The Dubai Design District
Oxford Tax Solutions
20 October, 2015
Amongst the newest and most popular free zone additions is the Dubai Design District (d3) especially created to enhance art, fashion and design investments throughout the Middle East. The new d3 hosts diverse workshops, conferences, fashion events, art exhibitions and shows as well as design trade shows which draw in the design community.
Registered companies established within the d3 have the option of either operating as an onshore company, where foreign investment restrictions may be applicable, or as a Free Zone entity.
Companies tend to prefer operating as a UAE Free Zone entity and seek free zone licenses. The reason is that a Free Zone license allows companies 100% foreign ownership; therefore, a local partner is not needed. Companies that are granted a Free Zone License are allowed to set up and operate within the d3. There are two types of Free Zone licenses. The first, the commercial license is granted to companies or branches of companies where as the second, the freelance license is only granted to individuals. Free Zone licenses carry many benefits including:
- Exemption from Tax for 50 years
- Complete Foreign Ownership
- 100% Repatriation of Capital & Profits
In contrast to other Dubai-based free zones, d3 permits onshore companies located in Dubai to be licensed directly from d3. In this way, companies enjoy all the retail, lifestyle as well as commercial benefits the free zone has to offer. Companies that have obtained an on-shore license from the Dubai Economic Department can operate within the d3 as well outside d3, meaning Dubai's mainland. Furthermore, on-shore licenses are granted to companies under the condition 51% of the company is owned by a local.
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