While Georgia already has a very attractive tax system, the Free Industrial Zone will offer additional advantages to investors. Regulated by the Georgian law on industrial free zones, these FIZ aim to promote economic growth, strengthen industrial competitiveness and attract foreign direct investment. They are designed to create a tax, legal and administrative environment that highly promotes the competitiveness of tenant companies.
The advantages for a company incorporated in a Free Industrial Zone
- 0% VAT.
- 0% Income Tax
- 0% Dividend tax
- 0% Property Tax
And it's also:
- No minimum capital requirement.
- 100% of the capital and profits can be repatriated.
- 100% of the capital may be held by a foreigner.
- A quick and easy company incorportation process.
- An excellent geographical location of Georgia, strategic corridor between Europe and Asia.
- Low licensing and permit costs.
- Low labour costs.
- Good infrastructures.
- Free zone investors can rent land, warehouses and industrial units or offices and storage rooms at very affordable prices.
If a company domiciled in an FIZ produces goods for export, it is therefore exempt from all taxes, except for the 20% income tax which is deducted from employees' salaries.
Four Free Industrial Zone in Georgia
They operate in the following cities: Poti (a large Black Sea seaport and an important industrial centre), 2 in Kutaisi (Georgia's third largest city) and Tbilisi (the capital, located near the international airport). All FIZs are operated by private companies.
- Poti FIZ is operated by Rakia Georgia FIZ LLC
- Kutaisi FIZ is operated by Georgia International Holding (LLC Fresh Georgia)
- Kutaisi FIZ is operated by Hualing Group
- Tbilisi FIZ is operated by Tbilisi Free Zone JSC (subsidiary of BitFury Group)
Investors wishing to set up a business in a Free Industrial Zone will have to apply for a licence depending on the type of activity carried out by the company.
Types of licenses available.
A license has a specific cost for each type of activity. It is renewable annually.
- Manufacturing industries (import raw materials, manufacture, process, package and export finished products)
- General business activities (allows you to buy, sell, import, distribute and store items specified in your license)
- IT development and services (e-commerce for example)
- Consulting and other professional management, legal and accounting services...
- Financial and banking services. (n.b: SINCE JUNE 2018, Georgia daes not grants this type of licence in a FIZ).
- Logistics services
FIZs allow the incorporation of all types of companies in Georgia: Limited Liability Company (LLC), SA, Branch, Limited Partnership and other types of legal entities.
Very significant savings compared to a company in Main Land
- Corporate income tax (15% based on taxable profits)
- Property Tax - 1% of the market value of the property
- VAT - 18%.
- Dividends - 5%
- Advice on the rules governing your activity and application for your licence
- Registration of your company. (Preparation of all incorporation documents. Following the registration of your company in the FIZ, we send you the original documents by express mail to the address of your choice or hand delivered if you travel to Georgia)
- Opening a corporate and/or personal bank account.
- Assistance and/or representation at all government appointments.
- Temporary Resident Permit application.
You don't have to travel to Georgia to set up your company in a Free Industrial Zone. A Power of Attorney issued to the legal representative of your choice is enough to remotly carry out all the procedure.