A Quick intro about Abu Dhabi Airport Free Zone
Abu Dhabi Airports Free Zone (ADAFZ) is a wholly owned subsidiary of Abu Dhabi Airports. Abu Dhabi Airports Free Zone (ADAFZ) operates Airports’ Free Zones, a Logistics Park, Business Parks, Business Centers and One Stop Shop Services. Its jurisdiction spreads across more than 10.6 Km2 around Abu Dhabi International Airport covering five commercial districts: Logistics Park, Business Park, Destination Village, Al Falah District and Airport City.
ADAFZ helps foreign companies to grow their businesses by taking advantage of Free Zone incentives available in premises at Abu Dhabi International Airport, Al Bateen Executive Airport and Al Ain International Airport.
ADAFZ offers the customers much more than just an ideal location, with a wide range of facilities and premium services, together with Free Zone benefits. These include tax incentives, easy and quick registration and licensing, lease agreements, relocation and many other government services.
Q) Why investors have to consider Abu Dhabi Airports Free Zone (ADAFZ)?
Abu Dhabi Airports Free Zone (ADAFZ) offers:
- One of the most attractive places with effective investment
- Full spectrum of Free Zone services, including company registration, licensing, leasing and rapid visa processing for employees
- Wide range of facilities and infrastructure
- Full range of essential ancillary amenities to serve everyday business needs
- Exceptional amenities, incentives and unmatched logistics infrastructure and airport services
Q) What are the various business activities Abu Dhabi Airports Free Zone (ADAFZ) welcomes?
- Aerospace, Airlines and Carriers Aircraft Interiors and Airport Services
- MRO
- Flight support services
- Trading
- Logistics, Transportation, Warehousing Distribution/ Storage
- Cold storage – food and beverage
- Assembly and Light Manufacturing
- ICT
- Consultancy Management
- Pharmaceuticals
- Retailers
Q) What are the types of entities that can be incorporated in Abu Dhabi Airports Free Zone (ADAFZ)
There are 3 types of entities that can setup business here:
- Free Zone Limited Liability Company FZ-LLC (Corporate)
- Free Zone Limited Liability Company FZ-LLC (Natural)
- Branch of a local or foreign company
Q) What is the company set up process in a brief in Abu Dhabi Airports Free Zone (ADAFZ)
STAGE ONE – Initial approval
The initial approval process is free and simple. To set up a branch company, it requires the following:
- Completed application form
- Business plan
- Copy of existing trade license/registration certificate (if you are an existing company)
- Color passport copies of the company’s shareholder(s) and the appointed manager for the new ADAFZ company
- 2 years audited financial reports for corporate entity or certificate of reference from a personal bank of the individual shareholder
STAGE TWO – Registration
- Payment of registration fees of AED 5,000 or AED 7,500, together with license fees ranging from AED 15,000 and AED 50,000 depending on whether a service, trade or manufacturing license is required
- Submit completed application for registration
- Board resolution appointing Manager (notarized and attested)
- Power of Attorney given to Manager (notarized and attested)
- Memorandum & Articles of Association (notarized and attested)
- Specimen signature of Manager (notarized and attested)
- Passport size photo with white background of Manager
Note: The average time expected to complete the registration process is 14 working days
STAGE THREE – Licensing & Visa process:
- Lease agreement to be signed
- Once the above has been completed, we will issue the license immediately
- Visa processing will start
Q) What are the types of licenses available for business set up in Abu Dhabi Airports Free Zone (ADAFZ)?
- Trade licenses: Allows for import, export, re-export, distribution and storage
- Service licenses: Service license is for service-based businesses
- Light industrial licenses: Allows for light manufacturing, assembly and packaging
Q) What is to be done for renewal of license in Abu Dhabi Airports Free Zone (ADAFZ)
- Cost of Renewal is less expensive than that of cost of incorporation
- An application to renew a License shall be made to ADAC (Abu Dhabi Airports Company) no later than three (3) months prior to the end of the current Term of the License
- The renewal of the License shall be granted by ADAC for a period of one (1) year from the date of renewal, unless otherwise specified by ADAC, and shall be subject to such terms and conditions as ADAC may determine
- Where ADAC renews a License, it shall give written notice of that fact to the applicant
Q) What are the Competitive advantages of setting up business inAbu Dhabi Airports Free Zone (ADAFZ)
- 100% foreign company ownership
- 100% Capital and profit repatriation
- 100% tax exemption (inside the designated zone)
- Quick, simple registration and licensing
- Free Zone environment & services
- Free Zone Registration & Licensing
- A strategic location with proximity to Abu Dhabi International Airport, facilitating imports and exports
- No currency restrictions.
- Quick, simple registration and licensing within their “One-Stop-Shop”
- In-house IT and telecommunications services
- Easy access to regional markets.
One Stop Shop
The One Stop Shop (OSS) online portal provides a convenient, secure and easy-to-use channel to conduct your business transactions with ADAFZ. Through this interactive portal, Free Zone companies can view their company information including the company license, lease, employee and financial details.
Online services available through the portal are:
- Company dashboard
- Employment visa related requests
- Letter/certificate request
- Employment cards and access passes
- Registration services
- Licensing services
Corporate tax applicability to the companies in Abu Dhabi Airports Free Zone (ADAFZ):
Corporate tax law is going to be applicable for all the companies registered in UAE including the free zones in UAE. The UAE Corporate tax is going to be effective for the financial year beginning on or after 1 June 2023 for the businesses in UAE. Corporate tax will be levied at zero percent on the taxable income (adjusted net profit) of the businesses in the free zones as long as they comply with all the regulations of the respective free zone and do not do any business with the mainland companies, otherwise there is a possibility of levying 9% corporate tax on the taxable income (adjusted net profit) in excess of AED 375,000. Hence companies in the Free Zones need to make sure that they are complying with all the regulations of the free zone and do not do any business with the mainland entities to enjoy the benefit of zero percentage of UAE corporate tax.
{NOTE: Kindly note that the authenticity of this article is limited to the day of publishing this blog. As policies and rules pertaining to each free zone keeps changing from time to time based on the necessity of the respective authority, it is hereby advised you to check the website of the concerned free zone directly to get the latest update on the same. We do not assume any liability if you have taken any decision based on the information provided in the article. We have ensured that the presented information to the visitor is legible to the maximum extent possible so that all the information is available in one page, at one go. Thank you.}
Why Spectrum Auditing?
Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at the utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.
Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration and de-registration of your company in Abu Dhabi Airport Free Zone (ADAFZ). Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.
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