Masdar City Free Zone

Masdar Free Zone – let’s Get into the Details

Masdar City is a global hub for companies 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 to make Abu Dhabi the global hub for renewable energy. Masdar City Free Zone is a prominent spot that provides a business-friendly, commercial, and entrepreneurial environment to companies associated with clean technology and renewable energy. It bestows upon them all the benefits of free zones.

Masdar City is an international hub for companies operating in the Middle East to produce, discover, manufacture, and grow energy products and potential green technology products. It has the most effective and business-friendly policies and top-notch research facilities to make Abu Dhabi the global hub for renewable energies.

The Free Zone of Masdar City is a popular destination that provides clean technology and renewable energy with a business-friendly, commercial, and entrepreneurial climate. It offers them all the privileges associated with free zones.

Masdar City has four essential components which focus on four different aspects:

  • Masdar Power is in charge of the power project of Masdar City and other projects in the 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 creating clean energy and environmental services

Legal Entities in Masdar City Abu Dhabi AKA Sustainable City Abu Dhabi 

Businesses have to carry out their operations by the Companies Regulation. Masdar City Free Zone has quick and easy business registration services under three legal entity types:

  • Free Zone Limited Liability Company (FZ-LLC)
  • Branch of a foreign company
  • Branch of a locally registered company

Masdar Free Zone License

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 Centres
  • Community Services (Retail, Food & Beverage outlets)
  • Oil and Gas Services

Licensing Cost in Masdar City Free Zone

Masdar Free Zone has four 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 Fees 
Startup  2 10000 AED
Mid-range 5 15000 AED
Wide-range 10 20000 AED
UAE Nationals & Khalifa Fund 5 10000 AED

Documents Required for Company Formation in Masdar City Abu Dhabi

Below documents are required to start a company in Masdar City Free Zone

  • Business Plan
  • Details of Share Holders (s) / Parent Company
  • Original Memorandum and Articles of Association of the parent company along with a list of the current Directors (Notarized)
  • Shareholder (s) / Board Resolution of the parent company / Corporate Shareholder (s) (Notarized and Legalized)
  • Details of Directors (s)
  • Details of Manager
  • Proof of Share Capital from any bank operating in the U.A.E.

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 must 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 that must be filled out 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 the Free Zone Authority will give you an Acceptance Letter. This entire procedure might take up to 3 days after the submission of documents.

3. Opening a Bank Account

After receiving the Acceptance Letter, you’d need to open a bank account. Opening a bank account in UAE follows a certain procedure. You will have to contact the particular free zone authority, and here, the Masdar City free Free Zone Authority will issue a Bank Introduction Letter to open a bank account.

Open a corporate bank account and deposit the minimum required capital, then receive a Capital Confirmation Letter from the bank, also called Proof of Capital Letter.

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.

We are Here to Help

Masdar City is an exclusive spot for technology and energy-based companies that the government supports. Commitbiz will handle your company incorporation from the start of the process until its end and manage all your licensing and documentation formalities. 

It’ll be our job to guide you through the entire process and ensure that your business starts 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 a business setup in Masdar City; we’ll be glad to assist you.


What is Masdar Initiative?

The Masdar Initiative, founded by the UAE government in 2006, is an international collaboration platform to tackle important issues such as energy security, climate change, and human development. Masdar and the Masdar Institute, presently part of Khalifa University of Science and Technology, are at the heart of the Masdar Initiative.

Is share capital needed for branch office in Masdar City?

No, not required.

Does business in Masdar demands annual audit?

No, it is not necessary.

What is the shareholder type for Masdar company formation?

Shareholders for Masdar City Company Can be Individuals or Corporate entities.

Can I get a license without company office in Masdar?

No, a company requires a facility to receive a license.