Khalifa Industrial Zone in Abu Dhabi (KIZAD Free Zone)

Khalifa Industrial Zone in Abu Dhabi (KIZAD Free Zone) - Smart Zones UAE

Khalifa Industrial Zone Abu Dhabi (KIZAD) stands as a key industrial park in Abu Dhabi, UAE. It’s an integral part of a visionary project aimed at diversifying the UAE’s economy by 2030. KIZAD commenced operations in 2010 by Abu Dhabi Ports and received its official inauguration in 2012.

Central to KIZAD is its free zone, with purpose to transform this industrial hub into a prime destination for businesses engaged in trade, manufacturing, and logistics.

Advantages of Business Setup in KIZAD FTZ

  • KIZAD boasts an advanced road network, facilitating the seamless movement of goods to and from the industrial zone.
  • Its strategic connection to four international airports across Abu Dhabi, Dubai, and Al Ain ensures global accessibility.
  • Khalifa Port, a state-of-the-art deepwater seaport, enables efficient import and export operations to various parts of the world.
  • Companies within KIZAD enjoy exemptions from income tax, sales tax, and capital gains tax.
  • Customs duties are waived on imported raw materials, machinery, goods produced in UAE, and joint venture entities.
  • KIZAD offers some of the world’s lowest rates for water and electricity supply.
  • You can benefit from expert guidance provided by dedicated relationship managers.
  • Pre-built free zone offices, warehouses, and light industrial units are readily available.
  • Efforts are underway to provide international-standard accommodations for operational staff, including laborers, skilled workers, and supervisors in the proximity of KIZAD.

License Types in KIZAD

Getting the appropriate license is a prerequisite for launching a venture within KIZAD FTZ. It’s vital to select the right type of license in accordance with your business activities. There are three license categories for businesses in KIZAD.

Trading License

This category is indispensable for businesses engaged in activities like product import, export, warehousing, storage, and distribution. A General Trading License is attainable if your business encompasses more than 17 products or falls within 3 or more groups.

Service License

A Service License covers a wide range of service-related activities, including marketing, consulting, travel agencies, catering, restaurants, and management services.

Industrial License

An Industrial License is essential for enterprises involved in the import of raw materials and their subsequent manufacturing, assembly, packaging, and export as finished products. This license facilitates various industrial operations.

Business Entity Types in KIZAD

There are two primary types of business entities permitted in KIZAD.

1. Limited Liability Company (LLC)

An LLC is the primary business structure in KIZAD. You can establish an LLC with a minimum paid-up capital of AED 150,000. Ownership can be held by individuals, corporations, or a combination thereof. KIZAD Free Zone LLCs can have a minimum of 1 and a maximum of 5 shareholders.

2. Branch of a Company

Companies outside of KIZAD can register branches in KIZAD FTZ. Both UAE-based and foreign companies are eligible to establish branches, and there’s no initial capital requirement for this setup.

Registration and Licensing Procedure

Before starting business operations in KIZAD’s free zone, you must complete the registration and licensing process, a comprehensive procedure several several steps.

The main steps involved in setting up a business in KIZAD FTZ are as follows:

  1. Choose the most suitable business activity, aligning it with the “International Standard Industrial Classification” as endorsed by the UN, and gain approval for your chosen activity.
  2. Select the appropriate legal form for your company, depends on its nature and legal requirements.
  3. Register your company name, ensuring its uniqueness and describe your business type.
  4. Apply for initial approval, which will be granted by relevant authorities based on your business type and structure.
  5. Obtain all necessary approvals from the relevant authorities, which may vary according to your business type. Meeting these conditions is crucial for final approval.
  6. Secure a business license, selecting from the three available types based on your business’s nature.

Required Documents

Document submission is a critical aspect of company formation in KIZAD. Essential documents for the registration process include:

  • A completed application form
  • A copy of your passport in color
  • A passport-sized photograph
  • Attested educational certificates (if applicable to your consulting and investment activities)
  • Your latest UAE resident visa or visit visa

KIZAD Dual License

An exceptional feature of KIZAD FTZ is the availability of a dual license. With this arrangement, KIZAD-based companies can obtain additional licenses from DED Abu Dhabi for mainland operations, eliminating the need for a local sponsor or local service agent (LSA) in the mainland area. Companies holding a dual license aren’t obliged to acquire physical office space in mainland Abu Dhabi.

Get in Touch

Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?

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