Many entrepreneurs want to register companies in the free trade zones of major cities, but what are the benefits of registering companies in the free trade zones? Next, the second brother of the enterprise will take you to understand. The following content is for reference only!

First of all, the second brother explained that Free Trade Zone (FTZ) refers to a trade arrangement that is more favorable than relevant WTO regulations in terms of trade and investment; Outside the customs territory of a sovereign country or region, a specific area shall be set aside to allow foreign goods to enter and leave freely without customs duties. In essence, it is a tariff isolation zone that adopts the free port policy. In a narrow sense, it only refers to the regions that provide tariff exemption for the import of goods such as raw materials needed for processing and export in the zone, similar to export processing zones. Broadly speaking, it also includes free ports and entrepot trade zones.

Here comes the benefit!

1. The economic strength, popularity and image of the free trade zone can play a vital role in the development of the company, and quickly enhance the popularity of enterprises at home and abroad

2. Convenient and fast registration: registered companies do not need to bear capital, and the capital threshold of registered companies is lowered. When the company was registered before, the minimum registered capital required by the government was 30000 yuan. Now it is changed to the subscription system, and the registered capital does not need to be in place at the time of registration, but only needs to be in place within the specified time; When registering a foreign-funded company, we do not need to go through the examination and approval department. We can register directly by going to the commercial department for filing, which will save us a lot of time.

3. Three "freedoms". Free trade: the reason is tax exemption. General goods are subject to customs duty when importing and exporting goods. However, the goods in the free trade zone can be freely imported and stored overseas, and can be exempted from customs duties and customs inspection. Freedom of currency circulation: the essence of freedom of currency circulation is financial opening, interest rate marketization, free exchange rate, financial product innovation, financial opening to the outside world, offshore financial business, etc. Freedom of business: businesses not regulated by laws and regulations in the Free Trade Zone can act freely.

4. Preferential tax treatment. Enterprises in the Free Trade Zone can pay taxes by installments. Enterprises in the Free Trade Zone do not need to pay taxes when they have business transactions with each other, but there is tax supervision. Enterprises in the Free Trade Zone, like Hong Kong companies, do not have to pay taxes every month. Instead, they implement annual reports, and make accounts based on the revenue recognized from account transactions, as in the foreign model. In addition, income tax and value-added tax will enjoy national financial subsidies.

The above is the benefits of registered companies in the Free Trade Zone analyzed by the second brother of the enterprise! Is it helpful to you? For more information, please follow WeChat official account - Enterprise Second Brother, or search for Enterprise Second Brother online.