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Why Open a Free Zone Company in Germany?

Updated on Sunday 28th May 2017

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Why-Open-a-Free-Zone-Company-in-GermanyThe free trade zones are special areas established within the Community`s territory. Goods and merchandise sold in these zones are free of VAT and import duties. Companies opened in a free zone in Germany are provided with many financial and administrative incentives. The free trade zones in Germany have become an attractive instrument for foreign investment. Relevant information about all the incentives available in the free trade zones will be offered to you by our specialists in company formation in Germany.


The advantages of setting up a company in Germany`s free trade zones


There are several advantages to opening a company in Germany`s free trade zones:
• The companies have the possibility to store imported goods under beneficial customs arrangements. Since the taxes for these goods are paid when they are actually used, companies can benefit from a significant cash flow;
• A differential tax regime offered to companies which are set up within a free trade zone in Germany. This regime addresses several taxes: on personal income and corporate tax;
• Non-tax incentives – public grants for developing human resources and research. German authorities have the opportunity to promote land and building facilities at below-market rates.
• Advanced infrastructure – free trade zones are usually located in or close to ports and airports.


If you want to benefit from all these advantages, our consultants in company registration in Germany can assist you in setting up a company in a free trade zone.


Other economic success factors of the free trade zones


Aside from the legal framework of incentives, the free trade zones in Germany are believed to share certain economic factors that contribute to their success. Companies are attracted to the free trade zones due to several such factors: flexible regulation to accommodate different sectors, state of the art infrastructure, a convenient location for trade and well trained staff. In specific conditions, State Aid is provided to these free trade zones in Germany.

If you have any further questions on this matter, feel free to set up an appointment with our German company incorporation agents.
 

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