In fact, Georgia is becoming an increasingly recognized jurisdiction for Import-Export investments and activities with the countries of the Commonwealth of Independent States (CIS), EU countries and China. This attractiveness is due to the absence of strict currency control rules and the presence of liberal trade regimes with all these countries but also with many others. The absence of corruption, transparency in business management, association agreements with the EU, the introduction of a visa-free regime with the EU, low taxes and tax rates, a very short list of licenses and permits, very simple administrative procedures, are among the advantages you will have by setting up a Free Zone company in Georgia.
Georgian Free Industrial Zones or (FIZs) are regulated by the Georgian Law on Industrial Free Zones. A very flexible and complete legislation that aims to promote economic growth and attract foreign direct investment. The industrial free zones are therefore designed to create an ultra-favorable tax and customs, legal and administrative environment for companies
in order to greatly increase their competitiveness on world markets.
A Free Zone company is a company domiciled in one of the 4 free industrial zones of Georgia. It allows:
Advantages for a Georgian Free Zone company
- 0% corporate tax
- 0% dividend tax
- 0% income tax
- 0% property tax
- 0% V.A.T.
- 0% foreign income tax
- Repatriation of 100% of capital and profits
- Open a corporate bank account easily
- No Automatic Exchange of Information
- No account monitoring, no audit is required
- No minimum capital is required
- No minimum investment is required
- Very attractive price for license and permit
- No exchange controls within an FIZ.
- No trade barriers or quotas on imports and exports
- A simple and fast customs import and export procedure
- 0% taxe on import and export goods, raw materials, equipment and machinery, prefabricated and manufactured products
- No restrictions on the employment of foreigner
- low labor cost
A company that produces goods for export in the free zone is therefore exempt from all taxes. With the exception of personal income tax (20%), which is paid on employees’ salaries. If a company imports products from the Free Industrial Zone to another territory of Georgia, in addition to the tax on employees’ income, it must pay 4% VAT on the income from sales made on Georgian territory.
It is also Human capital and benefits:
There is no regulation on a minimum wage There are no unions There are no social contributions A liberal labor code and a high degree of flexibility in “employee-employer” relations an important resource for Young Skilled Workers.
A simple and fast procedure
The company registration in Georgia is done in 2 days. No Audit is required. Opening the company’s bank account in Georgia is quick and easy, within one working day after the company’s registration on the FIZ.
Businessmen interested in receiving more information on the regulations related to the FZE are invited to contact our team of Business Register Georgia.