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pg. 1 All contents © 2016 Effectus Solutions Pvt Ltd (CrossProf.com). All rights reserved.
Free Economic Zones or Free Zon...
pg. 2 All contents © 2016 Effectus Solutions Pvt Ltd (CrossProf.com). All rights reserved.
Bulgaria, India, Egypt and Ital...
pg. 3 All contents © 2016 Effectus Solutions Pvt Ltd (CrossProf.com). All rights reserved.
6) ASSISTANCE WITH LABOUR RECRU...
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Free zones

The term is used to designate areas in which companies are taxed very lightly or not at all in order to encourage economic activity.

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Free zones

  1. 1. pg. 1 All contents © 2016 Effectus Solutions Pvt Ltd (CrossProf.com). All rights reserved. Free Economic Zones or Free Zones are a class of Special Economic Zone designated by the trade and commerce administrations of various countries. The term is used to designate areas in which companies are taxed very lightly or not at all in order to encourage economic activity. The taxation rules are determined by each country. The World Trade Organization Agreement on Subsidies and Countervailing Measures has content on the conditions and benefits of free zones. In simpler terms, a Free Economic Zone is a specially designated Economic Zone intended to encourage foreign investment by improving the living and management environment for foreign- invested firms and by implementing deregulation to increase enterprise activities and provide investment incentives. The Governments of such countries having these zones, provide a variety of tax benefits for foreign-invested and foreigners, as well as ease of regulatory measures, a favorable living environment and swift administrative services. In many zones, the authorities act as a one stop shop, cutting related red tape and simplifying administrative procedures.
  2. 2. pg. 2 All contents © 2016 Effectus Solutions Pvt Ltd (CrossProf.com). All rights reserved. Bulgaria, India, Egypt and Italy have a number of Free Zones for varied types of companies. All seven Emirates already have, or are developing, such economic zones. These are highly lucrative for the companies aiming to set-up business with minimum formalities and at minimum costs. These provide a number of benefits highly beneficial to the firm which establishes it at these places. The advantages and benefits make it an extremely important tool available to the firm. Some of these advantages are- 1) IMPORT, EXPORT AND PERSONAL TAX EXEMPTIONS. Probably the most important benefit is the tax exemption to the firm setting up business, which is either very low or isn’t collected at all. Such nominal charges make it exceedingly important and valuable to the firm which is establishing itself anew in the market. 2) REPATRIATION OF CAPITAL AND PROFITS. The conversion of a foreign currency back to the currency of the home country is referred to as repatriation. Free Zones allow the firms to convert the capital and profits earned by them freely to the currency of their own country and allow the transfer of such funds without any restriction. 3) NO CORPORATE TAXES FOR 15 YEARS. In many countries, like the UAE, the firms don’t have to pay any corporate taxes for a period of 15 years after the establishment. This is renewable for an additional 15 years after the period of expiry. Cost saving benefits, as mentioned before, are in essence important when setting up the business. 4) PROPER UTILIZATION OF THE SAVED FUNDS. Meanwhile the company or firm will be saving a large share of their money in by saving the taxes; they can utilize the funds in necessary and more important processes. This basically results in the development of the firm and the increase in the quality as well as quantity of the service or goods provided by them. 5) LESS DOCUMENTATION, MOSTLY IN ENGLISH. Since this process is essentially to allow the set-up of maximum firms to establish their business in the country, the highest amount of convenience is provided to the said firms. This also includes the minimum documentation which is also in not the native language but mostly in English, which helps in establishing one universal language for such dealings.
  3. 3. pg. 3 All contents © 2016 Effectus Solutions Pvt Ltd (CrossProf.com). All rights reserved. 6) ASSISTANCE WITH LABOUR RECRUITMENT. As mentioned in the point above, these Free Zones assist in various tasks while setting up the business. Since the business will generate employment and help boost the economy, the labour is freely available and more often than not, it is of the best quality and best knowledge of the location since they are, after all, locals and not new to the place. 7) ADDITIONAL SUPPORT SERVICES SUCH AS SPONSORSHIP AND HOUSING. In keeping with the concept of amenities provided by the Free Zones, they also help in offering the extra but highly necessary ancillary services like sponsorship and housing. Though these services are not exactly productive, they are important in the working of the business. At Crossprof, we help you connect with the Free Zone suitable to your need. The professionals with us are experts in their fields and thus are the best to go for advice when setting up a business. These professionals help the firms that are looking for a Free Zone to start their business, in finding one with good amenities, minimum expenses and least taxes. The professionals here are members and hence all their details are cross-checked making sure that they are trust-worthy and well versed at their job.

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