For international trading companies and manufacturers, Georgia’s Free Industrial Zones (FIZ) offer one of the most competitive tax regimes in the world. However, selecting the right zone and ensuring operational compliance requires deep legal expertise. At Legal Sandbox Georgia, we provide end-to-end consulting for establishing your business in the Poti, Kutaisi (Hualing), or Tbilisi Free Industrial Zones. These special tax regimes, defined by the Tax Code of Georgia, are designed to foster export-oriented activities. By incorporating within a FIZ, your company legally qualifies for a 0% Corporate Income Tax, 0% Dividend Tax, and 0% VAT on transactions with foreign entities or other FIZ companies. Additionally, there is no property tax on assets located within the zone.
Our service goes beyond simple registration. We advise on the strategic selection of the zone based on your business model; for instance, Poti is ideal for heavy logistics and raw material processing due to its port access, while Tbilisi and Kutaisi are often better suited for light manufacturing, trading, or warehousing. We negotiate directly with the FIZ Administrators to secure the necessary operating licenses and lease agreements at the most favorable rates. We also advise on the strict limitations of the regime: specifically, while FIZ companies are tax-exempt for international operations, any sale of goods into mainland Georgia is subject to a 4% revenue tax and standard import VAT, a crucial detail often overlooked by inexperienced consultants.
A critical component of our service is addressing the banking challenges associated with FIZ entities. Due to global anti-money laundering (AML) regulations, Georgian banks apply enhanced due diligence to FIZ companies, often requiring proof of "economic substance"—real employees, offices, and operational activity—before opening accounts. We guide you through this compliance minefield, helping you structure a company that is not just a "shell" on paper but a viable business entity accepted by financial institutions. We ensure your FIZ structure is robust, compliant, and fully optimized for international trade.
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