Are you looking to start a business in Abu Dhabi? The first thing you have to decide is whether to set up business on the mainland (also known as 'onshore') or in a free zone (also known as 'offshore'). Establishing a business in the free zones of Abu Dhabi presents numerous advantages for both local and international businesses seeking to conduct operations within the UAE.
The free zones in Abu Dhabi have been designed to cater to a diverse range of industries, including logistics, media, and small businesses, among others. Entrepreneurs can choose from several free zones, each with its own unique set of advantages and incentives. If you already have a business in Abu Dhabi free zone, this blog will let you learn more about it. Following are the different free zones in Abu Dhabi.
The Abu Dhabi Airport Free Zone, known as ADAFZ, is strategically situated in proximity to the Abu Dhabi International Airport and was established by Skycity, a subsidiary of the Abu Dhabi Airports Company (ADAC). ADAFZ primarily focuses on the aviation, aerospace, airport services, logistics, cargo, and freight sectors. The free zone features commercial offices, plots of land for development, warehousing units, and logistics services, all designed to support the growth and development of businesses in these sectors.
Founded in 2006, Masdar (Abu Dhabi Future Energy Company) is committed to positioning the UAE as a prominent global player in renewable energy and sustainable urban development. Intending to make sustainability solutions economically viable, Masdar aims to enhance the UAE's role in the renewable and clean energy sectors. The Masdar City Free Zone, situated in Masdar City, an urban community located near Abu Dhabi, serves as a vibrant business hub that fosters innovation and growth in the field of sustainable technology.
Twofour54 is a media-free zone to establish a thriving creative and media cluster in Abu Dhabi. It is a driving force in the development of Abu Dhabi as a premier filming location and supports the growth of local content and talent. Numerous media houses, including the BBC, CNN, Thomson Reuters Foundation, and the Financial Times, operate in Twofour54 Abu Dhabi, solidifying its position as a leading international media hub.
Khalifa Industrial Zone Abu Dhabi (KIZAD) is a subsidiary of Abu Dhabi Ports and serves as a hub for integrated trade, logistics, and industrial operations. Located between Abu Dhabi and Dubai in the Al Taweela area, KIZAD is inextricably linked to Khalifa Port, which is one of the world's most advanced deep-sea ports.
KIZAD provides comprehensive support for a wide range of business activities, including manufacturing, logistics, trade, and distribution. Companies operating within this free zone enjoy the benefits of tailored business facilities, strategic geographic location, and low operational costs.
The Industrial City of Abu Dhabi (ICAD) is an economic zone that supports various industrial businesses such as oil and gas, engineering, construction materials, and more. It provides essential infrastructure and support to facilitate the smooth running of these industries. ICAD is managed by ZonesCorp, which is the UAE's largest operator of purpose-built industrial zones. In addition to ICAD, ZonesCorp also oversees the Al Ain Industrial City, further solidifying its position in the industry.
Established in late 2015, Abu Dhabi Global Market (ADGM) is a financial free zone that operates under a common law jurisdiction. It boasts a separate court system, the ADGM Courts, which can hear commercial cases of ADGM companies and other businesses that choose to "opt-in." ADGM permits a wide range of financial, non-financial, and retail businesses to operate within its jurisdiction, including banks, financial advisers, investment advisers, trust service providers, fintech companies, and more.
Established in 2004, the Higher Corporation for Specialized Economic Zones (ZonesCorp) is responsible for the development of industrial cities in Abu Dhabi. The free zone has successfully attracted significant foreign direct investment and has played a vital role in the industrial growth of the Emirate. ZonesCorp enjoys easy accessibility to four major ports in Abu Dhabi - Mussaffah Port, Zayed Port, Khalifa Port, and Jebel Ali Port - all located within an hour's drive from the free zone. A diverse range of industries such as chemicals, food and beverage, oil and gas, leather and textiles, construction materials, engineering and metals, product assembly, wood and paper products, and fibreglass and plastic products, are developed within ZonesCorp.
Each free zones in Abu Dhabi are committed to developing its respective sectors and establishing the Emirate as a globally competitive and top-notch business destination that attracts local and international investment. In order to register in any of the free zones in Abu Dhabi, the entity must be a Free Zone Limited Liability Company (LLC), a branch of a foreign or UAE company, or a freelancer with a freelance permit.
Companies registered in free zones and holding a free zone trade license are required to submit an audited annual financial statement during license renewal. Non-submission of the audit report can lead to hefty fines for the business. To ensure compliance and avoid penalties, it is crucial to conduct a free zone audit.
Audits in the free zone: To ensure compliance and avoid potential fines and penalties, conducting audits in free zones is crucial. GAAP Associates is a highly reputable audit firm in Abu Dhabi, UAE, registered and approved by all major free zones in the UAE. Our expert team provides annual reports that meet the specific requirements of each free zone, ensuring accurate and timely reporting for our clients.
Corporate tax in free zones: In light of the importance of free zones, the corporate tax law of the UAE has incorporated specific regulations. Being one of the top corporate tax consultants in Abu Dhabi, UAE, GAAP Associates can determine whether you are subjected to tax. We also assist Freezone companies in preparing financial records and documents, comprehending tax rates, understanding how related party transactions and connected persons are treated, withholding tax requirements, and allowable expenses. Our extensive expertise and knowledge ensure that companies operating in free zones comply with all necessary tax regulations.
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