Logo text Aruba Free Zone

Frequently Asked Questions

1. BENEFITS AND INCENTIVES
  Q What are the benefits of establishing my company in the free zone of Aruba?
  A Companies in the free zone enjoy the following incentives:
  • Exemption from import duties
  • 2% tax on profits obtained from export
  • 0% turnover tax over the turnover generated from free zone activities
  • Exemption from foreign exchange commission
  • Retail sales to tourists, local sales possible
  • No minimum start-up capital is required

 

  Q Are there trade agreements that a (manufacturing) company can make use of?
  A It depends on the product, manufacturing process and the countries to which the goods will be exported. Some examples for manufactured goods:
  • OCT (Overseas Countries and Territories) - agreement: products that have been sufficiently processed and have sufficient added value to the final product can enter the EU free of import duties.
  • Caribbean Basin Initiative: Products manufactured with sufficient added value in the free zone can be imported duty free into the USA.
It is very important to thoroughly research the possibilities for your specific product. The Aruba Customs provides the certificates necessary for duty free access.

 

2. PROCEDURE TO APPLY FOR ADMISSION
  Q How do I start up the procedure to be admitted to the free zone?
  A FZA NV is the exclusive operator of the Aruba free zone. In our organization we have the one-stop-shop approach, so that you have one point of contact. We will assist you through the entire process of establishment. We will also intermediate if other departments are involved. Clients interested in establishing a company in the free zone of Aruba are advised to complete an application form or contact FZA NV first. The purpose of this is to obtain sufficient information to decide whether operating from the free zone of Aruba is the best option. The first contact between the client and FZA NV marks the start of the admission phase.

 

  Q Which documents do I have to submit during the admission procedure ?
  A During the admission procedure you have to submit among others the following documents: a business plan, personal data for background checks, a statement concerning the initial capital investment, certificate of the registration chamber of Commerce, copy of shareholders registration, a declaration from the bank that you have a bank account, a source of funds declaration, a copy of the articles of incorporation of your free zone company schema procedure

 

  Q How long does it take for my company to start operating in the free zone?
  A Your company can be admitted to the free zone in a few weeks depending on the rapidness and accuracy of the submitted information.

 

  Q Are there costs involved when starting up my company?
  A The services of FZA NV are free of charge. There will be costs involved when incorporating (forming) the company (notary's fee at about $1200.-).

 

  Q If I have an existing company, can I move (relocate) this company to the free zone?
  A In order to be admitted to the free zone, you need to incorporate a limited liability company (NV) in Aruba which specifically intended for carrying out activities in the free zone of Aruba. Please contact us for further information with regards to the incorporation of your company.

 

  Q Am I allowed to set up more than one company in the free zone?
  A You are welcome to set up more than one company in the free zone, as long as the proposed activities to be conducted meet our requirements.

 

  Q Can I authorize a local representative to start up the admission procedure of my company?
  A You can authorize a local representative to start up a company in the free zone. The local representative of the free zone company should be a natural person with a permanent residence in Aruba. For example, lawyers are authorized to conduct business in the name of the person starting up the company. Please contact FZA NV for the "Conditions for representation".

 

  Q Can I complete the admission procedure online?
  A You can complete most of the admissions procedure online. For some documents we still may need the hard copy (original).

 

3. COMPANY REQUIREMENTS
  Q Do I need to reside in Aruba, to be a managing director of a free zone company?
  A No, you need not to be a resident of Aruba to be a managing director of a free zone company.

 

  Q Does a company in the free zone require a director's license?
  A A director's license is not a requirement for a free zone company to establish in Aruba

 

  Q Do I need a local partner to establish a company in the free zone?
  A You do not need a local partner to establish a limited liability company in the free zone.

 

  Q Can I change my admissions license if new business opportunities arise?
  A If a new business opportunity arises we can amend your operating license within 24 hours.

 

4. TYPE OF BUSINESSES ACTIVITIES ALLOWED
  Q What types of businesses are allowed in the free zone?
  A Trade-, light industrial and service activities (excluding financial services)

 

  Q What are considered as service activities?
  A There are several activities that are considered as services: logistics, consultancy, internet marketing, web-hosting, technical assistance, engineering, medical services, etc. The possibilities are unending.

 

  Q What is considered "export?"
  A All sales outside of Aruba.

 

  Q Are sales to tourists considered "export"?
  A Yes, retail sales to tourists and foreign visitors are considered export. For record purposes, a copy of a valid identification is required of the individual making the purchase.

 

  Q What is considered "local sales"?
  A All sales to residents and companies on Aruba are considered local sales.

 

  Q How much is my free zone company allowed to sell to the local market?
  A A free zone company is allowed to sell 25% of its yearly sales to the local market for the first two years of operation. Afterwards the percentage is lowered on a yearly basis, after 7 years the maximum is 5%. A motivated request therefore should be submitted to FZA NV to obtain a special license for local sales. Please contact us for more information on this.

 

  Q Is it possible to render services to the local market?
  A Companies in the free zone are not allowed to render services to the local market.

 

  Q What types of activities currently take place in/out of Aruba's free zone?
  A Currently a variety of goods and products such as: jewelry, sportswear, alcoholic beverages, cosmetics, shoes, sugar, rice, sunglasses, electronics, household articles, etc. Services such as web-hosting, sales & marketing, etc.

 

5. PROCEDURE FOR RENTING A SPACE
  Q What is the duration of a lease agreement?
  A The lease agreement has a duration of one (1) year and has a notice term of at least one (1) month, which can be extended. However, for tenants that need a warehouse for a shorter period, there is the possibility of temporary rental.

 

  Q Are there costs involved upon signing the lease agreement?
  A Yes, there are costs involved. One month of rent in advance and a security deposit that is equal to two (2) months rent.

 

  Q How much does it cost to rent a warehouse?
  A The rental fees for the existing warehouses range from US$ 52 to US$ 55 per square meter per year. An average warehouse costs US$ 1,300 to US$ 1,375 per month.

 

  Q Q. What is the standard size of the warehouses?
  A
image building
The standard size of our existing warehouses is approximately 3,229 square feet (300 square meters). The floor to ceiling height is 17 feet (5.5 meters) measuring from the lowest point and 19 feet (7.5 meters) measuring from the highest point.
  Q Can a 40 foot container enter the warehouse?
  A Yes, it is possible for a 40 foot container to enter our warehouses.

 

  Q Are the warehouses ready for operation?
  A Our warehouses are delivered clean and in working order. However, the tenant must arrange for the utilities (water, electricity) to be hooked up. This is a service FZA NV can provide, if the tenant so desires.

 

  Q Can any alterations be done on the warehouses?
  A Yes, alterations can be done on the warehouse as long as the management of FZA NV has given prior approval. Warehouses must also be returned to their original state when canceling the lease.

 

  Q What is the power voltage used in the warehouse?
  A The power voltage is 110 V for office equipment and 220 V for airco's. For larger machines and equipment, a higher voltage is necessary and possible, in consultation with the local electricity company.

 

  Q Is there the possibility just to rent office space in the free zone?
  A Yes, it is possible to rent office space in the free zone. For further information, please contact FZA NV via account.executive@fzanv.com.

 

  Q Can I sublease my warehouse to other tenants?
  A No, it is not possible to sublease your warehouse to other tenants.

 

  Q Is it possible to lease warehouses temporarily?
  A Warehouses can be leased temporarily for a period of three (3) months, with the option of extension for another three (3) months.

 

6. TAXES AND CHARGES
  Q Q. What other taxes do I have to pay besides the profit tax?
  A All shareholders of the free zone company are subject to payment of dividend tax when dividend is paid out by the company. Wage tax and social security premiums are applicable to the individuals employed by your free zone company.

 

  Q Q. Are there other charges, once my company is established in the free zone?
  A The Freezone Facility Charge (FFC), rental fees and other normal operational charges such as that of the Customs Department and the customs brokers, stevedoring and freight forwarding companies.

 

  Q Q. What is the FFC and what does it cover?
  A The FFC is a uniform, flat percentage (1.12%) levied on the total business volume (turnover) of a free zone company, irrespective of the type of goods traded or services rendered and without exemptions regarding transportation method. The FFC covers the operating costs of FZA NV, including for the management and operating of the free zones, such as security, supervision, marketing and maintenance of the buildings in the free zone.

 

7. CUSTOMS
  Q What are the opening hours of the free zone?
  A The opening hours of the free zone are from Monday through Friday, 7:30 am until 4:00 pm.

 

  Q Can you provide us with a list of the services rendered by the Customs authorities and the charges?
  A Please click on this e-mail address for the required information, asy@setarnet.aw.

 

8. SECURITY
  Q What security measures are there in the free zone?
  A There is 24/7 security on-site in the free zone. The police, fire department and emergency services are always on-hand.

 

  Q Do I need a security pass to enter the free zone?
  A In the near future security passes will be required for visitors and employees in the free zone. For the time being there is no security pass needed to enter the free zone. Customs and security actively check at the gate.

 

9. TERMINATION
  Q If for some reason my free zone company is not active in the free zone, is it possible to relocate to the local market?
  A Yes, it would be possible to relocate to the local market. However, before this takes place your free zone business should be properly terminated by sending in a request addressed to the managing director of FZA NV. Also, a different license is needed which can be obtained through the Department of Economic Affairs, Trade & Industry.

 

  Q What steps do I have to take in case I want to discontinue the activities of my free zone company?
  A First of all, notify FZA NV that you want to discontinue operations in the free zone. Secondly, your account executive will contact you for a follow-up conversation. Also, you will have to notify the relevant authorities that your free zone company is not engaged in business activities anymore.

 

  Q What are the costs once my free zone business activities are terminated?
  A The costs involved in terminating free zone business activities are the notary charges and the fee of the Chamber of Commerce & Industry.

 

10. INFORMATION ABOUT FZA NV
  Q What is your contact information?
  A Free Zone Aruba (FZA) NV
Av. Milio Croes 118A, 2nd floor, Dakota
P.O. Box 225, Oranjestad
Aruba.
Phone: (297) 5820909
Fax: (297) 5820888
Email: account.executive@fzanv.com or infoMail@fzanv.com

 

  Q What are your hours of operation?
  A Our office hours are 07:30 am - 12:00 pm, 01:00 pm - 04:30 pm.

 

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