Are you an entrepreneur with a creative vision of company setup in Dubai free zone? Dubai Design District (D3) is the right place for you! As the ultimate creative design centre in the UAE, D3 hosts the best designers, artists, and the world’s great brands. With international-class infrastructure, tax advantage, and a vibrant creative community, it provides the most favorable environment for startups. So, in this article, we will discuss the details of business setup in Dubai Design District free zone and the benefits it provides when you register your business.
What is Dubai Design District (D3)?
Dubai Design District (D3) is located in the heart of Dubai, providing an innovative environment for creative minds, burgeoning talent, and established brands. Founded in 2013 and overseen by the Dubai Technology and Media Free Zone Authority, D3 was designed with consultation from the design community in mind to transcend the norms of a creative neighbourhood.
Currently, D3 is known everywhere as a top design and fashion centre with a huge luxury fashion and interior design potential. The district is open to many different types of companies, from startups and small local boutique design studios to multinational fashion houses. Moreover, its location, close to Business Bay, Downtown Dubai and the Dubai Mall, guarantees high accessibility and visibility.
Through the active promotion of rising labels in fashion, retail, and luxury industries – fields in great need across the UAE – D3 remains an impetus for ushering Dubai’s future as a centre of design, art, and culture.
Facilities in Dubai Design District (DDD) Free Zone for Business Setup
Let’s see the benefits and facilities that make D3 Dubai Free Zone jurisdiction interesting for entrepreneurs:
- Strategic Location
The Dubai Design District is located close to Dubai Mall and Burj Khalifa, which are both nearby, making the D3 free zone a very popular place because it is easily accessible. The companies in Dubai Design District enjoy the advantage of the district because they can display their offerings to the locals and tourists.
- Supportive Business Environment
D3 Dubai is a gold mine of creative-minded personalities gifting you with unique perspectives and introductions. The Dubai Design District has given foreign entrepreneurs 100% full company ownership and capital.
- Incubation Opportunities
As a result of the rising popularity of D3 Dubai Free Zone businesses, investors around the world seek to invest. The freezone promotes innovation by providing startups with access to investment, mentorship, and other creative facilities. In5 Design is a fine incubation lab you can use.
- Taxation Benefits and Financial Flexibility
With lenient taxation regulations, you can enjoy tax exemptions on not paying import-export, personal, and corporate taxes. In addition, it is very lucrative to start a business in D3 Dubai, given that there is no limit on capital repatriation and with no currency restrictions.
- State-of-the-Art Infrastructure
There is access to high-quality modern offices and co-working spaces, with plug-and-play amenities in the Dubai Design District freezone. In addition, they offer retail spaces which will enable them to help you capitalise on the important retail opportunities in Dubai.
Types of Business Licenses in the D3 Free Zone
There are many business activities in Dubai Design District free zone. A few popular activities taken up by companies that are based in the design district of Dubai are:
- Architectural design
- Direct marketing
- Graphic designing
- Modelling and fashion design
- Opened art galleries
- Visual Merchandising
- Photography
- Industrial design
- Beauty advisors
To start any of the above businesses, you have to obtain a relevant business license for setting up a company. Now, let’s discuss the licenses offered in Dubai Design District:
- Manufacturing License: A manufacturing license gives you approval to establish industrial plants or production units in the free zone. You can produce different products by using this license.
- Service License: The license allows you to use your understanding and talents to provide such services as design consultancy, photography, etc.
- Commercial License: Commercial license allows you to trade, import and export product offerings. You can also use this license to sell services in D3 Dubai.
- Freelance Permit: Young artists and designers in Dubai Design District receive business opportunities because of a freelance permit. It allows you to launch your Dubai business as a freelancer or an independent person with a minimal amount of capital.
Legal Structures for Business Setup in Dubai Free Zones
The legal forms of company registration in the UAE free zones have been revised to suit various kinds of business and various levels of investment. The following are the key corporate organisations as well as governing legal frameworks present in the UAE’s free zones:
- Free Zone Establishment (FZE)
For a company formation in Dubai Design District with a single shareholder, a Free Zone Establishment (FZE) registration is permitted. This shareholder may be an individual or a corporate shareholder.
- Free Zone Limited Liability Company (FZ-LLC)
An FZCO is a multiple shareholder or partnership freezone firm with over one shareholder in the company and not more than 50 individuals as shareholders.
- Branch of a Foreign Company
A branch is a different legal entity, supervised by the parent foreign company. In the UAE, it is utilised by the parent company as a marketing tool.
- Branch of a UAE Company
A branch office arrangement is an independent office or branch of an existing company. The local firm already has a license in the UAE. Therefore, this is a growth of the local business.
Documents Required for Company Setup in Dubai Design District
To start your business in Dubai Design District, you are required to present a company registration and a license application, together with the following:
- Evidence of share capital
- Names and addresses of individuals who hold shares
- Copy of board resolution
- Copy of business plan
- Copy of no-objection certificate (NOC) from residency visa sponsor
- Copy of passport and specimen signatures of the managing director
- Memorandum of Association
How to Set Up Your Business in Dubai Design District Free Zone?
It is easy and time-saving to start a company in D3. Generally, the process of company formation includes 10 steps:
1. Choose Business Activity and Location
In advance, you have to choose any of the approved business activities that are allowed in the Dubai Design District. Companies operating in D3 have a choice of whether they want to operate from either the free zone, the mainland, or both.
2. Submit Application Form
Businesses are required to fill out an online application and present business plans and passports of all shareholders. Xpert Advisory can help you achieve a quicker, more affordable company registration and licensing application process.
3. Secure Physical Space
Companies which conduct business within the Dubai Design District jurisdiction must obtain office space or warehousing for their business. One exception to this requirement can be made for freelancers.
4. Apply for Trade License
Companies will have to apply for a trade license for which they are authorised in the Dubai Design District upon obtaining an office space. Subject to the nature of the products and services offered, companies may be forced to apply for various trade licenses.
5. Open a Bank Account
Once you have secured all the required documents, you need to open a business bank account in Dubai. Here, your firm’s financial dealings will be handled with the influence of the Dubai Design District.
Step 6: Visa for Employees and Owners
When your company is registered, you can file residence visas for owners, employees, and dependents through the D3 Free Zone authority. The number of visas you will need will depend on the size of your office and the business you are running. Gather all required documents, including passport copies, medical tests and applications for the Emirates ID, in order not to delay the process.
Step 7: Register for VAT (If Applicable)
If your company’s revenue goes over the UAE VAT threshold (AED 375,000 per year*), your company needs to register with the Federal Tax Authority (FTA) for Value Added Tax (VAT). Timely registration ensures you avoid fines and that billing and compliance are seamless for your business.
Step 8: Abandon Regulatory and Industry-Specific Approvals Compliance
Some enterprises, such as media, fashion or design enterprises, are required to secure more approval from concerned bodies before they start operations. Ask D3 and the appropriate ministries sooner to minimise your launch and avoid unwelcome barriers.
Step 9: Install Accounting and Bookkeeping Systems
Every person must keep the right financial records in the UAE. It is wise to put in place an accounting system or engage an economic consultant who would ensure that a company remains compliant with the UAE tax laws and taxation reporting requirements. For professional bookkeeping, consult Xpert Advisory for long-term business planning, audits, and potential investment in a venture.
Step 10: Write a Business and Marketing Plan
When your business in the Dubai Design District has been legally established, then concentrate on business development strategies, networking, and marketing to put you in the limelight in D3 and beyond. Look at digital marketing and PR campaigns, and participate in industry events to gain visibility and credibility.
Final Words
Dubai Design District Free Zone is a dynamic and visionary art, innovation, and startup space in the centre of the UAE. With a fantastic location, state-of-the-art infrastructure, generous tax subsidies and a business-friendly environment, D3 provides the perfect ecosystem for startups, freelancers, and global brands, among others. Moreover, company incorporation in D3 isn’t just a way of getting access to first-class facilities, but having your base right in the heart of a dynamic creative community.
However, company registration in Dubai Design District can be an overwhelming process even for first-time entrepreneurs. Fortunately, with the assistance of industry leading business setup consultants like Xpert Advisory, this process becomes easier and stress-free. We have professionals with experience in legal processes, which is one of the many things that makes us the pioneers in the industry. We walk with you throughout every step of the business registration process, and ensure you excel. So, contact us today to take your first step towards achieving your business dreams.
FAQs
What Is The Corporate Tax In the D3 Free Zone After Company Formation?
All businesses within the district enjoy a 0% corporate income tax, but with strict UAE federal regulations, an additional 9% varies in certain cases.
Is It Possible To Set Up a Business In D3 as a Freelancer?
Yes, D3 has seasonal freelance permits for designers, artists, and creative workers to do business on their own initiative.
Do Business Owners And Employees Enjoy Any Visa Benefits?
Yes, D3 enables business owners and employees to apply for UAE residency visas, and the number of visas granted depends on the size of the business.
