Dubai Design District has been launched in 2013 by the UAE’S prime minister and the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.It is emerged into 3 phrases to provide a creative ecosystem that inspires in shaping Dubai as a leading destination in relation to design, art and culture. It is built using the smart city principles that offers digital connectivity which creates an innovation led economy.It is the latest of free zone business parks by TECOM Investments.
It creates a platform to showcase the Middle eastern creative talent to a larger global audience. This is an appropriate place where the budding and aspiring designers can cut their teeth and learn their trade.It is the design community which includes the startups entrepreneurs and established international design, luxury and fashion brands.It is regulated by Dubai Technology and Media Free Zone Authority.
Types of entitiesin Dubai Design District:
- Free zone:
- A Free zone Limited Liability Company (FZ – LLC): This is a wholly owned company or, in simple words, and independent legal entity. This type of entity is required to have at least 1 director.
- A Branch Office of a UAE Company: This is not a separate legal entity and conducts all or some of the operations inherent in its parent company’s business.
- A Branch Office of a Foreign Company: This is 51% locally owned with no prerequisite for a minimum share capital. A branch office may conduct all or some of the operations inherent in its parent’s business.
- Freelance Permit: Having this type of license offers an individual the ability to operate as a freelance professional. It enables the practitioner to conduct a business under the birth name, as opposed to a brand name.
- Commercial and freelance
- On shore companies: Operating with anon shore (DED) license are 51% locally owned and allowed to operate in the mainland and inside the zone.
Types of licenses available for business set up in Dubai Design District:
Following are the available license categories in Dubai Design District:
- Commercial License
- Manufacturing License
- Service License
- Freelancer Permit
How to start a company in Dubai Design District ?
Following are a list of documents that are required to submit to the concerned authority:
- Application form
- Letter of Intent
- A business plan
- Board resolution
- Proof of share capital
- Original Memorandum and Articles of Association (MAA)
- CV and passport copy of shareholder and manager
- No objection letter from the sponsor, if it is a UAE based company
Process of registration of setting up business in Dubai Design District:
- Submit the application form to the Dubai Technology and Media Free Zone Authority to register the business and to obtain the license.
- Submit the relevant documents to the authorities which are to be completely stamped and notarized and payment of fees to be made.
- Once the submitted documents are approved, registration certificate and a valid license will be issued and the same can be collected.
Competitive advantages of setting up business inDubai Design District:
- Special licensing for design and fashion with freelance permits for artists and designers.
- No corporate tax for the first 50 years, No income tax.
- No restrictions on currency.
- No restrictions on hiring foreign clients.
- Simple laws and legal frame work.
- Ideal for start ups.
- 100% on foreign ownership.
- No limit on profits and capital repatriation.
How to close or liquidatea company in Dubai Design District?
Entities which are unable to continue the operations of their company in D3 need to initiate the process of liquidation. Following is the process required for the liquidation process in D3:
- Board resolution:The decision to liquidate the company is taken formally in the form of a board resolution. The shareholders also pass the resolution regarding the appointment of a liquidator who will carry out the entire liquidation process and the resolution must be attested by the Notary Public.
- Official Letter from Liquidator:After the board resolution, the liquidator(A registered audit firm in Dubai – Spectrum Auditing and Accounting is a registered audit firm) has to present a confirmation letter accepting the responsibility of carrying out the liquidation of the company in D3.
- Application for Liquidation: An application with required documents as required for liquidation has to be submitted to the concerned authority to initiate the liquidation process
- The officials will verify the documents and will notify the management.
- Clearance letter from Service providers and Customs:The company should obtain a no due letter from the utility service providers and also customs clearance letter if applicable.
- Cancellation of Visa, Bank account:The entity must cancel the visas of the employees, and also close the bank account and obtain a closure letter from the bank.
- Liquidation report: The official liquidator will submit the liquidation report to the free zone authority.
Why choose Spectrum Auditing?
Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.
Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration and de-registration of your company in Dubai Design District. Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.