Business Setup in KIZAD Free Zone - Abu Dhabi Ports Company (ADPC) owns the Khalifa Industrial Zone Abu Dhabi (KIZAD) located in Al Taweela, Abu Dhabi. The Ministerial Resolution No. 88 of 2006 empowers ADPC to own, operate and develop all the ports in the emirate of Abu Dhabi, and also to construct industrial cities and free zones. KIZAD is an integral part of ‘Abu Dhabi Economic Vision 2030’.
Khalfa Industrial Zone is developed in strategic location with a view to connect the eastern part of the globe with the west. The unparalleled transportation and logistics infrastructure by sea, air, road and rail gives business entities in the zone to access 4.5 billion consumer base spread across four time zones. KIZAD is located on the way to Dubai, which offers easy access to the infrastructure and opportunities in two prominent markets.
Vertically Integrated Clusters in KIZAD
KIZAD has the following vertically integrated clusters:
Engineered Metal Products
Petrochemical and Chemicals
Pharmaceuticals and Healthcare Equipment
Paper, Print and Packaging
Trade and Logistics
Mixed Use and Others
Ownership Options in KIZAD
Khalifa Industrial Zone offers both Free Zone and Non - Free Zone options. Thus, KIZAD gives opportunities for both types of entities to flourish taking advantage of the infrastructure support and facilities available in the Industrial Zone.
The non – free zone entities setup in KIZAD will be governed by the rules and regulations stipulated in the Commercial Companies Law and the other prevailing laws in the emirate. On the other hand, free zone entities established within KIZAD will be governed by the rules and regulations of the free zone authority (Abu Dhabi Free Zone Authority - ADFZA).
Types of companies allowed in KIZAD
Two types of companies can be established in KIZAD Free Zone:
Free Zone Company (FZCo) – it is a Limited Liability Company (LLC) in the Free Zone with minimum paid-up capital of AED 150,000. Individuals or Corporates or Both are permitted to hold shares in a FZCo.
Branch of an Existing Company – a company registered outside the KIZAD Free Zone are permitted to open a branch. It may be a branch of a UAE Company or a Foreign Company.
License Types in KIZAD
KIZAD Free Zone permits the following types license for setting up a business:
Industrial License – for engaging in the industrial activities like import of raw materials, manufacturing, processing, assembling and exporting intermediate or finished products.
Trading License or General Trading License – for engaging in trading activities like import, storage, warehouse, distribute or export goods or items specified in the license. If the number of items are more than 17 or belongs to more than 3 categories, a General Trading License will be issued.
Service License – are issued to engage in service activities like management and economic consulting services, marketing services, logistic support services, restaurants, retail food outlets, catering services, travel agencies…
Benefits of setting up a business in KIZAD Free Zone
100% foreign ownership
Complete profits and capital repatriation are permitted
Customs duty exemption for goods and services in the zone
No personal income tax and corporate tax
Single or multiple shareholders are permitted
Unique industry clustering and purpose-built infrastructure
Low operation cost
Note: Free Zone entities are licensed to operate only within the free zone territory. Free Zone entities can sell goods or products in UAE mainland (local market) only through an authorized distributor or agent. Free Zone licensee can offer service only within the free zone limit.
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Mr. Baiju Masoodu is a Free Zone Business Setup Consultant. Our ‘corporate service firm’ can advise and assist you to set-up a business in KIZAD Free Zone and other Free Zones in Dubai and UAE. For a free consultation & cost estimate, call me on: +971 50 214 1476 or mail me at: email@example.com