KIZAD Company Formation: A Complete Guide

Do you want to set up a company in KIZAD? 

This exciting free zone has attracted over 200 national and international investors. KIZAD is one of the world’s leading free zones, and it offers a wide range of advantages for businesses looking to expand rapidly.

This guide will take you through the process step-by-step and explain all of the benefits of KIZAD company formation.

What Is a Free Zone?

A free zone is an area where goods can be imported, processed, and exported without paying duty. Often, you’ll also have to pay no corporate tax and no income tax on employees.

There are free zones located all over the world, and KIZAD is one of them. This free zone offers companies the opportunity to set up their business in a tax-free environment, making it an attractive option for businesses that want tax efficiency and space.

Is KIZAD a Free Zone?

The Khalifa Industrial Zone Abu Dhabi (KIZAD) is the region’s first integrated trade, logistics, industrial, and free zone, providing excellent market access and lower operating costs.

It’s one of the world’s largest free zones. It offers businesses a host of benefits, including:

• 100% foreign ownership
• No corporate or personal income taxes
• Duty-free imports and exports

The free zone works closely with the expansion of Abu Dhabi Port, providing a range of logistics services. It’s also situated close to Khalifa Port, offering great market access. Both ports have direct access to shipping lines that operate in the region.

Other Dubai/UAE Free Zones Include

Some other interesting Dubai or UAE Free Zones are welcoming too, not just KIZAD! Are you still deciding which is right for you? You could also check out:

• Dubai Airport Free Zone (DAFZA)
• Jebel Ali Free Zone Authority (JAFZA)
• Hamriyah Free Zone Authority (HFZA)
• Ras Al Khaimah Free Trade Zone (RAK FTZ)

Each of these zones has benefits and drawbacks, so be sure to do your research before making a decision.

Differences Between KIZAD and Other Free Zones

Before choosing a free zone, a lot of our clients ask what makes it special. They also want to know how it compares to other free zones.

The main differences between KIZAD and other free zones are:

• This free zone is much larger, and with an area of over 26 square kilometres, it’s one of the largest free zones in the world.
• It offers a wide range of services, making it easy to set up your business here.
• It’s located at the heart of the shipping area, which means it is near many primary markets like Europe and Asia.
• It has been designed with various industries in mind, so the infrastructure and facilities are geared for industrial development and logistics.

From manufacturing to shipping and related services companies, this is a free zone with industry and logistics at its core. 

The KIZAD Guide to Benefits For Business Owners

The main reason that most businesses choose KIZAD Free Zone is the fact it’s a shipping port.

When expanding a business, this free zone can offer many benefits. Here are some of the main advantages of forming a company in KIZAD:

• It’s close to airports. Abu Dhabi International Airport, Al Maktoum International Airport, Dubai International Airport, and Al Ain International Airport are all reachable.
• It’s connected to Khalifa Port which is considered the maritime gateway of Abu Dhabi, so it’s ideal for shipping.
• It’s connected to all the major highways for UAE road logistics.
• It will be connected to the Etihad Rail network when it’s complete.
• There are no restrictions on hiring foreign employees in KIZAD, which can be a big relief for many business owners.

So, for logistics, shipping, and manufacturing companies it makes sense to build businesses in the KIZAD Free Zone. That’s before even mentioning the tax-free import and export opportunities.

Free Zone Warehousing and Industrial Solutions

KIZAD provides a hybrid model of free and non-free zone solutions. These include land leasing, pre-built warehouses, and free zone offices. You can also rent light industrial pre-constructed buildings and business district centres.

It’s the ultimate place to manufacture, store, ship, and distribute goods. This free zone offers a wide range of ready-built facilities to suit many needs and land plots for future development.

To save money on construction, set up logistics operations at KIZAD’s Logistics Park (KLP).

State-of-the-art, ready-to-move-in executive offices, and dedicated workstations are available. They offer a fast and efficient business setup at competitive operating costs.

Their pre-built light industrial units (LIU) provide high-quality, flexible, and self-operational spaces that are perfect for light manufacturing companies.

Land Leasing Options

One of the great things about KIZAD is the abundance of space. Land leasing options enable businesses to take advantage of that space.

Do you want to apply for land leasing? Virtuzone can help. You would be assigned a unit or plot based on business qualifications by the Plot Allocation Committee. This is a team made up of community stakeholders.

Before they reach an ultimate agreement on the business lease, you would work with us, the Plot Allocation Committee, and with the free zone administration to conduct negotiations.

KIZAD Company Formation Success Stories

A lot of businesses have taken advantage of a KIZAD formation structure to set up their business in the region and take advantage of 100% foreign ownership.

Some notable KIZAD company formation success stories include:

• DHL Express, who set up a regional hub in the area to better serve their customers in the Middle East
• P&G, who manufacture diapers and other baby products in the free zone
• Johnson Controls, who manufacture automotive batteries and other components
• Volvo Trucks, who have a truck manufacturing plant in the zone

Flexible Formations

KIZAD company formation is the perfect solution for businesses looking to expand into this booming region. With its strategic location, access to infrastructure, and 100% foreign ownership, it’s a great place to do business.

KIZAD company formation can be done in the free zone or remotely, depending on your needs and preferences.

This also sets it apart from other free zones which require face-to-face formation and a physical office to be based there.

As most companies choose KIZAD for access to Khalifa Port, it’s more common for logistics, warehousing, and trade to be based there than offices.

License Types For Company Formation in KIZAD Free Zone

There are several types of licenses available.

Industrial License for KIZAD Free Zone

The Industrial License permits the import of raw materials, manufacturing, processing, assembly, packaging, and exportation of intermediate and/or finished products. It also includes other industrial operations as specified in the free zone’s Industrial License (Category List).

Trading License OR General Trading License

The trading license is a legal document that grants permission for the holder to carry out specified trading operations, including importation, exportation, distribution, storage, and warehousing of items and commodities. Again, this applies as per the free zone’s category paperwork.

Service License

The service license permits management and economic consulting services, marketing services, transportation logistics such as cargo and freight forwarding, restaurants, retail food stores, catering services, travel agencies, and other companies that sell services.

Benefits of Company Formation in KIZAD

The KIZAD Free Zone has a lot of benefits for business owners. Here are some company formation benefits you need to know about:

• 100% foreign ownership is permitted, meaning that as a foreigner you can set up your own business here without needing any local partners or sponsors.
• There are no restrictions on the activity or sector of your business but businesses in industrial, logistics, and manufacturing love KIZAD.
• No corporate taxes, income tax, capital gains tax, or value-added tax (VAT) is charged in this free zone.
• The company can repatriate its profits and funds without any restriction.
• There is no limit on the amount of staff you can employ, and there are low minimum capital requirements.
• This free zone offers high-tech infrastructure, including a seaport and airport.
• KIZAD company formation gives your business access to a market of over two billion people in the Middle East and North Africa (MENA) region.

Company formation in this free zone gives you the chance to expand your business in a fast-growing market. KIZAD is part of the Abu Dhabi Industrial Strategy 2030, which aims to make Abu Dhabi the global centre for manufacturing and logistics.

How To Get a Company in KIZAD Set Up

If you are a business owner looking to set up in the area, it’s best to use an agent. Here at Virtuzone, we can help. Here’s how company formation works:

• First, contact us here at Virtuzone and we will guide you through the process.
• We will help you choose the right license and company formation package for your needs.
• You need to provide us with some key documents, including copies of your passport and Emirates ID, your company’s memorandum and articles of association, and proof of funds.
• Once all the paperwork is in order, KIZAD will register your company.
• Once KIZAD has approved the company formation, you can move forward to open a bank account and get work visas for yourself and your employees.

How Long Does KIZAD Company Formation Take?

This free zone typically takes between two to three weeks to complete company formation. However, this may vary depending on the type of license and package you choose.

Living in KIZAD UAE Free Zone

A lot of founders who set up offices and businesses in this zone want to know what life is like in the region. Here’s a little information about living in KIZAD.

Dining

The area has a range of restaurants to choose from, including Indian, Chinese, Italian, and Lebanese cuisines. Some of the area’s restaurants such as The Boundary at Zayed Cricket Stadium are located near excellent event spaces. Others in the Marina offer stunning views of the water.

Shopping

KIZAD has a range of shops, particularly in Yas Mall, but the area is not a shoppers paradise. Business owners based there would be likely to drive to Abu Dhabi Mall or visit Dubai for shopping.

Leisure Activities

This area is not well-known for leisure activities, however, the area is home to many excellent golf courses. For example, Saadiyat Beach Golf Club is just a short drive away.

Schools

There are no famous schools in KIZAD, but Al Basma British School is in Abu Dhabi. There are many other English-speaking schools in both Abu Dhabi and Dubai. For example, in Dubai:

• Jumeirah College Dubai
• Repton School Dubai
• Dubai British School Emirates Hills
• Dubai College School
• GEMS Royal Dubai School
• GEMS Wellington International School
• Kings’ School Dubai
• Dubai English Speaking School and College

Business owners may want to base their business in KIZAD but their family home in Dubai or Abu Dhabi.

That will enable them to make the most of the logistical benefits of this free zone and the amenities of world-class cities.

Virtuzone Can Assist With Formation in KIZAD

Here at Virtuzone, we are experts in KIZAD company formation. We can help you choose the right package and license for your needs, and provide guidance with every step of the way.

If you’re still not sure, that’s okay too. There is a lot of great free zones in the UAE which is perfect for growing businesses that are interested in shipping, export, manufacturing, and warehousing. We can help you choose the one that’s right for you.

If you have any questions about company formation or would like to get started, please do not hesitate to contact us at Virtuzone.