A Guide on Starting a Business in KIZAD

by Zaara 17, Nov 2020

A Guide on Starting a Business in KIZAD

Khalifa Industrial Zone in Abu Dhabi, a Free Zone is a next-generation platform for trade, manufacturing, and logistics. It promises to change the face of doing business in the area through the success of KIZAD’s onshore structure and the advantages of an offshore free zone. KIZAD is under the Ministerial Resolution No. 88 of 2006. In this resolution, the Abu Dhabi Ports Operating Company, where KIZAD is a part of, is given the right to own Abu Dhabi’s ports and build industrial and free zone areas.

KIZAD ports free zone is located between Dubai and Abu Dhabi, the two Emirates that are considered to have significant marketing in the United Arab Emirates. It is also near to three international airports (Al Maktoum International Airport, Abu Dhabi International Airport, and Dubai International Airport), making it easily accessed by businessmen and clients.

Legal Entities Allowed in KIZAD Free Zone

Businesses can be registered in KIZAD because it provides four corporate entities namely –

  1. Free Zone Company
  2. Free Zone Entity
  3. Branch Office of a Local Company
  4. Branch Office of a Foreign Company

Business Activities Allowed in KIZAD

KIZAD free zone provides a vast list of business activities with its focus on the following sectors –

  • Trading
    • Advertising
    • Building materials trading
    • Chemicals trading
    • Electronics and electrical products trading
    • Jewelry trading
    • Motor vehicle and spare parts trading
    • General trading activities
  • Industrial
    • Food and beverage processing
    • Meat processing
    • Glass industries
    • Plastic industries
    • Printing and publishing
    • Manufacturing activities
    • Technical and professional workshops
  • Logistics

It has attractive tax advantages for manufactures producing goods and services in the free zone and re-shipping them to other nations. The free zone also have service activities related to –

  • Management
  • Marketing
  • Freight forwarding support
  • Travel agencies and much more

KIZAD license is allowed to have five similar business activities. The business activity will be added to your company name, for example, ABC food and beverages trading LTD.

Types of Business Licenses Allowed in KIZAD Free Zone

The licenses allowed for the aforementioned free zone business activities are –

  • Service License – permits all activities of Consulting, Management, and Marketing, etc.
  • Trading / General Trading License – permits all trading activities that include import and export, stocking, distribution, warehousing, etc.
  • Industrial License – permits manufacturing, processing, assembling and packing of products

Advantages Offered by KIZAD Free Zone to the Businesses

  • 100% foreign ownership
  • Strategic location connecting East and West
  • One-stop-shop services that respond to all the needs of the investors
  • No custom duty for goods and services within the free zone
  • Facilities to suit all business types
  • Low set up costs
  • Availability of bankable agreements
  • World-class transport network
  • Speedy and efficient incorporation processes

And all other standard free zone benefits offered in the UAE.

Procedure to Setup a Company in KIZAD Free Zone

If you want to open a company in KIZAD free zone, here are the steps that you must follow.

1.Choose a Business Activity and Business License

The first crucial decision to make when setting up in KIZAD is to choose your business activities. This will determine the type of license you can apply for. We have mentioned the type of business licenses allowed in the KIZAD free zone.

2.Fill the Application Form

You have to apply to obtain a business license. It includes documents as mentioned under –

  • A copy of your passport of owner/shareholder
  • Your business plan
  • A copy of your signature
  • A NOC from your current employer (if applicable)

3.Pay Fees and Kick-Start your Business

The final step is to pay fees for your license. Once you get the license from the KIZAD free zone authority, you can officially kick-start your business in Abu Dhabi.

Businesses that wish to do business from KIZAD must adhere to the free zone’s rules and regulations regarding anti-money laundering, auditing, use of facilities, permitted activities, access to Khalifa Port, and more. If you’re ready to start your business at KIZAD, get in touch with us today. With more than 13 years of experience in company incorporation, we can help you get your business up and running within a week or two.

We at Commitbiz will manage your license and business setup application and correspond with all relevant authorities for you. All you need to do is wait for the green light to start trading.