Kano Free Trade Zone

The federal government owns the Kano Free Trade Zone, located in the Panisau Road area of the Ungogo Local Government Area. It was the second free trade zone incorporated in Nigeria. The sponsor/developer of the Kano Free Trade Zone is the federal government.

Although the government proclaimed it as an Export Processing Zone (EPZ) in 1998, it later converted it into a Kano Free Trade Zone in 2001 with approval from the president-in-council. It specializes in warehousing, manufacturing, and providing logistics services.

Covering almost 262 hectares of land, the Free Trade Zone is fully operational and provides a competitive environment for all the companies set up in the zone. A total of 33 companies have been registered in the Kano Free Trade Zone, out of which 13 have started their operations. The region includes 19 massive warehouses, which the 13 companies mentioned above fully utilize and operate.

In the year 2010, the Kano Free Trade Zone received a grant of ₦ 5.2 billion from the federal government of Nigeria for the development. This grant helped increase the efficiency of the various services in the region. It also allowed the management to develop better infrastructure that is well suited to the needs of the businesses in the area. The free zone underwent several significant upgrades, including the creation of a joint task force that improved and increased commercial activities. This led to a notable rise in Foreign Direct Investment from around the world.

Many investors and entrepreneurs are still to discover the multiple benefits that a free zone can provide to a company. The Government of Nigeria is working towards spreading awareness of the various reasons as to why you should incorporate business in Kano free zone. It is also noteworthy that the Kano State Pension Trust Fund provides its services to the companies incorporated in the Kano Free Trade Zone and helps in the development of the area.

Incentives of Setting Up Business in Kano Free Trade Zone

The various benefits of incorporating a business in Kano are:

Complete Ownership and Repatriation of Profits

A foreign entrepreneur does not require a local sponsor and can own 100% of the company in the Kano free trade zone. They can also send all their company’s profits and dividends back to their home country with ease.

No application for an Import License or any Expatriate Quota

A company set up in the Kano free trade zone does not require an import license to import any goods or raw materials, and the companies are also not expected to maintain an expatriate quota. According to the expatriate quota, a company is required to get approval before hiring any foreign employees or directors for the business.

Duty-free, Tax-free import of specific goods

If you set up your company in the Kano Free Trade Zone, you won't need to follow the regulations developed in the country. That implies that your company will not need to pay any import duty or any tax related to the import and export of raw materials.

No Strikes or Lockouts

The employees of a company that has been formed and is conducting business in Kano can not have strikes or lockouts for at least the initial ten years of the formation of that company.

No Rent during the first six months of Construction

The company will not pay rent during the first six months while the necessary infrastructure is developed.

Approvals for all Permits and Licenses under a Single Roof

All the required permits and licenses are accessible in one place. This significantly reduces the duration of the commencement of business activities.

Complete Tax Holiday

The Kano free trade zone does not follow the laws that are observed mainly by companies all over the country. The companies involved in business in Kano do not need to pay any taxes, duties, or levies.

Permission to sell 100% of goods domestically

Enterprises set up in the free zones have agreements to sell their products within the country. They are also allowed to sell any imports which they bring in.

Why Invest in the Kano Free Trade Zone?

There are many reasons for an entrepreneur to choose the Kano Free Trade Zone over any other free zones in Nigeria, due to:

• Enterprises conducting business in Kano have permission to sell 100% of the manufactured, assembled or imported goods in the domestic market.
• Kano state is close to many other West African Countries like Chad, Niger, Mali, etc., which serve as export markets for the companies.
• While selling the produced goods in the domestic markets, the import duty on goods manufactured in the Kano Free Trade Zone is usually ascertained based on the value of the raw materials or components used in assembly.
• Kano is the largest consumer market in Nigeria, with a population of more than 16 million people.
• There are abundant natural resources nearby, such as gum, sesame seeds, groundnuts, garlic, tomatoes, pepper, ginger, etc.
• Kano Free Trade Zone is a part of the African Growth and Opportunity Act (AGOA), which the U.S. Congress approved. The primary purpose of this act is to improve economic relations between the two countries.
• The Kano free trade zone offers an abundance of skilled and unskilled labour at competitive rates.
• When you decide to set up a business in Kano, you will be entitled to 100% ownership of the investment.
• The Kano free trade zone offers 100% repatriation of capital, profits and dividends.
• The formation of a company in the Kano Free Trade Zone is very beneficial for both the budding entrepreneurs and the economy of Nigeria. The free zone also helps provide a platform to increase employment in the country and thus help uplift the GDP.

How to Set Up a Business in Kanon

Setting up a business in Kano requires entrepreneurs to go through specific steps. These steps are:

• First, download or pick up an application form from the management of Kano Free Trade Zone headquarters. This application would cost $500 or 835,205 naira.
• Fill out the application form and submit it to the Kano Free Trade Zone headquarters in Abuja, along with the required documents.
• After receiving approval, you can obtain an operating license, which is sufficient to incorporate your business in Kano officially. Once you receive the permit, the free zone management will assign a specific space for you to develop the needed infrastructure.
• Now, you will need to acquire a certificate of capital importation from the bank in the free zone.
• Build the necessary infrastructure required by your business and submit the required documents within the first three months after the execution of the agreement.

Incorporating a business in Kano can become a complex process depending upon the size and nature of the business and may require a certain amount of knowledge. If you need assistance in setting up a company in Nigeria, you can put your faith in the services of Business Setup Worldwide. Our team of experts will tackle all your business-related problems and provide you with solutions customized to your needs. To establish your company in the Kano free trade zone, contact us today! We’d be happy to help you.