Georgia – is a state located in the western part of Transcaucasia on the eastern coast of the Black Sea, belongs to the Near East and the Middle East, sometimes considered part of modern Europe. The country has successfully adopted the DCFTA the result in having eliminated all customs duties for goods originals in Georgia being imported into the EU.
Starting from January 2018 free trade agreement (FTA) with China is effective which makes Georgia the second European country (after Switzerland) that has FTA with China.
Advantages of company registration in Georgia:
- Corporate Profit Tax – 15%, payable only when the dividend is distributed;
- Import Tax – 0%, 5% or 12%;
- Excise Tax – depends on the listed products;
Property Tax – up to 1%;
- Double Tax Treaties Network – more than 50 DTTs signed;
- Tax year – tax calendar year;
- Advance Rulings from tax authorities – available;
- VAT registration – voluntary, only obligatory if the turnover of activities subject to VAT exceeds GEL 100,000 per annum;
- VAT rates – standard rate: 18%;
- Social Security TAX – 0%.
The State of Georgia offers registration of companies in the so-called Free Industrial Zones (FIZ). Free Zones that operating in Georgia are divided into few zones, the main ones being Tbilisi Free Zone, Hualing Kutaisi Free Industrial Zone and Poti Free Industrial Zone.
Tbilisi Free Zone (TFZ), the only free industrial zone of East Georgia that is situated in the capital city of Tbilisi. TFZ occupies 17.0 ha land, divided into 28 areas and enjoys direct access to the largest labor pool of Georgia, as well as immediate proximity the main cargo transportation highway, Tbilisi International Airport (30 km) and the city center (17 km).
Hualing Kutaisi Free Industrial Zone (HKFIZ) is in the city of Kutaisi. Considering its low proximity to Kutaisi International Airport (19 km), Port of Poti (95 km) and highway connecting to Tbilisi (210 km), Hualing Kutaisi Free Industrial Zone represents an important connecting hub within the country. HKFIZ can serve as industrial, trading or service hub within the Black & Caspian Sea region. HKFIZ is so far one of the most attractive free zones in Georgia.
Poti Free Industrial Zone (Poti FIZ) covers 3.0 million m2. Being adjacent to Poti Sea Port, one of the most important ports on the Black Sea, Poti FIZ, also offers direct access through our on-site rail head to regional and international rail networks.
Advantages of company registration in FIZ:
- Instead of a profit tax there is a fixed license fee, which depends on the chosen company’s business and is held annually;
- There is no requirement for an audit;
- There are no import-export duties. Thus, goods imported into FIZ are not subject to VAT and customs duties;
- Transactions between FIZ companies are exempt from VAT;
- The company can distribute dividends at any time, with a profit tax – 0% and tax on dividends – 0%;
- Payment of dividends can be made to the settlement account of the founder both in the Georgian bank and abroad;
- Banks open multi-currency accounts and support transactions in USD, EUR and other currencies;
- FIZ Legislation provides a huge number of benefits which should be considered based on a specific business objective.
Our specialists will help you to choose right FIZ in Georgia depending on the requirements of each client and open an active bank account.