Located 17 KM from Abu Dhabi resides the futuristic $22 billion city of Masdar. Powered entirely by solar and renewable energy sources, the city is designed as a regional hub for clean tech businesses.
The real appeal of Masdar city’s free zone however is its highly specialized business infrastructure. This free zone is perfect in every way to host technology companies and general businesses.
The free zone is built to host close to 1500 businesses and is equipped to house almost 50,000 residents. Due to its excellent proximity to ports, airports, and commercial centers the City is a regional gateway to Africa, Europe, South Asia, and the Middle East.
The strategic location, favorable regulations, cost-effective license packages, and unique sustainable living makes Masdar a highly lucrative opportunity for tech businesses and startup projects. Siemens, British Petroleum, IRENA, and several other prominent tech corporations have regional HQs in Masdar.
If you are planning to set up a new tech business in a UAE economic zone, Masdar offers the ideal location to base your operations to reach a massive geographical reach.
So if you’re looking to set up a shop in the UAE, read on to find out everything you need to know about Masdar City Free Zone.
What is Masdar City Free Zone?
The progressive Masdar free zone is a marvel of ‘sustainable urban development’ located strategically between the Abu Dhabi Airport and the Al Raha marina. The 6 KM2 economic zones were purposefully built to host innovative businesses including renewable energy providers, sustainability technologies, and human resource development companies.
Residents and partners are facilitated with excellent benefits including 100% ownership, tax exemptions, low-cost leasing, and fast-tracked visa applications. In addition, Masdar City is perfectly located between Dubai and Abu Dhabi offering an excellent selection of amenities and proximity to important business centers.
One of their most popular tenants is the International Renewable Energy Agency, headquartered in the Masdar Free Zone.
The beautiful futuristic architecture and the leading-edge sustainable foundations of the city make it an amazing opportunity for technology companies, educational institutions, and lifestyle tech businesses to establish themselves in the UAE.
What Are the Benefits of Starting a Business in the Masdar City Free Zone?
The Masdar City free zone offers a truly unique environment for businesses to operate. Already home to prestigious multinationals, small and medium-sized organizations, and startups, the free zone offers immense benefits for investors such as:
- 100% ownership for foreign investors
- A 100% exemption from corporate and personal taxes
- Zero tariffs on imports
- Easy business setup and convenient onboarding at the free zone
- Centralized government operations, registration, assistance, and visa processing
- 100% profit and capital repatriation
- Access to regional and international markets
- A unique collection of talent and knowledge
- Low-cost rental office spaces and land
- Located near Abu Dhabi International Airport
- 40 minutes away from Dubai
- Dual licensing facility
- Reduced tax footprint
- An environment designed to facilitate business innovation
- Ideal economic zone to develop professional R&D partnerships
Best Businesses to Start in Masdar City Free Zone?
Businesses in Masdar City Free Zone can range from small-scale start-ups to large-scale operations, and from light manufacturing and assembly operations to technology, logistics, finance, and other services.
Here’s a list of the best businesses to start in the Masdar City Free Zone (Masdar City Free Zone):
- Renewable Energy
- Business and Data Centres
- Community Services
- Oil & Gas Services
- Clean Tech and Information & Communications Technology
- Marketing & Events
- Human Resource Development
- Energy Industry
- Healthcare Services
- Service Providers
- Property Development Services
- Regional Headquarters, Holding and Trading Companies
How to Setup Business in Masdar City Free Zone?
Setting up a business in UAE is fairly easy and convenient for potential investors. The free zone business setup is broken into three stages:
Step 01 – Register Your Business Name
The name registration form must be submitted, along with the AED 2,000 name reservation fee, to the Free Zone Authority. The Department of Economic Development (DED) of Abu Dhabi must then receive the paperwork.
Step 02 – Submit the License Form
Once your name has been registered, you will be handed a licensing form along with your trade name certificate, which you must complete and submit to the appropriate authorities. Your business plan and other essential documents must be submitted along with the licensing application.
The Free Zone Authority will issue you an Acceptance Letter after reviewing all of your supplied documentation. After the submission of the documents, the full process could take up to 3 days.
Step 03 – Open a Corporate Bank Account
You would need to open a bank account once you had received the acceptance letter. The process for opening a bank account in the UAE is specific. To open a corporate bank account, you must get in touch with the specific free zone authority. In this case, the Masdar City free zone authority would issue a bank introduction letter.
Get a Capital Confirmation Letter, also known as a Proof of Capital Letter, from the bank after opening
Step 04 – Acquire Your License and Sign the Lease
You must give the Free Zone Authority the letter of Capital Confirmation. The Memorandum and Articles of Association (MAA) can then be signed. The free zone will hand over the license agreement once it has received the Proof of Capital Letter. The lease agreement must be signed before receiving the trade license.
Documents Required for Business Setup in Masdar City Free Zone
The Masdar Free Zone requires detailed documentation for company formation. We have compiled a list of all necessary documents for application below:
- The business plan
- Details of Share Holder(s) or Parent Company
- Original Certificate of Registration of the Corporate Person (a copy will be accepted if notarized).
- Original Certificate of Good Standing (issued by the Registrar of Companies in which jurisdiction the Corporate Person is incorporated to ensure existence and continuity of the Corporate Person) if the Corporate Person is more than two years old [copy will be accepted if notarized].
- Copy of a valid Trade License issued by the Department of Economy & Development for the Corporate Person.
- Copy of the Commercial Registration issued by the Department of Planning & Economy for the Corporate Person.
- A document setting out the personal details (CV) of the individual shareholder(s).
- Valid passport copy of the individual shareholder(s).
- Original Reference letter provided by the Bank for individual shareholder(s).
- Specimen signature of the individual shareholder(s) [Template provided].
- Passport-size photograph (with white background) of the individual shareholder(s).
- Original Memorandum and Articles of Association of the parent company along with a list of the current Directors.
- Shareholder (s) / Board Resolution of the parent company / Corporate Shareholder (s) (Notarized and Legalized) calling for the establishment of a Branch / LLC in Masdar City and guaranteeing full financial commitment
- Appointment of the Negotiator / Legal Representative (optional).
- Power of Attorney for the Manager (if not part of the Resolution) – Notarized and Legalized.
- Details of Directors
- Valid Passport copy of the Director (s)
- Specimen signature of the Director (s)
- Passport-size photograph (with white background) of the Director (s).
- Details of Managers
- Valid Passport copy of the Manager
- NOC from the current Residency visa Sponsor of the Manager in the U.A.E. (if applicable).
- Specimen signature of the Manager
- Passport-size photograph (with white background) of the Manager.
Alternatives UAE Free Zone for Starting a Business in UAE
Dubai Free Zones:
- Dubai Media City Free Zone
- DAFZA Free Zone
- DPC Free Zone
- DIAC Free Zone
- Dubai South Free Zone
- Dubai Auto Free Zone
Abu Dhabi Free Zones:
Sharjah Free Zones:
Ajman Free Zones:
Ras Al Khaimah Free Zones:
Business Setup Cost in Masdar City Free Zone
Compared to many of its competing free zones, Masdar City offers an especially cost-effective solution for a new business setup in the UAE. In addition to its high technological and sustainable ecosystem, the zone offers attractive initial costs for businesses:
| Business Package | Start-up Package | WomenEntrepreneurshipProgram | Space Zone | |
| Business Activities | Upto 6 | Upto 5 | Upto 5 | 1 |
| Visa Eligibility | Minimum 2 | 2 | 1 | Dependant on Lease |
| Registration Fees | AED 3000 | AED 3000 | AED 3000 | AED 3000 |
| License Fee | AED 14000 | AED 10000 | AED 6000 | AED 6000 |
| Lease | AED 10000 | AED 6000 | AED 6000 | AED 10000 |
The visa fees and relevant residence permit fees are outlined by the official Masdar authority as follows:
| Type | Fees in AED |
| Immigration Establishment Card | 1500 |
| eChannels Registration (One Time Charge) | 2500 (Annual renewal fees 1500 AED) |
| Employment Visa Deposit (Refundable) | 2500 per employee |
| Employment Visa Package – 3 Years Visa (Excludes Visa Medical Fitness Test & Emirates ID) | 3350 |
| In Country – issue Entry Permit while applicant is in the UAE – (if applicable) | 800 |
| Local Amendment – Residency stamping while applicant is in the UAE– (if applicable) | 800 |
| Medcial Fitness | 350 |
| Emirates ID Charges (for 3 Years) | 450 |
The MCFZ also offers rental offices prices at the following rates:
- 5 Virtual Desks – AED 6000
- 5 Flexidesks – AED 10,000
Business Activities Allowed in Masdar City Free Zone
Masdar City offers organizations, SMBs, entrepreneurs, and startups a massive opportunity to invest in technology, sustainable solutions, and educational institutions in a progressive community committed to green living.
MCFZ offers 19 broad categories that accommodate thousands of business activities permitted within the region. Here is a list of all allowed activities in Masdar’s free zone:
- Renewable energy
- Cleantech and Information & Communications Technologies
- Marketing & Events
- Human Resource Development
- General Service Providers
- Energy Industry Goods & Services
- Industry Goods & Services
- Healthcare
- Carbon Management
- Property Management Services
- Community Services Development
- Holding Company
- Trading Company
- Business Center
- Data Center
- Onshore and Offshore Oil and Gas Field and Facilities Services
- Environment
- Nuclear Energy
- Outsourcing Services
You can view all respective sub-categories of allowed businesses in the detailed Masdar City list here.
How Airzone Can Help You in Masdar City Free Zone?
Airzone assists businesses and entrepreneurs find the ideal business setup service providers that facilitate business registration, licensing, corporate banking services, and visa processes.
We also offer critical knowledge and guides to help you understand how to set up a sustainable business in Dubai.
Our affluent network of partners can simplify residence visa applications, accounting & banking, customs registration processes, and taxation, in addition to offering many other business support services to ensure a convenient business setup operation.
FAQs about Business Setup in Masdar City Free Zone
Do I Need to Have a Local Sponsor to Start My Business in Masdar City Free Zone?
No, Masdar City FZ offers 100% foreign ownership for investors and hence does not need a local sponsor to start a business.
How Many Days Would It Take To Get My License for My Business in Masdar City Free Zone?
Licenses are issued within 5 days of application in the Masdar City free zone.
Can I Transfer My Company From Masdar City to Another Free Zone in the UAE?
No, transferring your company from one free zone to another in the UAE is not currently possible. The existing license must be canceled to move to a new free zone, and a new one must be acquired from the other economic zone. Another way to locate within another emirate’s free zone is by establishing a branch of your existing business.
Conclusion
Masdar City has been acknowledged as one of the leading examples of the city of the future. The unique architecture and design of the economic zone are suited for technology businesses especially research, sustainability solutions, and SaaS providers.
Masdar’s economic area offers a vast variety of licenses for prospective businesses and investors. Complimented by a convenient business setup process and excellent license pricing, Masdar Free Zone is an excellent opportunity for SMBs and corporations to enhance their global footprint.
Compared to other economic zones, the Masdar Free Zone offers an amazing set of benefits that include multiple activity permissions, and very attractive leasing options for new investors.
So what are you waiting for, get started today!
If you wish to set up a company in a different free zone, we suggest checking out the other business formation guides we’ve covered regarding free zones in UAE.