Investors who want to open a company in the Kutaisi free zone in Georgia can benefit of incentives and various tax advantages. This is just one of the free industrial zones in the country and our company registration agents in Georgia can help you open a company and benefit from all the advantages.
Our agents are at your service if you want to operate in a free zone in Georgia through a local company.
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Open a company in Kutaisi
Kutaisi is the second largest city in Georgia and also its legislative capital. The Kutaisi free industrial zone (FIZ) is located within the city and investors who choose to base their companies there benefit from a special taxation regime.
The area covers approximately 27 hectares and it is still under development. The Kutaisi FIZ is intended to be a multi-profile industrial center and various manufacturing business will base their operations there.
Our company incorporation experts in Georgia can assist you throughout the company formation procedure and will help you open a company in Kutaisi.
The advantages for investors who open companies in the free industrial zone of the city include:
– tax exemption for profit gained by an international company that carry out activities in this zone;
– property tax exemption for companies incorporated in the Kutaisi FIZ;
– no VAT on goods imported into the FIZ or on transactions carried out between entities incorporated in the FIZ;
– customs duty exempt-exports for goods produced within the zone;
– no foreign exchange controls, trade barriers or restrictions on capital.
More than 20,000 employees work in the Kutaisi FIZ and investments and employments in the area are expected to grow in the near future. We can provide assistance in setting up a free zone company in Georgia in the shortest time possible.
Types of companies investors can open in a free zone in Georgia
Foreign investors who want to launch their own businesses in Kutaisi, can choose between the following types of entities:
- the individual enterprise which is a simple entity that can be set up and run by a single investor;
- the limited and general partnership which can be good solutions for at least two persons who want to associate and run a business in Georgia;
- the limited liability company which is the most popular type of onshore and free zone company in Georgia;
- the joint stock company, however, this is not often employed in Georgian free zones;
- branch offices are also available for foreign companies seeking to expand their operations.
If you are interested in operating in a free zone in Georgia and decide for Kutaisi, you can rely on our local consultants.
Licenses available for a free zone company in Kutaisi
Companies operating in free zones in Georgia are subject to various licensing requirements, depending on the activities they can complete. Considering that such special economic areas are created for the development of specific activities, here are the main licenses that can be obtained for running a Kutaisi free zone company:
- – the manufacturing license that can be used for producing various goods;
- – the trading license that can be obtained for buying, selling, importing, distributing or storing various goods;
- – the IT or service license that is associated with information technology services;
- – the consulting license which can be obtained by those offering such services.
It should ne noted that starting with 2018, the Kutaisi Free Zone Authority no longer issues licenses for financial activities.
If you want to open a company in Georgia or any of its free zones, you can rely on our specialists who are at your service with the latest developments in matters of licenses, requirements, and legislation.
How to register a free zone company in Georgia
The creation of a company in a free zone in Georgia is not difficult and does not imply a special procedure. Once the type of entity is selected it must be incorporated with the Trade Register followed by the licensing phase with the free zone authority.
One of the main advantages of opening companies in free zones in Georgia is that these do not need any minimum share capital requirements to comply with. However, they need to set up local bank accounts where the minimum amount established by the shareholders is deposited.
The following documents need to be filed in order to set up a free zone company in Kutaisi:
- – the passport of the shareholder(s) alongside a copy of the ID;
- – the written decision for the opening of the company;
- – details about the director of the company (passport or ID copy);
- – the appointed director’s written consent for accepting the position;
- – proof of the legal address of the free zone company;
- – the company’s Articles of Association (in the case of limited liability companies).
Our company formation representatives in Georgia can assist with the drafting and filing of the documents requested by the Trade Register.
Kutaisi’s main zones
Kutaisi Free Zone is divided into two industrial zones, representing one of the most developed free zones in Georgia. These are:
- – the Kutaisi free industrial zone which was the first one and was created in 2009;
- – the Hualing free industrial zone which was created by Chinese investors in 2015.
Hualing free zone is specialized in processing various raw materials, among which metal, wood, and stone. Companies here also engage in construction and furniture production.
If you want to open a free zone company in Georgia, our agents can assist you with its incorporation.
Facts about the Kutaisi free zone
As one of the most important free zones in Georgia, Kutaisi offers many advantages to foreign investors. Among these, we mention the following:
- – it is located in the 2nd largest city in Georgia;
- – the recently enabled Hualing free industrial zone spans over an area of 36 hectares;
- – from a taxation point of view, there is no corporate tax, while employment is taxed at the standard rate of 20%.
It should be noted that even if companies here do not pay corporate taxes or the VAT, these still need to register with the Revenue Service in Georgia.
If you are interested in operating in a free zone in Georgia, we are at your disposal with a wide range of services, including bank account opening and even EORI registration for activities in the European Union.
The free industrial zones in Georgia
Georgia has three free industrial zones, two which are already operational and one which is still in a project phase.
Our company registration experts in Georgia can tell you more about investing in another FIZ, the Poti free industrial zone. Investors can also benefit from a series of advantages for investing in this Georgian city and special investment area. Companies benefit from the advantages of a FIZ if they operate within it and if they are incorporated there. All types of companies are allowed to exist within a FIZ and the company formation procedure is identical to that for any other Georgian company.
If you would like to know more about foreign investments in the country, you can contact our company registration agents in Georgia.