Georgia free zones
Since 2003, Healy Consultants PLC 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.
Advantages of free zone structures in Georgia
- All types of corporate structures can be registered in a Georgia free zone: i) LLC, ii) LP, iii) JSC, and iv) Branch Offices;
- Companies registered within the zone can benefit from the following tax benefits in Georgia:
- Full exemption from corporate tax;
- Full VAT exemption for goods produced abroad and imported into the free zone warehouses;
- Exemption from import/export tax for goods produced abroad and imported into the free zone warehouses;
- Exemption from property and real estate tax.
- Payments within the free zones and to Georgian entities may be carried out in any currency, as there are no currency exchange controls in Georgia;
- Companies will be exempt from applying for license and permits for certain industries.
Poti Free Industrial Zone
- 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;
- 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 for sub-leasing purpose;
- Additional specialized licenses available, include:
- Secretarial and accounting support services;
- Financial services;
- Construction contracting.
Tbilisi Free Zone
Advantages of Tbilisi Free Zone company setup
- A Tbilisi free zone LLC is legally tax exempt including i) no corporation tax nor ii) VAT nor iii) import duties nor iv) withholding tax on dividends
- The free zone LLC only suffer 4% corporation tax on annual net profits from the sale of products and services to some Georgian customers;
- Tbilisi Free Zone companies are not required to i) submit declaration of revenues to the Government nor ii) submit their financial statements for independent statutory annual audit.
- Unlike other major global free zones, there is no requirement for Client to lease physical office space in the free zones. Our Clients can simply use virtual office service provided by Healy Consultants PLC;
- Tbilisi Free Zone is located in the capital city of Georgia, Tbilisi. Hence the free zone offers businesses access to roughly 80% of the skilled labor pool in Georgia;
Disadvantages of Tbilisi Free Zone company setup
- Georgia has a very low population (3.5 million people). As a result, our Client should expect challenges, when making i) local sales; and ii) hiring local staff;
- Georgia continues to suffer from poor economic and political relations with Russia. Hence, our Client should not expect to make sales in Russia, using a Georgia company;
- Georgia does not implement their IP protection laws stringently. Hence, our Client may not be able to adequately protect their intellectual property in Georgia;
Business Setup Considerations
- Due to its location, companies registered in the Tbilisi free industrial zone enjoys direct access to the Tbilisi International airport and the city center;
- The free zone occupies 17 hectares of land, divided into 28 individual and diversified plots. TFZ offers residents quality facilities with low-cost access to reliable electricity and internet;
- In a Tbilisi Free Zone, our Clients can conduct the following activities: i) Manufacturing; ii) Import/Export; iii) Logistics; iv) Consulting; v) Services (including financial services);
- Before commencing these operations, Healy Consultants PLC will assist our Clients secure a business license. The cost of licensing varies between US$4,000 and US$15,000;
- The minimum capital required for setup of a Joint Stock company in Tbilisi Free Zone is US$6,000.
Healy Consultants PLC’s fees
Our 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;
Hualing Kutaisi Free Industrial Zone
- The Kutaisi free zone covers a territory of 36 hectares and is located at an important connecting hub between Tbilisi and Black Sea Ports of Poti and Batumi;
- The free zone is managed by the Chinese company “Hualing Group”;
- There are five main businesses operating the in the Kutisi Free Industrial Zone, dealing with: i) wood processing, ii) furniture production, iii) stone processing, iv) metal constructions and v) mattresses production;
- There is no minimal investment, nor capital required to begin operations in Kutisi Hualing FIZ;
- As an additional advantage, free zone companies in Hualing are not required to hire employees.
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