Abu Dhabi has a vision for the emirate’s future, which the government terms Abu Dhabi Vision 2030. The government is trying hard to fulfil this vision and ensure that Abu Dhabi can develop a diversified economy and that the emirate is.
Keeping in mind the increasing number of business opportunities in the capital and the vision of diversification of the UAE economy, the Government of Abu Dhabi planned to establish an industrial park nearby the newly built Khalifa Port. This industrial zone was named KIZAD of Khalifa Industrial Zone Abu Dhabi.
Let’s Know About KIZAD Free Zone Abu Dhabi
The Khalifa Industrial Zone, also called KIZAD, is a visionary project by the Abu Dhabi government to revolutionise the emirate's industrial sector. KIZAD project was revealed in November 2010 by Abu Dhabi Ports and officially began its operations in September 2012. On a greenfield site in Taweelah, Abu Dhabi, the government set up this multi-billion-dollar industrial park with an aim to achieve economic diversification by 2030. This industrial park has two vital elements which attract foreign investors
- Geographical location
- Low operating cost.
KIZAD free zone in Abu Dhabi occupies a 417 square-kilometre area strategically located halfway between Abu Dhabi and Dubai. KIZAD is divided into two areas, Area A and Area B.
- Area A is focused on business people operating in the industrial sector
- Commerce-based companies take Area B.
KIZAD gives freedom to both free zone-based companies as well as non-free zone-based companies.
While the non-free zone-based companies come under the Abu Dhabi Companies Act, the free zone companies are registered under the Abu Dhabi Free Zone Authority’s regulations.
KIZAD Company Structure
|Type of Company||Free Zone-LLC||Branch of Foreign Company||Branch of Local Company|
|No. of Shareholders||Min 1/Max5||Min 2/Max 5||Min 2/Max 5|
|Initial Capital Requirement||AED 1,50,000||NIL||NIL|
|Registration Fee||AED 7,500 (one time)||AED 5,000 (one time)||AED 5,000 (one time)|
Types of Licenses for Businesses in Khalifa Industrial Zone Free Zone
KIZAD free zone gives opportunities to all types of business forms by providing them different types of business licenses like:
1. Industrial License
The most common form of business license in KIZAD is the industrial license, which many companies avail. To import raw materials, machinery, assembling, packaging purposes and export the finished and packed goods to other countries.
2. Trading License/General Trading License
Companies involved in trading goods, importing and exporting opt for a trading license in KIZAD. A general trading license allows a company to trade several goods and products. A general trading license allows a company to have 17 product categories under three different product groups.
3. Service License
Activities like marketing services, restaurant services, management consultancy, cargo/logistics services, warehousing services, travel, and tourism services fall under the category of a service license.
Documents Required for Business Setup in KIZAD
- Copy of passport and photo with white background
- Visa copy
- Arabic NOC from the current sponsor applicable to the UAE residence
- Educational qualification degree certificate, attestation and translation to Arabic
- Application form for registering business and license
Procedure for KIZAD Business Setup
Like any other free zone in Abu Dhabi, KIZAD also has a structured procedure for business set-up:
1. Determining Your Economic Activity
In order to start your company setup procedure, you need to determine your economic activity type under the regulations of the Department of Economic Development (DED) of Abu Dhabi. This has been adopted as the ‘International Standard Industrial Classification’ by the DED of Abu Dhabi issued by the United Nations.
2. Determining the Legal Form of the Company
The second step would be defining the proper legal form for your company. To adjust to the needs of your legal business requirements, you need to determine your legal structure. The legal forms might differ from company to company depending upon their business nature.
3. Registration of Business Name
The next step would be the registration of your business name. Selecting an appropriate business name for your business entity is one of the important steps before your initial approval. Your trade name should be concurrent with your business nature.
4. Initial Approval
After getting a trade name certificate, the next step would be getting initial approval from the authorities. This is required for practising economic activity.
5. Acquiring Approvals from Authorities
After getting your initial approvals, you need to get all the required approvals from the concerned authorities and fulfil all the terms and conditions. Some of the economic activities require approval only from the DED.
6. Obtaining a Business License
The last step before starting your business operation is obtaining your business license. There are different types of licenses depending on your business nature, and you can choose anyone.
KIZAD has a primary objective of attracting and encouraging foreign investors. This free zone is among the best spots for starting your industry or business firm.
Commitbiz can handle your company formation process for you. We will assist our clients in penetrating into this booming economy by taking care of all the legal, banking, and immigration formalities and ensuring a safe, low cost and hassle-free company registration in KIZAD.
To start your business in KIZAD free zone, contact us and begin your venture.
How much does KIZAD free zone license cost?
The license cost of the KIZAD free zone starts from 11,000 AED.
What is the license renewal cost of Abu Dhabi KIZAD?
It is the same as the renewal fee.
Is a financial audit required in Khalifa Free Zone Abu Dhabi?
No, it is not required.
Can I change the activity of my company registered in KIZAD?
Yes, any allowed amendment can only be done by the company’s shareholder or the representative.
Can I start the Visa process for the KIZAD company before setting up the corporate bank account?
No, you can only start after the bank account is set.