The Khalifa Industrial Zone or also called as KIZAD is a visionary project by the Abu Dhabi government to revolutionize the Industrial sector of the emirate. 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 2 vital elements which attract foreign investors: one is its geographical location and the other its low operating cost.
KIZAD free zone in Abu Dhabi occupies a 417 square-kilometer area strategically located halfway between Abu Dhabi and Dubai. KIZAD is divided into 2 areas, Area A and Area B. While area A is focused on businessmen operating the industrial sector, Area B is taken by commerce-based companies. KIZAD gives freedom for 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.
Advantages of Setting Up a Business in KIZAD
Like all other free zones, KIZAD also has its benefits of business setup:
- Speedy procedures of document screening and provision of license and certificates
- Zero personal and corporate tax
- 100% repatriation of business profits and capital
- Provision of 100% foreign ownership
- Efficiency in business operations
- A strategic location advantage
- Low cost of utilities and leases
- Complete exemption from customs duty on goods and services
- Pre-built office and warehouse facility
- Industrial synergy
- Hassle-free banking facility
- Great transport connectivity by air, sea, and land
- Availability of business parks
Types of Licenses for Businesses in KIZAD Free Zone
KIZAD free zone gives opportunities to all types of business forms by providing them different types business licenses like:
1. Industrial License
The most common form of business license in KIZAD is the industrial license, which many companies avail. For the purpose of importing raw materials, machinery, assembling, packaging purposes and exporting the finished and packed goods to other countries.
2. Trading License/General Trading License
Companies that are involved in trading of goods, importing and exporting opt for a trading license in KIZAD. A general trading license allows a company to trade in several goods and products. A general trading license allows a company to have 17 product categories under 3 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.
Types of Companies in KIZAD
|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)|
Process of Starting a Business in KIZAD
The key steps in business setup in KIZAD are as follows:
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 ‘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 right legal form for your company. In order to adjust to the needs of your legal business requirements, you need to determine your legal form. The legal forms might differ from company to company depending upon their business nature.
3. Registration of Business Name
The next step would be 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 certificate of trade name, the next step would be getting an initial approval from the authorities. This is required for practicing the economic activity.
5. Acquiring Approvals from Authorities
After getting your initial approvals, you need to get all the required approvals from all the concerned authorities and fulfil all the terms and conditions. Some of the economic activities require the 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 any one.
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 ensure 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.