To choose a place as a favourite business destination investors should get a few takeaways. These can range from the availability of raw materials at competitive prices, a large market to sell the products or offer services, easy foreign exchange regulations, favourable government initiatives, a free market economy where crony capitalism is frowned upon, strong banks to save and repatriate money as and when needed, and a somewhat disciplined workforce that does not resort to blackmail at the drop of a hat to a strong judiciary to take care of any litigation in a time bound manner, and free industrial zones where investors get a few leeways like low taxation, and exemption from regulations.
As one of the major CIS countries, the Central Asian Republic of Georgia ticks all the boxes that are mentioned above and offers itself as a favourable business destination. As an investor you will find many reasons to consider Georgia as the place to park your funds and set up a business. The other reasons than the ones mentioned above are as follows:
- Strategically located in the Central Asian region, which is also near to Europe and the Middle East. This offers you as an investor the opportunity to access these markets
- A suitable time zone that you will find helpful in connecting to your clients based in US or Asian countries
- Thanks to the signing of DCFTA with EU, as an investor in Georgia you can access the EU market at favourable tariffs in select sectors
The establishment of an industrial free zone in Georgia has been one of the business friendly steps that the government has taken. These zones are advantageous for an investor like you in the following ways:
- Quicker setting up of business and related incorporation procedures
- Favourable business regulations followed
- Favourable tax and customs regime followed
- Strict labour laws do not apply
- No constraint for starting a business even if you are not a citizen of Georgia
- No mandatory requirement of a slew of licenses and permits
- No interference from local governments
A free zone in Georgia is categorised into three types
Kutaisi Free Zone: Situated in the third most populous city of Georgia, which is around 137 miles from the capital Tbilisi, Kutaisi offers the following benefits to you as an investor:
- No requirement of paying corporate, divident, VAT, RCVAT, and property taxes on a permanent basis
- No import and export duties applicable
- Avoidance of double taxation with a number of countries
- FTA benefits signed with CIS countries and Turkey applicable
Tbilisi Free Zone: Created specially for sectors like technology, trading, services, warehousing, and logistics, this zone covering around 17 hectares of land is located about 17 Km from the capital of Georgia, Tbilisi. The benefits would be on similar lines as offered in the Kutaisi Free Zone.
Poti Free Zone: Located in the largest sea port in Georgia on the Black Sea, any investor here, apart from enjoying the incentives and benefits that are meant for free zones, can take advantage of logistics by using the port facilities.
The process of registering your company in the above mentioned free zones in Georgia takes the bare minimum of days. Thus, by virtue of being loaded with immense business opportunities and other inherent benefits, it is a win-win situation for an investor like you.