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Company Setup in Free Economic Zone

A Free Economic Zone company is a company that, based on the certificate of status granted by the Georgian fiscal authorities, conducts permitted operations.

Operations permitted to a Free Economic Zone company include all operations permitted to a regular company, with some exceptions that are outlined below.

A Free Industrial Zone company is liable:

  • Upon supply of goods to a Georgian registered taxpayer (except free industrial zone company) to assess and pay tax at 4% of income received or receivable (in case of free of charge supply — market value) from such supply by the 15th of the month following the month of supply
  • Upon purchase of goods (except electricity, water and natural gas intended for local consumption or production) from a Georgian registered taxpayer (except a free industrial zone company) to assess and pay tax at 4% of the market value of purchased goods by the 15th of the month following the month of purchase

Not permitted operations of a free industrial zone company include the following:

  • Supply of services to a Georgian registered taxpayer (except a free industrial zone company)
  • Purchase of services from a Georgian registered taxpayer (except a free industrial zone company), except purchases of:

     

    • – Security or property rental or lease services from an organizer or administrator of a free industrial zone.
    • – Transportation, communication, sewerage, audit or consulting services.
    • – Financial operations or financial services by licensed financial institutions.
    • – Fixed assets construction and installation services.
    • – Other services defined by the Government of Georgia.

Benefits from tax exemptions, including those listed below and illustrated in the following graph

  • Income of a free industrial zone company is exempted from corporate income tax
  • Interest and dividends paid by a free industrial zone company are not taxed at the source and are not further included in the total income of a receiver.
  • Exempted from VAT taxation without the entitlement to credit upon supply of goods or services to another free industrial zone company.
  • Not obliged to withhold personal income tax upon salary payments to its resident employees.
  • Not liable to asses and pay RCVAT.

What is included in the package

  • Preparation of Documents & Registration of Company in 24 Hours.
  • Printed Certificate of Incorporation.
  • Registered Office Address For 1 Year.
  • Opening of Multi Currency Bank Account.
  • Mandatory Tax Registration with Revenue Service Department.
  • Obtaining Economic Zone License.