Dubai Energy & Environment Park (ENPARK) – Non- Designated Zone

Dubai Energy & Environment Park (ENPARK) was established in 2006, being a member of TECOM Investments. It is a free zone that is designed and dedicated to clean energy and environmental technology. Everything in ENPARK is environment-friendly, from residential communities to entertainment outlets.

ENPARK aims to provide commercial and residential space, research centers, education and leisure facilities. Companies operating in ENPARK will be part of a fully integrated knowledge community offering opportunities for partnerships, networking and a comprehensive support system for success.

It feature manufacturing companies with environmentally-friendly production lines, residential communities and retail space, including shopping, dining, and entertainment outlets.
The commercial component of ENPARK includes expansive open areas, niche business centres and office space while the residential part includes ecologically friendly tower apartments and lofts, detached villas and townhouses catering to different lifestyles and income.

Business Activities

  • Renewable Energy
  • Energy Generation
  • Green Buildings
  • Water and Wastewater
  • Recycling and Solid Waste
  • Energy Storage
  • Air and Environment
  • Transportation
  • Organic Products
  • Energy Transmission and Distribution
  • Energy Efficiency Equipment Energy Efficiency Equipment
  • Associations/Non-profit Organizations from the fields above

Documents Required for Business Setup in Dubai Environmental Park Free Zone

  • Application form
  • Letter of Intent
  • Your existing company brochure (if available)
  • Annual financial report or shareholder(s)’ 6-month bank statement (not applicable for new registration)
  • Copy of the manager’s passport and CV
  • Copy of shareholder(s)’ passport and CV
  • Original bank reference letter (for each shareholders)
  • No objection letter by the current sponsor, for the manager (if a resident of UAE and a UAE employment visa-holder)
  • Initial approval(s) from the third authority(s) in case your business activities required such approvals, e.g., media, IT, pharmaceutical
  • Business plan (we offer business-plan-writing services)
  • A legal representative (negotiator)

Additional Documents Required for a Corporate Shareholder and for Branch

  • Attested and notarized Memorandum of Association/Article of Association—it must be attested from the UAE Embassy at the place of origin.
  • Board resolution to be resolute by the board of directors of your existing company/entity at the place of origin, expressing the intent of establishing a new setup abroad—it must be attested and notarized by the UAE Embassy
  • Certificate of registration (if applicable) of your existing company/entity, license, or certificate of incorporation of your existing company/entity attested and notarized by the UAE Embassy

Value Added Tax (VAT):

Value Added Tax (VAT) has been introduced across the UAE on 1 January 2018 at a standard rate of 5%.

Who should register for VAT?

A business whether situated in designated zone or non-designated zone or outside free zone should register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 within preceding 12 months or it is anticipated  that the total value of taxable supplies exceed AED 375,000 in the next thirty 30 days. Upon registration, a tax registration number (TRN) would be issued to business by the Federal Tax Authority.

What is a designated zone?

A Designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area. Following free zones are declared as designated zones.

a. Free Trade Zone of Khalifa Port
b. Abu Dhabi Airport Free Zone
c. Khalifa Industrial Zone
d. Jebel Ali Free Zone (North-South)
e. Dubai Cars and Automative Zone (DUCAMZ)
f. Dubai Textile City
g. Free Zone Area in Al Quoz
h. Free Zone Area in Al Qusais
i. Dubai Aviation City
j. Dubai Airport Free Zone
k. Hamriyah Free Zone
l. Sharjah Airport International Free Zone
m. Ajman Free Zone
n. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
o. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
p. RAK Free Trade Zone
q. RAK Maritime City Free Zone
r. RAK Airport Free Zone
s. Fujairah Free Zone
t. FOIZ (Fujairah Oil Industry Zone)

What is a non-designated zone?

Any free zone which is not declared as designated zone is a non-designated zone. In other words a non – designated zone is any geographical area within UAE which does not have any security measures and custom controls in place to monitor entry and exit of goods and individuals. Eg. DMCC, Dubai Media city, DIFC and Dubai Internet city.

What transactions are subject to VAT within Designated zones?

a) Goods transferred between designated zones shall not be subject to VAT. However goods supplied by an entity in the designated zone to entities outside the designated zone are subject to 5% VAT.
b) Services provided by an entity to other entities inside the designated zone or outside the designated
zone are subject to 5% VAT.
c) Professional fees for services are subject to VAT @ 5%.

What government/free zone fees (License/Visa/rent) are subject to VAT?

In case of designated zones the trade license fees, visa fees, lease rentals will not be subject to VAT. And in case of non-designated zones the trade license fees and visa fees are not subject to vat however rent is subject to 5% VAT.

If you need additional assistance or have any questions, please contact the following:
Email: legal@jitendragroup.ae
Tel: +971 4 343 8022