These days, businesses are rapidly expanding. As a result, there is an increasing need for free zone areas. This is the main reason why KIZAD introduced the KIZAD Port Free Trade Zone. Khalifa Industrial Zone Abu Dhabi was set in the capital emirate of the UAE, which is well-known not only as an administrative center but a highly professional business landscape. Having exceptional connectivity between Europe, Asia, and Africa Abu Dhabi offers quick and efficient access to modern transportation networks within the world’s markets. Located near Khalifa Port, ranked 2nd fastest-growing container port in the world and one of the world’s most developed deep seaports with world-class infrastructure, the Khalifa Industrial Zone Abu Dhabi (KIZAD) provides multimodal connectivity through the sea, air, road, and rail networks.
The available multi-model connectivity is just one of the value-adds that KIZAD can bring to your company. The opportunity to launch operations without having to think about constructing the facilities to sustain it helps you to get into business immediately. KIZAD’s world-class infrastructure provides the company with the requisite internal transport and services network and opportunities through its advanced clustering approach. With trade & logistics and manufacturing at its heart, KIZAD generates demand through integrated service offerings covering aluminum, steel, metal goods, paper & packing, food processing, pharmacy & healthcare supplies, rubber converting, and automobile spare parts.
Key Steps for Starting a Business in KIZAD
Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to set up a business in Khalifa Industrial Zone:
- Determine the type of legal entity
- Choose a trading name
- Apply for a business license
- Choose an office space
Step 1 – Determining the Type of Legal Entity
Determine the type of legal entity your business would take up. In a free zone, you can set up one of the two types of companies:
- Limited Liability Company
The Company is a limited liability company, having a minimum paid-up capital of AED 150,000 or such higher paid-up capital as may be prescribed. The limited liability company can be owned by an individual or corporate or individual and corporate.
- Branch Company
The branch company having valid registration and license outside Khalifa Port FTZ can apply for the formation of a branch company. The branch company can be either registered as a branch of UAE Company or a branch of a foreign company.
Step 2 – Choosing a Trade Name
While you are deciding upon the type of legal entity your business should take, you should choose a trading name. In most cases, you should check either with the respective free zone authority or the respective with the Department of Economic Development about the permitted trade names and whether the intended name has already been registered.
In general, for DED to approve the proposed trade name, the key requirements are that the trade name:
- must not violate the public morals or the public order of the country
- must be followed by the legal form of the company, for example (LLC, FZE, DMCC, etc.)
- has not been previously registered
- is compatible with the required type of activity and legal status
- should not contain names of any religion, or governing authority, nor names or logos of any external bodies.
Step 3 – Applying for a Business License
The type of business license you will apply for depends on the primary activity of your business. There are three main types of licenses which are available in KIZAD:
- Industrial License
Permits import of raw material, manufacturing, processing, assembling, packaging, and export of intermediate and/or finished product and such other industrial activities as are published in the Industrial License (Category List).
- Trading License OR General Trading License
Permits trading activities that include import, export, distribution, stocking, warehousing of products and items specified on the License and such other trading activities as are published in the Trading License (Category List).
A General Trading License may be issued if the total number of products exceeds 17 (Seventeen) or the total number of groups exceed 3 (three).
- Service License
Permits service activities such as management and economic consulting services, marketing services, logistical support services such as cargo and freight forwarding, restaurants, retail food outlets, catering services, travel agencies, etc. as are published in the Service License (Category List).
Step 4 – Choosing an Office Space
You can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company.
Business Activities Permitted in KIZAD
KIZAD welcomes a great range of business activities. Here are some of the most popular:
- Restaurants, Retail Food Outlets
- Cargo and Freight Forwarding
- Catering Services
- Stocking and Warehousing
- Travel Agencies
Approvals and Registration
Companies established in free zones are governed by the rules of the respective free zones. To get the necessary approvals, you need to apply with the documents. The list of documents varies on the type of business activity, the type of company, and the requirements of the free zone authority. Below is a general guideline of steps and documents needed for approvals.
First, you need the initial approval. You are required to provide the following documents:
- Completed application form
- Business plan
- Copy of existing trade license/registration certificate (if you are an existing company, applicable for a local company only)
- Colored passport copies of the company’s shareholder/s and the appointed Manager/Director for the new company
- Specimen signature of the company’s shareholder/s and the appointed Manager/Director for the new company
- 2 years’ audited financial reports for the corporate entity or certificate of reference from a personal bank of the individual shareholder
- NOC from current sponsor (for individuals)
- Unit title deed
- Letter of Intent
- Registry Identification Code Form (RIC) for Manager/Director (Original and notarized)
After getting the initial approval, you need to pay registration fees and license fees. The fees depend on the type of license required. Then, you need to submit:
- Completed application for registration
- Board Resolution appointing Manager/Director (Notarised and attested)
- Power of Attorney given to Manager/Director (Notarised and attested)
- Memorandum and Articles of Association (Notarised and attested)
- Specimen signature of Manager/Director (Notarised and attested)
- Passport-size photo of Manager/Director against a white background
- Share capital information
Licensing and Visa Process
First, the lease agreements will be prepared by the authority, then a trade license will be issued and visa processing will start.
Advantages of Business Setup in KIZAD
Integrated with technologically advanced Khalifa Port, KIZAD enables businesses to benefit from its strategic location, easy access to regional markets, low operational costs, world-class infrastructure, and efficient investor support services to facilitate and enable business success and growth. Some other benefits of setting up a business in KIZAD are:
- Tax-free and competitive operating environment.
- 0% export tax with customs exemptions on joint venture companies, imported raw materials, imported machinery and equipment for production processes, and others.
- The dual licensing regime with no need to have a separate physical space, and no need for a Local Service Agent.
- Outstanding strategic location with access to regional and international markets.
- World-class infrastructure with easy access to 4 international airports, domestic and international shipment connected to over 60 seaports, connection via Etihad Railways.
- Digitalization of services for fast and convenient registration and enquiring license processes.
- 100% business ownership and capital repatriation; As an expatriate, you can own 100% of the company and remit all profits to your home country.
- KIZAD offers pre-built warehouses and offices along with light industrial units and land for development.
Ready to Get Started at KIZAD?
If you’re ready to start your business at KIZAD, get in touch with us today. With more than a decade of experience in company incorporation, Riz and Mona Consultancy can help you get your business up and running within a week or two. With our services, you can simply relax and concentrate on your business strategies and operations. We’ll manage your license and visa application and correspond with all relevant authorities for you. For all queries regarding the new offerings at KIZAD Abu Dhabi, feel free to contact us as our expert business setup services in UAE can help you acquire and enjoy maximum benefits with business in KIZAD.