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.

Georgia currently operates and maintains three free zones i) the Poti Free Industrial Zone ii) the Tbilisi Free Zone and iii) the Hualing Kutaisi Free Industrial Zone.

Press the headings below to receive updated and relevant information about the free zones in Georgia.

  • Advantages of free zone structures in Georgia

    1. All types of corporate structures can be registered in a Georgia 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 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.
    3. 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;
    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:
      • 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;
    3. Additional specialized licenses available, include:
      • Consulting;
      • Secretarial and accounting support services;
      • Financial services;
      • Construction contracting.
  • Tbilisi Free Zone

    Advantages of Tbilisi Free Zone company setup

    1. 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
    2. The free zone LLC only suffer 4% corporation tax on annual net profits from the sale of products and services to some Georgian customers;
    3. 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.
    4. 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;
    5. 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

    1. 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;
    2. 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;
    3. 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

    1. Due to its location, companies registered in the Tbilisi free industrial zone enjoys direct access to the Tbilisi International airport and the city center;
    2. 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;
    3. 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);
    4. 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;
    5. 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

    1. 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;
    2. The free zone is managed by the Chinese company “Hualing Group”;
    3. 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;
    4. There is no minimal investment, nor capital required to begin operations in Kutisi Hualing FIZ;
    5. As an additional advantage, free zone companies in Hualing are not required to hire employees.
  • Comparison table between Georgia free zones

    SummaryPoti Free ZoneTbilisi Free ZoneHualing Free Zone
    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 contact our in-house country expert, Mr. Seth Ochieng, directly:
client relationship officer - Seth