avatar_Company-registration-in-a--FIZ
Modification date: 2022-06-27 / View count: 5295

Registering a company in a Free Industrial Zone in Georgia

Thanks to the discrepancy between political will and financial policy or the absence of financial policy in Georgia, the Free Industrial Zone in Georgia offers an advantage to investors that are not accessible anymore while FIZ still exists. Today having a company registered in a FIZ will block the company's access to the bank service in Georgia. Except if you are in the distribution sector, or if you don't need a bank account for your company,  huge advantages offered by the law in Georgia are now obsolete but still alive. As it is still possible, in the law, we kept this article online.

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.

Operational benefits

  •  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...
  • 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%

Our services

  • 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.

Connect with
socialMediaIconsocialMediaIconsocialMediaIconsocialMediaIcon

This site uses cookies to offer you a better browsing experience. Find out more on how we use cookies.