Georgia free zones

Georgia currently counts with 3 operational free zones i) Poti Free Industrial Zone ii) Tbilisi Free Zone and iii) Hualing Kutaisi Free Industrial Zone. Healy Consultants will assist our Clients to prepare a quality application to be submitted to the free zone authorities.

Advantages

  1. Any type of enterprise can be registered in a free zone: i) LLC ii) LP iii) JSC and iv) Branch Offices;
  2. Companies registered within the zone can benefit from the following tax benefits:
    • Exemption from corporate tax;
    • VAT exemption for goods produced abroad and imported into the FIZ;
    • Exemption from import/export tax for goods produced abroad and imported into the FIZ;
    • Exemption from property tax.
  3. Payments within the Free zones and to Georgian entities may be carried out in any currency;
  4. Companies will be exempt from applying for license and permits for certain industries.

Poti Free Industrial Zone

  1. Poti free industrial zone is located adjacent to the Poti Port, at the eastern Black Sea Cost, and next to the international airports of Kutaisi and Batumi;
  2. Clients can apply for one of the following licenses:
    • Manufacturing;
    • General trading – import and export of a wide range of products;
    • Special trading – import and export of products of similar lines;
    • Warehousing – development of warehouse for sub-leasing purpose;
    • Consulting;
    • Business support services;
    • Finance services;
    • Logistics;
    • Construction contracting.

Tbilisi Free Zone

  1. Tbilisi free zone is located in the capital city of Georgia, Tbilisi. It enjoys direct access to the Tbilisi International airport and the city center;
  2. For the establishment of a Joint Stock Company, it requires a minimum capital of US$ 6,000;
  3. Our Clients can apply for one of the following licenses:
    • Manufacturing;
    • General trading;
    • Special trading;
    • IT production/service;
    • Consulting;
    • General service;
    • Financial service;
    • Warehousing;
    • Logistics.

Hualing Kutaisi Free Industrial Zone

  1. Located in Kutaisi, the second largest city in Georgia, it is 210km from the capital city and 90km from Poti Sea Port;
  2. It is operated by the Chinese company “Hualing Group”;
  3. Our Clients can apply for one of the following licenses:
    • Industrial;
    • General trading;
    • Special trading;
    • Consulting;
    • Service;
    • Financial service;
    • Logistics;
    • Contracting.
  4. Companies are not required to hire employees.

Comparison table between Georgia free zones

Georgia Free Trade ZonesPoti FIZTbilisi FZHualing Kutaisi FIZ
Summary
Free Zone LocationPotiTbilisiKutaisi
Area covered by the free zone?3 km20.17 km20.36 km2
Most popular business sector in the zone?Manufacturing and logisticManufacturing and logisticManufacturing and warehousing
Can hire foreign workers?YesYesYes
Can secure corporate finance?YesYesYes
Can trade with other parts of Georgia?YesYesYes
Time zone (ahead of GMT)+ 4 hours+ 4 hours+ 4 hours
Is there an airport nearby?YesYesYes
Company registration
Can the company be incorporated online?YesNoYes
How long to setup the company?1 week1 week1 week
Hong long to secure the business license?1 week1 week1 week
Foreign investor approval required?NoNoNo
Minimum share capital requirementNoneNoneNone
Logistics considerations
Physical office space required?YesYesYes
Quality of utilities?GoodGoodGood
Attractive for setting up a manufacturing business?YesYesYes
Proximity of sea port in km?2 km324 km90 km
Proximity of airport in km?78 km19 km19 km
Accounting and tax considerations
Corporate tax rate (%)0%0%0%
Goods subject to custom duties within the zone?NoneNoneNone
VAT imposed on goods sold in the country?YesYesYes
Quarterly tax filling required?YesYesYes
Annual tax returns to be submitted?YesYesYes
Annual audit required?NoNoNo
Corporate banking and financial considerations
Recommended bank for corporate banking?Bank of GeorgiaTBC BankVTB Bank
How long to setup the bank account?4 weeks4 weeks4 weeks
Corporate visa debit cards available?YesYesYes
Quality of e-banking platform?GoodGoodGood
Labor considerations
Can hire foreign employees?YesYesYes
Hong long to secure the work permit?1 month1 month1 month
Client must travel before securing a work permit?YesYesYes
Can investor secure a permanent residency?YesYesYes
Average salary for local employees USD?410410410

Contact us

For additional information on our company incorporation services in Georgia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen