Kutaisi Free Industrial Zone
Kutaisi Free Industrial Zone has started its fully functional operations in October 2015.
It is located in the city of Kutaisi – the second largest city of Georgia and covers the territory of 36 hectares. It has a very strategic location, 19 km from Kutaisi International Airport, 95 km from Port of Poti and 210 km from capital Tbilisi. More than 20,000 employees work in Kutaisi Free Industrial Zone and the employments and employees are expected to increase.
There are no sectorial and volume limitations on products/raw materials import/export through Free Zone. Business start-up is very simple and fast. Companies can be registered in 1-2 business days. 100% foreign ownership allowed. When there is a physical person ownership, only passport copy is necessary. Besides, Companies can be even registered without the physical presence of their founders. Companies are not required by law to have a minimum initial capital and/or physical facility. Bank account can be opened in a fast and easy way, within 1 hour after company registration. There is full exemption from taxes on corporate profit, property, dividend, import/export and VAT. There is only 4% fee on sales to/from Georgia. Business Operation are easy and cost effective. Ready-made closed facilities and lands are available for incoming companies for warehousing and industrial/processing utilization. There are Cheapest tariffs on buildings, licenses and services, lowest electricity cost in the region, electricity connection is provided. There are fast customs procedures, international trading is permitted.
Licenses is issued by Kutaisi FIZ, and it is not needed any additional industrial licenses.
There is no price control or mark-up and no limitations or quotas on import/export. Certificate of origin for all industries can be issued in a very fast way. Labor force is skilled and competitively priced and there are no minimum wage regulations.
The companies who are based in Kutaisi Free Zone will benefit from operational and tax advantage.
Benefits of Kutaisi FIZ
- 100% permanent exemption from Corporate Profit, Dividend, Property taxes and VAT;
- 100% permanent exemption from import/export of all cargo, including raw materials, equipment & machinery, prefabricated goods;
- 100% capital and profit repatriation;
- Double taxation with many countries. Georgia has signed such agreements with 53 different countries and complete list of those countries can be found here >>.
- Free Trade regime with the CIS countries and Turkey;
- DCFTA (Deep and Comprehensive Free Trade Agreement) with EU – unique potential
- for manufacturing & processing industries for quota-free and tax-free imports to European countries
- Free Trade regime with EFTA (Switzerland, Liechtenstein, Iceland, Norway)
- Free Trade regime with people’s republic of China
- Preferential Trade (GSP with USA, Canada, Japan)
Tax Comparison - you are not paying
Tax in Kutaisi Free Industrial Zone Company
Tax in Georgia mainland company (LTD, ...)
|VAT 0%||VAT 18%|
|Corporate Profit Tax 0%||Corporate Profit Tax 15%|
|Tax on Dividend Withdrawal 0% 5%||Tax on Dividend Withdrawal 0% 5%|
|Property 0%||Property up to 1%|
|Import 0% of import value||Import 12% / 5% / 0%|
|Export 0%||Export 0%|
|Personal Income 20%||Personal Income 20%%|
Incorporation and Free Industrial Zone Kutaisi Fees
- Registration Fee (one time fee): 2.000 USD
- Incorporation Fee including full assitance (one time fee): 1.000 USD + 18% VAT
- Annual License Fee - 3.000 USD per year fee (general license)
- Less than 1000 m2 – 2 USD per month
- From 1000 - 5000 m2 – 1,5 USD per month
- From 5000 - 10 000 m2 – 1,2 USD per month
- 10 000 m2 and more – 1 USD per month
- Less than 1 000 m2 – 3 USD per month
- 1 000 - 5 000 m2 – 2,5 USD per month
- 5 000 - 1 000 m2 – 2,2 USD per month
- 10 000 plus m2 – 2 USD per month
4 USD for m2
Smart / Virtual office rent
- Business address – 100 USD per month
- Business address + mail receiving and processing (in this case you need to make the power of attorney on the employee) – 150 USD per month
- Business address + mail receiving and processing + receiving calls – 200 USD per month.
Need more information or start a company in Free Trede Zone? Call us (+995) 593 800 007 or send an email to email@example.com.