A free trade zone
is a special economic area where products can be stored, handled, fabricated or redesigned and then re-exported according to precise customs regulations. Our company registration specialists in Cyprus
explain in this article the different types of free trade zones in Cyprus
and bring you important information on this subject.
Types of free trade zones in Cyprus
In Cyprus, there are two types of free trade zones:
• Control type I free trade zone
: in this type of trade zone, the controls are mainly based on the existence of a fence. Our company formation experts in Cyprus
can provide you more details on this type of free trade zones;
• Control type II free trade zones: the controls are mainly founded on the formalities effectuated according to the requirements of the customs warehousing process.
In Cyprus, there are two control type II free trade zones, found on the main seaports of Limassol and Larnaca. These zones are treated as not being part of the usual EU customs territory.
Therefore, the non-EU products stored in these free trade zones in Cyprus
are not subject to VAT
, import duties or excise taxation.
The Department of Customs in Cyprus rules both normal zones and control type II free trade zones, being able to levy bans or restrictions on certain types of activities, conditioned by the nature of the products.
Our Cypriot company formation advisors can provide you additional information on the control type II free trade zones in Cyprus, if necessary.
Licenseing and approval of stock records in the Larnaca free trade zone in Cyprus
An individual interested in starting to do business in the Larnaca free trade zone in Cyprus has forward an application in order to secure a land plot in this zone to the Ministry Of Commerce, Industry and Tourism. Then, he or she has to submit a relevant application with the Department of Customs & Excise.
Furthermore, the individual has to submit an application to the Director of the Larnaca customs office, in order to acquire the authorization to undertake business inside the free trade zone in Cyprus
. Our Cypriot company formation
experts can provide you further information on the procedure necessary in order to do business in this free trade zone
If you need to know more about the free trade zones in Cyprus
, or if you want to open a Cypriot company
, we invite you to contact us