Free Zone Company Formation
A free zone, also called free-trade zone, is a geographically defined special economic zone. Under this area, goods May Be landed, stored, handled, manufactured, or reconfigured, and re-exported through specialized custom regulation authority without the intervention of customs department. These zones are strategically organized around prominent seaports, international airports and other areas that carry geographical advantages for trade in the region. There are numerous free zones in the world such as Hong Kong, Dubai, Colón, Stockholm, Copenhagen,London, New York City and Los Angeles.
Free Zone Company Formation
Free zone company formation is a process where an entrepreneur, investor or a business register a company in a Free zone to become a legal entity with the help of a professional business setup consultancy agency. This process is also referred to as ‘company incorporation’ in different regions of the world where free zones are available. Free zone licenses can vary depending on the host country and the regulatory authority. However, they can be simplified into 4 categories.
Trading License
Trading License allows businesses to register as a legal entity and carry out trading activities in a specified area. These activities can include buying, import and export, and selling of different types of good within the jurisdiction
General Trading License
General Trading License is mostly used by businesses to deal with trading of majority types of goods that require special approvals from trading authorities. These goods might be banned or restricted to quantity within the jurisdiction
Service License
Service License allows businesses to supply their services for consultancy, accountancy, and legal processes. The license is issued limited to the services industry, and companies can register in specialized zones for incentives.
Industrial License
Industrial License allows businesses to carry out operations such as manufacturing, packaging, processing and assembling in a specified area. These licenses are issued to businesses that plan to open factories and plants in the zone.