What are the types of free zone users?
Types of free zone users

What are the types of free zone users?

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Table of Contents

A user operator is the legal entity authorized to direct, administer, supervise, promote and develop one or more free zones, as well as to qualify its users." (Title I, Chapter I, Article 4. Decree 2147 of 2016.)

The types of free zone users that exist are: operators, industrial users of goods, industrial users of services and commercial users, who operate in the permanent free zones; and administrative users and exhibitor users, who operate in the transitory free zones.

Many entrepreneurs have chosen free trade zones as the ideal territory for the establishment of different types of companies. This is a great investment opportunity considering the tax and trade benefits that companies that decide to locate in these areas of the country receive. Today we will tell you everything you need to know about the different types of users of free zones in ColombiaThis is undoubtedly an indispensable topic that you should know.

Operator User Authorizations

This legal entity is authorized to:  
Manage several Free Trade Zones Supervise several Free Trade Zones
Promote several Free Trade Zones Develop several Free Trade Zones
Rate users Buy Titles
Disposal of securities Arrange Titles
Develop land Build Infrastructure
Coordinate services as required Tax Benefits

Main Types of Free Trade Zone Users in Colombia

Users in free trade zones
Users in free trade zones

As we have already mentioned, there are several types of users (companies) in the free trade zones. Next, we are going to detail what each one consists of, as well as the role they fulfill within the same.

User Operator

It is a company located in each Free Trade Zone that controls, promotes and advises, it also has the mission to report to the Ministry of Commerce, Industry and Tourism. MINCIT the fulfillment of employment and investment commitments.

The User Operator is a company in charge of the administration, promotion, control, supervision and management of the free trade zone in which it is located; therefore, its role is fundamental for its correct operation. In addition, the operating users are in charge of authorizing the organizations that are being installed, as well as guiding and advising them.

Industrial Service Users

These are companies that develop activities related to logistics, packaging, transportation, distribution, labeling, storage, telecommunications and data transmission, among others. They are also in charge of technological and scientific research, medical assistance, technical support and equipment repair, as well as consulting or auditing services. This type of business benefits many companies located in Colombia, offering important advantages such as cash flow, partial nationalization, high security standards and double inventory control, among others.

In other words, they play a totally different role to the free zone user operator, since they are on the other side of the coin.

  You might be interested in: Companies Operating from a Free Trade Zone

Industrial Users of Goods

These are companies authorized to produce, transform and assemble raw materials or semi-finished or intermediate products into final goods and products through processing. These functions must be performed only within the free trade zone. free zone that corresponds to it.

Commercial Users

As its name indicates, the commercial users of the free trade zones are companies that are in charge of commercialization, storage, conservation, marketing and distribution of their own or third party merchandise to be sold in Colombia or to other countries, taking advantage of the benefit of not nationalizing in the second option.

Unlike the previous cases, there are some restrictions that commercial users have. One of them is that they cannot occupy an area of more than 15% of the total area of the free zone where they are located. In addition, the commercial user cannot have qualification of goods or services and because they are already existing companies in Colombia, they do not have the benefit of differential income.

Exhibitor Users

Exhibitors are organizations that are temporarily installed in the temporary free zones when there are events or fairs. It should be noted that these events are considered relevant at national or international level, being this particularity the one that enables them to be carried out within the framework of the Free Trade Zone regime.

Administrator users

Within the transitory free zones, the administrative users are companies that carry out the organization of events that have relevance in national or international terms. In this sense, the administrative user is the person in charge of executing administration, management and promotion activities of these events that take place in the transitory free zones.

Currently, we are close to 1,200 companies located in the different Free Trade Zones in the country. In Western Free Trade Zone we are one of the more than 40 User Operators in charge of controlling and advising the different users (Companies) located in the 124 Free Trade Zones in Colombia.

      You may be interested in: New Free Trade Zone Regime in Colombia

Some benefits of being a free zone user

benefits of being a free zone user
benefits of being a free zone user

Free trade zones are delimited areas with a series of tax, customs and labor benefits for those businessmen who decide to establish themselves in them. They were created with the purpose of encouraging foreign investment and promoting international trade. The following are some of the most important benefits of being a free trade zone user.

Tax exemption

One of the main advantages for users of free trade zones is the tax exemption offered to companies operating in them. There are alternatives to not paying some taxes on income, value added or customs duties. This exemption represents a significant savings, allowing them to invest more in their business and increase their profitability. There is no doubt that a very tempting alternative to make a more robust brand is to become a free zone user.

Simplification of customs procedures

Goods can enter and leave the free trade zone without customs restrictions and without having to pay the corresponding customs duties. This significantly reduces the cost and time of customs procedures, allowing companies to be more efficient in their commercial operations.

Access to international markets

Being located in strategic areas, companies can benefit from the logistical and transportation facilities they offer to export their products to other countries. In addition, free trade zones often have trade agreements that facilitate the entry of such goods into different markets.

Infrastructure and services

Finally, free trade zone users benefit from high quality infrastructure and services, as they are generally industrial parks, research and development centers, storage areas, financial and logistics services, among others. All this allows them to have access to differential resources that favor them to be more competitive in their commercial operations.

In other words, free trade zones offer a number of important benefits for companies that decide to set up in them. These benefits include tax exemption, simplified customs procedures, labor flexibility, access to international markets and high quality infrastructure and services. All of this allows companies to be more competitive and profitable in an increasingly globalized environment. free trade zone users.

regulations of free trade zones in Colombia ZFOs
regulations of free trade zones in Colombia ZFOs


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