distribution of goods across international markets.

The free zone offers a comprehensive business ecosystem designed to support logistics, trade, manufacturing, and service industries. With advanced infrastructure and integration into major transportation corridors, Dubai South provides optimal conditions for businesses of all sizes, from startups to large corporations. Businesses registered in Dubai South are permitted to operate both within the free zone and beyond the UAE.

Dubai South issues the following types of business licenses:

Commercial (wholesale and retail trade)
Professional (provision of services)
Industrial (manufacturing)

With its strategic location and seamless connectivity with key transport hubs, Dubai South plays a central role in the global logistics ecosystem. Its state-of-the-art infrastructure, including an international airport, seaport, and extensive transport corridors, significantly accelerates delivery processes and minimizes operational costs. This makes Dubai South an ideal choice for companies focused on sustainable growth, international expansion, and long-term success.

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We offer products Dubai South

Visa Obtaining
Assistance with filling out documents or turnkey visa obtaining services. The services includes various types of resident visas. Tourist and transit visas are not included
Service
Company setup
Services related to the establishment of a new company
Service

Suitable Targets

Local Business

Company registration for conducting business that requires a local presence in the UAE.

International Business

Company registration for conducting business both within specific jurisdictions and outside the UAE, including international wholesale trade and the provision of services at a global level.

Regional Representation

Establishing permanent establishments or subsidiaries to promote interests and coordinate operations in the Middle Eastern market.

Corporate Governance Center

Establishing a management company to coordinate and efficiently oversee the operations of branches and subsidiaries worldwide from a centralized hub in the UAE.

International Assets

Establishing a holding company in the UAE to own, manage, and oversee assets worldwide.

Resident Visa

Company registration for obtaining a UAE residency visa with the right to permanent residence, opening a bank account in UAE banks, and acquiring tax residency.

Popular Business Fields

Logistics & Transportation
01
Automotive, Machinery & Equipment
02
Construction & Engineering
03
Professional services
04
Household & Consumer Goods
05
Energy & Environment
06

Dubai South Offices and Commercial Premises

1/7

Coworking

Smart DeskA workspace in the coworking with access up to 5 hours per week during business hours Smart OfficeA furnished office with access up to 5 hours per week during business hours

1/6

Offices

Private officesFitted-out, fully furnished offices with panoramic views of MBRAH, intended for aviation-oriented businesses, including FBOs, aircraft management companies, air charter firms, as well as legal, financial, and insurance organizations. The offices are located next to the VIP Terminal of Al Maktoum International Airport (DWC). Shell & Core offices

1/2

Business Spaces

Specialized corporate spaces or business centers designed for business networking and corporate events, including offices, meeting rooms, training rooms, conference halls, and event spaces Meeting Rooms – fully furnished and technically equipped

1/4

Commercial Premises

Business-designated areas: retail spaces in business centers, specialized premises, standalone buildings, and other commercial facilities Boutique stores for luxury brands and private banking institutions, and several F&B outlets The Pulse Retail – supermarkets, pharmacies, laundries, hair salons, and F&B establishments The Business Park – exceptional facilities, modern amenities, and flexible services Sakany Square Mall – park-n-shop retail mall

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Warehouses

Warehouses and Build to Suit Units Single-User Facilities: Freight House – for fast-moving cargo; offers flexible storage and distribution solutions. Logistics House – for fast-cycle businesses Multi-Tenant Facilities: units can be combined, modified, or customized. Freight Complex – for swiftly transporting cargo by air; offers compact storage spaces with seamless airfreight handling capabilities Logistics Complex – for short- and long-term storage MBRAH Mro HangarsAirside facility located in MBRAH, equipped with a dedicated taxiway connected to Al Maktoum International Airport. Includes 9 Code F plots for wide-body aircraft and 32 Code C plots for narrow-body aircraft, each with a pre-built apron and full infrastructure connections. Line Maintenance Units (LMU)Storage and workshops in MBRAH

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Land Plots

Logistics land plots for long-term lease of 20+ years for development, commercial, and industrial use

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Hubs

VIP Terminal at Al Maktoum International Airport – a private aviation zone for high-profile guests, business elites, and official delegations, offering private VIP lounges, customs and immigration services, and exclusive handling. Logistics Hub – 3D Air–Land–Sea hub for trade and shipping, offering tax-free storage and direct access to Al Maktoum International Airport cargo terminals and Jebel Ali Port. Supply Centres – strategically placed inventory hubs for immediate replenishment of e-Fulfilment Centres E-Fulfilment Centres – sorting centers for last-mile delivery Last Mile Centers – sorting facilities for last-mile delivery Return and Repair Centres – optimize cost-effective return processes, offering shared services for warranty, repair, and recalibration of goods Business Blocks – smart desks, Shell & Core, CAT A, and CAT B fully fitted-out offices Data Centres – facilities with full data center infrastructure Freight Forwarding Zone – freight forwarding zone with direct access to Al Maktoum International Airport cargo terminals Mohammed Bin Rashid Aerospace Hub (MBRAH) – an aerospace hub for business aviation, MRO services, aircraft maintenance, top-notch education, aviation training, and corporate aviation offices. MRO Hangars – hangars for aircraft parking and maintenance Line Maintenance Units – storage and workshop facilities Helipark – helicopter centre with MRO services and a showroom for the latest helicopters showcased by world-leading manufacturers Special Plots – adaptable units outfitted with front offices, huge supplier complexes, and abundant warehouse space Light Industrial Zone – light industry hub for aviation manufacturing and assembly Aerospace Supply Chain – specialized hub for suppliers, featuring a dedicated customs-bonded area for the logistics and supply of high-quality aerospace products, raw materials, and components Supply Chain Facility – large-scale facility for suppliers with warehouse and office spaces

Requirements for Legal Entities Names

Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks

Authorized capital requirements

The minimum share capital required for Dubai South company is AED 300,000. Its contribution is optional.

Tax Regime and Profit Management

Value Added Tax (VAT)

Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
Goods moved between or within Designated Zones are not subject to tax.
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

Corporate Tax

As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
A 0% rate is applied to taxable income not exceeding AED 375,000.
Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

Excise Tax

Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

50% on carbonated drinks (excluding mineral water)
100% on tobacco products
100% on energy drinks
100% on electronic smoking devices and liquids used for them
50% on products containing added sugar or sweeteners.

Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

Customs Duties

Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

Personal Income Tax

In the UAE, personal income is not subject to taxation.
UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

Local Taxes and Fees

Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.