Freezones are the economic zones of the country where people can trade in the products or start the business with the minimum liability of the government taxes. It is the designated area where people can trade with the goods and service and the government will deduct the preferential tax and customs rates. The reason to establish such areas within the country was to increase international business and many other economic activities. The export and import of the products with international countries are possible and easy without the custom authorities.
The benefits of the freezones in the country attract many people to try their hand in the business or trading process so that they can earn enough with the minimum investments. Starting a business in the freezones is not just the affair of the investment but people have to complete several steps and formalities. If you are ready to explore the new version of the world, following are the points to remember:
- Determine the type of Legal entity– People get two company types options to set up and they are:
- Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
Both the options differ in the term of number of number of shareholders. People need to check the individual free zones and type of company it registers.
People also have the option to open the branches of the existing business in the free zones. There is no such restriction in regarding the capital investment.
- Make a choice for the trade name-Keeping everything in mind, you need to decide the name of your legal entity. It is impossible to register the business without the valid name. Before you finalize the name, you need to check with the respective freezone authority or the Department of the Economic Development for the permitted trade names. You need to get the clarifications regarding the names which are already registered. The name you select should never violate the public morals of the country and should never relate to any religion.
- Apply for the business license– The business license is the valid proof for the existence of the business. It is illegal to run a business without the appropriate business license in any corner of the country. The license depends upon the primary activity of the business and department of the industry. Any discrepancy in the content of the license and activity in the business can lead to severe legal actions or closure of the organization.
- Select the office space– People get the option to buy or lease the office space in the free zones. The selection of the office space depends upon on the number of the employees and business activity of the company. The free zones give options of Flexi desk, Flexi office or multiple floor offices.
- Go for pre-approvals, business registration and licensing – The companies establishing in the free zones have to work according to the rules of the respective free zones. You need to apply with the required documents to get the pre-approval. The list of documents depends upon the type of the company. Post initial approval, you need to pay registration and license fees. The fee might vary from one business to another.
The facility of freezones is mostly suitable for the startups because they get the opportunity to establish the business with minimum investment. So enjoy the authority to be a boss with the facilities of free economic zones.
