Tbilisi Free Zone

If you are looking to set up your business in Georgia, Tbilisi free zone might be a great location to consider, owing to its valuable strategic location, lucrative trade regime, reliable infrastructure, competitive labor, low taxes; pro-business environment, no corruption, and a stable banking structure.

The decision to open an industrial free zone in Georgia was reached at by the many advantages Georgia offered to the businesses. Its valuable strategic location, preferential trade regimes, reliable infrastructure, competitive labor, low taxes; pro-business environment, no corruption, and stable banking structure were the main factors that made Georgia an attractive country to open a free industrial zone.

Tbilisi Free Zone in Georgia operates under the law of Georgia Free Industrial Zones, which ensures some regulatory incentives for the registered companies. Tbilisi free zone has specialization on the crypto mining industry and has one of the largest data centres located in the country.

Advantages Offered by the Tbilisi FZ

  • Companies operating in Tbilisi FZ are exempt from tax including corporation tax, VAT, import duties, and withholding tax on dividends
  • Unlike other major free zones, this FZ does not need a company to have a physical office space. One can simply opt for a virtual office
  • No requirement of submitting financial statements for independent statutory annual audit
  • No requirement of submitting a declaration of revenues to the Government
  • An easy company setup procedure
  • Low cost of utilities and communications
  • Free Industrial Zone Enterprises have no obligation to administer personal income tax of the employees

Types of Business Structures Allowed in Tbilisi FZ

  1. Individual Entrepreneur (IE)
  2. Limited Liability Company (LLC)
  3. Limited Partnership (LP)
  4. Branch Office
  5. Joint Stock Company
  6. General Partnership

Licenses Available in Tbilisi FZ

  • General Manufacturing License
  • General Trading License
  • Special Trading License (restricted to certain types of activities)
  • IT production/Service License
  • Consulting License
  • General Service License
  • Financial Service License (including Banking)
  • Warehousing License
  • Logistics License

Business Activities Allowed Without Licenses & Permits

There are many business activities in TFZ which do not require you to have special licenses and permits. They are:

  • Production/processing of food products for new-born babies and toddlers
  • Production/Transmission/Distribution of electricity
  • Distribution/Transportation of natural gas
  • Transit of products subject to veterinary control
  • Operation of dangerous activities
  • Local passenger transportation services
  • International shipments of products subject to international quotas
  • Clinical research and production of pharmacological products (medical products except for narcotic products)
  • First and second group pharmacy activities
  • Import of non-iodized salt

Activities Prohibited in Tbilisi FZ

Following activities are not allowed in TFZ premises:

  • Manufacturing of weapons/arms and ammunition, trading arms and ammunition
  • Manufacturing of nuclear and radioactive substances, trading of nuclear and radioactive substances
  • Importing, storing, manufacturing and/or selling narcotics and psychotropic substances
  • Importing, storing, manufacturing and/or selling tobacco products and/or tobacco raw materials
  • Using a building for residential purposes
  • Importing, storing and manufacturing and/or selling excised goods

How to Establish a Company in TFZ?

The company registration process in Tbilisi free industrial zone includes filling the application form and jotting down all the necessary details. Once the application is submitted to the free zone authorities after attaching the mentioned documents, it will take 2-4 days to process the same. Sometimes application gets approved in one business day. The steps after that include opening a corporate bank account of your company and applying for the appropriate license according to your company’s business activity.

Documents Required to Establish a Company in TFZ

  • Copy of passport of the founder
  • Minutes of meeting about establishing an FZ Enterprise in Georgia
  • Consent of a person to be appointed as a director of Tbilisi FZ Company
  • Copy of I.D. document of a founding partner(s) of FZ Enterprise
  • Copy of I.D. document of a person to be registered as a director of FZ Enterprise
  • Articles of Association of the FZ Company
  • Consent about registering legal address of the FZ Enterprise on the territory of the FZ (such consent is issued by the administrator of FIZ)

The documents issued/prepared outside Georgia shall be legalized or certified by apostille. And the documents prepared in Georgia shall be certified by Georgian notary.

Business Setup in Georgia is the dream for any investor since the country has earned its reputation as a pre-eminent commercial with an innovative, dynamic, and entrepreneurial business culture. If you are one of the investors/entrepreneurs/businessmen who wish to start their business in Georgia, we at Business Setup Worldwide can help you with it. Contact us today to start your business.