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.
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.
KIZAD free zone offers a vast list of activities with its focus on the following sectors:
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:
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
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.
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:
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.
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, 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. 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.
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.
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:
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.
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.
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 |
INDIVIDUAL SHAREHOLDER
Top 10 questions about Khalifa Industrial Zone company
No, 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.
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.
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.
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.
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 transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.
The UAE is free from 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, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.
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 flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.
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.
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.
You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.
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