How to Get an Own-Account Investment Activities Business Licence in Dubai

Dubai has firmly established itself as one of the world's premier financial hubs, attracting venture capital firms, investment clubs, private equity vehicles, and other own-account investment entities from across the globe. With a transparent regulatory framework, zero corporate tax on qualifying income, and a strategic gateway position between East and West, the emirate offers conditions that few jurisdictions can match. If you are looking to set up own-account investment activities under activity code 6499.02 at Dubai South Business Hub Free Zone, this guide walks you through everything you need to know, from licence scope and costs to compliance requirements and setup steps.

What Are Own-Account Investment Activities?

Own-account investment activities refer to the deployment of capital by entities that invest on their own behalf rather than on behalf of third-party clients. This category, classified under ISIC activity code 6499.02 and the Financial licence category, covers a broad range of investment structures, including:

• Venture capital companies funding early-stage and growth businesses

• Investment clubs pooling member capital into diversified portfolios

• Angel investor networks making direct equity placements

• Private holding companies managing proprietary investment portfolios

• Special purpose vehicles (SPVs) created for single-deal investments

The licence does not cover fund management on behalf of external investors or discretionary portfolio management for clients, which require separate regulatory authorisations from the UAE Securities and Commodities Authority (SCA) or the Dubai Financial Services Authority (DFSA).

Why Dubai South Business Hub Free Zone?

Dubai South is a master-planned economic zone built around Al Maktoum International Airport, the world's largest airport development project. The free zone offers 100% foreign ownership, full repatriation of profits and capital, no personal income tax, and a simplified single-window licensing process. For investment entities, proximity to logistics infrastructure, a growing fintech ecosystem, and direct connectivity to global markets make Dubai South an increasingly attractive base for own-account investment operations.

Key Stats at a Glance

Infographic: Own-Account Investment Activities in Dubai South

• Activity Code: 6499.02

• Licence Type: Business Licence

• Category: Financial

• Foreign Ownership Allowed: 100%

• Corporate Tax Rate on Qualifying Free Zone Income: 0%

• UAE Venture Capital Deals (2023): Over USD 1.5 billion deployed across the MENA region

• Dubai South Free Zone Companies: 7,000+ registered businesses

• Typical Licence Approval Timeline: 3 to 7 working days

Who Is This Licence Suited For?

This licence is ideal for entrepreneurs, family offices, high-net-worth individuals, and corporate groups that wish to formalise their investment activities within a regulated yet business-friendly environment. It is particularly well suited to:

• Regional and international venture capital firms seeking a UAE base

• Investment clubs wanting a compliant legal structure

• Holding companies managing cross-border equity stakes

• Startup accelerators with a co-investment mandate

Setup Costs and Steps

Estimated Costs

Costs vary depending on the package chosen and the number of visas required. It is advisable to request a detailed quote directly from Dubai South Business Hub Free Zone.

Step-by-Step Setup Process

1. Choose your legal structure: Free zone limited liability company (FZ-LLC) is the most common choice for investment entities.

2. Reserve your trade name: Submit two to three name options for approval in line with UAE naming conventions.

3. Submit your application: Provide passport copies, a business plan, proof of address, and any relevant financial background documentation.

4. Receive initial approval: Dubai South typically issues initial approval within three to seven working days.

5. Sign the Memorandum of Association (MoA): Formalise the company structure and shareholder agreement.

6. Pay licence fees and receive your licence: Once fees are settled, the Business Licence is issued.

7. Open a corporate bank account: Work with a UAE-registered bank to establish a corporate account for investment transactions.

8. Apply for residency visas: Obtain investor or employee visas as required.

Licensing and Compliance Requirements

Own-account investment companies operating under activity code 6499.02 must adhere to several compliance obligations:

• Annual licence renewal with updated documentation

• Compliance with UAE Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations

• Registration with the UAE's goAML platform if applicable thresholds are met

• Maintenance of accurate financial records in line with International Financial Reporting Standards (IFRS)

• Corporate tax registration with the Federal Tax Authority (FTA) under the UAE Corporate Tax Law effective from June 2023

• Ultimate Beneficial Owner (UBO) registration as required by UAE Cabinet Resolution No. 58 of 2020

It is important to note that if the entity intends to solicit external investors or manage third-party funds, additional licensing from the SCA or DFSA will be required beyond the Dubai South Business Licence.

Why Dubai Is Well-Positioned for Own-Account Investment Activities

Dubai's investment ecosystem has matured significantly over the past decade. The city ranked among the top ten global financial centres in the 2024 Global Financial Centres Index, reflecting its robust infrastructure, skilled talent pool, and progressive regulatory environment. The UAE's extensive network of double taxation treaties, covering over 130 countries, reduces withholding tax burdens on cross-border returns. Furthermore, the introduction of the UAE Corporate Tax regime at a headline rate of 9% (with qualifying free zone income remaining at 0%) provides clarity and competitive advantage for investment structures.

The government's ongoing investment in digital infrastructure, the Dubai International Financial Centre (DIFC) ecosystem, and initiatives such as the Dubai Future Fund further reinforce the emirate's commitment to becoming the region's leading investment destination.

Frequently Asked Questions

1. How much does it cost to obtain an own-account investment activities licence in Dubai South?

The total cost typically ranges from AED 20,000 to AED 40,000 depending on the package, number of visas, and office arrangement. This includes the licence fee, establishment card, and flexi desk or virtual office costs.

2. Can a foreign national own 100% of the company?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership, meaning there is no requirement for a UAE national shareholder or local sponsor.

3. Are there any special approvals required for investment activities?

For own-account investment activities under code 6499.02, no additional approval from the SCA or Central Bank is typically required. However, if the company later decides to manage third-party funds or offer investment products to external clients, separate regulatory authorisation will be necessary.

4. How long does it take to obtain the licence?

Initial approval is generally issued within three to seven working days. Full licence issuance, including signing of the MoA and payment of fees, can be completed within two to three weeks.

5. What profit margins can investment companies expect in Dubai?

Margins vary widely depending on investment strategy, asset class, and market conditions. However, the 0% tax on qualifying free zone income and the absence of capital gains tax significantly enhance net returns compared to many other jurisdictions.

6. Can an investment company in Dubai South re-export capital or repatriate profits?

Yes. Free zone entities enjoy full repatriation of capital and profits with no restrictions, making it straightforward to move funds across borders in line with UAE AML regulations.

7. What facility requirements are there for this type of company?

Own-account investment companies typically operate with minimal physical space requirements. A flexi desk or virtual office arrangement within Dubai South is generally sufficient for licence purposes, though a dedicated office can be arranged if preferred.

8. Is there a minimum capital requirement?

Dubai South does not impose a statutory minimum share capital for most free zone company formations. However, having adequate working capital is advisable for banking purposes and to demonstrate financial substance to regulators.

Conclusion

Setting up an own-account investment activities company in Dubai South Business Hub Free Zone is a streamlined and cost-effective process that opens access to one of the world's most dynamic investment environments. With 100% foreign ownership, a competitive tax regime, and a robust compliance framework, Dubai offers venture capital firms, investment clubs, and private investment vehicles a credible and globally recognised base from which to deploy capital. Whether you are an established investment group or a first-time founder looking to formalise your investment activities, the combination of Dubai South's infrastructure and the UAE's pro-business policies makes this an opportunity worth exploring.

To begin your application or receive a tailored cost estimate, contact a registered business setup adviser familiar with Dubai South free zone procedures.

References and Citations

• Dubai South Official Website

• UAE Ministry of Finance - Corporate Tax Information

• Federal Tax Authority UAE

• UAE Securities and Commodities Authority

• Central Bank of the UAE

• UAE Anti-Money Laundering and Combating Financing of Terrorism

• Global Financial Centres Index 2024 - Long Finance

• UAE Ministry of Economy