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Poti Free Industrial Zone
 

The Poti Free Industrial Zone (Poti FIZ) is strategically located near to the Black Sea port city of Poti, the largest sea port in Georgia. Favorable location makes it very attractive place for business start-up in a tax-friendly environment. The Poti Free Industrial Zone is the first free industrial zone in the region and it has been fully functional since 2010, and accommodates business and investors from different kind of fields. Poti FIZ covers 3.0 million sq.m..  Most part of the land is occupied by range of industrial and logistics activities, from light manufacturing to more heavy industries such as chemical, steel, and processing.  Because of a tax-free environment, favorable location, quick and easy business set-up process, Poti FIZ has become the most attractive FIZ in the region for doing business.


Benefits of Poti Free Industrial Zone

  • A strategic manufacturing location with sea, rail and road connections to all locations in the Silk Road Corridor and within the Black Sea / Caspian region.
  • Simplified proceedings for business start-up in a tax-free environment.
  • Low labor, land and power costs.
  • Significant logistics and supply chain advantages for traders and merchants.
  • Market storage and distribution benefits.
  • Reduced necessity of inventory and costs.
  • Stability of prices, by avoiding market and currency peaks and falls.
  • A safe environment for business operations.

 

Tax Comparison - you are not paying

Tax in Poti Free 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%    Tax on Dividend Withdrawal    0%    5%
Property 0%    Property up to 1%
Import 0% of import value Import up to 18% of import value
Export 0% Export 0%
Personal Income (payable by employee) 20% Personal Income (payable by employee) 20%

 

 

Product import to FIZ

From Georgia to Company registered at Poti FIZ 4% duty (out of invoice value)
0% VAT
From other countries to Company registered at Poti FIZ 0% - Tax on Import
0% VAT

 

Product export from FIZ

From company registered at Poti FIZ to Georgia 4% duty (out of invoice value)
0% VAT
0% tax on profit
From company registered at Poti FIZ to other countries 0% tax on export
0% VAT
0% tax on profit
0% tax on dividend
0% tax on property
Buyer company in Georgia (buying product exported From company registered at Poti FIZ to Georgia) 0% or 12% - Tax on import
18% - VAT

 

 

Type of Legal Entities

Investors who are going to do a business in Poti FIZ can establish a company under one of the following legal entities

 

Limited Company (LLC) Minimum one physical entity may establish an LLC
Company is liable to the creditors with all of its assets
No minimum share capital is required for this type of company
Registration Timeline: 1-2 business days
General Partneship (GP) Minimum two partners may establish GP, performing business under the same name
Company is liable to the creditors with all of its assets
Registration Timeline: 1-2 business days
Limited Partneship (LP) Formed by two or more persons with different roles in a company, performing business under the same name
Company is liable to the creditors with the warranted amount payable by one or more partners
Registration Timeline: 1-2 business days
Joint Stock Company (JSC) Capital is shared based on class and number of stocks according to the company charter
Company is liable to the creditors with all of its assets
Share capital can be defined with any amount
Registration Timeline: 1-2 business days

 

 

License

Companies intending to incorporate their business at Poti FIZ are required to obtain the License. The type of a license depends on the proposed activity.



Incorporation and Free Industrial Zone Poti Fees

Registration (one time fee): 1.100 USD
Incorporation Fee including full assitance (one time fee): 1.000 USD + 18% VAT
License - 2.000 USD to 25.000 USD per year fee, depending on the company's activities.,

 

 

Need more information or start a company in Free Trede Zone? Call us (+995) 558 800 007 or send an email to info@freetradezone.ge.