Strategic Location & Market Access

Georgia serves as a vital bridge between Europe and Asia. Key logistical advantages include:

• 9 days by rail to China

• 2 days to Europe

• Free Trade Agreements with CIS, EU, and China, providing access to a 2.3 trillion consumer market

• Major distribution hub development within the next 10 years

Key Tax Benefits of a FIZ Company

A Free Industrial Zone Company benefits from a competitive tax environment, ensuring enhanced global market competitiveness:

• 0% Corporate Income Tax (instead of 15%)

• 0% Dividend Tax (instead of 5%)

• 0% VAT (instead of 18%)

• 0% Property Tax

• 0% Foreign Income Tax

Additional Benefits of a FIZ Company

• 100% foreign ownership

• Full capital and profit repatriation

• No account monitoring or audit requirements

• No minimum seed capital or investment required

• No import/export quotas or trade barriers

• Simplified customs import/export procedures

• 0% tax on imported/exported goods, raw materials, and equipment

• No restrictions on hiring foreign employees

• Low labor costs (average wage: $600)

• Low energy and utility costs

Employment & Local Sales Considerations

• 20% withholding tax + 4% pension contribution if hiring Georgian employees

• 4% VAT rate applies to sales within Georgia

Operational Advantages of a FIZ Company

• Modern Infrastructure: Equipped business districts, high-speed communication networks, cargo handling, customs brokerage, and certification services

• Affordable Real Estate: Competitive rates for land, warehouses, offices, and storage facilities

• Strategic Logistics: Black Sea ports, railways, modern highways, and inclusion in the "One Belt – One Road" initiative

Free Trade & Double Tax Avoidance Agreements

• FTA with CIS countries, Turkey, and China

• Deep & Comprehensive Free Trade Agreement (DCFTA) with the EU

• FTA with EFTA (Switzerland, Liechtenstein, Iceland, Norway)

• Preferential Trade (GSP) with the U.S., Canada, and Japan

• 57 Double Taxation Avoidance Agreements (including Germany, China, the UK, Singapore, Ireland)

Skilled Workforce & Labor Flexibility

• No minimum wage regulation

• No labor unions

• Liberal labor code & flexible employer-employee relations

• Young and dynamic workforce

Company Registration Process

• Timeframe: 15 business days

• Required Documents:

  • For individuals: Passport, business name, phone, email

  • For legal entities: Full constituent documents and beneficiary disclosure

• Annual Renewal: License must be renewed annually (~$2,000 depending on FIZ location and business activity)

Remote Company Registration & Banking

• Remote Registration: Possible via Power of Attorney

• Corporate Bank Account:

  • Requires a physical presence or demonstrable business activity in the FIZ

  • 14-day process for account opening

  • Remote account opening available via Power of Attorney

Accounting & VAT Considerations

• Accounting is not mandatory but recommended for business tracking

• VAT Registration required if taxable transactions exceed 100,000 GEL in 12 months

• Voluntary VAT Registration available for reclaiming VAT on purchases

Sales & Taxation Within Georgia

• FIZ tax benefits apply to international sales

• Local sales in Georgia subject to:

  • 15% Corporate Income Tax

  • 4% VAT

Choosing the Right FIZ in Georgia

• Tbilisi: Most expensive license

• Kutaisi-Hualing: Most affordable option

• Poti FIZ: Best for large land plots and seaport access

Legal Entity Options for FIZ Registration

• LLC (most common)

• Joint Stock Company

• Full Partnership

• Limited Partnership

• Other legal entities permitted under Georgian law

Get Expert Assistance

For more information on setting up a Free Industrial Zone Company in Georgia, contact one of our expert advisors. We are here to guide you through every step of the process.

Contact Us Today!