Georgia has become a business friendly destination over a period of time due to a slew of factors. These include a strategic location, a near absence of red tape, robust infrastructure, favorable trade treaties with important trade blocs, and a skilled yet low cost workforce among others. Another feature in the cap of Georgia is its tax friendly business environment. Moreover, over the years, Georgia has pursued an open market capitalist system with a good deal of benefits for the budding entrepreneurs. Among these benefits, the free zones in Georgia arguably shine through as the best.
What are free zones?
These are places where businesses enjoy complete tax-free opportunities along with a lot of benefits. Georgia boasts of 4 such free zones: one in its capital city Tbilisi, second in the city of Kutaisi and third in the port city of Poti. The Georgian charter has also put down investor friendly rules where investors who are not a resident of the country can set up businesses in these free zones.
What will you get by setting up a company in the free zones of Georgia?
These free zones offer a slew of benefits to companies such as –
- 0% tax on corporate, property, income, dividend, foreign income tax or VAT. This comes as a huge relief for entrepreneurs (budding and seasoned) who are planning to set up businesses and looking to make profits.
- Foreigners can hold 100% ownership of a company in these zones.
- 100% capital and profit repatriation comes as an important benefit to the foreign entrepreneurs.
- NO minimum capital, NO audit, NO trade barriers, and NO quota on import and export act as a red carpet for budding businesses or startups.
At the free zone in Georgia, there is no minimum wage line drawn for employing labour in your facility. You do not have to be a part of any union or make any social contribution to Georgia. These zones act as spheres of opportunities for the young and skilled workers of the land. Moreover, should a company is set up in a free zone, there is a lot of flexibility in the “employee-employer” relations.
Companies are easy to register and implement
The best part about the free zones in Georgia is that a company can complete its entire registration process just within two days. Once the company has finished all the formalities, a bank account can be opened in a single day with no requirement for any audit. Georgia, in the first Quarter of 2019, has attracted around $281.1 million in Foreign Direct Investment. (Source: Geostat)
These free zones are rich in infrastructure such as warehouses, optical fiber network, cheap power etc. Thus, business enterprises can set up units in manufacturing, import/export, IT services, and logistic services etc and derive the maximum benefits to succeed in the competitive world of business.
Conclusion: A wide array of benefits await if you set up a company in one of the free zones in Georgia. And should you have any problem in doing so or require any kind of help, feel free to contact the premier consultancy, KauKapital at https://kaukapital.com/services/free-zone/