Opening a company in the Tbilisi free zone is profitable in 2024

Inaugurating a firm in Georgia within FIZ Tbilisi allures magnates preoccupied chiefly with the European sphere, aspiring to capitalize on fiscal and juridical advantages. FIZ Tbilisi proffers nascent ventures and entrenched enterprises auspicious circumstances for orchestrating global commerce.

Incorporation of an enterprise within the liberated precinct of Tbilisi — the superlative alternative for those seeking methodologies to attenuate operational expenditures for initiating and overseeing a commercial venture. Within this treatise, we shall scrutinize the pivotal facets of enterprise incorporation in the FIZ of Tbilisi, encompassing salient advantages, procedural intricacies, and obligatory stipulations.

Inaugurate an enterprise within the FEZ of Tbilisi in 2024: avenues and auguries

Firm enrolment in Georgia For numerous years now, it has been acknowledged as a surrogate to traditional offshore enclaves, permitting you to refine fiscal stratagems. Global indices can lucidly illustrate Georgia's triumph in ameliorating the mercantile milieu.

  • 7th locus in facility of commerce pursuant to Conducting Commerce (2020).
  • 41st locus amidst 180 nations in the Venality Perception Gauge (2024).
  • Amidst European nations in the Economic Autonomy Index, Georgia acceded to the superior 20 for the inaugural instance (2024).

Given the non-consideration of Georgia as an offshore domain, this eventuality avails ingress to amenities within the globe's preeminent financial institutions and facilitates the orchestration of transnational mercantile ventures, thereby augmenting the confidence of collaborators and clientele. Within Georgia, four enclaves endowed with a peculiar designation are demarcated, known as liberated industrial precincts:

  • Tbilisi.
  • Poti.
  • Kutaisi.
  • Hualing.

Enlistment enterprise within the FEZ Tbilisi furnishes ingress to fiscal and infrastructural privileges. Tbilisi Free Zone (TFZ) - a distinguished and coveted enclave within the nation. This precinct is situated in proximity to the metropolis - Tbilisi. In tandem, this urban center, owing to its strategically propitious position at the nexus of pivotal mercantile thoroughfares, holds a historically momentous role as a conduit and conveyance corridor in the territory.

FIZ Tbilisi has subsisted since 2015. Over 150 enterprises functioning in a variegated array of sectors are presently inscribed within its precincts. Overseas entrepreneurs elect to inaugurate a venture in the Tbilisi Free Zone to procure ingress to an expansive assortment of industrial and warehousing accommodations, tailored to diverse commercial requisites, convenient conveyance arteries, and freight depots, which expedite transnational commerce and consignments, alongside competitive leasing and service tariffs, which mitigate operational expenditures. In 2023, the Zoti Holding consortium, comprising Georgian and European entrepreneurs, acceded to the developmental scheme of this free zone, thereby directing endeavors toward the reformation of the operational parameters for enterprises in the FIZ.

Incorporation of a firm within the Tbilisi Free Zone proffers an extensive array of concessions and malleable tenures, extending from conventional land tenancy pacts to all-encompassing arrangements meticulously attuned to patrons' idiosyncratic requisites. Beneath the stewardship of the nascent governance, TFZ is erecting, annexing, outfitting, and delivering amenities, heedful of lessees' exigencies. Moreover, for enterprisers who have resolved to inscribe a corporation in the FIZ Tbilisi, we extend jurisprudential and fiscal succor, facilitation in procuring sanctions and attestations.

Situated astride the principal conveyance thoroughfare of the metropolis, a mere 20-minute sojourn from Tbilisi aerodrome. The span to the frontiers with Azerbaijan and Armenia is a scant 60-70 kilometers. The propitious placement renders this FIZ alluring to internationally export-focused enterprises.

Enlistment of a corporation in the unencumbered industrial precinct of Tbilisi liberates its proprietors from numerous administrative formalities pertaining to customs, commerce, and fiscal decrees prevalent in the principal domain of the nation. A customs station is situated directly within the confines of the Tbilisi free precinct. The TFZ proffers commercial prospects across a diverse array of sectors, spanning cutting-edge technology and trade to services, manufacturing, and logistical operations.

Hence, the principal benefits of enlisting a corporation in FIZ Tbilisi:

  • Absolute absolution from corporate levies (in the principal expanse of the realm, the levy percentage is 15%).
  • Distributions remunerated by corporations within the TFZ are absolved from distribution levies, which is 5% in Georgia.
  • Within the TFZ, enterprises do not remit VAT. The customary VAT rate (on the continental expanse) is 18%. This absolution pertains to commodities imported both from overseas and from the continental Georgia.
  • In the TFZ, there is no exigency to remit customs levies on foreign materials.
  • Juridical persons with factories and apparatus in the TFZ are exempt from real estate taxation.
  • The TFZ functions autonomously from municipal authorities, which engenders minimal administrative holdups for firms enrolled therein.
  • Within the TFZ, enrolled enterprises may effectuate payments in any specie.
  • Prospects for tariff-exempt commerce with the EU, CIS, Turkey, China.
  • Establishing an enterprise in the free enclave of Tbilisi permits one to capitalize on tariff-free treaties that Georgia has ratified with the European Union, Turkey, China, Ukraine, and the Confederation of Independent States. Such treaties enable industrial ventures in FTZs to engage in customs-free transactions within the markets of those nations.

CRUCIAL! In Georgian Special Economic Zones, enterprises remit a levy of 4% of the transaction worth should they engage in commerce with firms situated on the Georgian mainland.

How to enroll a corporation in Tbilisi FIZ?

The Georgian Free Industrial Zones Development Authority (ASDFZ) occupies a pivotal position in overseeing the operation of free zones within the nation. The bureau guarantees the dispensation of commercial licenses in free zones, proffers assistance and counsel to proprietors, and aids in addressing bureaucratic concerns.

Legislative schema pursuant to which the enrollment of enterprises within the FIZ of Georgia and the oversight/supervision of their subsequent endeavors:

The procedure of enlisting a corporation in the unencumbered industrial precinct of Tbilisi commences with selecting the suitable type and assembling an exhaustive dossier of paperwork (governed by statute for the delineated type). Establishing a corporation in the unencumbered precinct of Tbilisi may be accomplished in one of the subsequent organizational configurations:

  • Sole Entrepreneur.
  • Limited Liability Company.
  • Joint Stock Company.
  • Partnerships.
  • Branch.

The ensuing phase entails tendering a petition to the governance of the chosen precinct, accompanied by an exhaustive dossier of records, encompassing foundational papers and particulars regarding the proprietors. The appraisal procedure by the autonomous enclave officials generally extends over multiple days.

Upon ratification, the corporation's records are forwarded to the national State Register. Following the culmination of registration, one should initiate a bank account in Georgia and execute a license accord with TFZ.

In Georgia, establishing a repository for a corporation, inscribed in an industrial precinct, necessitates obligatory verification of the existence of Substance. That is, the corporation must execute its primary revenue-producing endeavors directly within the confines of the FIZ of Georgia. Furthermore, to substantiate the veracity of its operations, the corporation is mandated to guarantee the presence of an adequate quantity of indigenous staff (workers) possessing the requisite credentials and expertise to fulfill the duties allocated to them.

Establishing a firm in the autonomous district of Tbilisi: peculiarities of juridical structures

At corporate enrollment in the untrammeled precinct of Georgia, ascertaining the juridical structure (JFS) is of considerable significance as it influences the forthcoming operations of the enterprise.

  • Fiscal accountability. Distinct OPFs confer disparate extents of accountability upon proprietors. For instance, corporations embody circumscribed liability for shareholders in contrast to a sole proprietorship, wherein liability resides wholly with the proprietor.
  • Governance and oversight. OPF delineates the governance framework and apportionment of authority within the enterprise. For instance, in a limited liability corporation, governance decision-making is typified by a more adaptable methodology than in a stock corporation, which necessitates an intricate governance framework with a council of directors and a supervisory council.
  • Statutory stipulations. Each SPF is subjected to varying degrees of oversight concerning minimal pecuniary stipulations, bookkeeping and scrutinizing mandates, which may influence operational expenditures and administrative encumbrances.

Subsequently, we shall scrutinize more meticulously each of the extant OPFs that foreign magnates may elect in order to establish an enterprise within the liberated precincts of Tbilisi.

A sole proprietor conducts their undertakings without constituting a juridical person. The proprietor assumes complete pecuniary responsibility for commercial commitments, encompassing personal assets. Administration and execution of the enterprise are performed by the proprietor personally.

A Limited Liability Company is a juridical person whose members are not personally accountable for the company’s encumbrances. This signifies that their individual resources are shielded from the liabilities and duties of the LLC unless they themselves contravene the law. Governance is administered through the plenary assembly of members, who render pivotal determinations, such as ratification of the Articles, appointment of managerial organs, allocation of gains and deficits, etc. Executive duties may be undertaken by the manager or the committee.

A joint-stock corporation is a type of juridical person wherein the subscribed capital is apportioned into stocks. Each stockholder possesses a specified quantity of stocks, which delineates their portion in the capital and, correspondingly, their responsibility for the obligations of the joint-stock corporation. Administration is conducted via the board of overseers and the supervisory council.

Partnership constitute a type of commercial assemblage where various entities coalesce to attain a shared objective. Alliances are categorized into universal alliances and restricted responsibility alliances. Constituents in a universal alliance are solidarily and jointly accountable for its commitments. Each constituent possesses the prerogative to engage in stewardship. Conversely, in a restricted responsibility alliance, besides the universal participants, there exist dormant partners who are accountable only up to the extent of their contributions to the capital and abstain from stewardship.

Bough - a distinct subdivision of a foreign institution that is accountable for the operations of the bough. The bough lacks an independent legal status and its principal function is to execute the identical commercial duties as a foreign corporation. The bough is governed on behalf of and under the oversight of the progenitor institution.

Register a commercial venture in the Tbilisi Free Zone: certification

The TFZ is permitted to execute an extensive roster of undertakings that necessitate peculiar permits (dispensed by the zone governance and contingent upon yearly revalidation).

Patents for enterprises in the untrammeled economic precinct of Tbilisi

Manufacturing. For enterprises involved in the refinement of unprocessed substances, fabrication, assemblage and disassemblage, encasement, and marketing of completed commodities.

Universal mercantile. For firms adept in the ingress and egress, diffusion, depository, and vendition of commodities devoid of subsequent elaboration.

Exceptional commerce. For enterprises excelling in import-export undertakings, dissemination, storage, and vending of a singular class of merchandise without subsequent refinement.

For provision. For enterprises offering a specific kind of provision.*

For the facilitation of amenities. For enterprises delivering polyfunctional amenities.

* Businesses established within industrial enclaves are proscribed by statute from rendering services to Georgian resident entities.

In general, if you wish to enlist a corporation in FIZ Tbilisi from afar, please be aware that this locale provides a broad spectrum of commercial prospects. The principal endeavors encompass the fabrication and refinement of wares, enterprises pertaining to conveyance, warehousing, and freight administration services. Moreover, the precinct fosters the advancement of mercantile and trading undertakings, encompassing both local and global commerce. Entities involved in scholarly investigation and advancement are accorded distinct inducements to foster ingenuity and technological advancement.

Conclusion

Establishing a commercial enterprise in the liberated industrial precinct of Tbilisi endows visionaries with unparalleled prospects for advancement. Streamlined registration and licensing formalities, fiscal benefits, and sophisticated infrastructure furnish ideal circumstances to bolster production entities. TK Deal connoisseurs can offer assistance in instituting a venture in FIZ Tbilisi and a plethora of ancillary services.