COMPANY SETUP IN FREE ECONOMIC ZONE

A Free Economic Zone company is a company that, based on the certificate of status granted by the Georgian fiscal authorities, conducts permitted operations.

Operations permitted to a Free Economic Zone company include all operations permitted to a regular company, with some exceptions that are outlined below.

A Free Industrial Zone company is liable:

• Upon supply of goods to a Georgian registered taxpayer (except free industrial zone company) to assess and pay tax at 4% of income received or receivable (in case of free of charge supply — market value) from such supply by the 15th of the month following the month of supply
• Upon purchase of goods (except electricity, water and natural gas intended for local consumption or production) from a Georgian registered taxpayer (except a free industrial zone company) to assess and pay tax at 4% of the market value of purchased goods by the 15th of the month following the month of purchase

NOT PERMITTED OPERATIONS OF A FREE INDUSTRIAL ZONE COMPANY INCLUDE THE FOLLOWING:

• Supply of services to a Georgian registered taxpayer (except a free industrial zone company)
• Purchase of services from a Georgian registered taxpayer (except a free industrial zone company), except purchases of:

• Security or property rental or lease services from an organizer or administrator of a free industrial zone.
• Transportation, communication, sewerage, audit or consulting services.
• Financial operations or financial services by licensed financial institutions.
• Fixed assets construction and installation services.
• Other services defined by the Government of Georgia.

• Income of a free industrial zone company is exempted from corporate income tax
• Interest and dividends paid by a free industrial zone company are not taxed at the source and are not further included in the total income of a receiver.
• Exempted from VAT taxation without the entitlement to credit upon supply of goods or services to another free industrial zone company.
• Not obliged to withhold personal income tax upon salary payments to its resident employees.
• Not liable to asses and pay RCVAT.

What is included in the package

• Preparation of Documents & Registration of Company in 24 Hours.
• Printed Certificate of Incorporation.
• Registered Office Address For 1 Year.
• Opening of Multi Currency Bank Account.
• Mandatory Tax Registration with Revenue Service Department.
• Obtaining Economic Zone License.