Masdar City was established in 2006 6 kilometers away from the emirate of Abu Dhabi, close to the Abu Dhabi International Airport. The word Masdar is an Arabic which means ‘The Source’, which is the right word for the place as it is a project by Abu Dhabi Future Energy Company (a subsidiary concern of Mubadala Development Company) and is supported by the government of Abu Dhabi to make area energy-efficient. It is emerging global hub for clean technologies and renewable energy that is totally depended on renewable energy.
Masdar City is a global hub for companies that have their operations in generating, discovering, manufacturing, and developing energy products and future green technology products in the Middle East. It has the most efficient and business-friendly policies and top-notch research facilities in order to make Abu Dhabi the global hub for renewable energy. Masdar City Free Zone is a prominent spot which provides a business-friendly, commercial, and entrepreneurial environment to companies associated with clean technology and renewable energy, and bestows upon them all the benefits associated with free zones.
Masdar City has 4 important components which focus on four different aspects:
- Masdar Power is in-charge of the power project of Masdar City and other projects in UK and Seychelles
- Masdar Institute of Science and Technologies is a non-profit making educational institute which focuses on alternative energy sources
- Masdar Carbon is focused on clean development mechanism projects and carbon capture and storage
- Masdar Venture Capital is an investment which targets on creating clean energy and environmental services
Advantages of Setting up a Business in Masdar City Free Zone
Many global players that have their hands in the energy generating business have already recognized the benefits of the unique environment Masdar City provides, like:
- The freedom of complete foreign ownership and no partnership in the UAE
- Total exemption from corporate and personal income taxes
- No import tariffs
- Quick and easy set-up of business in Abu Dhabi Free Zone
- Freedom of retaining both capital and profits
- Availability of one of the world’s most beautiful, sustainable living and working business clusters
- Connecting point to local, regional and international markets
- Research & development hub partnering with Masdar Institute of Technology
- Availability of the most cost-effective licensing and office space
- Abu Dhabi International Airport, Khalifa City, and YAS Island are just 40 minutes away from Dubai
- World-class facilities and state-of-the-art infrastructure for tech companies
Masdar City Legal Entities
Business have to carry out their operations in accordance with the Companies Regulation. Masdar City Free Zone has quick and easy business registration services under 3 legal entity types:
- Free Zone Limited Liability Company (FZ-LLC)
- Branch of a foreign company
- Branch of a local registered company
Licensing Options in Masdar City
In this Abu Dhabi free zone, there are a variety of business clusters and different business options companies can choose from:
- Renewable Energy
- Clean Tech and Information and Communications Technology (ICT)
- Marketing and Events
- Human Resource Development
- Energy Industry
- Healthcare Services
- Service Providers
- Property Development Services
- Regional Headquarters, Trading and Holding Companies
- Business Centre and Data Centers
- Community Services (Retail, Food & Beverage outlets)
- Oil and Gas Services
Licensing Cost in Masdar City Free Zone
Masdar Free Zone has 4 different types of licensing tariffs for companies. These tariffs are very cost-efficient for start-ups and even for MNCs:
|Package Type||No of Activities||License Fee (in AED)|
|UAE Nationals & Khalifa Fund||5||10,000|
Procedure for Business Setup in Masdar City
The procedure for setting up a company in Masdar City free zone involves different steps and certain documents:
1. Name Registration
The first step would be filing the name registration form, sending it to the Free Zone Authority and paying the name reservation fee of AED 2,000. After doing so, one is required to submit the form to the Department of Economic Development (DED) of Abu Dhabi.
2. License Form
Once you receive a certificate of your trade name, you’ll be given a license form which needs to be filled and submitted to the authorities. The license form needs to be submitted along with your business plan and other required documents.
The authorities will review all your submitted documents and you’ll be given an Acceptance Letter by the Free Zone Authority. This entire procedure might take up to 3 days of time after submission of documents.
3. Opening a Bank Account
After receiving the Acceptance Letter, you’d need to open a bank account. To open a bank account, the Free Zone Authority will issue a Bank Introduction Letter.
Open a corporate bank account and deposit the minimum required capital, then receive a Capital Confirmation Letter, also called Proof of Capital Letter, from the bank.
4. Acquiring the License and Signing the Lease
The Capital Confirmation letter should be submitted to the Free Zone Authority. Then, the Memorandum and Articles of Association (MAA) can be signed. After receiving the Proof of Capital Letter, the free zone will issue the license agreement.
The final step would be collecting the license and signing the lease agreement.
Masdar City is an exclusive spot for technology and energy-based companies which are supported by the government itself. Commitbiz will handle your company incorporation from the start of the process until the end of it and manage all your licensing and documentation formalities. It’ll be our job to guide you through the entire process and make sure that your business starts off on the right foot. Our team of experts can ensure that your business setup in Masdar City free zone is hassle-free. Contact us for business setup in Masdar City; we’ll be glad to assist you.