Besides tourism, UAE is known for attracting overseas investors due to its scaling economy, unmatchable business opportunities, and business-friendly infrastructure. The Emirates offers foreign investors and entrepreneurs some remarkable growth opportunities to set up their overseas businesses and capture the high-potential market of the UAE.
The UAE free zones are known for attracting a significant portion of foreign direct investment in the UAE by offering a business-first legislative framework and sustainable growth opportunities. In this regard, Khalifa Industrial Zone Abu Dhabi (KIZAD) is the most preferred trade-free zone among foreign investors. The KIZAD Free Zone offers unmatchable facilities and perks for foreign investors eager to expand their business beyond geographical limitations. Whether you’re an entrepreneur gearing up for your debut or an established investor interested in capturing UAE’s high-potential market, Khalifa Industrial Zone is a perfect business avenue to facilitate all your business needs.
This blog post will help you discover why KIZAD free zone is growing in prominence and discuss the roadmap of company formation in the Khalifa Industrial Zone. Let’s discuss this in detail.
How to Setup Business in Khalifa Industrial Zone?
To create a business setup in KIZAD free zone, you must follow the following steps and complete the necessary documents and approvals at each stage of company formation in the Khalifa Industrial Zone.
Step 01 – Define Your Business Scope
Before setting up your business in the Khalifa Industrial Zone, it’s essential to carefully review the range of allowed business activities and select the ones that align with your business model and vision. This decision will significantly impact the legal form of your business, the approvals required from various departments, and the type of Free Zone license needed. To ensure that you make the right choices, it’s recommended to seek the advice of a professional business formation expert.
Step 02 – Secure Your Company Name
Once you’ve selected your business activities, the next step is to secure a unique and appropriate company name or tradename that complies with the religious, ethical, and moral values of Abu Dhabi and the UAE. This will require checking the availability of your desired name with the Abu Dhabi Department of Economic Development (DED) and reserving it before proceeding.
Step 03 – Obtain Your Free Zone Trade License
The documents required to obtain your trade license will vary depending on the category of business activity you’ve selected. To ensure that your application is completed accurately and submitted promptly, it’s recommended to work with an experienced business formation service provider. Once you’ve obtained your trade license, you can choose from different legal structures to set up your business as a Free Zone Limited Liability Company (FZ-LLC), Free Zone Establishment (FZE), Free Zone Company (FZCo), Public Listed Company, Branch of Overseas Business, etc.
Step 04 – Open a Free Zone Bank Account
Opening a bank account for your Free Zone company is essential for secure business transactions in the UAE. The process can be straightforward but may require the physical presence of business owners and shareholders. To ensure a smooth and efficient process, it’s recommended to seek the guidance of a professional business formation service provider.
After obtaining your business or trade license from KIZAD, you can officially commence your business activities in the Free Zone. Take advantage of the unique opportunities and benefits of having a business setup in KIZAD, a premier business destination in the UAE. In the next section, you’ll find detailed information on the mandatory approvals and documents required for a company formation in the KIZAD free zone.
Khalifa Industrial Zone Company Formation Requirements
To create a business setup in the Khalifa Industrial Zone, you must complete the following documents and approvals from relevant public entities.
Initiate a business registration application with KIZAD
Provide your business’s memorandum of association
Getting Business License
Submitting an application for an establishment card to the Ministry of Labor (issued by the UAE Ministry of Foreign Affairs). The documents required with the application include the following:
Original Emirates ID
Passport of UAE sponsor/shareholder (in case of shared partnership in Mainland – Shared partnership is not Obligatory after 2020)
Old Immigration card
A valid Trade License
Copy of Passport with valid visa page of all partners for Free Zone Company
Your employees must be registered with the Ministry of Labor, with the documents required as under:
Being one of the most budget-friendly free zones in Abu Dhabi, the License cost in KIZAD starts from 11,000 AED with 1 resident visa. The price varies depending on the type of your trade license and the number of work or residence visas you apply for.
You can merge up to 5 business activities under the following license categories in Khalifa Industrial Zone.
Cost to Setup Business in KIZAD Free Zone
Apart from the trading license cost in KIZAD, which is around 11,000 AED with a single visa application, the business setup cost in KIZAD varies depending on the scale of your business, the type of business activities, and the number of work visas you applied for. For instance, a manufacturing business costs you more than a professional services firm.
Benefits of Setting up a Business in Khalifa Industrial Zone
Khalifa Industrial Zone, a large industrial complex in Abu Dhabi, offers the following benefits:
Strategic Location – KIZAD leverages a geostrategic location between Abu Dhabi and Dubai with quick access to high-potential markets in the Middle East, Africa, and Asia.
Logistics and Transportation – KIZAD port in Abu Dhabi is a high-capacity deep-water port that shares access with rail and road connections, making it an ideal location for trade and distribution businesses.
Cost-effective – KIZAD free zone offers budget-friendly options to lease or rent office spaces and a hassle-free process of company formation in Khalifa Industrial Zone.
Tax Exemption – The government of UAE offers 100% tax exemption for foreign businesses and 0% customs duties.
Access to human capital – The availability of diverse global talent and skilled labor is no longer a point for businesses in any industry.
100% foreign ownership – Foreign investors can enjoy 100% ownership of their foreign businesses without any need to get on board with local sponsors or shareholders.
Facilities Available for Businesses in Khalifa Industrial Zone
Furnished and unfurnished office spaces to cater to businesses of all scales
Quick access to modern highways and the world’s largest airports and seaports
High-speed internet to meet the daily digital needs
UAE’s world-class security systems ensure the safety of life and property
Access to all the necessary resources and support services
Best Businesses to Start in Khalifa Industrial Zone
The following business activities are more common and known as promising business ventures in the KIZAD free zone.
Industrial & Manufacturing
Logistics & Distribution
Travel agencies, etc
Business Activities Allowed & Restricted in KIZAD Free Zone
The KIZAD strictly follows the provisions of the UAE legislature. It allows the import of raw materials, industrial-scale manufacturing, exports of manufactured goods, packaging, distribution, warehousing, etc., depending on your license category. Whereas the trading or selling of alcoholic beverages, gambling services, illegal drugs, and sales of firearms are strictly prohibited by the UAE government.
FAQs about Business Setup in KIZAD Free Zone
What is Khalifa Industrial Zone?
Khalifa Industrial Zone is the leading free zone business avenue in Abu Dhabi. The KIZAD free zone is a center of Abu Dhabi’s commercial and industrial activities with neighboring KIZAD port (Khalifa Port). The free zone is home to businesses of all scales associated with manufacturing, supply, distribution, and industrial activities. It offers a business-friendly infrastructure and a tax-free ecosystem to attract foreign investors and entrepreneurs.
Do I need a Local Partner to Start My Company in KIZAD Free Zone?
Khalifa Industrial Zone (KIZAD) is a designated Free Zone that offers a unique advantage to foreign investors: 100% foreign ownership. You can set up your business without needing a local sponsor or shareholder. KIZAD is an attractive opportunity for those looking to expand their business operations in Abu Dhabi and gain vast exposure to the broader Middle Eastern, African, and Asian markets.
How many days would it take to get my license for my business in KIZAD?
It took around 15 days to get your KIZAD trade license after initiating an application for business registration. To make a quick move and save valuable time, connect with Airzone to find the right business formation services provider to get professional assistance at each stage of company formation in Khalifa Industrial Zone.
How Airzone can help you Setup Your Business in KIZAD Free Zone?
Are you ready to take the leap and start your business in Khalifa Industrial Zone? It can be daunting with all the documents, approvals, and steps needed, but don’t let that discourage you! Airzone is here to make it easy for you.
Our team of experienced and professional business formation experts is dedicated to guiding you through every step, from selecting the perfect business activities to obtaining all necessary approvals and licenses. With our assistance, you’ll have access to a network of trusted partners with a wealth of experience setting up businesses in the KIZAD free zone and other Free Zones and mainland jurisdictions throughout the UAE.
Whether a small startup or an enterprise-grade business willing to expand a business, we can help you partner with the right business formation service provider that meets your specific needs and budget. Airzone can also assist with the following:
Residence or work visa issuance for your employees
Make your transition to the UAE’s fast-growing economy as smooth and seamless as possible. Start your business setup journey today with Airzone – Your go-to expert for business setup in Dubai and the UAE.
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