Khalifa Industrial Zone in Abu Dhabi
Khalifa Industrial Zone Abu Dhabi (KIZAD) is an industrial park in Abu Dhabi, UAE. This industrial park is part of a project that aims to diversify the economy of the UAE by 2030. KIZAD was inaugurated in 2010 by Abu Dhabi Ports while it was officially launched in 2012.
An integral part of KIZAD is its free zone. The purpose of KIZAD FTZ is to transform this industrial zone into a leading place for businesses related to trade, manufacturing, and logistics.
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Benefits of KIZAD FTZ Company Setup
- KIZAD has a sophisticated road network that allows the efficient movement of goods to and from the industrial zone.
- This free zone is connected with UAE and the entire Middle East region through four international airports. These airports are present in Abu Dhabi, Dubai, and Al Ain and are located in the proximity of KIZAD.
- Khalifa Port, a modern deepwater seaport, allows the import and export from KIZAD to different parts of the world.
- Businesses in KIZAD are free from income tax, sales tax, and capital gains tax.
- Exemptions for custom duties on imported raw material, imported machinery, goods manufactured in UAE, and joint venture companies.
- One of the lowest rates in the world for water and electricity power.
- Availability of expert advice from a dedicated relationship manager
- Availability of pre-built free zone offices, warehouses, and light industrial units.
- Work in progress for the accommodation of operative staff. Through this project, accommodation of international standards will be available to laborers, skilled workforce, and supervisors in the proximity of KIZAD Area A.
Types of Licenses in KIZAD
Obtaining an appropriate license is necessary to start a business in KIZAD FTZ. Therefore, it is important to choose the right type of license according to your business activity. There are three types of licenses available for businesses in KIZAD.
This type of License is necessary for businesses involved in the import, export, warehousing, storage, and distribution of products. You can get a General Trading License if there are more than 17 products or over 3 groups in the business.
This license allows all types of service activities including marketing services, consulting services, travel agencies, catering services, restaurants, management services, etc.
An industrial license is necessary for businesses involved in the import of raw material and its manufacturing, assembling, packaging, and export as a finished product. This license assists in the accomplishment of these and other industrial activities.
Types of Companies in KIZAD
There are two main types of business establishments permitted in Dubai.
Limited Liability Company
LLC (Limited Liability Company) is the main business entity in KIZAD. You can setup LLC in KIZAD with a minimum paid-up capital of AED 150,000. LLC can be owned by an individual person, a corporate, or both individual and corporate entities. There are a minimum of 1 and a maximum of 5 shareholders in KIZAD Free Zone LLC.
Branch of a Company
Any company located outside KIZAD can register its branch in KIZAD FTZ. Both UAE-based and foreign companies can establish branches in KIZAD. There is no initial capital requirement in the case of branch setup in KIZAD FTZ.
Registration and Licensing Process
Before starting a business in KIZAD free zone, you have to complete the registration and licensing process. It is a comprehensive procedure that includes several steps.
Following are the main steps that you need to take for business set up in KIZAD FTZ.
- The first step is to choose the most appropriate business activity according to your business requirements and law. Department of Economic Development (DED) of Abu Dhabi has adopted the “International Standard Industrial Classification” as issued by the UN. Your business activity must be able to get approval under this international standard.
- The next step is to choose the legal form of your company. The legal form of a company depends on its business nature and legal structure.
- The third step is to get the registration of your company name. It is a necessary step before the initial approval of your business. Your trade name should be unique and describe your business type.
- After completing these steps, you can apply for initial approval. This approval will be granted by relevant authorities according to your business type and structure.
- The registration process doesn’t complete with initial approval. The next step is to acquire all the required approvals from relevant authorities. These authorities may differ according to your business type. There are different terms and conditions for each business and fulfilling these conditions is necessary for final approval.
- The last step for the process of business setup in KIZAD FTZ is obtaining a business license. There are three types of business licenses and you can choose a license according to the nature of your business.
An important part of company formation in KIZAD is the submission of all the required documents. Following are important documents that are needed during the registration of company process.
- Duly filled application form
- Colored passport copy
- Passport size photograph
- Attested Educational Certificate (in case of Consulting and Investment related activity)
- Latest Visa (UAE Resident Visa or Visit Visa)
KIZAD Dual License
An important feature of KIZAD FTZ is the Availability of a dual license. Through this process, company owners in KIZAD can get additional licenses from DED Abu Dhabi for the Mainland area. This license eliminates the necessity of a Local Sponsor or Local Service Agent (LSA) for business in the mainland area. It is not necessary for a company with a dual license to purchase or hire a physical office in mainland Abu Dhabi.
For further details and the error-free formation of your company in KIZAD, you can contact RIZ & MONA Consultancy via our WhatsApp # 971-54-5821012.
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Company Formation in KIZAD
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Khalifa Industrial Zone
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KIZAD Free Zone
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KIZAD Company Setup
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