Dubai South Free Zone Setup Cost 2026: Benefits Without Hidd

Where Dubai South Free Zone sits

Dubai South Free Zone lies 35 km south of Downtown Dubai, next to Al Maktoum International Airport and the Expo City site. The zone connects directly to the E44 highway and the future metro extension, giving companies fast access to both Jebel Ali Port and central Dubai. Many expats choose it for lower rents and shorter commute times than older free zones.

2026 setup costs

Package prices start at AED 15,000 for a single-activity service licence that includes one visa. Adding a second activity or an extra visa raises the fee to AED 22,000. Office options range from a flexi-desk at AED 12,000 per year to a 200 sq ft private office at AED 45,000. All fees are paid to Dubai South Free Zone Authority and cover the first year only.

Ownership and licensing rules

Foreign investors receive 100 percent ownership with no local sponsor required. The free zone issues licences in under ten working days once documents are submitted through the ICP portal. Allowed activities include logistics, e-commerce, aviation support, and light manufacturing. Companies must maintain a minimum paid-up capital of AED 50,000 for trading licences.

Visa and residency benefits

Each licence package includes one two-year residency visa for the owner. Additional visas cost AED 3,500 each, including medical test and Emirates ID. Employees receive the same visa validity. Medical insurance is mandatory and averages AED 1,800 per person per year through DHA-approved providers. Visa renewals stay inside the free zone portal and require only a valid tenancy contract and passport copy.

Operating advantages

Zero corporate and personal tax applies for the first 50 years under the current cabinet decision. Customs duty exemptions cover imported equipment and re-exported goods. Companies can open AED and multi-currency accounts with local banks such as Emirates NBD or Mashreq. Power and water come from DEWA at standard commercial rates, and internet is supplied by Etisalat or du with speeds up to 1 Gbps.

Common setup steps

• Reserve the trade name and submit initial documents online.
• Pay the licence fee and sign the tenancy contract.
• Complete medical fitness and Emirates ID biometrics at an approved centre.
• Collect the licence and stamped tenancy contract from the free zone counter.
• Open a corporate bank account and activate the visa.

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Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →