CREATIVE ZONE

IMPORTANT ANNOUNCEMENTS

Applicable To All New Businesses And Freelancers In Abu Dhabi

REGISTRATION AND LICENSE FEES WAIVED

Creative Media Authority

In support of the 2018 Abu Dhabi Government resolution aimed at enhancing the competitiveness of business environment in the Emirate of Abu Dhabi, the Creative Media Authority (CMA) confirms that it will continue to waive the licensing and registration fees to new companies and new freelancers for their first two years from registration.

In addition, free zone registered companies can apply for an additional branch licence from the Abu Dhabi Department of Economic Development (‘DED’), without the need to have a second additional onshore office or premises. The licence, often referred to as an ‘onshore’ licence, helps businesses carry out commercial activities more freely and take part in tenders for government and semi-government entities. When you apply for the DED onshore licence, the licensing fees by Abu Dhabi government are also waived for the first two years from the licence date.

These initiatives ensure that creative companies will have access to more business opportunities at a lower cost.

Regulatory Guidance Notes

Creative Media Authority

Important information for Licensees on the Economic Substance Regulations

The Economic Substance Regulations (“ESR”) (Cabinet Resolution No. 57 of 2020) aim to ensure that businesses which perform so-called geographically mobile activities have economic substance in the jurisdiction where its income is being reported. This means that businesses will need to demonstrate that the income generated (and profits reported) in the UAE adequately correspond with the economic activities actually undertaken in the UAE (“Economic Substance”).

The first year of reporting under the ESR is 2019 and all UAE based companies, branches and other commercial license holders, including those in the Creative Zone, must report under these regulations.

Please download the Guidance for further important information.

Important Regulatory Guidance Note for Licensees on Anti-Money Laundering – Update (May 2021)

The Federal Laws on Anti-Money Laundering and Countering the Financing of Terrorism ( Federal Law 20 of 2018 and Cabinet Decision 10 of 2019, including the new Cabinet Decision No. (58) of 2020 and the new Cabinet Resolution No. (53) of 2021 (the “AML Laws”)) , requires each relevant free zone Regulatory Authority in the UAE to obtain and maintain up-to-date records of the ultimate beneficial owners of entities registered in their free zone. The Creative Zone - Abu Dhabi requires all applicable licensees to disclose information in respect of their ultimate beneficial owners.

Creative Zone - Abu Dhabi has always collected ultimate beneficial ownership (“UBO”) information as part of the onboarding process for new companies. The AML Laws and Decision require MZA to ensure that the UBO information we have on record is up-to-date at all times during the life cycle of the entity. In addition, the AML Laws and Decision require that all entities (FZ LLCs and Branches) registered in the Free Zones maintain their own records of their beneficial owners in their own register.

Please read the Guidance Note carefully to understand how this applies to your entity.

About the Creative Zone - Abu Dhabi

The Creative Zone (formerly known as Media Zone - Abu Dhabi) is one of the fastest growing creative markets in the world, and the Creative Media Authority is committed to the continued development of the creative media industries in Abu Dhabi. The Creative Zone is the media free zone for Abu Dhabi.

The Creative Media Authority is responsible for overseeing all regulatory and licensing aspects of the Creative Zone in Abu Dhabi, which includes developing and ensuring compliance with the Authority’s regulations, codes and policies and procedures; registering and licencing companies, branches and sole proprietors (freelancers); and providing content-related guidance to its licensees.

The Authority offers the following services in the Creative Zone:

  • Developing and maintaining the Creative Zone’s regulations, codes and policies;
  • Incorporating and registering companies and branches;
  • Licencing companies, branches and freelancers;
  • Maintaining records of all registered companies, branches and freelancers;
  • Providing ongoing services such as facilitating changes to shareholders, directors and general managers and issuing certified copies, extracts of the Authority’s register and certificates of good standing;
  • Dissolving companies and closing branches;
  • Providing content-related guidance; and
  • Implementing mechanisms to ensure compliance with the Creative Zone’s regulations and codes

The Authority, established by Abu Dhabi Decree Law No. 8 of 2022, is the regulatory body of the Creative Zone.

FAQS

What are the benefits of setting up a business in the Creative Zone - Abu Dhabi?

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The Creative Zone - Abu Dhabi is a media focused free trade zone in one of the fastest growing media markets in the world. The Creative Zone - Abu Dhabi offers:

  • attractive fiscal benefits for companies, such as affordable and highly competitive costs for setting up;
  • 100% foreign ownership;
  • a simple and clear process for establishing an entity;
  • an established, transparent and clear legal and regulatory framework, which follows international and regional industry best practices;
  • a burgeoning and thriving portfolio of leading international and regional media and entertainment entities; and
  • a sizeable portfolio of sole proprietors (freelancers) specializing in media and entertainment skills

Which laws and regulations are applicable in the Creative Zone - Abu Dhabi?

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All federal laws of the United Arab Emirates (UAE) are applicable in the Creative Zone - Abu Dhabi except for UAE Federal Law No.2 of 2015 concerning commercial companies. The Creative Media Authority maintains its own legal and regulatory framework which applies within the Creative Zone. This framework, which can be found here, governs companies, branches and sole proprietors (freelancers) operating from the Creative Zone.

How do I ‘set up’ in the Creative Zone – Abu Dhabi?

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There are three ways to join the Creative Zone - Abu Dhabi, each with a simple and clear process for setting up:

  • incorporate a free zone limited liability company (FZ-LLC);
  • establish a branch of an already existing company; or
  • license as a sole proprietor (freelancer).

In order to operate from the Creative Zone – Abu Dhabi, an entity (FZ-LLC or branch) and/or sole proprietor (freelancer) must hold a valid business license issued by the Creative Media Authority.

If an entity (FZ-LLC or branch) intends on carrying out a dissemination activity (such as publishing a print book, magazine, newspaper or broadcasting a satellite or terrestrial television channel or radio station) from the Creative Zone – Abu Dhabi, the entity must also hold a valid dissemination license issued by the Creative Media Authority.

What is the difference between an FZ-LLC and a branch?

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An FZ-LLC is a legal entity incorporated in the Creative Zone – Abu Dhabi. A branch is a representation in the Creative Zone – Abu Dhabi of the principal company, which is incorporated in another jurisdiction, and is a legally dependent part of the principal company.

What are the regulatory requirements for incorporating an FZ-LLC in the Creative Zone – Abu Dhabi?

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  • SHAREHOLDER(S): An FZ-LLC can be incorporated with individual shareholder(s), corporate shareholders or a mixture of both individual and corporate shareholders
  • DIRECTORS/SECRETARY/GENERAL MANAGER: An FZ-LLC must appoint at least two directors, one general manager and one company secretary (there are no restrictions on the same person fulfilling all these roles within the company). The general manager of the company must be sponsored by the Creative Media Authority at all times (unless the general manager is a GCC national);
  • SHARE CAPITAL: There is no fixed minimum amount of paid up share capital, and share capital can be in any currency;
  • REGISTERED OFFICE: An FZ-LLC must have a registered office within the Creative Zone – Abu Dhabi at all times.

What are the regulatory requirements for establishing a branch in the Creative Zone?

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  • PRINCIPAL COMPANY: The principal company (either one incorporated in the United Arab Emirates or any other jurisdiction) must provide evidence that it has decided to set up a branch office in the Creative Zone – Abu Dhabi.
  • GENERAL MANAGER: The principal company must appoint a general manager of the branch. The general manager of the branch must be sponsored by the Creative Media Authority at all times (unless the general manager is a GCC national); and
  • REGISTERED OFFICE: A branch must have a registered office within the Creative Zone – Abu Dhabi at all times.

Are there any restrictions on FZ-LLC or branch names?

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During the application process, Creative Media Authority team will provide guidance to entities on whether the proposed entity name will be acceptable. The entity should consider whether the proposed name is the same or similar to one already registered with any of the Departments of Economic Development within the UAE, and the Creative Media Authority team will confirm whether the proposed name is the same or similar to one already registered in the Creative Zone – Abu Dhabi.

The proposed name cannot include “Abu Dhabi” and/or “United Arab Emirates” in it and cannot give the impression that the entity is connected with a government or government authority.

What is the role of the general manager of a FZ-LLC or branch?

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The general manager is an employee of the FZ-LLC or branch and must be empowered to manage the day to day operations and be the primary representative of the FZ-LLC or branch in all matters with the Creative Media Authority.

All non-GCC national general managers must be sponsored (i.e. UAE employment and residency visa) by the Creative Media Authority at all times regardless of whether the individual has been sponsored elsewhere in the United Arab Emirates.

Why is every entity (FZ-LLC and branch) and sole proprietor (freelancer) required to have a business license?

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Every entity (FZ-LLC and branch) and sole proprietor (freelancer) is required to have a business license issued by the Creative Media Authority in order to operate from the Creative Zone – Abu Dhabi. In order to be granted a business license, the entity must have first incorporated a FZ-LLC or established a branch in the Creative Zone – Abu Dhabi and the freelancer must have first properly applied for a sole proprietor business license. The business license will specify the activities the entity and/or freelancer may carry out from the Creative Zone – Abu Dhabi.

When does an entity (FZ-LLC or branch) need a dissemination license?

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A dissemination license is required if an entity (FZ-LLC or branch) intends on carrying out a dissemination activity from the Creative Zone. A dissemination activity includes activities such as publishing a print book, print magazine, print newspaper or broadcasting a satellite or terrestrial television channel or radio station. Please contact our regulatory team at the Creative Media Authority if you intend on carrying out a dissemination activity from the Creative Zone - Abu Dhabi.

What are the employment and sponsorship requirements for an entity (FZ-LLC and branch) in the Creative Zone – Abu Dhabi?

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  • EMPLOYEES: All non-GCC national employees of an FZ-LLC or branch (including the general manager) must be sponsored for a work permit and residence visa by the Creative Media Authority in accordance with the Employment and Sponsorship Regulations 2016, regardless of whether the individual is already sponsored elsewhere in the United Arab Emirates.

  • DIRECTORS AND SHAREHOLDERS: Directors and shareholders only need to be sponsored by the Creative Media Authority if they are employees of the FZ-LLC or branch.

  • LICENSED SOLE PROPRIETORS (FREELANCERS): All non-GCC national licensed freelancers must be sponsored for an employment and residence visa by the Creative Media Authority, regardless of whether they have been sponsored elsewhere in the United Arab Emirates.

  • The government and travel services department of twofour54 FZ-LLC provides all the administrative and logistical support for employment and residency visas and all other government services that entities and freelancers may require.
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Regulations

The Creative Media Authority will continue to strive to ensure that a vibrant and successful creative media industry develops in Abu Dhabi and the region. As part of this goal, the Creative Media Authority maintains a legal and regulatory framework of regulations, codes, policies & procedures and guidance notes which apply to all entities and individuals working within the Creative Zone Abu Dhabi. The legal and regulatory framework in the Creative Zone reflects best industry practice both locally and internationally and supports the growth of the Creative Zone.

Creative Media Authority

Licencing

The Creative Media Authority is responsible for managing all entities (FZ-LLC and branches) and sole proprietors (freelancers) in the Creative Zone. The Authority provides the following licencing services to potential and existing companies and individuals in the Creative Zone:

  • Incorporating and registering FZ-LLCs and branches;
  • Licencing and renewal of FZ-LLCs, branches and freelancers;
  • Providing ongoing services such as facilitating changes to shareholders, directors and general managers and issuing certified copies, extracts of the Authority’s register and certificates of good standing; and
  • Dissolving FZ-LLCs and closing branches.

As part of a Government resolution, the Creative Media Authority is waiving the licencing and registration fees, starting December 2018, to new partners and freelancers for their first two years.

There are three ways to set up in the Creative Zone each with a simple and clear process for setting up:

  • Free Zone Limited Liability Company (FZ-LLC): incorporation of a legal entity in the Creative Zone;
  • Branch: establishment of a branch in the Creative Zone that is a legally dependent part of its principal company, a company which is incorporated in another jurisdiction (UAE or foreign); or
  • Sole Proprietor (Freelancer): licencing of an individual to work in his/her personal capacity from the Creative Zone as a Creative professional.

Click here to apply

Please contact our regulatory team who can assist you with all of your ongoing requirements: [email protected]

or call us on: +971 2 401 2454

A list of business license activities can be found here

A list of freelancer license activities can be found here

Our mission is to provide a fully integrated and supportive ecosystem to enable Abu Dhabi’s media and entertainment industry to grow sustainably.

As part of a recent government resolution, the Creative Zone – Abu Dhabi is waiving the licensing and registration fees to new partners and freelancers for their first two years, effective 1st December 2018.

Should you have any questions, please feel free to contact the Regulatory Team by clicking the link CMA Case (formstack.io)

Services Creative Media Authority Fee in AED
Company Incorporation/Branch Establishment New Renewal
Registration (FZ-LLC) 3,500
(waived in full)
-
Establishment (Branch) 3,500
(waived in full)
-
Business License 15,000 for 5 activities
(waived in full)
12,500 for 5 activities
(first renewal waived in full)*
Additional activity to license 1,000 per activity* 1,000 per activity*
*(If more than 5 activities)
Sole Proprietor License New Renewal
Sole Proprietor License (freelancer)
One year
4,500 for 3 activities
(waived in full)
3,500 for 3 activities
(first renewal waived in full)*
Sole Proprietor License (freelancer)
Six months
2,250 for 3 activities
(waived in full)
1,750 for 3 activities (first renewal waived in full)*
Additional activity to license 1,000 per activity 1,000 per activity
(If more than 3 activities)
Dissemination Licenses New Renewal
Broadcast (TV & Radio) 20,000 20,000
Price per channel (capped at AED 100,000)
Publishing e.g. Books (non – Advertising funded) 5,000 5,000
Price per title (capped at AED 50,000)
Publishing e.g. Magazines/Newspapers (Advertising funded) 5,000 5,000
Price per title (capped at AED 50,000)