Dr Umar Mohammed Ali

Аннотация

INTRODUCTION companies set up in the zone. A total of 33 Manor free trade zone provides every service companies above been registered in the free possible to the companies set up in the free zone zone but up in the zone. A total of 33 companies and also uplifts the economy of the country. have been registered in the free zone out of Kano free trade zone is the second free trade which 13 of them have started their operations. zone in Nigeria which is owned by the federal The region also consists of 19 massive government and is located in panisau road area warehouses which are being utilized by the of the ungogo local government area. The above mentioned 13 of the companies which are sponsor/developer of the kano trade zone is the set up in the free zone and fully functional. federal government and thought it was In the year 2010, kano free trade zone received proclaimed as an Export processing zone (EPZ) a grant of #5.2 billion from the federal in 1998, it was later converted into a free trade government of Nigeria for the development of zone in 2001 by gaining approval from the the free zone. This grant will help in increasing president in council. It’s area of specialization is the efficiency of the various services in the an ware housing, manufacturing and providing region will also allow the management to logistic services. develop more infrastructure suited to the needs Covering almost 262 hectares of land, the free of the businesses in the area. There were many trade zone is fully operational and provides a other significant upgrades made to the free zone very competitive environment for all the such as making a joint task force which will https://www.theamericanjournals.com/index.php/tajmei 39 THE USA JOURNALS THE AMERICAN JOURNAL OF MANAGEMENT AND ECONOMICS INNOVATIONS (ISSN- 2693-0811) VOLUME 06 ISSUE03 improve and increase the commercial activities The employees of a company formed in the free in the zone, great improvement on foreign zone can’t have strikes or lockouts for at least direct investors from all over the world. the initial of setting up the company. Many investors and entrepreneurs are still unfamiliar with the multiple benefits that a free No Rent during the first six months of zone can provide to the company. The construction. government of Nigeria is that a free zone can provide to a company. The government of The company won’t be charged any rent during Nigeria is working towards spreading the the first six months while the necessary awareness of the various benefits of the free infrastructure is created. zone. The kano state pension trust fund is Approvals for all permits and licenses under a providing its services to the companies in the single Roof. kano free trade zone and is helping in the All the required permits and licenses will be development of the area. accessible at one place. This would significantly INCENTIVES OF SETTING UP BUSINESS IN reduce the duration for the period of the KANO FREE TRADE ZONE. commencement of the business activities. The various benefits that a company set up in Complete tax holiday. the free zone can avail are: Laws that are mostly observed by companies all Complete ownership and Repatriation of over the country are not followed in the free profits. zones. The companies do not need to pay any A foreign businessman does not require a local taxes, duties or levies. sponsor and can own 100% of the company in Permission to sell 100% of goods domestically. the free zone. All the profits and dividends can Enterprises that have been set up in the free be sent back to the entrepreneurs’ home zone have agreement to sell their products in country. the country.They are also allowed to sell any No application of import license or any imports which they bring in . expatriate quota. A company set up in the free zone does not WHY INVEST IN KANO FREE TRADE ZONE require an important license to import any goods or raw materials and also the companies There are many reasons for an entrepreneur to have don’t expect to maintain the expatriate choose kano free trade zone over the other free quota. According to the expatriate quota, a zones in Nigeria, such as. company needs to get approval before hiring Enterprises set up in KFTZ have permission to any foreign employees or directors for a sell 100% of the manufactured, assembled or business. imported goods in the domestic market. Duty free, Tax free import of specific goods. Kano state is in close to many other west African If the company is set up in the free zone it does countries like Chad, Niger, Mali, etc. Which not need to follow the regulations that are being could serve as export markets for the developed in the country. companies. This means that the companies do not need to While selling the produced goods in the pay any import duty or any tax related to the domestic markets, the import duty on goods import and export of raw materials. manufactured in the free zone is usually ascertained based on the value