Free zones in the Emirates attract the attention of investors and businessmen due to more loyal terms of cooperation, various benefits and privileges. In this article we will talk about one of these locations Masdar City Free Zone. Let’s take a closer look at all the positive aspects of residency, areas of cooperation, requirements for partners.
Advantages of residency in Masdar City Free Zone
Back in the early noughties, the Masdar free Zone began to provide services. It has an energy profile, and is based on sustainable technologies and renewable energy sources. It is located in the capital of the Emirates Abu Dhabi, organically combines traditional Arabic architecture with the latest technologies to maximize energy efficiency.
Masdar is located on 6 square kilometers, not far from the airport, 17 kilometers from the center. The opening of an enterprise in this FEZ will be accompanied by the following advantages:
- full ownership of the company by a foreign founder;
- there are no tax obligations with respect to profit and income;
- no currency restrictions;
- there are no restrictions on profit withdrawal;
- registration is simple and does not take much time;
- visas are issued fairly quickly;
- trusting relationships with government organizations.
- unhindered cooperation with representatives of the local market;
- experienced, qualified personnel;
- modern offices;
- useful contacts with representatives of the sphere;
- convenient geographical location.
Being a business cluster, SZ offers companies a comprehensive solution for the organization of basic business processes, including commercial office space, as well as registration and licensing.
What types of companies are allowed in Masdar City
Within the free zone, registration of companies is available in the following formats:
- Limited Liability Company;
- opening a branch of a foreign or regional company.
If it is planned to open a branch, then the presence of authorized capital is not required. In the case of LLC, the minimum amount of capital is at least 50 thousand dirhams. A business licensed in the FEZ can be carried out only on the territory of this free zone. To open a business on the territory of another emirate, you will need to obtain an up-to-date license from the required emirate.
There is a wide range of entrepreneurial areas licensed in the MCFZ FEZ, namely:
- Renewable energy.
- Service providers.
- Clean technologies and ICT.
- Marketing and events.
- Energy industry.
- Medical services.
- Development of human resources.
- Business center and data centers.
- Real estate development services.
- Regional headquarters, trading and holding companies.
- Utilities and oil and gas services.
License packages and the cost of opening a company
Registration of a company in the NZ Masdar on average will cost a little more than 32 thousand dirhams. This amount includes the following expense columns:
- license – 10,000;
- registration – 5000;
- workspace fee – 13,500;
- the deposit is 2000.
The cost of renting office space is offered in different ways. Prices start from 900 dirhams per square meter per year. A deposit equivalent to 2 months’ payment is required. In addition, the serviced offices are shared, an administrative fee of 5000 dirhams per year is charged for them.In commercial offices, an additional service fee of 250 dirhams per sq.m per year is charged.
What is necessary to register a company in Masdar City
Thus, in order to make the opening of the company possible, you will need:
- name reservation certificate;
- initial approval of the local administration;
- lease agreement;
- copies of the founders’ passports;
- resume and a copy of the passport of the appointed manager;
- personal information sheet for the head and founders;
- a power of attorney notarized by a certified lawyer for the appointment of a legal representative.
Also, there are additional requirements for corporations. They must, among other things, provide a certificate of registration, legal corporate documents, a resolution of the council indicating the plan for the establishment of the enterprise. For filing an application for registration of an enterprise in Masdar City Free Zone, you will need to pay a non-refundable deposit of 2 thousand dirhams.