FREE ZONES IN GEORGIA
The convenient and favorable geographical position of Georgia makes it attractive from the point of view of establishing various types of industries, infrastructure facilities, research and business on its territory.
Attractive conditions are also created by internal and external activities: reducing the level of bureaucracy and corruption, calm in the internal political life of the country, participation in international projects, opening large free zones.
The ability to enjoy special benefits when registering a business, doing business, minimal taxation and the lack of tight financial control turns free zones into small offshore territories.
The opening of free economic zones attracts investments in Georgia, gives great opportunities to partner countries for the development of foreign business and promotes the integration of Georgia into the world community. Therefore, the topic of free zones for business development deserves special attention.
Here is a comparative analysis of open economic areas in some parameters.
GEORGIAN OPEN ECONOMIC ZONES PROVIDE TAX FREEDOM
The primary advantage of the Georgian free economic space is tax breaks. Their essence is a complete exemption from any payment for business activities, except for the tax on the salaries of the workers in the zone.
A company producing products for imports in the free industrial zone (PPE) pays a single tax – 4% – tax on the salaries of individuals. When bringing goods to the domestic market of Georgia, the manufacturer is obliged to contribute 4% of the cost of production.
FEATURES OF GEORGIAN FREE ECONOMIC ZONES
Kutaisi (Kutaisi FIZ) – PPE in Georgia, appeared in 2009. Has a territory of more than 260 thousand square meters. m Specializes in trading all groups of goods. It hosts a large number of industrial facilities. The most popular PPE in Georgia.
lack of control over foreign currency accounts and their transactions;
no income tax;
the absence of a mandatory audit;
no limit on trading volume;
no lower bound for investment, investment;
the possibility of full ownership of the company by a foreign investor.
Kutaisi (Hualing FIZ) is a Georgian free industrial zone, founded in 2015. Free zone owner – Hualing Group. It occupies a territory of more than 360 thousand square meters. m Direction – commercial and industrial activities. Construction and communications completed.
freedom of currency transactions;
no limit on the volume of trade;
release from financial statements;
no lower bound for investment, investment;
no restrictions on repatriation;
the possibility of full ownership of the company by a foreign investor;
unlimited trade relations with members of the European Union and the CIS;
unlimited trade relations with Canada, USA, Turkey and Japan.
Poti (PFIZ) – free economic space in Georgia, founded in 2010. The Ministry of Economy of Georgia controls the minimum share, CEFC holds a controlling stake, and the UAE owns part of it. This is a very important economic asset of the country.
A very extensive free industrial zone that specializes in heavy and light industry. The convenient location near the Black Sea port of large warehouses and the presence of the logistics headquarters allows you to organize any production, and deliver products worldwide.
no taxes on the import and export of raw materials and finished goods;
unlimited trade relations with the countries of the European Union, the CIS and Turkey;
customs privileges with the USA, Canada, Japan;
low cost of renting land and electricity;
highly skilled labor force;
extremely simple, fast and transparent business registration system;
no double taxation due to the signing of a network of agreements;
the opportunity to receive a certificate for genuine products on preferential terms.
Tbilisi (TFIZ) is a fresh free industrial territory, created in 2015, which is aimed at innovative business sectors: computer technologies, virtual projects.
Also developed trade relations, logistics companies, warehouses, services. The total area of PPE is about 170 thousand square meters. m
construction of facilities and commissioning takes place as investors are attracted;
advantageous location relative to the metropolitan government and aviation site;
location of customs in PPE.
Trouble-free licensing is one of the advantages of working in the SIZ of Tbilisi. Types of licenses:
general production and commercial permit;
general trade license;
special trade authorization (legislative restriction of certain types of activities);
permission for service, logistics, consulting / IT assistance;
REQUIREMENT OF GEORGIAN PPE
The strategically convenient location of Georgian PPE allows you to adopt a foreign legitimate business on very favorable terms. Under the direction of activity, you can choose the optimal PPE.
The basic principle of the selection of a free economic space remains the combination of specialization of the zone and its features with the specific goals of business activities.
For assistance with the selection of free zones in Georgia, please contact Eternity Law International.