With businesses expanding rapidly in the UAE, more cities are adopting Free Trade Zones. One such Free Zone is the Khalifa Industrial Zone (KIZAD), located in Abu Dhabi. This Free Zone is recognized as an industrial and administrative center for the region, with convenient port connections to Europe, Africa, and Asia that make modern transportation to and from these continents possible.
These transportation networks provide the region with virtually unlimited connectivity through road, air, sea, and railway networks, allowing Abu Dhabi to become one of the fastest-growing seaports in the world.
Why Choose KIZAD Free Zone?
For investors hoping to take advantage of quick company formation in Abu Dhabi, the KIZAD Free Zone provides a wide range of benefits, including world-class infrastructure and internal transport and service networks such as airports, travel routes, and the Khalifa port, one of the deepest seaports in the world. It’s also the first Free Zone connected to Etihad Railways, offering unparalleled logistical advantages for businesses operating here.
Entrepreneurs and investors in this region typically undertake business activities such as manufacturing metal components, automotive parts, paper, and product packaging, pharmaceutical production, and healthcare supplies, to name a few.
Company Formation in KIZAD Free Zone
Forming a business in the KIZAD is designed to be straightforward for potential investors. However, as with any application process, particular sets of rules must be followed. As such, some ex-pats that are unfamiliar with company formation in Abu Dhabi choose third-party business consultants to help them navigate the process.
For those that choose to complete the company formation process alone, here are the steps you’ll need to take:
Step 1- Determine Your Legal Structure
Your first step in business setup in this Abu Dhabi Free Zone will be to choose your company’s legal structure. Several options are available in the region, and you’ll want to choose one based on your particular needs. Some legal structures include:
1. Limited Liability Company (LLC)
An LLC is a business structure that exists separately from the owners and offers liability protections in the event of bankruptcy.
2. Branch Company
A branch company is a legal structure that allows existing businesses outside of the jurisdiction to form and control a branch within the UAE.
Step 2- Choose a Trade Name
Your business will need a name! You’ll want to carefully choose a trading name and submit it to the Department of Economic Development (DED). You will want to ensure that your name:
• Does not violate laws or include profanity
• Is not currently or has not previously been registered
• Does not contain religious references
Step 3- Gather Documentation
Before you can submit your license application, you’ll need to gather the appropriate documents. We’ll detail these documents further down.
Step 4- Submit Application for Business License
Once you’ve chosen your business name and gathered the necessary documents, you’ll want to submit your application for a trade license. The type of trade license you’ll choose will depend entirely on your chosen business activity. Some examples of business licenses include:
1. Trading License
A trading license empowers business owners to engage in trading activities such as import, export, stocking, distribution, and warehousing products and materials.
2. Industrial License
This license type covers the production, processing, assembling, or manufacturing of raw materials and other intermediate or finished products.
3. Service License
A service license permits business owners to engage in service-based industries such as consulting, marketing, retail, food service, travel agencies, and more.
Step 5- Select an Office Space
In the KIZAD Free Zone, you can choose between leasing office spaces or purchasing one outright. The requirements surrounding your office space will depend on the number of employees you have and the business activity you undertake.
What Business Activities Are Permitted in KIZAD Free Zone?
The KIZAD Free Zone allows for a wide selection of business activities, including:
• Manufacturing
• Distribution
• Export-Import activities
• Freight Forwarding
• Logistics
• Warehousing
• Travel Agencies
• Restaurants
• Retail Storefronts
• Catering Services
The Documents Required to Secure Business License
When you submit an application for a trading, service, or industrial license, you’ll be required to include several important documents for both your initial approval and final registration. These documents include:
For Initial Approval:
• Business plan
• Copy of existing trade license
• Registration certificate
• Color copies of passports
• No Objection Certificate (NOC)
• Letter of Intent
• Registry Identification Code Form
• Completed Application Form
After Receiving Your Initial Approval, You’ll Want to Pay Any Registration Fees, Along with:
• Power of Attorney given to Manager or Director
• Memorandum of Association
• Articles of Association
• Signature of Manager
• Passport-sized photo of Manager
• Share capital information
• Completed registration application
The Advantages of Business Setup in KIZAD
For years, the UAE has been a bastion of business, offering investors a wide selection of business opportunities. And this is still very much true. The KIZAD Free Zone provides extensive incentives that make operating a business in this region easy and profitable. Let’s take a look at just a few key advantages of forming a company in this jurisdiction.
1. Excellent Connectivity
KIZAD Free Zone features world-class infrastructure with convenient access to several international airports, railways, and over 60 seaports.
2. 0% Export Taxes
0% export taxes on imported materials, machinery, and production equipment.
3. Full Ownership
100% business ownership, allowing you to own your company outright without the need for sponsorship.
4. World-Class Infrastructure
You’ll have access to pre-built warehouses and cost-effective office spaces.
5. Tax-Free Environment
You won’t be responsible for income, corporate, VAT, or export taxes, allowing you to keep more of your profits.
6. Full Repatriation
Businesses operating in the KIZAD Free Zone can return 100% of profits to their home nation.
7. Skilled Workers
In the KIZAD Free Zone, you’ll have access to a large pool of highly skilled workers, providing you with plenty of employee potential.
8. Strategic Geographical Location
This Free Zone is conveniently located near multiple airports, roadways, and ports, allowing businesses to simplify and streamline their logistics.
Forming a Business in the KIZAD Free Zone? MSZ Consultancy Can Help!
Have you thought about opening your own business in Abu Dhabi? Are you interested in taking advantage of a business-friendly environment and progressive financial incentives? If so, you may be interested in starting your business in the KIZAD Free Zone. And MSZ Consultancy can help!
With years of expertise helping entrepreneurs, investors, and business owners navigate the ins and outs of UAE business, MSZ Consultancy has the skills and experience to make your business formation easy, stress-free, and profitable.
And it doesn’t matter whether you’re a new foreign investor or part of an established corporation; MSZ Consultancy has the knowledge to help you streamline your business. From handling important renewals to staying up to date on ever-changing regulations, we’ve got you covered.
So, if you’re ready to dive in, give us a call today at +971 52 544 1248 for a free quote and let us show you how we can help you make the most out of your business potential in the UAE!
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