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Regulations of Free Industrial Zone company


The goods produced by free trade zone incorporated entities shall be granted certificate of origin indicating that the goods were produced in Georgia by the Ministry of Economic Development of Georgia. An entity can operate in the free trade zone by means of incorporation therein. Free trade zone incorporated entity can be of any organizational-legal form.

Procedures of incorporation of legal entities are unified throughout the territory of Georgia including free trade zone companies, provided that incorporation of an entity in free trade zone is carried out by the LEPL National Agency of Public Registry. An entity established in the free trade zone can carry out its activities at the territory of Georgia outside the free trade zone as a permanent establishment of a foreign entity.

Entities (either local of foreign) established outside the free trade zone carry out their activities within the free trade zone through their permanent establishments incorporated therein, except for the Georgian legal entities providing communal and related services to free trade zone companies.      

 

Simplified licensing / permitting regime in Free Trade Zone

Once carried out in free trade zone some types of activities, which normally require license/permit are released from such restrictions. Hereby, some types of license/permit can be obtained by more simplified proceedings. No license/permit is required for the following activities carried out in free trade zone:

  • Producing or packing nourishment production for new born babies;
  • Producing nourishment production for children;
  • Producing and/or distributing electric energy;
  • Distributing and/or transportation of natural gas;
  • Transiting production subordinated to the veterinary control;
  • Operating dangerous producing building facilities;
  • Local regular passenger transportation services;
  • International shipments carried out by foreign carriers above the quota established under international agreement;
  • Clinical examination and research of pharmacologic production;
  • Producing pharmaceutical products, except for drugs;
  • Establishing I or II group pharmacies;
  • Importing non-iodized Salt.

 

Operations prohibited within Free Industrial Zones

  1. The following activities shall be prohibited within a free industrial zone:
    • manufacturing arms and ammunition, trading in arms and ammunition;
    • manufacturing nuclear and radioactive substances, trading in nuclear and radioactive substances;
    • bringing in, storing, manufacturing and/or selling narcotic and psychotropic substances;
    • bringing in, storing, manufacturing and/or selling tobacco products and/or tobacco raw materials, except as provided for in the second paragraph of this article.
  2. Goods under paragraph 1(d) may be brought into a free industrial zone for consumption within the zone but it shall not be considered as export of goods.
  3. Prohibitions and restrictions may be imposed on a certain type of activity by an ordinance of the Government of Georgia on the procedures for establishing, developing and operating a free industrial zone. Only the prohibitions and restrictions imposed before a free industrial zone was established shall apply to free zone.

 

 

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.