Georgia Free Trade Zones

Free Trade Zones in Georgia

Georgia Free Trade Zones are a quasi-governmental organisation with members from various local departments including the Chamber of Commerce, Ports Authority, Department of Economic Development, and more.

With the objective to maintain economic growth, increase industrial competitiveness, and promote foreign direct investment, the government has established these Zones in various areas. It is considered to be an optimal choice for business owners and foreign investors looking to set up their business in the jurisdiction.

Based on your business activity, needs, and long-term goals, Tetra Consultants will recommend the most suitable Free Trade Zone for you. We will then inform you about the incorporation process.

Some popular Free Trade Zones in Georgia

• In Georgia, Free Trade Zones are called ‘Free Industrial Zones’. Presently, there are five Free Industrial Zones available:

Poti free industrial zone (Poti FIZ)

• Founded in 2008 and spread across 3 million square meters of territory, the Poti Free Industrial Zone was the first and the largest zone to be established in the nation.
• Spread across 3 million square meters of territory, the Poti FIZ is governed by the UAE Ras Al Khaimah Investment Authority (RAKIA).
• The Poti FIZ is well connected to the global economy, owing to its strategic location near the Poti Port and the airports of Kutaisi and Batumi. Besides, it is found on the Black Sea shore, in the path of the Silk Road, which is the shortest route from the European Union to the East. Businesses can thus take advantage of this.
• Besides, the Poti FIZ has a well-developed infrastructure, with telecommunication facilities, transportation systems, and more on site. Furthermore, there is an inexpensive skilled labour force available in the country.
• Businesses from the following industry can be set up in this region:
  • Manufacturing
  • Trading
  • Logistics
  • Services
  • Data and technology

Kutaisi Free Industrial Zone (Kutaisi FIZ)

• Established in 2009 and spread across 270,000 square meters, the Kutaisi Free Industrial Zone is established by Georgian International Holding.
• Found in the second most important city in the nation, Kutaisi, this Industrial Zone is relatively close to the Kutaisi International Airport, Poti Port, and Tbilisi FIZ.
• This Zone has a well-developed infrastructure including established transportation facilities, basic amenities, and more. Businesses can also take advantage of the inexpensive labour force available in this region.
• Businesses from the following industries can be set up in this Zone:
  • Manufacturing
  • Trading
  • Logistics
  • Services
  • Technology

Hualing Kutaisi Free Industrial Zone (Hualing FIZ)

• Operational in 2015 and spread across 360,000 square meters, the Hualing Kutaisi Free Industrial Zone is established by the Hualing Group who was supported by the Georgian government.
• It is the second Industrial Zone to be established in the second most important city in nation, Kutaisi.
• It connects the two FIZs of Poti and Tbilisi.
• This Zone has a well-developed infrastructure including established transportation facilities, basic amenities, and more. Businesses can also take advantage of the inexpensive labour force available in this region.
• Businesses from the following industries can be set up in this Industrial Zone:
  • Construction
  • Trading
  • Logistics
  • Services

Tbilisi Free Industrial Zone (Tbilisi FIZ)

• Founded in 2015 and spread across 170,000 square meters of territory, the Tbilisi Free Industrial Zone was set up by the BitFury Group, a leading blockchain technology company.
• Located in the capital city – Tbilisi, this Industrial Zone has a well-developed infrastructure with established office spaces, land, transportation systems, and more. Moreover, this region also has a large and skilled labour force that businesses can take advantage of.
• With its proximity to the center of the city and the Tbilisi International airport, this Industrial Zone is well connected to the rest of the country and the world.
• Businesses from the following industry can be established in this region:
  • Technology
  • Trading
  • Services
  • Production
  • Logistics

Kulevi Free Industrial Zone (Kulevi FIZ)

• Founded in 2017 and spread across approximately 600,000 square meters of territory, the Kulevi Free Industrial Zone was set up by the local government.
• Located in the Khobski region, this Kulevi FIZ is the youngest free zone to have been established in the nation.
• The managing power of this Zone was given to SOCAR Georgia Investments board, a supplier of oil, natural gas, and other products.
• The respective authority of this region has not only undertaken the establishment of a refinery, gas reservoir, and power station, but also developing the infrastructure in this region including the establishment of buildings, providing companies with basic amenities, and more.
• Enterprises requiring the use of oil refineries should consider setting up their business here the most.
• Companies from the following industries can be established in this region:
  • Manufacturing
  • Trading
  • Services

Why should you set up a Free Trade Zones Company in Georgia?

• Both locals and foreigners can have complete ownership of the business and therefore, can incorporate their business in the nation.
• A free trade zone company is not subjected to any corporate income tax, Value Added Tax (VAT), Property Tax, Import and Export Duties, Personal Income Tax, and more.
• Georgia is strategically positioned in Europe for the following reasons:
  • The country is connected to the East through its Poti Port which is on the path of the Silk Road.
  • The ‘Belt and Road Initiative’ undertaken by China involves the establishment of a link between China and Europe, which passes through Georgia.
  • The availability of various transportation facilities including the ports, airports, highways, and more connects the country to the rest of Europe and the world.
• There are no foreign exchange controls or import and export quotas levied on the companies.
• Georgia is considered to be the 12^th freest economy in the world, as per the report in the Index of Economic Freedom 2021.
• There is a well-developed local infrastructure including transportation facilities, land, basic amenities, and more. Moreover, there is an inexpensive labour force available which can be advantageous for the business.
• The state has established an extensive network of tax treaties, allowing companies to avoid being taxed twice.
• The registration process is simple and hassle-free and can be conducted remotely, such that you will not be required to travel.
• The government also offers business owners and foreign investors investment resident visas to make entering the nation easy.

How to set up a company in Georgia Free Trade Zones?

• The registration process depends upon your chosen Free Industrial Zone and your business entity.