Abu Dhabi

Abu Dhabi, the federal capital of the United Arab Emirates is the perfect location for someone who would want to start a company in the Middle East - it is one of the most rapidly growing markets across the world. It doesn’t take long to start up, either. In a few days’ time, you and your business could be set up and ready to go. 

List of Free Zones in Abu Dhabi

Most of the UAE emirates have set up free zones to boost the economy in the region, promote foreign investment, and drive growth. Free Zone Authority is the government body that registers and issues business licenses to non-resident companies in UAE free zone. There are 8 free zones in Abu Dhabi:

1. Abu Dhabi Airport Free Zone (ADAFZ) Click for details
2. Twofour54 Click for details
3. Abu Dhabi Ports Company (ADPC)Free Zone Click for details
4. Abu Dhabi Global Markets Free Zone (ADGMFZ) Click for details
5. Industrial City of Abu Dhabi (ADIC) Click for details
6. Higher Corporation for Specialized Economic Zones (ZonesCorp) Click for details
7. Masdar City Free Zone Click for details
8. Khalifa Industrial Zone Abu Dhabi (KIZAD) Click for details

The government promotes company formation in Abu Dhabi free zones to facilitate and promote foreign investment, therefore the procedure for business setup is simple, straightforward, less time-consuming, and free from bureaucratic barriers.

Free zones are established as independent jurisdictions which act as a single-window administration and allow an expatriate entrepreneur to wholly own a company (100% shares), without partnering with a UAE national. Abu Dhabi Free Zone Authority (FZA) is the independent government body that issues free zone operating licenses, handles registration of non-resident companies, and provides assistance to companies in establishing their business.

The process of setting up a business in Abu Dhabi free zone is not at all complicated. It includes:

1. Determining the Type of Business Activity

Since each business activity has its own rules and regulations, you are required to determine the activity that you are going to conduct, and then go forward with it.

2. Registering the Trade Name

After you are through with the first step, the next one is to register the trade name of your company. You can give the list of your suggested names to the Abu Dhabi Free Zone Authority, and if the name is not already registered by the existing company in the UAE, it shall be approved by the authorities and duly registered.

3. Obtaining Approvals from the Free Zone Authority

After getting initial approval for your trade name and fulfilling all the requirements, an investor must obtain approval for issuance of the business license.

4. Issuance of License

Once the approval of the concerned authorities is obtained, the investor may proceed to the stage of fulfilling the legal requirements of business license issuance from the free zone authority.

The Khalifa Industrial Zone or KIZAD is a project set up to breathe new life into the industrial sector of the emirate. It was set up in 2010 on a Greenfield site in Taweelah. The long-term mission is for the free zone to achieve economic diversification by 2030.

The benefits of setting up your business in KIZAD is as below:

• Easy transport
• Quick set up of new businesses
• No hassle banking
• No personal and corporate tax
• Industrial synergy
• 100% reimbursement of profits and capital
• No customs duty
• 100% foreign ownership

The types of licences offered in KIZAD are as below:

• Industrial license - ideal for businesses that import raw materials and export the finished goods.
• Service license - ideal for businesses that provide marketing, management consultancy, restaurants, warehouses, travel and tourism.
• Trading license - ideal for companies that deal in the general trading of goods.

Another free zone on offer in Abu Dhabi is the Abu Dhabi Ports Company Free Zone or ADPC. This was set up in 2012 and was created to increase trade and incoming investment opportunities.

The free zone offers provision of ports and industrial zone services and has developed long-term relationships with leading local and international customers. They want to create long-term economic viability while having a low environmental impact.

The types of licenses allowed in Abu Dhabi Port are as below:

• Trade license - ideal for companies involved in import/export.
• Service license - ideal for companies that provide services such as consultancy, banking and other professional services. They will not need an additional license from the DED.
• Industrial license - ideal for companies that import raw materials for manufacturing.
• National industrial license - ideal for companies who wish to carry out their operations in the manufacturing sector.

Another free zone available for setting up your business is right in the heart of Abu Dhabi, the Abu Dhabi Global Market or ADGM, which was established in 2015. This is the perfect place for investors who want to set up a company in the finance sector to begin their new business.

The benefits of ADGM are as below:

• No restrictions on nationality with reference to share ownership
• 100% foreign ownership
• No physical office space needed
• No tax for 50 years
• Availability of professionals
• No requirement for corporate documents to be legalised
• No restrictions on reimbursement of capital and profits

If these benefits appeal to you then there are plenty of options available to you. But all of the business activities will need to follow an easy four step registration process.

1. Complete the application form
2. Fill out the registration form
3. Apply for a commercial licence
4. Apply for a FAWRI account and Establishment Card. These are needed to apply for ADGM issued visas.

The documents required to apply are as below:

• Completed and signed beneficiary form
• Copy of passport
• Copy of business plan
• Application form for the name of the company
• Completed data protection form
• Statement of capital and initial shareholding
• Trade name reservation document
• Confirmation of restricted scope of the company
• Statement of guarantee
• A copy of lease agreement for the office space
• Copy of Articles of Association
• A statement with the intended address for the company

The Industrial City of Abu Dhabi (ADIC) has been created with the highest technological standards and is located on the outskirts of Abu Dhabi. The benefits of setting up your business with ADIC is as below:

• Total reimbursement of capital and profits
• Excellent location
• Freedom of foreign ownership
• Benefits from utility partnerships
• Easy access to licenses, permits and visas
• Advanced communication networks
• No customs duty on importation and exportation
• Transport links to Europe, Asia, Middle East and North Africa

The following procedure explains how to set up a company in ADIC:

1. Determine which business you want to look into
2. Determine the legal form of your business
3. Register your business name
4. Achieve approval from the Free Zone Authority
5. Achieve approval from other authorities
6. Get a license

The Higher Corporation for Specialized Economic Zones is one of the biggest free zone and is also home to over 600 of the well-known global companies. The businesses that are allowed in the Zonescorp are businesses that produce chemicals, food, oil, leather, construction materials, wood and fiberglass. The benefits of the free zone are as below:

• Full reimbursement of capital and profits
• Well positioned for Abu Dhabi Airport and Jebel Ali Airport
• No tax
• Investment advice on offer
• Duty-free import of raw materials
• No hassle labor procedures

The documents required for setting up a business in Zonescorp are as below:

• EAD technical information
• Authorised company contract
• Valid lease contract
• Document of contract modification registration
• Approved trade name
• Environment license
• Passport copies
• Power of attorney
• A factory site plan
• Feasibility study
• Membership certificate in the Abu Dhabi Chamber of Commerce and Industry

The Masdar City Free Zone was set up in 2006 and is just 6km away from the emirate of Abu Dhabi wit close links to the Abu Dhabi International Airport. It is a project created by the Abu Dhabi Future Energy Company and its mission is to make the area energy efficient. The businesses that would benefit the most from setting up here are renewable energy businesses, marketing, oil and gas services, business centres and property development services.

The benefits of setting up your business here are as below:

• Excellent facilities
• 100% foreign ownership
• Cost effective licensing
• No corporate and personal income taxes
• Full reimbursement of capital and profits
• No import tariffs
• Easy set up

The procedure for setting up your business in Masdar City is as below:

• Register your business name and submit the form to the DED of Abu Dhabi.
• Submit a licence form
• Open a bank account
• Obtain a license and sign your lease agreement

Licensing Cost in Masdar City Free Zone

Masdar Free Zone has 4 different types of licensing tariffs for companies. These tariffs are very cost-efficient for start-ups and even for MNCs:

Twofour54 in Abu Dhabi was established in the year 2008 to provide a business hub for local, regional and international media companies. It is a media free zone set up by the Media Zone Authority (MZA) to position Abu Dhabi as a regional center of excellence and a prominent player in the Arabic media content creation industry. MZA aims to create a platform for the inclusive development of Arabic media and entertainment content in all spheres (Events, Film, Digital Media, Publishing, Music, Broadcast, Gaming, etc.)

There are 3 major key pillars through which twofour54 delivers its advanced infrastructure for setting up business in Abu Dhabi free zones. They are:

It is supported by business enabler twofour54 Tawasol (one-stop-shop).

Business Licensing Segments in twofour54

Twofour54 focuses on media and entertainment organizations and issues license primarily for the following segments:

• Mobile
• Gaming/Animation
• Production
• TV/Film
• Online
• Publishing

Benefits Offered By Twofour54:

• On-site HD production facilities
• 100% foreign ownership
• A media training academy on site
• No taxes on corporate income
• 30% cash allowance for film/TV production overseas
• Full return of capital and profits
• No tax on personal and import income

Abu Dhabi Business Center was incorporated in March 2006 with an aim to persuade major improvement in the Emirates Aviation sector. SkyCity, a subsidiary of Abu Dhabi Airports Company is responsible for developing Abu Dhabi Airport Free Zone (ADAFZ), which is a comprehensive business park in the vicinity of Abu Dhabi International Airport. It offers regular free zone benefits, like, world-class infrastructural facilities, tax exemptions, and 100% foreign company ownership, etc. to investors belonging to Aviation, Airport services, Aerospace, Logistics, Cargo and Freight sectors, apart from the infrastructural benefits like warehousing and logistic units, land plots, and commercial offices for business setup.

Types of Legal Entities in ADAFZ

A business in Abu Dhabi Airport Free Zone can be registered as one of the following entities:

• Free Zone Limited Liability Company (FZ-LLC) - Corporate
• Free Zone Limited Liability Company (FZ LLC) - Natural
• Branch of a local or foreign company