Start business in UAE free zones

KIZAD - Khalifa Free Zone Abu Dhabi

verified by : Elena Ovchinnikova

03 Jul 2024

Company setup from AED 9,950

Bank account Guaranteed

Residence visas for 2 years

Emirabiz experts’ opinion

KIZAD authorized partner

Is KIZAD suitable for your business?

• Yes,

  • if you are looking for a low-cost business setup solution in the UAE or specifically in Abu Dhabi, as KIZAD is one of the most cost-effective and affordable free zones in both Abu Dhabi and in the entire country.
  • if your business is related to industry, trade, or logistics, as KIZAD provides excellent logistical opportunities, as well as large storage facilities such as standard and customizable warehouses of the highest quality.
  • If you’re planning to open a business aimed at services such as management, marketing, freight forwarding support, or traveling.
  • if your business requires a dual license with a mainland facility or retail space, as KIZAD allows for opening a second license in the mainland without a local sponsor.
  • if you’re an ADNOC contractor looking for a cost-effective setup in Abu Dhabi.

You can also consider an alternative solution such as a business setup in Sharjah Airport International Free Zone, which has a lot to offer for industrial companies too.

• No,

  • if you intend to open a business in Dubai.
  • If your nationality is considered a high-risk one, as you may be able to open a company in Abu Dhabu but may not be granted a residency visa.
  • if your business revolves around non-industrial activities and does not require storage or retail facilities. For such business activities, we recommend Dubai Media City or Fujairah Creative City free zones

KIZAD company formation process

You can register both free zone and non-free zone companies through the Khalifa Industrial Zone authority. KIZAD provides both zero-visa and visa-eligible packages. Company formation in KIZAD includes a remote business setup option that can be implemented via online video verification.

Company registration procedure in KIZAD

Step 1. Choose your business activities and license type. 

Determine the business activities of your future company and the corresponding license type. This is a key aspect of business setup, as choosing the wrong activity and license can lead to errors during company registration, creating problems with opening a bank account or even making such opening impossible. Note that KIZAD allows for up to 5 activities under a single license, and the business activity will be added to your company name, for example: ABC Food & Beverages Trading LTD.

Step 2. Determine the legal entity of your business. 

Specify the legal status of your business in KIZAD. Available company formation types at KIZAD include LLCs (Limited Liability Companies) or a branch of an already existing company registered in another free zone or the UAE mainland.

Step 3. Prepare and file the required documentation. 

Prepare and submit the necessary documents. KIZAD requires the following documentation package: 

  • FZ application & licensing registration form (should be typed)
  • Business plan
  • RIC form
  • UBO form
  • Passport copies, with visa (if applicable)
  • NOC in Arabic from the sponsor on letterhead (if applicable)
  • Jinsiya (family book for UAE nationals)
  • Emirates ID copies (if applicable).
  • 1 passport-sized personal photo (with white background)
  • University educational certificates attested by the UAE embassy in a related country & translated to Arabic (for consultancy & investment service licenses only)
  • Proof of residency - electricity bill/tenancy contracts
  • Personal CV

Company registration in KIZAD requires an initial approval which takes 1-2 weeks to be completed. Initial approval is done at a fee of 500 AED. Also, this step involves paying all the registration and processing fees.

Step 4. Collect the license and registration documents. 

Receive the license and registration documents for the company, including: 

  • Certificate of Incorporation
  • Business license
  • Memorandum and Articles of Association
  • Investment Service Agreement
  • Share certificate
  • Lease agreement

Step 5. Secure your Establishment Card.

 Receive the Establishment Card containing information about your company and visa quotes.

Step 6. Apply for an entry permit. 

Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.

Step 7. Take a medical test and submit visa documents. 

Undergo a medical checkup and submit documents for residence visa approval as well as your biometrics. Different registration packages may provide for a varying number of visas available for owners and employees of the company. Note that at KIZAD, you may now get initial approval from the free zone authorities based on the chosen business activity and company type. Also, health insurance will be mandatory.

Step 8. Collect your Emirates ID. 

Once your visa is issued, secure your Emirates ID card. 

Step 9. Open a bank account.

Apply to a UAE bank to open a corporate bank account. At least one shareholder of the company is required to have a UAE residency visa to be able to open a bank account for the company. Also, KIZAD does not require proof of deposit of the share capital on the corporate bank account. However, you may be asked for it depending on the chosen bank, so make sure to settle this issue with banks beforehand.

KIZAD license cost

Khalifa Industrial Zone Abu Dhabi can be considered one of the most affordable zones in the UAE. License costs start from AED 9,450 and this package is eligible for 1 resident visa.

Any standard package includes flexi-desk rent.

KIZAD cheapest 1-year license packages:

TYPE OF LICENSE COST, AED
1-visa Trading/Services license 9,450
2-visa Trading/Services license 11,150
3-visa Trading/Services license 12,850
4-visa Trading/Services license 14,550

The additional costs apart from the license fees include:

  • KIZAD visa fee
  • KIZAD Establishment Card
  • Medical checkup
  • Emirates ID

KIZAD licenses and business activities

Khalifa Industrial Zone offers a vast list of activities mainly related to industry, trading, and logistics. You can engage in up to 5 similar activities under one license. KIZAD also allows for service activities related to:

  • Management
  • Marketing
  • Freight forwarding support
  • Travel agencies
  •  And many more 

Note that service activities require a proof of educational degree. 

In the table below, you can find the list of business licenses supported by KIZAD and their descriptions.

LICENSE TYPE KIZAD LICENSE DESCRIPTION
Services For companies offering professional consulting and several other service types. 
Trading/General Trading For companies involved in goods import or export, their distribution, delivery, and storage
Industrial For companies in the business of production, packaging, processing of raw materials, their import or exporting of particular goods.
Branch For local and foreign parent companies seeking to open a branch in KIZAD.

It has attractive tax conditions for manufacturers producing goods in the free zone and re-shipping them to other countries. You can claim tax exemption on raw materials as well, which is also beneficial to trading companies that carry out import and export activities to customers that are not the final consumers.

KIZAD Facilities

Khalifa Industrial Zone Abu Dhabi offers an array of accommodation solutions for your company setup. The free zone has one of the highest-quality warehouses among all UAE free zones. They do not require high investments in order to move in and start working. Apart from that, the free zone offers flexi-desks and offices to accommodate businesses with any business activity. 

Below are the accommodation options available at KIZAD:

FACILITY TYPE DESCRIPTION
Flexi-desk Flexi-desks provide a collaborative shared workstation that is ideal for entrepreneurs and start-ups due to its cost-effectiveness.
Dedicated office The standard office offers a secure workspace equipped with all the essentials.
Exclusive office The exclusive office option is dedicated office space with all the necessary furnishing and customization options, as well as a free business license.
Pre-built and customizable warehouses Scalable high-quality warehouse units for storage and logistic operations with sizes varying from 300 to 500 sq. meters.
Light Industrial Units (LIU) Pre-built facilities used for manufacturing, assembling, processing, and packaging aimed at SMEs.
Land lots Serviced land plots for a variety of commercial and industrial operations.

KIZAD’s master plan is designed to fit all the needs of manufacturing, trading, and storage companies. If you are looking for an office or a warehouse, there are many customized solutions. Warehouse costs start from AED 350 per sq.meter per year. Khalifa Port connects the free zone to more than 60 international destinations. Another key thing about KIZAD is that if you are renting an executive office, the trade license is given free of charge.

KIZAD residence visas

Medical checkup and the submission of biometrics can be done in any emirate. Health insurance is mandatory, with the basic insurance option priced at about AED 600.

Visas are valid for 2 years both for company owners and employees.

KIZAD visa costs:

  KIZAD FEE, AED MEDICAL CHECKUP, AED EMIRATES ID, AED
Investor 3,072 690 370
Employee 3,072 690 370

If you are planning to sponsor dependents, you must have a residential tenancy contract. However, an apartment in Abu Dhabi is not required for family sponsorship.

KIZAD company license renewal

The renewal of the KIZAD business license costs the same as the original license and is quick and easy. A financial audit is required. Renewal can be done without the physical presence of the company owner.

Fee Cost, AED

KIZAD Service/Trading/Industrial license renewal (after two years)

9,450
KIZAD General Trading license renewal (after two years) 15,000

Note that no amendment charges are applied to make changes during company renewal. To renew your business license, submit an application form with the required documents to the free zone authorities, pay the renewal fees, and wait for your license to be renewed.

KIZAD company amendments and regulations

At Khalifa Industrial Zone, Company amendments can be initiated only by the company’s shareholders or by a business consultant acting as a company representative. A board resolution detailing the share amendment will be required to be signed by the company shareholders.

Service Cost, AED
KIZAD share amendment 3,000

The list of company amendments supported by KIZAD includes:

  • Changing the company name
  • Changing managers/shareholders
  • Changing the company’s business activities
  • Appointing or resigning positions
  • Transferring company shares
  • Changing visa packages
  • And others 

To make changes to your company, initiate the amendment by contacting the KIZAD authorities or your business setup consultant, pay the amendment fee (if necessary), and wait for the amendment confirmation.

KIZAD company liquidation

At Khalifa Industrial Zone Abu Dhabi, a company needs to appoint auditors as liquidators and they have to issue confirmation that the company has no liabilities in the market. After the liquidation report is issued by the auditor, you will then be required to pay the liquidation fee.

Service Cost, AED
IFZA company liquidation 2,500

The liquidation procedure will be the following: 

1. Provide the following mandatory documents:

  • Board resolution signed by the shareholders and stating the reason for the company liquidation
  • deregistration documentation
  • visa cancellation documentation
  • copies of passports and visas for all visa holders
  • audit report

2. Pay cancellation fees and settle other payments.

3. After this, the process of the shareholder visa cancellation starts.

4. The deregistration letter will be sent to your email confirming the cancellation of your company. 

The timeframe of the company liquidation process at KIZAD is approximately 1 month. All resident visas must be canceled prior to the liquidation. The corporate bank account needs to be closed as well.

About KIZAD

KIZAD stands for Khalifa Industrial Zone Abu Dhabi, currently also known as KEZAD Khalifa Industrial. It is a state-of-the-art free zone located next to Khalifa Port – one of the most developed ports in the world and a major trade and logistics hub. 

Originally, KIZAD was established in 2012 by AD Ports (Abu Dhabi Ports Group), the main Abu Dhabi developer and operator of ports and economic zones engaged in industry, trade, and logistics, in an effort to create an industrial free zone directly connected to the newly developed Khalifa Port. 

In 2022, AD Ports Group decided to merge KIZAD with ZonesCorp, a free zone operator, thus creating KEZAD Group (Khalifa Economic Zones Abu Dhabi Group), a massive conglomeration of 12 specialized economic zones with a total area of 550 thousand sq. km, which includes KEZAD Al Ma'mourah, KEZAD Khalifa Industrial, KEZAD Musaffah, KEZAD Al Ain, KEZAD Al Faya, and others. Presently, KEZAD Group is home to over 1,800 companies with a range of 17 industrial and economic sectors. 

As a result of the merger and establishment of KEZAD Group, Khalifa Industrial Zone was renamed to KEZAD Khalifa Industrial and is now among the most affordable Abu Dhabi free zones. 

One of its key features is the wide range of logistic options. In addition to being adjacent to Khalifa Port, it is essentially located between the Emirates of Abu Dhabi and Dubai, which constitutes close proximity to several airports including Al Maktoum International Airport (also known as Dubai World Central), Abu Dhabi International Airport, and Al Ain International Airport. It also has great road connectivity via E13 (Sheikh Mohammed Bin Zayed Road) and E11 (Sheikh Maktoum Bin Rashid Road) highways. 

Moreover, Khalifa Industrial’s integration into KEZAD Group provides the zone with more business and logistical opportunities through other ports, airports, and economic zones.

As compared to many other UAE free zones, it came to the market quite recently, together with another popular zone in Fujairah called IFZA. However, KIZAD offers more physical facilities, especially for storage, production, and distribution. By 2030, it is expected to amount to over 15% of Abu Dhabi’s non-oil GDP.

Benefits of KIZAD company

  • The most cost-efficient free zone in Abu Dhabi
  • Easy to open a bank account
  • Located adjacent to the Abu Dhabi port
  • Possible to open a second license on the mainland without a local sponsor

Benefits of KIZAD free zone company

  • The most cost-efficient free zone in Abu Dhabi
  • Easy to open a bank account
  • Setup within 1 day
  • Located adjacent to the Abu Dhabi port
  • Possible to open a second license on the mainland without a local sponsor

Start your business in KIZAD today

Trading and service license costs in Khalifa industrial zone

Up to 4 visas company

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading / Services license + Flexi desk 1 visa AED 23,119 $6,350 download breakdown
Trading / Services license + Flexi desk 2 visas AED 30,003 $8,250 download breakdown
Trading / Services license + Flexi desk 3 visas AED 36,887 $10,150 download breakdown
Trading / Services license + Flexi desk 4 visas AED 43,770 $11,100 download breakdown

Documents for in Khalifa industrial zone company setup

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • Passport
  • Passport size photo
  • Notarized specimen signature
  • NOC from sponsor for UAE visa holders
  • Description of business
  • 2 days- Pre-approval
  • 1 day- Visit to the Free Zone for documents signing
  • 1 day- Company registration
  • 2 weeks- Establishment card (after the bank account is opened and share capital 26 000 AED is deposited)
  • 2-3 days- Entry permit
  • 2-3 days- Medical check and Emirates ID (to be done in Abu Dhabi)
  • 2-3 days- Visa stamping

Top 10 questions about Khalifa Industrial Zone company

  • Can I open a bank account remotely?

    Basically no, as a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity. However, some banks allow remote account opening through their digital bank applications or website.

  • Do banks give debit and credit cards or loans?

    In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

  • Can a free zone company have offices outside the free zone?

    Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

  • Why do I need a flexi desk or office?

    A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

  • Do free zone companies need to pay VAT?

    VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the goods or services are supplied outside the UAE. However, if the goods or services are supplied to customers within the UAE, the 5% VAT will be applicable.

  • Are there any other taxes to be paid?

    The UAE is free from personal income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.

    On June 1, 2023, the UAE introduced 9% corporate tax, however, the UAE freezone companies that meet certain requirements as outlined by the Federal Tax Authority will be able to benefit from tax reliefs and possibly file the 0% corporate tax.

  • Why would a free zone company be better for me than an offshore or mainland entity?

    The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

  • Can you guarantee the opening of a bank account?

    While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

  • When and how should I renew my company? How much does it cost?

    Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

  • How can I pay the fees?

    You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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