- A snapshot of the Kutaisi Free Industrial Zone
- Advantages of the Kutaisi Free Industrial Zone
- Costs of company registration in the Kutaisi Free Industrial Zone, Georgia
- The procedure for company registration in Georgia: the Kutaisi Free Industrial Zone (FIZ)
- Documents required for company incorporation in Georgia (the Kutaisi Free Zone)
Free Industrial Zones (FIZ) have been established in Georgia to create the most favorable environment for inbound foreign investments in business development. Companies registered in such areas are exempt from almost all taxes: corporation tax, VAT, taxes on dividends, property, and customs duties. The almost complete relief from the fiscal burden helps to significantly reduce the cost of production. Another incentive for a FIZ company registration in Georgia is the entitlement to the “Made in Georgia” national certificate of origin. FIZ businesses capitalize on duty-free, preferential trade, and DTT agreements with many countries in the EU, CIS, EFTA, and other regions. By and large, the FIZ company incorporation in Georgia is a key to a scope of highly competitive operational and tax advantages. Thanks to the lower costs, better pricing, and free trade opportunities, manufacturers can tap the global market of over 1 billion people.
The Kutaisi Free Industrial Zone (Kutaisi FIZ) has everything it takes to form a successful business in Georgia: a wide range of warehouses and office premises, abundant plots of land for building production facilities, availability of affordable water/electricity/gas supply, and the highly skilled low-cost workforce. A great advantage of the Kutaisi FIZ over other Free Industrial Zones in Georgia is the railway access and the proximity to the international highway. You will be able to launch your business operations immediately after your Kutaisi FIZ company incorporation in Georgia. You will not have to apply for several special permits and industrial licenses. A single all-purpose license issued in the Kutaisi FIZ will be sufficient for all production, trade, and other activities.
Our team is ready to help you with your FIZ company registration in Georgia on very favorable terms, and we recommend the Kutaisi Free Industrial Zone as the right destination. We offer the 4000 EUR basic turn-key packages to private persons wishing to order the company incorporation in Georgia. If the founding entity for the KFIZ company is a corporate structure, the estimated price is 5,000 EUR. The fee needs to be paid as a lump sum directly to our foreign bank account.
Having become our client, you will receive your company registration documents in just a couple of days. We can also open for you a corporate account with a leading Georgian bank, recruit a professional director, select a real estate for your investments, and offer other optional services and business consulting on all relevant matters.
A snapshot of the Kutaisi Free Industrial Zone
The Kutaisi FIZ is located on the territory of a former automobile factory in a nice southern city of Kutaisi, Georgia. Its total area is 27 hectares, of which 128 thousand sq.m. house administrative, office, and warehouse facilities. The Memorandum on creating a preferential zone on the territory of the plant was signed in 2009 by the Georgian government and Georgian International Holding (the Organizer/Administrator company) owned by Georgian nationals. The FIZ in Kutaisi was launched on July 1, 2009, for the term of 99 years.
The Kutaisi FIZ is administered by Georgian International Holding. In 2009, the Administrator (GIH) invested 55.7 million USD in the development of the free zone infrastructure. It completely renovated the buildings on the territory of the zone, installed a 6-kilowatt power line and other communications, fenced the territory, built a checkpoint, and a customs control post, and paved all roads.
Besides Georgian International Holding, the largest manufacturers in the Kutaisi FIZ territory are Fresh-Georgia LCC and Atlantic Georgia. One of them is an Egyptian company that specializes in the production of gas and electric equipment, as well as household appliances. Another one is a French manufacturer of electric heaters and electric boilers. When signing the Memorandum with Georgian International Holding, the Egyptian investor promised to build 12 plants on the territory of the FIZ (the amount of all planned investments will total 1.28 billion USD). So far, they have not delivered what was promised.
In September 2010, two large factories were opened in the Kutaisi FIZ: the Egyptian textile factory employing 2,000 people and the Indian-Ukrainian metallurgical plant employing 150 people. At the moment, there are enterprises that produce textiles, lamps, oils, household appliances, and electric heaters in the Kutaisi FIZ.
The Kutaisi Free Industrial Zone is located near the Kutaisi International Airport (10 km), where the construction of a cargo terminal is planned for the near future. The distance from the FIZ to the seaport of Poti is 95 km, to Tbilisi 210 km. The Free Zone features a very convenient, well-developed transport infrastructure. There is direct access to the railroad line, which can handle long freight trains. Very close to the Kutaisi FIZ is an international highway. The Kutaisi FIZ borders on another free industrial zone – the Kutaisi Hualing also set up on the territory of the former automobile plant.
Advantages of the Kutaisi Free Industrial Zone
The Kutaisi Free Industrial Zone allows investors to save on taxes, provided that they sell all their products abroad. The domestic trade operations with the Georgian mainland companies are subject to taxation at standard rates stipulated across the entire country. Besides the preferential taxation in the Kutaisi Free Industrial Zone, non-residents can enjoy such advantages as:
- business infrastructure: Class B warehouses (1-2 floors, lifts, heating systems) and Class C warehouses (insulated hangars, 4 meters high); some cold storage facilities (please note that these are mostly containers with a limited capacity)
- a railway link/direct access to the main railway line
- video surveillance and security services of the territory
- brokerage services
- premises for renting large open-space offices, smart/virtual offices, utility networks (gas, water, power supply)
- paved roads
- low-cost electricity tariffs
- round-the-click customs clearance point
- eligibility to the national “Made in Georgia” certificate of origin
- a single license for all operations.
Other advantages are typical of all Free Zones in Georgia:
- any business structure and form of entrepreneurship can be registered – joint-stock companies, partnerships, limited liability companies, branches/offices, individual entrepreneurs
- both foreigners and residents of Georgia, individuals, and legal entities can be founders of the new FIZ companies
- any activity is allowed, excluding production of and trade in arms, narcotics and other psychotropic substances, nuclear and radioactive substances, tobacco, and excise goods. It is also forbidden to rent out residential accommodation in the zone.
FREE EXPERT CONSULTATION
on which jurisdiction is best for
your business, preferred tax regime,
company structure.
on which jurisdiction is best for your business, preferred tax regime, company structure.
Costs of company registration in the Kutaisi Free Industrial Zone, Georgia
Kutaisi is the most dynamically developing Free Industrial Zone. Thanks to its favorable location, infrastructure, communications, as well as preferential taxation, it is destined to attract large amounts of investment here in the near future.
The basic COSTS of company incorporation in Georgia (the Kutaisi Free Industrial Zone):
- 4000 EUR – the registration fee if all founders are private persons
- 5,000 EUR – the registration fee if at least one founder is a legal entity
- 4,850 EUR – a corporate bank account opening, including the notarized and apostilled application documents
- 3,500 EUR – license (for 1 year).
The land/office/building rent tariffs vary from 2 to 4 USD per sq.m., and the utility costs are very low.
Please note that your revenues from trade with the mainland companies in Georgia will be taxed at 4% of the invoice value.
You will certainly appreciate the sums you will SAVE by your Kutaisi FIZ company registration in Georgia.
The following taxes are NOT levied:
- 15% corporation tax
- 5% dividends tax
- 18% VAT
- 5% or 12% customs duties
- 1% property tax.
Moreover, you will save on the utility bills, as the tariffs are free from the VAT value (for example, for non-household consumers – about 0.067 USD per 1 kW). Also, companies do not have the obligation to withhold income tax from the wages, as all employees are obliged to contribute to the state budget the 20% income tax on what they are paid. Therewith, all companies registered in the Kutaisi FIZ are not obliged to hire employees.
The daily living expenses on food, clothes, and accommodation are much cheaper than in Tbilisi.
The procedure for company registration in Georgia: the Kutaisi Free Industrial Zone (FIZ)
Most foreigners (over 90% of clients) are seeking solutions for remote company registration in Georgia / Kutaisi FIZ. Indeed, why should you travel all the way to Kutaisi, Georgia, if we can take care of all the arrangements and apply on your behalf? You will have your company incorporated, a corporate account set up, and other chores performed for you on the basis of your Power Of Attorney – all these within 2 days.
Steps to be taken for a Kutaisi FIZ company registration in Georgia:
Send us a message stating your interest in remote company incorporation in Georgia (Kutaisi FIZ).
Fill out the basic form indicating the new FIZ company name, the desired business structure type, the beneficial owner’s data, the field(s) of the company’s activities, the bank account(s) to be set up, the currency in which you would like to make transactions. These answers will help us customize our solutions and tailor our offer to your particular needs.
Pay the invoice for our professional services. The basic package is worth 4000 EUR (if the founders are only private persons) or 5,000 EUR (if there is at least one legal entity among the founders). This will be a lump sum payment to our bank account. We will charge no fee for our arrangements for your physical address in Kutaisi.
Having received the payment, we will send you a pro-forma Power Of Attorney, and will wait for the proxy signed by you.
We shall draw up the constituent documents (Articles of Association and Minutes of the shareholders’ meeting) for the new FIZ company. These will be issued in Russian or English, depending on your wish.
Having received the payment, we will send you a pro-forma Power Of Attorney, and will wait for the proxy signed by you.
We will fill in, and you will electronically sign, the clickable questionnaire required by the Kutaisi FIZ administrator. The form will contain all the details of your new FIZ company in Georgia.
You will pay the fee for obtaining the single License required for operations in the Kutaisi FIZ.
The entire procedure of your company registration in Georgia, Kutaisi Free Industrial Zone, will take 2 days. Then we will forward to you the Articles of association, the confirmation of all the fees and dues paid, and the License. You will be able to launch your business operations in the Kutaisi Free Industrial Zone immediately.
Documents required for company incorporation in Georgia (the Kutaisi Free Zone)
For your company registration in Georgia (Kutaisi FIZ), you will need to submit the following notarized copies of documents:
- passport(s) of the new FIZ company founder(s) if they are physical persons
- the Articles of association, Minutes of the meetings, the participants’ data – if the founding partner is a legal entity.
If you want to get the most out of your new company incorporation in Georgia, the Kutaisi Free Industrial Zone (FIZ), you should contact us at our e-mail address: info@offshore-pro.info. We will be happy to discuss with you all the details and advantages of the Kutaisi FIZ, answer questions about the specifics of running a business in Georgia and the Free Industrial Zone, and will come up with a detailed offer customized to your requirements.
How many Free Industrial Zones are in operation in Georgia?
The following 4 Free Industrial Zones are fully operational in Georgia: Tbilisi, Poti, Kutaisi, and Kutaisi-Hualing.
What is the advantage of the Kutaisi FIZ in Georgia?
The Kutaisi Free Industrial Zone is linked to the railroad line, which reduces the shipping costs of procurement, supplies, and raw materials. You will also appreciate the menu of the production facilities and the lowest licensing fee.
Why is the Kutaisi Free Industrial Zone recommended for company registration in Georgia?
The Kutaisi Free Industrial Zone exempts international export transactions from taxation, there is no VAT and property tax. Other advantages include the low cost of electricity (about 6 cents per 1 kW), inexpensive highly skilled labor, the lack of currency regulations, and the absence of any restrictions on international payments.
