Company Formation in KHIZAD/ Khalifa Port Free Trade Zone

KIZAD’s world-class infrastructure, transportation and logistics options, as well as its low operating cost environment,  not only promote business efficiency they also make it easier for you to achieve your business goals. However, at KIZAD, business setup support for your business starts even before your operations begin. Abu Dhabi Ports is a master developer and manager of ports and industrial zones in Abu Dhabi. It was created in March 2006 as part of the restructuring of Abu Dhabi’s commercial ports sector and acquired the assets of the Abu Dhabi Seaports Authority. Today, the company manages ten commercial, logistics, community and leisure ports, including its flagship, state-of-the-art, deepwater Khalifa Port. It is also developing the Khalifa Industrial Zone (KIZAD), Khalifa Port Free Trade Zone and logistics hub. With 90% of global trade travelling by sea, Abu Dhabi Ports plays a key role linking Abu Dhabi to global markets and facilitating the diversification of the Emirate’s economy by enabling economic development and the movement of goods, equipment and materials. It enhances the vibrancy of the economy through ports that are efficient and cost-eff¬ective, an industrial zone that provides world-class infrastructure and dedicated investor support, subsidiaries and group companies that deliver excellent services to the maritime and industrial zones sectors.

Benefits of Forming a Company in Khalifa Port Free Trade Zone Abu Dhabi KIZAD:

A Central Location:

Situated in the heart of strong growth markets, including the Middle East, Africa and South Asia regions, Abu Dhabi off¬ers access to approximately 4.5 billion consumers within four time zones.

Ease of Doing Business:

The ports of Abu Dhabi Ports and KIZAD provide a streamlined, straightforward set-up and operating environment by working with government agencies to minimize paperwork and procedures.

Cost Advantages:

Customers enjoy competitive fees for using the ports and facilities of Abu Dhabi Ports, as well as efficient high-tech infrastructure in the ports, notably the semi-automated container terminal at Khalifa Port.

Industry Stewardship:

Beyond the company gates, Abu Dhabi Ports works with organizations, government departments and other entities impacting the local logistics industry to ensure materials and goods move through the Emirate in the most efficient and cost e¬ffective way.

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:
Tel: +971 4 343 8022