By “Deemed Foreign Territory,” the FTWZ will be treated as a foreign entity similar to the embassies of various countries. Though the territory is present in India, many of the common Indian business laws and taxation will not be applicable there. To promote international trade, the Government of India offers a slew of benefits like tax exemptions for companies operating through this FTWZ.
As against domestic logistics parks, companies operating in FTWZ need not be registered Indian entities. Foreign companies that are registered elsewhere can also trade and transact through FTWZ.