start a business in uae free zone

KIZAD - Khalifa Free Zone Abu Dhabi

Overview of KIZAD

KIZAD stands for Khalifa Industrial Zone Abu Dhabi. It is a state-of-the-art Free Zone located next to Khalifa port – one of the most developed ports in the world.

As of now, it is the most affordable Abu Dhabi Free Zone.

In 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.

Offices and warehauses in KIZAD

KIZAD industrial 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.

KIZAD master plan is designed to fit all the needs of manufacturing, trading and storage companies. Khalifa Port connects the free zone with more than 60 international destinations.

Apart from that, the free zone offers flexi-desks and offices to accommodate businesses with any business activity.

A good thing about this zone is if you are renting an executive office, the trade license is given free of charge.

Business activities

KIZAD free zone offers a vast list of activities with its focus on the following sectors:

  • Trading
  • Industrial
  • Logistics

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.

KIZAD also have service activities related to:

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

KIZAD license is allowed to have 5 similar business activities. The business activity will be added to your company name, for example: ABC food and beverages trading LTD.

Service activities require a proof of educational degree

KIZAD license costs

Khalifa Industrial Zone Abu Dhabi can be considered one of the most affordable zones in the UAE. License costs start from 11,000 AED and this package is eligible for 1 resident visa.

Any standard package includes flexi-desk rent.

If you are looking for an office or a warehouse, there are a lot of customized solutions ready to move in. Warehouses costs start from 350 AED per sq meter per year.

Business setup in the Free Zone

You can register both Free Zone and non Free Zone companies through KIZAD authority. KIZAD company can be a zero visa and visa eligible packages.

There is also an offer to get a dual license with Abu Dhabi Department of Economic Development. It will allow to operate within the free zone and in the mainland area as well.

Documents you need for the setup:

  • Passport copy
  • Passport size photo
  • Bank reference or statement
  • CV
  • Business plan

KIZAD Khalifa industrial zone does not have a fully remote registration option, but you need to visit its office only once either in Abu Dhabi or Dubai.

Proof of minimum share capital of 26 000 AED is required to be deposited to your corporate account after 60 days from the date of company formation.

KIZAD UAE residency

Khalifa industrial zone Abu Dhabi allows to start the visa process only after corporate account of the company is opened and the capital of 26,000 AED is deposited there.

Medical check-up and Emirates ID application can be done only in Abu Dhabi. Health insurance is mandatory. The basic insurance costs about 800 AED.

Visas are valid for 3 years, both for company owners and employees.

KIZAD visa costs (AED):

 Viza fees, AEDMedical checkup, AEDEmirates ID, AED
Investor3,072690370
Employee3,072690370

If you are planning to sponsor dependents, you must have a residential tenancy contract. You need to rent an apartment or a villa only in Abu Dhabi. It differs from the option of business setup in Dubai, where the place of tenancy contract does not matter.

Licence renewal

Renewal cost of the license will be exactly the same as its incorporation fee.

Financial audit is not required. Renewal can be done without the physical presence of the company owner.

Amendments

Company amendments can be applied for only by the company’s shareholders or by a company representative with Power of Attorney.

As usual, amendments can be the following:

  • Change of manager/director
  • Shares transfer
  • Name change
  • Activity change

Liquidation

Company liquidation costs 2,625 AED and takes about 1 month.

The company needs to appoint auditors as liquidators and they have to issue confirmation that the company has no liabilities in the market.

All resident visas must be closed prior to the liquidation.

Corporate bank account needs to be closed as well.

Business setup consultants opinion

KIZAD is a great option for those who need their business to be registered in Abu Dhabi or plan to set up a manufacturing activity next to a port.

Alternative solution can be business setup in Sharjah Airport Free Zone, which has a lot to offer for industrial companies too.

BENEFITS OF KHALIFA 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 Abu Dhabi port
  • Possible to open a second license in Mainland without 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 no visa AED 16,650 $4,600download breakdown
Trading / Services license + Flexi desk 1 visa AED 24,105 $6,600download breakdown
Trading / Services license + Flexi desk 2 visas AED 30,903 $8,500download breakdown
Trading / Services license + Flexi desk 3 visas AED 37,787 $10,400download breakdown
Trading / Services license + Flexi desk 4 visas AED 44,670 $12,300download 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

  • If l register a company in a free zone outside of Dubai, can l live and have a bank account in Dubai?

    Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.

  • Can I open a bank account remotely?

    No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.

  • Do banks give debit and credit cards or loans?

    Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.

  • Can a free zone company hold its offices outside the free zone?

    Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.

  • Why do I need a flexi desk or office?

    A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.

  • Do we have to pay VAT if our company is registered in the Free Zone?

    VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.

  • Should I pay any other TAX?

    UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.

  • Why will a free zone company suit me better than an offshore or a mainland entity?

    Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.

  • Can you guarantee opening of a bank account?

    We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.

  • Should I renew my company? When? How much does it cost?

    Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.

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