Dubai South offers founders a Dubai address close to Al Maktoum International Airport, major highways and the Jebel Ali trade corridor.
A Dubai South free zone setup can suit consultants, e-commerce sellers, trading companies, logistics operators and overseas businesses entering the UAE. The current Business Hub model supports online applications and access to licence, visa, renewal and compliance services through one platform. Dubai South reported more than 4,200 operating companies at the end of 2025.
This guide explains the available licence options, current starting cost, required documents and the main decisions you should make before applying.
Key Takeaways
A Dubai South Business Hub trade licence currently starts from AED 12,500 and includes access to a flexi-desk.
You can select up to five approved business activities on one licence without an additional activity fee.
The application can be completed digitally and eligible licences may be issued on the same day.
Common activities include consultancy, e-commerce, general trading, logistics, events and commercial brokerage.
Visa processing, establishment services, warehouses, regulated-activity approvals and customs registration can increase the total cost.
Free zone status does not automatically give every company a 0% corporate tax rate.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
What Is Dubai South Free Zone?
Dubai South is a government-backed master development built around Al Maktoum International Airport. Its districts support aviation, logistics, e-commerce, services, trade and light industry.
The free zone provides 100% foreign ownership and digital incorporation. Dubai South also connects companies with banks, payment providers, freight firms and warehousing operators.
The newer Dubai South Business Hub focuses on founders, SMEs and overseas companies that want a quicker setup with flexible workspace. Larger logistics, industrial and aviation operations may need facilities or approvals within other Dubai South districts.
Before choosing a jurisdiction, compare your customer location and operating model. Nexture’s mainland vs free zone guide explains the market-access differences in more detail.
Who Should Consider a Dubai South Free Zone Setup?
Dubai South may work well for:
Import-export and distribution companies
E-commerce stores and marketplace sellers
Freight, transport support and logistics businesses
Management, marketing, IT and business consultants
Events and commercial brokerage companies
Aviation suppliers and maintenance support firms
Startups serving international or free zone clients
Foreign companies opening a UAE branch
Match the jurisdiction to your operations. A consultant serving overseas clients may value online incorporation and a flexi-desk. An importer should focus on customs access and warehouse costs. A physical retail shop may be better suited to the mainland.
Dubai South Licence Types
The exact licence category depends on the activities you select. The current Business Hub platform lists more than 2,500 approved activities and allows up to five activities on one licence.
- Commercial or Trading Licence
This covers the purchase, sale, import, export or distribution of specified goods. Your selected activities must match the products you plan to trade.
- General Trading Licence
General trading allows a broader range of permitted goods under one business. It suits companies handling several unrelated product categories. Restricted goods, food, medical products, chemicals and other controlled items may require approval from the relevant authority.
- Professional or Service Licence
This option suits businesses that earn income from knowledge or services. Common examples include management consultancy, marketing, software services, project management and business support.
- E-Commerce Licence
An e-commerce activity covers online selling through a website, app or marketplace. Product approvals, delivery arrangements and customs registration may still apply.
- Logistics Licence
Dubai South is closely associated with freight, warehousing and supply-chain operations. A logistics setup may involve freight services, cargo support, storage or distribution. Larger operations will usually need suitable premises and may require further transport or customs permissions.
Nexture’s guide on starting a logistics business in the UAE covers the wider licensing points.
- Industrial Licence
Manufacturing, processing, assembly and packaging activities normally require an industrial licence and an approved facility. Expect a more detailed application, site requirements and possible environmental, civil defence or municipal clearances.
- Freelancer Licence
Dubai South also promotes a freelancer licensing route for eligible individuals. This can suit independent professionals who want to work under their own permit rather than form a larger operating company. Confirm whether your exact profession is accepted before paying any fee.
Legal Structures Available
Common structures include a single-shareholder company, a multi-shareholder company and a branch of an existing UAE or foreign business. A branch remains linked to its parent company. Corporate shareholders usually need incorporation records and a board resolution.
A business setup adviser can help you compare the structure, activity and tax position before submission. Nexture provides company formation and business setup support for mainland and free zone applications.
Dubai South Free Zone Setup Cost
The published starting price at Dubai South Business Hub is AED 12,500. The package includes the business licence and flexi-desk access.
At the time of research, the website also displayed a limited promotional price of AED 11,375. Promotions can end without notice, so use AED 12,500 as the safer planning figure.
Cost item | Expected treatment |
Base trade licence and flexi-desk | From AED 12,500 |
Up to five business activities | Included under the current package |
Activities beyond the included limit | Additional fee may apply |
Investor or employee visa | Charged separately |
Medical test and Emirates ID | Charged separately |
Immigration or establishment services | Depends on the visa package |
Dedicated office or warehouse | Based on size, location and lease term |
Customs business code | Separate registration for import-export activity |
External authority approval | Varies by regulated activity |
Annual renewal | Confirm in the final quotation |
If you need residency, premises, customs access or regulated approvals, ask for an itemised quotation. You can compare typical cost components in Nexture’s Dubai business setup guide.
Documents Required
Individual shareholders commonly need:
Clear passport copy
Passport-size photograph
Proof of residential address
Contact details
Proposed company names
Description of planned activities
UAE visa or entry details, when applicable
A corporate shareholder may also need incorporation documents, a board resolution, good-standing evidence, beneficial-owner details and attested translations where required.
Regulated businesses may need a business plan, qualification certificates, professional experience records or approval from another government body.
Dubai South Company Formation Process
- Confirm Your Activity
Choose activities that accurately describe how the company will earn money. The official activity directory lets you review available options and flags activities that may need third-party approval.
- Select the Legal Structure
Decide whether you are applying alone, with partners or through an existing company. This affects the incorporation documents and ownership records.
- Reserve the Trade Name
Submit suitable name choices that follow UAE naming rules. Avoid protected terms, offensive wording and names that suggest an activity you are not licensed to conduct.
- Submit the Digital Application
Upload the required documents, complete the shareholder details and select the licence package. Dubai South Business Hub states that the process can be completed online and eligible licences can be issued within one business day.
- Pay the Fees and Receive the Licence
Review the quotation carefully. Check whether it includes registration, workspace, activities and any services you requested.
- Complete Visa and Immigration Formalities
If your package includes residency, the next stages may cover an entry permit or status change, medical fitness test, biometrics and Emirates ID.
Read Nexture’s UAE immigration guide before choosing investor, employee or dependent visa support.
- Open the Bank Account and Complete Registrations
Banks assess the shareholders, activity, expected transactions and source of funds. Importers and exporters also need a Customs Business Code and the correct declarations.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Corporate Tax and VAT
A free zone licence does not remove tax filing duties. Free zone companies are within the UAE corporate tax system and must assess whether they meet the conditions to become a Qualifying Free Zone Person.
The 0% rate applies only to qualifying income when all legal conditions are met. Other taxable income may be subject to 9%.
Review the FTA Free Zone Persons Guide and take advice based on your transactions.
VAT registration is mandatory for a UAE-resident business when taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed that amount within 30 days. The voluntary threshold is AED 187,500.
Applications are handled through the Federal Tax Authority.
Can a Dubai South Company Trade on the Mainland?
A free zone company can serve international customers and operate within its approved framework. Direct sale of goods into the UAE mainland may require a distributor, importer of record, customs declaration or an appropriate mainland arrangement.
Service businesses need to examine where the work is performed, how contracts are signed and whether the activity needs a mainland permit. Do not assume that every free zone licence gives unrestricted access to all UAE customers.
Common Mistakes to Avoid
Common errors include selecting the wrong activity, buying a zero-visa package when residency is needed, ignoring third-party approvals and treating the 0% corporate tax rate as automatic.
Request a written first-year and renewal breakdown before paying.
Conclusion
A Dubai South free zone setup makes the most sense when its location and operating model fit your business. It is particularly relevant for e-commerce, logistics, trading, consultancy and international service companies.
The current AED 12,500 starting package is competitive, but your real budget depends on visas, premises, customs access and approvals. Get those details in writing before making payment.
Frequently Asked Questions
How much does a Dubai South free zone licence cost?
Dubai South Business Hub currently lists a starting price of AED 12,500 including the licence and flexi-desk. Visas, dedicated premises, customs services and external approvals cost extra.
How long does setup take?
The Business Hub promotes same-day licence issuance for eligible applications. Regulated activities, corporate shareholders or incomplete documents can extend the timeline.
Can I own the company fully?
Yes. Dubai South Free Zone permits 100% foreign ownership.
Do I need an office?
The starting package includes flexi-desk access. A dedicated office, industrial unit or warehouse may be required based on your activity, staffing and operational needs.
Can I apply from outside the UAE?
The Business Hub supports digital applications, so initial company formation can be handled remotely. Some visa stages, including medical screening and biometrics, require your presence in the UAE.
