You may have heard about something called “Free Zone Status in Georgia. But what exactly does that mean — and how can it benefit your business? In this blog, we’ll break it down in simple terms. Whether you're a foreign investor, a small startup, or just curious about business-friendly environments, this guide to Free Industrial Zones (FIZs) in Georgia will help you understand the basics — and the benefits.
What Is a Free Zone?
A Free Zone (also called a Free Industrial Zone or FIZ) is a special area where businesses can operate under preferential tax and customs rules. These zones are designed to attract foreign investment, boost exports, and encourage economic growth.
FIZ is known with tax benefits, however there are significant limitations.
Where Are the Free Zones Located in Georgia?
As of now, Georgia has several Free Industrial Zones:
- Poti FIZ (located by the Black Sea port — great for logistics and trade)
- Kutaisi FIZ (ideal for light manufacturing and tech)
- Tbilisi FIZ (more urban, business-focused)
- Hualing Kutaisi FIZ (China-backed, focused on industry and export)
What Are the Benefits of Free Zone Status?
If your company is registered in a Georgian Free Zone, you can enjoy:
- 0% Corporate Income Tax: No corporate income tax on profits made within the Free Zone or from exported goods/services only for manufacturing and trading.
- 0% VAT (Value Added Tax): You won’t pay 18% VAT on services or goods produced and sold outside of Georgia.
- 0% Import/Export Duties: Goods imported into or exported from the Free Zone are free from customs duties.
- Simplified Bureaucracy: Less red tape and faster registration — often within just 1–2 days.
- Full Foreign Ownership: Foreigners can own 100% of the company — no local partner needed.
What Kind of Businesses Can Operate in a Free Zone?
Free Zones in Georgia are ideal for:
- Manufacturing
- IT & Software Development
- Logistics and Trade
- Assembly and Packaging
- Warehousing and Distribution
Note: Free Zone companies cannot sell goods/services directly to the Georgian domestic market without paying regular taxes.
How to Register a Company in a Georgian Free Zone
Setting up a Free Zone company is straightforward:
- Choose a Free Zone that suits your business needs.
- Submit your application with required documents (passport, business plan, etc.).
- Sign the agreement with the Free Zone management company.
- Start operations – usually within a few days.
Most Free Zones also offer ready-to-use office space, warehouses, and support services.
Things to Keep in Mind:
- You must physically operate in the Free Zone — virtual registration alone isn’t enough.
- You’ll need approval from the Free Zone authority.
- You still need to comply with international regulations, such as AML/KYC if applicable.
Final Thoughts
Georgia’s Free Zones is one of incentives for companies looking to export, manufacture, or establish a presence in a low-tax environment. However, we recommend you to review regular legal business forms and other special statuses such as Individual Entrepreneur with Small Business status, and Virtual Zone company.