Located in Abu Dhabi, Masdar City is a forward-thinking and eco-friendly city aiming to become a worldwide pioneer in green energy and sustainable technology. Positioned strategically in the Middle East, Masdar City presents a variety of business prospects for businesspeople and financiers. If you are contemplating establishing a business in Masdar City, you might have inquiries regarding the procedures, legal prerequisites, and business opportunities. In this blog post, we will address some of the common queries about setting up a business in Masdar City.

1. What are the legal structures available for establishing entities in Masdar Free Zone?

Masdar Free Zone offers three primary legal frameworks:

• Limited Liability Company with Corporate Shareholder

• Limited Liability Company with Natural Shareholder

• Branch of a Foreign or UAE Company

2. What is the minimum capital required for setting up a company in Masdar Free Zone?

For establishing a Limited Liability Company (LLC), the minimum capital requirement is AED 50,000 (US$ 13,623.97). However, there is no minimum capital requirement if you are establishing a branch of your company.

3. Do I need to employ nationals in my business?

There is no obligation to do so; businesses are free to hire staff from any country.

4. Can a Masdar City company form partnerships outside the free zone?

Yes, as a legal entity, a Masdar City company can enter into partnerships as a shareholder in other entities, whether inside or outside Masdar City, as permitted.

5. Do I require a local partner to invest in Masdar Free Zone?

No, 100% foreign ownership is permitted in Masdar Free Zone.

6. Can I establish a branch of my company in Masdar Free Zone?

Yes, any company can establish a branch in Masdar Free Zone.

7. Is it possible to open a branch office of my free zone company outside the free zone?

Companies incorporated and registered in Masdar Free Zone have their own legal identity and the right to open branches outside the free zone, subject to the approval of relevant authorities. You can also check our product page for more information.

8. Can I be a partner in more than one company?

There are no restrictions on the number of businesses one person can be involved in.

9. Is unrestricted repatriation of capital and profits allowed?

Yes, Masdar Free Zone permits unrestricted repatriation of capital and profits.

10. Are there any corporate or income taxes applied to companies or individuals?

No, Masdar Free Zone follows a zero percent tax regime.

11. Can I sell goods in the local market?

The license issued by Masdar Free Zone is valid only for operating your business within the free zone. Goods can be sold in the local market through distributors or agents.

12. Can I operate from Dubai or another Emirate with a license from Masdar Free Zone?

No, the license issued by Masdar Free Zone is solely for operating within the free zone and cannot be used to establish a business in other Emirates. However, goods may be sold to other Emirates through distributors.

13. Is it possible to obtain a license from Masdar Free Zone without renting a facility?

No, a company must lease a facility to receive a license. You can also check out our product page for more information.

14. How long does it take to register a company and set up a business through Masdar Free Zone?

Registering a company typically takes 2 working days after submitting all legal documents and settling payments, while setting up a business averages around 5 days.

15. What is the payment method for facilities at Masdar Free Zone?

Advance payment is required for facility rental.

16. What activities are permitted in Masdar Free Zone?

All trading activities involving specific products are allowed as long as they are not hazardous.

17. What is the validity period of the license?

Licenses are valid for one year and can be renewed annually.

19. Is leasing premises within Masdar City necessary for businesses licensed by Masdar Free Zone Authority?

Yes, commercial licenses issued by Masdar Free Zone Authority require leasing a facility within Masdar City.

ALSO READ: Discover the Highlights and Benefits of Masdar City

About Arnifi

Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience to entry and scale up of companies both UAE and Saudi Arabia. The Arnifi promise is simple, yet revolutionary, use technology and a great team to provide transparency, efficiency and great customer experience in the whole process. Check out at – www.Arnifi.com for more details.