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UAE Free Zone (Dubai South) · via Dubai South Authority·🇩🇪Founder profile

Incorporating a Dubai South Free Zone LLC for German Indie Developers

VerifiedJul 2026
EligibilityConditional
Setup timeline21–45days
Year-1 total$5,750

Dubai South offers a specialized Free Zone LLC structure for businesses operating in aviation, logistics, and technology sectors. German indie developers must navigate both UAE Federal Corporate Tax regulations and German foreign entity disclosure requirements.

This jurisdiction requires a physical presence to maintain compliance with economic substance regulations. Founders should evaluate the cost-benefit ratio of maintaining a local office against the tax implications under German CFC legislation.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.
Currency · USD (live FX)
2-year cost of ownership
$11,500
≈ $479.17/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • SetupDubai South Authority setup
    $5,750
  • AnnualYear 2 renewal
    $5,750
Total$11,500
§ 02Tax residency · German Indie Developers

What the tax authority sees

US federal / local status

UAE Federal Decree-Law 47/2022 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000.

Home-country rule

AO §138 Anzeigepflicht (foreign entity disclosure); CFC rules

Editorial verdict

Leverage Dubai South's proximity to DWC for aviation or logistics-related software services to align with economic substance requirements for potential tax incentives.

Key compliance risks
  • 01German CFC (Aussensteuergesetz) rules may trigger taxation on undistributed profits.
  • 02Mandatory AO §138 disclosure required for German tax residents.
  • 03Economic substance requirements necessitate verifiable local operational activity.
§ 03Setup timeline

From filing to funded bank account

Setup timeline
21–45days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d11
d23
d34
d45
01FilingDubai South Authority submits formation docs
d0–d16
02Tax ID / EINLocal tax authority registration
d14–d34
03BankingBusiness account approved & funded
d27–d45
§ 04Head-to-head

UAE Free Zone (Dubai South) vs US LLC (Wyoming)

Full comparison →
UAE Free Zone (Dubai South)
Free Zone LLC
US LLC (Wyoming)
LLC
Entity
Free Zone LLC
LLC
Setup cost
$1,020
$102.00
Annual
$1,020
$60.00
Local director
Remote OK
Remote OK
Physical presence
Remote OK
Remote OK
Tax regime
9% CT above AED 375k; aviation/logistics near DWC airport
0% state tax; federal only on US-source income
§ 05Questions founders actually ask

FAQ

The UAE imposes a 9% corporate tax on net profits exceeding AED 375,000. However, German tax residents must report this entity under German CFC (Aussensteuergesetz) rules, which may result in additional tax liabilities in Germany.
More profiles for UAE Free Zone (Dubai South)
German Indie Developers — other jurisdictions
Next step

Start filing with Dubai South Authority

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Claim on Dubai South Authority