A Free Zone is a part of the territory with defined borders. Free zones is used as a source of Foreign Direct Investment for the government.
What is the advantage of incorporating a Free Zone?
- All types of corporate structure can be register in Georgia free zones.
- The companies that register within the borders of the Free Zone are permanently exempt from all the corporate taxes on export oriented businesses. The other advantages include:
- No minimum capital requirement;
- 100%- foreign ownership permitted;
- Fast corporate and private bank account opening in reputable Georgian banks (including full internet banking and various other high-end services);
- No tax on dividend withdrawal; -No restrictions on number and nationality of the shareholders and directors. Shareholders can be the director at the same time.
Georgia has 3 main free zones location:
Here are the most popular sectors in the three locations :
Poti free zone
It’s located at the eastern black sea coast, and next to the international airports of Kutaisi and Batumi.
About Poti free zone
The Poti Free Industrial Zone is the first free industrial zone in the region, it’s owned by CEFC Euro-Asian (75%), Georgian Government, Ministry of Economics (10%) and by the Government Agency of the Emirate of Ras Al Khaimah Investment Authority (RAKIA), U.A.E. (15%).
What is the Poti contains?
Poti Free Industrial Zone LLC has been fully functional since 2010 and accommodates business and investors from diverse segments, it covers 3.0 million sq. m. The majority of the land is offered for a range of industrial and logistics activities, from light manufacturing to more heavy industries such as chemical, steel, and processing.
Clients can apply for one of the following licenses
Kutaisi Free Zone:
Kutaisi is one of the largest cities of Georgia and Kutaisi free zone is located within the city, investors who choose to invest their benefit from special investment regime. More than 20,000 employees work in Kutaisi free zone and the employment and employees are expected to increase.
It’s managed by the Chinese company Healing group.
One can presume the under-mentioned tax benefits:-
- 100%- permanent exemption from Corporate Profit, Dividend, Property taxes and VAT;
- Also 100%- permanent exemption from import/export of all cargo, including raw materials, equipment & machinery, prefabricated goods;
- 100%- capital and profit repatriation;
- -Double taxation with many countries ;
- Free Trade regime with the CIS countries and Turkey;
Tbilisi free zone :
The Tbilisi Free Zone JSC was launched in November 2015 on 170,000 m2 of land in Tbilisi. BitFury Group, the world’s leading blockchain technology company, is the owner and developer of the property.
There is no free industrial zone in Tbilisi except it
It (TFZ) is also the only free industrial zone in Tbilisi. TFZ seeks to attract international tenant companies to locate their export-oriented businesses in the bonded tax-free area. TFZ is prepared to welcome companies from diverse fields of business including technology, trading and services, light industrial manufacturing, logistics, warehousing and other.
Advantages of Tbilisi free zone
- Due to its location, companies registered in the Tbilisi free zone enjoys direct access to the Tbilisi international airport and the city center.
- In the Tbilisi free zone, our clients can conduct the following activities
- The minimum capital required for the setup of a joint stock company in Tbilisi free zone is 6,000 $ US.