Businesses are expanding rapidly these days. As a consequence, free zone areas are urgently required. This is the main explanation of why the KIZAD Port Free Trade Zone was initiated by KIZAD. The Khalifa Industrial Zone Abu Dhabi is situated in the UAE capital emirate, which is not only recognized as an administrative centre but also as a highly professional industry landscape. With excellent connectivity between Europe, Asia and Africa, Abu Dhabi provides easy and reliable connections to modern transport networks in markets around the world. The Khalifa Industrial Zone Abu Dhabi (KIZAD) offers multimodal connectivity via shore, air, road and rail networks, situated near Khalifa Port, the 2nd fastest-growing container port in the world and one of the most established deep seaports in the world with world-class infrastructure.
The multi-model networking available is only one of the value-adds KIZAD will offer to your enterprise. Without needing to worry about designing the infrastructure to support it, the chance to start operations lets you move into business immediately. Via its advanced clustering strategy, KIZAD’s world-class infrastructure provides the business with the necessary internal transport and service network and opportunities. KIZAD creates demand through integrated service offerings covering aluminium, steel, metal components, paper & packaging, food processing, pharmacy & healthcare supplies, rubber conversion and automotive spare parts, with exchange & logistics and manufacturing at its core.
Key Steps for Starting a Business in KIZAD
It’s considerably easier to start up a company in a free zone. Minimum documentation and duration are required by the Free Zone authorities. Here are the key steps for starting up a company in the 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 sort of legal entity that your organization would consider. You can set up one of the two forms of businesses in a free zone:
- 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
You should pick a trading name while you decide about the form of the legal entity that your corporation will take. In certain situations, you can search the approved trade names and whether the expected name has already been licensed with either the respective Free Zone Authority or the Department of Economic Development.
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 sort of business license you are supposed to apply for depends on your business’s main operation. There are three major license forms that are valid 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
The rules of the respective free zones govern companies founded in the free zones. You need to apply with the paperwork in order to receive the requisite approvals. The paper list differs according to the form of the sector, the type of organization and the specifications of the Free Zone Authority. A general guideline of steps and paperwork required for approvals is given below.
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
Embedded with the advanced technology port of Khalifa, KIZAD enables companies to take advantage of its strategic position, convenient access to regional markets, low operating costs, world-class infrastructure and efficient support services for investors to promote and encourage business progress and development. In KIZAD, some other advantages of starting up a company 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?
Get in contact with us today if you’re ready to start your company at KIZAD. With over a decade of business incorporation experience, Riz and Mona Consultancy will help you get the company up and running in a week or two. You can simply relax and focus on your company plans and activities with our services. We will handle your application for a license and visa and will correspond to the appropriate authorities for you. If you have any concerns about the latest offers at KIZAD Abu Dhabi, please feel free to contact us as our experienced company setup services in the UAE can enable you to achieve and experience the full benefits of KIZAD business.