Setting up a business can be hard, especially in a new place. The Khalifa Industrial Zone Abu Dhabi (KIZAD) offers unique advantages for businesses looking to expand. This article will guide you through the steps of company setup in KIZAD, from registering a name to securing visas. Simplify your Khalifa Industrial Zone Abu Dhabi business setup process!
Key Takeaways
- KIZAD provides a highly strategic location linked to Khalifa Port, offering easy access to regional and international airports and markets.
- Businesses in KIZAD Freezone enjoy 0% corporate tax, no VAT, and competitive operational costs.
- KIZAD Free Zone companies can choose from various licenses: industry, trade, or services. They also have the option to form subsidiaries or LLCs with 100% foreign ownership.
- Key steps include selecting business activities, registering a name through the online portal, securing visas for employees, and opening a corporate bank account.
- The initial share capital of AED 150,000 is recommended for smooth business operations within the first year.
Benefits of Khalifa Industrial Zone Abu Dhabi Business Setup
Khalifa Industrial Zone Abu Dhabi Free Zone offers many perks for businesses. United Arab Emirate’s KIZAD ensures easy access to high-quality facilities, including pre-build warehouses, land leases for custom projects, and light industrial units to meet your business needs. Enjoy cost savings and access to top-notch infrastructure by Khalifa Industrial Zone Abu Dhabi business setup.
Strategic Geographic Position
KIZAD sits near Khalifa Port, one of the world’s top deep-sea ports. This prime spot helps businesses reach regional and international markets quickly. Khalifa Industrial and Free Zone Abu Dhabi Business Setup offers multimodal connectivity with sea, air, road, and rail networks.
Spanning over 550 square kilometers, Khalifa economic zones are among the largest economic zones globally. It boosts trade and logistics between Asia, Europe, and Africa. “A strategic location can make or break a business,” says an industry expert.
Incentives and Financial Advantages
Businesses in KIZAD enjoy a 0% corporate tax. They also enjoy the advantages of business setup in KIZAD without facing withholding taxes or VAT. These favorable tax conditions lower overall costs and increase profit margins.
Operational costs are competitive. It is recommended to have AED 150,000 for share capital within the first year of operation. This ensures smooth setup and growth of business in Dubai and Abu Dhabi.
Superior Transport and Logistics Networks
KIZAD boasts a direct connection to Khalifa Abu Dhabi Port. This port is among the top in the UAE and supports efficient sea transport. Companies benefit from fast shipping and reliable logistics.
KIZAD also features multimodal connectivity. Goods can move easily via sea, air, road, and rail networks like Etihad Rail. These options ensure smooth transportation of goods for general trading across the Emirates and beyond.
Licensing Options and Organizational Structures in KIZAD
KIZAD offers various licenses for businesses in Abu Dhabi in various fields such as industrial, trade, and services. Companies can also choose from several organizational structures like subsidiaries or limited liability companies (LLCs).
Types of Business Licenses
In Khalifa Industrial Zone Abu Dhabi (KIZAD) or Khalifa Port Free Trade Zone (Khalifa Port FTZ), businesses have many options for licenses in the UAE. These include industrial, trade, and service licenses.
- Industrial License
- Required for manufacturing and production activities.
- Often used in food processing or renewable energy sectors.
- Needed to operate pre-built warehouses and factories.
- Trade License
- Essential for importing and exporting raw materials and goods.
- Useful for companies involved in the trading of solar panels or electronics.
- Allows for setting up branch companies and subsidiaries for national and international trade.
- Services License
- Permits businesses to offer various professional services to clients.
- Common in banking, consultancy, and logistics sectors.
- Helps establish limited liability companies (LLCs) providing specialized services.
Subsidiary and Limited Liability Company Formation in Khalifa industrial zone
Establishing a business in the KIZAD Free Zone offers flexibility and operational efficiency. You can choose between forming a Subsidiary or a Limited Liability Company (LLC).
- Subsidiaries and LLCs both allow 100% foreign ownership.
- No minimum paid-up capital is required for LLCs.
- Business owners can fully repatriate capital and profits.
- Limited Liability Company (LLC)
- A popular choice due to its structure.
- Owners’ liabilities are limited to their shares in the company.
- Easy to form with no need for high start-up capital.
- Subsidiary
- Acts as an extension of the parent company.
- Can enjoy the same benefits as an LLC.
- Easily set up within KIZAD’s business-friendly environment.
Steps of Company Formation in KIZAD Free Zone
Choose the type of business you want to start and gather the necessary documents for your business setup in Abu Dhabi. Apply for relevant licenses and permits from the authorities.
Select Business Activities
Select the specific activities your business will engage in. Abu Dhabi’s Khalifa Industrial Zone supports many sectors. These include trade and logistics, manufacturing, food processing, and healthcare equipment.
Use this step to outline what your company will do. For example, if you plan to manufacture aluminum products or automotive spare parts, note these details. This ensures you choose the right license for industry needs.
Register a Name for Your Business Setup
Choosing the right business name is a crucial step in the business setup process. It must comply with KIZAD regulations. Ensure it reflects the activities of your business. Avoid any names that are offensive or conflict with existing trademarks.
Register the chosen name through KIZAD’s online portal. Business setup consultants at Xpert Advisory can help with this step. Once approved, proceed to secure visas for employees.
Secure Visas for Your Company in KIZAD
Getting a visa for your business in KIZAD involves specific steps. An investor visa costs AED 2,186.05 for E-Channels registration and AED 736.05 for the entry permit. These fees cover necessary procedures and secure visas for business setup in KIZAD.
For businesses using the Minimum Warehouse package (380 Warehouse), you can get up to 15 visas included with the package fee of AED 139,650. This fee also covers registration, licensing, facility setup, and an immigration card.
Initiate a Corporate Bank Account
After securing visas, initiate a corporate bank account for your business. Choose from reputable banks in the UAE like Abu Dhabi Commercial Bank or Emirates NBD. Prepare key documents required for smooth banks account opening and setup process.
Business registration documents includes copy of passport, visa copy, no objection certificate(NOC) from the current sponsor, educational qualification degree certificate and application form.
Also, submit an initial deposit reflecting the recommended share capital of AED 150,000 within the first year. Expect to provide annual financial audit reports to comply with regulations. Be aware that this process might take several weeks.
Conclusion
Khalifa Industrial Zone Abu Dhabi is a prime spot for setting up your business. It offers strategic advantages and various licenses. Enjoy zero tax and world-class infrastructure. With easy steps to register, start your Khalifa Industrial Zone Abu Dhabi business setup today!
