Dubai South Free Zone Company Setup Cost 2026: Fees & Tax

Dubai South free zone company setup cost in 2026 starts at AED 12,500 for a zero-visa licence with a flexi-desk, rising to AED 16,350 with one visa and AED 18,200 with two, according to the price guide published on the Dubai South Business Hub website (October 2026). Setup consultants put a realistic first year for one founder with one visa at AED 20,000 to 25,000 (UAE Free Zone Finder, October 2026), and a logistics licence with a small warehouse at AED 45,000 to 85,000. Accounting, tax filings and health insurance come on top.

Dubai South is a 145 square kilometre district between Al Maktoum International Airport and Jebel Ali Port, and Gulf News (November 2025) reports more than 25,000 businesses and more than 3,500 permitted activities in its free zone. For Indian exporters it is one of the few Dubai zones where a low-cost trading licence and real logistics space sit side by side. This guide reconciles the published prices, works through a two-year budget, and covers the VAT, corporate tax and ownership questions that decide whether Dubai South fits. If you are building a UAE trading base for an Indian manufacturer or brand, our India to UAE exporters team works on exactly this decision.

Key points

• The Business Hub publishes three packages: AED 12,500 with no visa, AED 16,350 with one visa and AED 18,200 with two, each with a flexi-desk and up to five activity groups.
• Consultant figures for year one with one visa run from AED 20,000 to 25,000 once immigration extras, insurance and an agent fee are included.
• Logistics and aviation licences cost more, and warehouse space of 500 square metres or more is quoted at AED 40,000 to 85,000 a year (Safeledger, April 2026).
• Dubai Aviation City is on the Federal Tax Authority's list of VAT Designated Zones; a Business Hub flexi-desk services licence should be treated as ordinary UAE VAT territory unless the authority confirms otherwise in writing.
• Small Business Relief now runs to tax periods ending on or before 31 December 2029. Several competing guides still say 2026.

How much does Dubai South free zone company setup cost in 2026?

The headline packages are published; most other costs come from setup consultants, and they do not agree. The table puts the figures side by side so you know what to ask about.

Why the spread? The Business Hub figures are package prices for the flexi-desk services licence. Consultant figures often add their own fee, a dedicated desk, insurance and every immigration step, and some quote the logistics or general trading licence, which Safeledger puts at AED 45,000 to 95,000 or more for general trading. Ask any provider for a written quote that separates the authority's package, each visa, the office and their own fee.

What does the Business Hub package include, and what costs extra?

According to the Dubai South Business Hub price guide, the AED 12,500 licence includes a registered address through the flexi-desk and up to five activity groups at no extra charge. Gulf News reports that the Hub offers a cost calculator, an online name check and instalment plans of typically 6, 12 or 18 months on UAE-issued credit cards. UAE Free Zone Finder notes that the flexi-desk supports up to two visas, a dedicated desk two to four, and a private office roughly one visa per 9 square metres.

What you still pay for:

• Visas beyond the package, plus dependants, each with medical, Emirates ID and insurance.
• Office, warehouse or yard space once you outgrow the flexi-desk or hold stock.
• External approvals for regulated goods such as food, cosmetics or medical devices.
• Bookkeeping, VAT and corporate tax returns, and an audit where your zone, bank or tax position requires one.
• Renewal: UAE Free Zone Finder estimates year two at 50 to 70% of year one, because the one-off registration costs fall away.

Business Hub or logistics district: which Dubai South licence do you need?

The choice depends on whether your goods physically pass through Dubai. The Business Hub flexi-desk licence suits companies that sell, invoice and manage distribution while stock ships direct from India to the customer or sits with a third-party logistics provider. The logistics district suits companies that need their own warehouse near the airport and Jebel Ali Port.

A common mistake is to buy the cheapest flexi-desk licence and then discover that your activity, or your bank, needs a physical presence. Choose the licence for the business you will run in year two, not the one you can start with this month.

A worked example: a Surat textile exporter's first two years

Take a hypothetical Surat textile manufacturer that wants a Dubai company to sell to GCC retailers and online marketplaces. The founder takes one visa and spends part of the year in Dubai; production and the export team stay in India. Stock moves to a third-party warehouse, so no Dubai South warehouse is needed.

Add health insurance for the founder and any agent fee. The residence visa is normally valid for two years, so the visa renewal falls in year three.

Now the tax. In year one the Dubai company sells AED 2.4 million of goods and makes taxable income of AED 500,000. With revenue under AED 3 million it can elect Small Business Relief and treat its taxable income as nil. Under Ministerial Decision No. 131 of 2026, announced by the Ministry of Finance on 7 August 2026 (reported by The National), the relief applies to tax periods ending on or before 31 December 2029, with the AED 3 million threshold unchanged. In year three revenue reaches AED 4 million and taxable income AED 900,000. Relief no longer applies, so tax is 9% of the AED 525,000 above the AED 375,000 threshold: AED 47,250.

The bigger number is usually the price at which the Surat company sells to the Dubai company. That price must be arm's length in both countries, or the Indian tax department can add profit back in India. Our guide to transfer pricing in the UAE sets out the documentation. If the founder takes the Dubai company's key decisions while living in Surat, the company risks being treated as Indian resident under the place of effective management test.

Is a Dubai South company tax free?

No. A Dubai South company is within UAE corporate tax under Federal Decree-Law No. 47 of 2022: 0% on taxable income up to AED 375,000 and 9% above that. It pays 0% on qualifying income only as a Qualifying Free Zone Person, which requires adequate substance, audited accounts, arm's length pricing and non-qualifying revenue within the lower of 5% of total revenue or AED 5 million. The qualifying activity list in Ministerial Decision No. 229 of 2025 includes manufacturing, trading qualifying commodities and distribution of goods in or from a Designated Zone, but sales to UAE mainland customers and most services fall outside it. A Qualifying Free Zone Person cannot also elect Small Business Relief, so small companies should compare the two each year. Our explainer on corporate tax for free zone companies covers the conditions.

On VAT, the Federal Tax Authority's list of Designated Zones under Cabinet Decision No. 59 of 2017 includes Dubai Aviation City, which is part of the wider Dubai South area. Designated Zone treatment applies to goods held and moved within the fenced zone under customs control; it does not cover services, and it does not automatically extend to every Dubai South address. Confirm in writing whether your licensed premises are inside a Designated Zone. Outside one, normal rules apply: 5% VAT, mandatory registration once taxable supplies exceed AED 375,000 in 12 months, and voluntary registration from AED 187,500. Our note on the UAE e-invoicing deadline covers the next change for VAT-registered businesses.

How long does Dubai South company setup take?

1. Name check and activity selection: same day through the Business Hub portal, according to UAE Free Zone Finder.
2. Shareholder KYC: passports, proof of address and, for a corporate shareholder, constitutional documents and a board resolution.
3. Licence issued: 2 to 4 working days (UAE Free Zone Finder); the Business Hub says licences can be issued the same day through its digital platform.
4. Establishment card: 3 to 5 working days.
5. Residence visa: 10 to 15 working days, including medical and Emirates ID.
6. Bank account: 2 to 4 weeks at a traditional bank, faster with some digital banks.
7. Corporate tax registration with the FTA, and VAT registration when you cross the threshold.

UAE Free Zone Finder puts the full journey to an operating company at 3 to 5 weeks. Banks will ask Indian-owned trading companies about the group, the goods, the source of funds and the customers. Our guide to opening a UAE corporate bank account for an Indian-owned company lists the documents.

Who should own a Dubai South company?

For an Indian company or resident founder, investing in a Dubai South company is overseas direct investment under India's Overseas Investment Rules and Regulations of 2022, reported through an authorised dealer bank. A resident individual can generally invest only in an operating company that is not in financial services and has no subsidiaries, so if the Dubai company will later own a Saudi or African subsidiary, an Indian company or a non-resident founder is usually the cleaner owner. Read our explainers on ODI rules and who should own your Dubai company.

For a UK parent, the checks are UK controlled foreign company rules and whether the company is in practice managed from the UK. Our guide for UK businesses setting up in Dubai covers both. For the full trading model, including CEPA duty and the choice between one GCC hub and local distributors, read UAE setup for Indian exporters and traders.

Dubai South vs Meydan, IFZA, DAFZA and RAKEZ

For a wider view, see the cheapest free zone company setup in the UAE and, if most buyers are onshore, Dubai free zone vs mainland.

When Dubai South is the wrong choice

• Most customers are UAE mainland retailers and you need to sell and deliver to them directly; a mainland licence or a distributor may be simpler.
• You need a prestige central address for client meetings; Dubai South is on the edge of the city.
• The company will be a shell invoicing goods that the Indian company sells and manages. That creates tax exposure in both countries whatever the zone.
• You expect to hold large stock but have only budgeted for a flexi-desk; price the warehouse before you choose the zone.
• You need a regulated financial licence, which belongs in DIFC or ADGM.

Dubai South setup checklist

• Written quote separating the authority package, each visa, office or warehouse, and any agent fee.
• Licence type chosen for year-two operations, not just launch.
• Written confirmation of whether your premises sit inside a VAT Designated Zone.
• Owner decided and the ODI or UK route agreed before any money moves.
• Transfer price between the Indian supplier and the Dubai company set and documented.
• Bank KYC pack ready on the day the licence is issued.
• Corporate tax registration done, and a Small Business Relief decision made each year until 2029.
• Board decisions taken and minuted in the UAE.

How Greenwolf helps

Greenwolf Advisors helps founders and family businesses across the India, UAE, UK and US corridors decide whether a UAE trading company makes commercial sense, which zone and licence fit, who should own it, how it is funded, how it buys from the Indian group and how it stays compliant. Commercial design comes first; the tax position follows functions, risks and substance. Explore our corporate services or speak to our team.

This article is general information, not advice for a specific case. Free zone prices and government fees change: confirm current figures with Dubai South, the Federal Tax Authority, your bank and your advisers before you act.