Why Start a FTZ Company in Germany?
Why Start a FTZ Company in Germany?Updated on Friday 10th April 2020
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Goods placed within the free trade zones in Germany are free of import duties, VAT and other import charges. This is one of the main reasons to start a free trade zone company in Germany. Companies operating in a free trade zone are relieved form other taxes, excises or local duties. These incentives may vary from one trade zone to another.
Our lawyers in Germany can tell you more about the legal requirements for starting a company in a free trade zone.
Main reasons for starting a company in a free trade zone
Investors can open a company in one of the four free trade zones operating in Germany: Bremerhaven, Cuxhaven, Deggendorf and Duisburg. The main reasons for starting a business in a free trade zone in Germany include the following:
• They are open to both local and foreign entities – the German commercial legislation stipulates an equal treatment for domestic and foreign investors alike;
• If a company`s goods are stored in a free trade zone, no import declaration has to be lodged – the import/export declarations have to be lodged only when the merchandise and goods leave the free trade zone;
• Spoiled or damaged goods can be discarded, destroyed or re-exported duty free;
• Companies operating in a free trade zone can save money on taxes, interest, labor and shipping costs;
• Foreign or domestic merchandise can enter a free trade zone without the regular customs entry document or payment of customs duties.
Our law firm in Germany can assist you in starting a company in a free trade zone and provide you with details about the legal aspects of doing business in such an area. They can also help you open a bank acoount in Germany, a step that is necessary when setting up a new company.
Other incentives provided by the free trade zones in Germany
The success of a German company operating in a free trade zone relies on other significant economic incentives. These include the following:
• The government`s commitment to improving the legislation designated to regulate the free trade zones;
• The quality of the infrastructure;
• Highly skilled workforce and a convenient location for doing business;
• State aid is provided to companies operating in Germany`s free trade zones in specific situations.
If you want to benefit from these incentives and advantages, don`t hesitate to contact our attorneys in Germany for an appointment.