Business setup in Abu Dhabi’s industrial free zone
Khalifa Industrial Zone Free Zone
The Khalifa Industrial Zone Free Zone (KIZAD) is a project by the Abu Dhabi government that envisions revolutionising the industrial sector in Abu Dhabi. The KIZAD project took form in November 2010 and began its operations by September 2012. The Abu Dhabi government set up this industrial park on a greenfield site in Taweelah. The aim of setting up the industrial park was to accomplish economic diversification by 2030. The crucial factors in this park’s attracting foreign investors are its geographic location and low operating costs.
KIZAD is spread across a 417-square-kilometre area, which is located between Abu Dhabi and Dubai. It is divided into two areas, Area A and Area B. In KIZAD, both free zone-based and non-free zone-based companies are provided with freedom of operation. The free zone companies are registered under the Abu Dhabi Free Zone Authority’s regulations, and non-free zone companies are under the Abu Dhabi Companies Act.
At a glance
KIZAD key facts
417 km²
Total area
2012
Operations began
Between Abu Dhabi & Dubai
Location
100%
Foreign ownership
Inside the zone
How KIZAD is structured
KIZAD is spread across a 417-square-kilometre area between Abu Dhabi and Dubai, divided into two areas with different commercial focus. Both free zone-based and non-free zone-based companies are provided with freedom of operation.
Area A
Focuses on business people in the industrial sector.
Area B
Much more into commerce-based companies.
Free zone companies
Registered under the Abu Dhabi Free Zone Authority’s regulations.
Non-free zone companies
Operate under the Abu Dhabi Companies Act.
Key advantages
Why is it advantageous to set up a business in KIZAD?
As with all other free zones, KIZAD also has its advantages for a business setup.
The procedures for document screening and the provision of licenses are fast.
No personal or corporate tax
Provision of 100% repatriation of business profits and capital
100% foreign ownership
Advantages of the location
Efficient business operations
Utilities and leases at low cost
Customs duty on goods and services exemption
Industrial synergy
State-of-the-art facility for offices and warehouse
Easy banking
Business park availability
Outstanding transport connectivity by sea, air, and land
Licensing
KIZAD free zone business license types
The free zone of KIZAD offers all types of business forms. This is possible due to the different kinds of business licenses provided by the free zones, like:
Industrial License
Industrial License is the most common form of business license in KIZAD, and most companies avail themselves of this license to import types of machinery, raw materials, and for assembling and exporting packaged goods.
Trading / General Trading License
A trading license is opted for by companies involved in the import and export of goods. The general trading license allows the company to trade in 17 product categories that fall under three different groups.
Service License
Service licenses are availed by companies that are involved in restaurant services, marketing services, cargo and logistics services, management consulting, travel, warehousing services, and tourism services.
The process
How to start a business in KIZAD?
The main steps involved in setting up a business in KIZAD are as follows:
01
Deciding on your economic activity
To start the company setup procedure, you will have to determine the type of economic activity under the regulations of the Department of Economic Development (DED) of Abu Dhabi. This is the ‘International Standard Industrial Classification’ adopted by DED Abu Dhabi as issued by the United Nations.
02
Legal Form of the Company
The next step involves defining the correct legal form for your company. You need to determine your legal form to adjust to the needs of the legal business requirements.
03
Registering the Business Name
The third step is registering the business name. It is vital to select an appropriate business name for your business entity before the initial approval. The chosen trade name should be parallel to your business nature.
04
Initial Approval
Initial approval from the authorities is obtained after getting your trade name certificate. This is mandatory to practise economic activity.
05
Acquisition of approvals from authorities
After acquiring the initial approvals, you will have to get all the required authorizations from the concerned authorities. Some economic activities require approval from the DED.
06
Procuring a business license
Before starting your business operations, you will have to obtain your business license. A business license differs based on the nature of the business, and you will have to choose the appropriate one.
Why Black Swan
KIZAD took shape with the primary goal of attracting foreign investors. This free zone is one of the best spots if you intend to start your industry or business. Black Swan Business Setup can help you by handling the company formation process. We assist our clients in entering the booming economy, and we take care of all the banking, legal, and immigration formalities. We also ensure our clients low-cost and hassle-free company registration in KIZAD. To begin your business in KIZAD, do contact us.
Wider picture
Benefits of setting up business in the UAE
- 100% foreign ownership
- Tax benefits
- Duty free
- Low operational cost
- Low freight charge
- Abundant & inexpensive energy
- Exemption from all import and export duties
- Freedom to recruit expatriates
- Freehold offices available on sale or lease
- Readymade offices, factories & warehouses
- Free transfer of funds
- No foreign exchange control
