OPERATING IN FREE TRADE ZONES
Operating in a Free Trade Zone (FTZ) can lead to crucial tax advantages, it also brings benefits for customs in Colombia. However, the process of qualifying as a Duty Free Zone user is not easy and may be expensive. Therefore, it is very important to run some calculations and make an informed decision about the convenience of such a project. Our firm offers assistance running a study that will help the client compare and understand if a FZ is the best option.
TYPES OF FREE ZONES
There are two types of Free Zones, each with different tax incentives. Also, depending on your target market, your best option could be in the pacific, the atlantic ocean, inland, close to Bogotá or close to Medellin. We offer help choosing the appropriate Free Zone.
Hay dos tipos de Zona Francas, cada una con diferentes incentivos fiscales. Además, dependiendo de su mercado objetivo, su mejor opción podría ser en el Pacífico, el océano Atlántico, el interior, cerca de Bogotá o cerca de Medellín. Ofrecemos ayuda para elegir la Zona libre apropiada.
Once the decision is made to establish, the free zone will require you to undergo a qualification process, where the applicant needs to prepare legal, economic, and market projections and documentation. We offer our help in applying for the qualification study, necessary to be accepted in any free zone.
Parallel to the qualification process, we will help you create the business vehicle and obtaining all necessary licenses, permissions, and insurance policies.
COLOMBIAN SYSTEM OF CURRENCY CONTROL
Colombia has a system of currency control based on informing the central bank of any currency movement. These regulations are present, for instance, in operations of investment, services, foreign loans, and, most important for free zones, import and export. Our firm takes care of the compliance with these regulations, which ensures the avoidance of penalties.
Once this Free Zone definition phase is completed, our firm takes care of the corporate and commercial law work associated to the operation of the business.
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Count on us for your next business decision in Colombia. Let us know more about your situation. You will hear from us within the next 24 business hours to arrange for a free consultation.
The New Draft of Regulatory Decree for Medicinal Cannabis - Part 2: Proposed Regulations on International Trade
The first article of our weekly series explained and analyzed the changes in the general requirements for application to every cannabis license issued in Colombia. In our second delivery we will analyze the differences between the current regulations and the Draft Decree regarding international trade operations (import and export) of cannabis.
Colombia’s flexible Legal Frame in Duty Free Zones operations
Colombia is categorized by the ANDI (National Association of Colombian Businessmen) as the country with most free trade zones in south America, 28 permanent free zones and 62 special permanent free zones, with a total of 100 free trade zones (FTZ) functioning throughout the country. During 2016, it was estimated that 817 companies operate in FTZ.
Comparison between Colombian and Latin-American Free Trade Zones
Colombia is the first country with more free trade zones in South America. This industry is established in 60 municipalities, a total of 19 departments throughout the country, generating more than 40,000 direct jobs and close to 90,000 indirect ones.