Georgia free zones in 2023
Since 2003, Healy Consultants assisted multi-national Clients with business set up in Georgian Free Trade Zones. We timely supply our Clients with i) company registration ii) multi-currency corporate bank account opening iii) free zone virtual office address iv) license registration and v) employee recruitment service and employment visas.
Press the headings below to receive updated and relevant information about the free zones in Georgia.
Tax advantages of free zone structures in GeorgiaCompanies registered within the free zone can benefit from the following tax benefits in Georgia:
- Exemption from corporate income tax;
- VAT exemption for goods produced abroad and imported into the free zones;
- Trades between the free zone’s companies are exempted from VAT;
- Trade between a free zone company and a Georgian mainland company is taxed at a low 4% of the invoice value;
- No property and real estate tax;
- No taxes on i) repatriation of capital and ii) on interest and dividends.
Legal ConsiderationsCompanies registered within the free zone can benefit from the following tax benefits in Georgia:
- All types of corporate structures can be registered in a Georgia free zone: i) Limited Liability Company (LLC), ii) General Partnership (GP), iii) Limited Partnership (LP), iv) Joint-Stock Company (JSC), v) Branch offices, and vi) Individual enterprise.
- Unlike other major global free zones, there are no requirements for Clients to lease physical office space within the free zone. Our Clients can simply use Healy Consultants legal registered address.
- With Georgian Free Zone company our Client can engage in i) industrial production, ii) trading, iii) consulting and other professional management, legal or accounting services iv) development and IT services.
- Companies registered in FZE are exempted from filing financial statements. There is also no requirement for an audit;
- There is no minimum paid up share capital requirements;
- Payments within the free zones and to Georgian entities may be carried out in any currency as there is no currency exchange controls;
- The commercial license must be renewed annually. However, companies will be exempt from applying for licenses and permits for specific industries such as producing and packing of i) nourishment production for new-born babies and children; producing and distributing of ii) electric energy, iii) natural gas;
- Information about the directors and shareholders of the company is publicly available.
List of Georgia Free ZonesGeorgia has three free zones i) the Poti Free Industrial Zone, ii) the Tbilisi Free Zone and iii) the Hualing Kutaisi Free Industrial Zone.
Poti Free Industrial Zone
- The main advantages of the Poti Free Industrial Zone (Poti FIZ) are the size and strategic location;
- Poti free industrial zone is the first industrial and one of the largest zone in the region and is located adjacent to the Poti Port, at the eastern Black Sea Cost, and next to the international airports of Kutaisi and Batumi;
- Poti FIZ is 75% owned by CEFC Euro-Asian, 10% by the Ministry of Economy of Georgia and 15% by Ras Al Khaimah Investment Authority;
- Poti FIZ covers 3.0 million sq. m. The majority of the land 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:
- Specialized manufacturing and import;
- General import and export trading and logistics;
- Special trading – import and export of products of similar lines;
- Warehousing – development of warehouse compelexes for sub-leasing purpose;
- Additional specialized licenses available, include:
- Consulting services;
- Business support services, secretarial and accounting support;
- Financial services such as non-bank depositary and credit activity, including banking;
- Construction contracting.
- Our Client has an opportunity i) to import raw materials and export their finished products into various markets, both regional and international, free of local taxes and with law supply chain cost ii) obtain a preferential or non-preferential certificate of authenticity “Made in Georgia”.
Tbilisi Free Zone
- This is the first free zone specialized in the crypto mining industry in Georgia;
- Tbilisi free zone was launched in November 2015 on 170,000 sq.m. of the land of Tbilisi;
- Due to its location, companies registered in Tbilisi Free Zone enjoy direct access to the Tbilisi airport and city center;
- The free zone occupies 17 hectares of land, divided into 28 individual and diversified plots. The Tbilisi Free Zone offers residents quality facilities with low-cost access to reliable electricity and internet;
- BitFury Group, the world’s leading blockchain technology company is the owner and developer of the property. The company produced Bitcoins in Georgia’s Eastern city Gori;
- The free zone companies only suffer 4% corporation tax on annual profits from the sale of products and services to Georgian customers;
- Tbilisi Free Zone located in the capital city of Georgia, Tbilisi. Hence the free zone offers business access to roughly 80% of the skilled labour pool in Georgia;
- In a Tbilisi Free Zone, our Clients can conduct the following activities: i) Manufacturing, ii) Import/Export, iii) Logistics, iv) Consulting, and v) Services (including financial services);
- Before commencing these operations, Healy Consultants will assist our Clients to secure a business license. The cost of licensing varies between US$4,000 and US$15,000;
- The minimum capital required for a setup of a Joint Stock company in Tbilisi Free Zone is US$6,000.
Hualing Kutaisi Free Industrial Zone
- Hualing Kutaisi Free Industrial Zone became operational in October 2015;
- It is located in the city of Kutaisi – the second largest populated city of Georgia;
- The Hualing Kutaisi free zone covers a territory of 36 hectares and located at an important connecting hub between Tbilisi and the Black Sea Ports of Poti and Batumi;
- The Chinese company “Hualing Group” manages the free zone;
- Five main businesses are operating the in the Hualing Kutaisi Free Industrial Zone: i) wood processing, ii) furniture production, iii) stone processing, iv) metal constructions and v) mattresses production;
- There is no minimum investment, nor capital required to begin operations in the Hualing Kutaisi Free Industrial Zone;
- As an additional advantage, free zone companies in the Hualing Kutaisi Free Industrial Zone are not required to hire employees.
Healy Consultants’s feesOur fees to assist your Firm setup a business entity in the Tbilisi Free Zone is US$17,030, including i) free zone company registration; ii) multi-currency corporate bank account opening; iii) registered office address service; and iv) tax and VAT registration. For a more detailed breakdown, refer to our invoice for on this webpage;
Comparison table between Georgia free zones
Summary Poti Free Zone Tbilisi Free Zone Hualing Free Zone Free Zone Location Poti Tbilisi Kutaisi Area covered by the free zone? 3 km2 0.17 km2 0.36 km2 Most popular business sector in the zone? Manufacturing and logistic Manufacturing and logistic Manufacturing and warehousing Can hire foreign workers? Yes Yes Yes Can secure corporate finance? Yes Yes Yes Can trade with other parts of Georgia? Yes Yes Yes Time zone (ahead of GMT) + 4 hours + 4 hours + 4 hours Is there an airport nearby? Yes Yes Yes Company registration Can the company be incorporated online? Yes No Yes How long to setup the company? 1 week 1 week 1 week Hong long to secure the business license? 1 week 1 week 1 week Foreign investor approval required? No No No Minimum share capital requirement None None None Logistics considerations Physical office space required? Yes Yes Yes Quality of utilities? Good Good Good Attractive for setting up a manufacturing business? Yes Yes Yes Proximity of sea port in km? 2 km 324 km 90 km Proximity of airport in km? 78 km 19 km 19 km Accounting and tax considerations Corporate tax rate (%) 0% 0% 0% Goods subject to custom duties within the zone? None None None VAT imposed on goods sold in the country? Yes Yes Yes Quarterly tax filling required? Yes Yes Yes Annual tax returns to be submitted? Yes Yes Yes Annual audit required? No No No Corporate banking and financial considerations Recommended bank for corporate banking? Bank of Georgia TBC Bank VTB Bank How long to setup the bank account? 4 weeks 4 weeks 4 weeks Corporate visa debit cards available? Yes Yes Yes Quality of e-banking platform? Good Good Good Labor considerations Can hire foreign employees? Yes Yes Yes Hong long to secure the work permit? 1 month 1 month 1 month Client must travel before securing a work permit? Yes Yes Yes Can investor secure a permanent residency? Yes Yes Yes Average salary for local employees USD? 410 410 410