What is a free zone?
There is an important distinction which the media is not aware of between FREE ZONES and FREE ZONE SITES. To quote from the law: “A free zone site represents a detached, enclosed and marked area of the territory of the Republic of Macedonia on which commercial activities are conducted under conditions prescribed by this and other laws and on which custom and other tax incentives determined by this law shall be applicable.” “A Free Zone shall be established as trade associations conducting economic, technical, administrative, expert and other activities supporting the operations in the free zone sites.” Question: Do other countries have free zones? Answer: Dozens of other countries have free trade zones, free industrial zones, free industrial or technology parks, customs free zones, free transhipment zones and many other types of free economic zones. Our law allows for all these types of activities to exist. It is very broad and flexible and one of the best and most complete laws I have
According to the World Federation of Free Zones (FEMOZA) a Free Zone is a portion of a clearly defined and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of extra-territoriality. Free Zones are special investment models allowing the client to do business without obstacles. The Free Zones are governed by established laws from the government of the respective country. The Free Zones are direct government authorities. Dubai prides itself on its achievements towards e-government basically eliminating any form of corruption. Business licences are usually issued within 5-6 working days after approval and submission of the requested legal documents. Along with the application form the investor is required to submit a business plan or detailed project proposal for review by the Free Zone before the registration process can be started.
A free zone is an area within a country (a seaport, airport, warehouse, or any designated area) with clearly defined borders, regarded as being outside the country’s customs territory. It has special tax, customs and import laws, with attractive incentives for companies to set up operations. Free zones allow companies to do business freely and efficiently within the laws of the free zone authority that governs it. Why locate in a free zone? In the UAE, free zones act as a central business hub for companies to do business all over the world. A large percentage of new foreign investment in the UAE takes place in the free zones. One reason for this is that foreigners can own 100 per cent of the equity in a company that is established in a free zone, and setting up the company can be done without a local partner. Companies that operate in free zones have complete control of their own operations. Companies operating in the UAE outside the free zones are subject to the UAE Commercial Compani
A “Free Zone” is a specific territory set aside by a government where laws and regulations are more liberal and favorable to investors and business projects than in the rest of the country. It is a much more free business environment. These zones provide transportation facilities as well as office space and industrial infrastructures. There is normally no restriction on the nationality of the companies operating in the zone, no business or corporate income taxes and no customs duties to be paid. No restrictions are imposed on repatriation of the revenues and profits and there are no reinvestment obligations. The Immigration and Labor Laws are also more flexible.
