Commercial Zone

Posted in Finance, Accounting and Economics Terms, Total Reads: 837

Definition: Commercial Zone

Commercial Zones are the areas designated by The Ministries of Trade, Finance or Commerce where a business can hold activities without minimum intervention by customers. These zones are specifically designed to proliferate business and providing ease of business to the people setting up businesses in the area or zone.


In many countries, this zone refers to a region outside the Principle Customs Area or PCA. It is generally situated in a open space on the outskirts of a city where you can do economic activities with minimum intervention.


The concept of Commercial Zones leads us to the important term Special Economic Zones or SEZs. SEZs are zones within the geography of a country, where the trade laws are more liberal and are easy to administer. These areas lead to:

1. Increased trade

2. Increased investment

3. Easy administration

4. Employment opportunities


Lot of foreign players are willing to set up their enterprises in these zones as the prices of the goods can be kept competitive and it also helps in bringing Foreign Direct Investment (FDI) for a country.


Hence, this concludes the definition of Commercial Zone along with its overview.

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