Being an economic hub in a strategic location, Georgia is becoming a highly productive country for trade, industry and commerce in recent times. Starting with the geographical virtues, the country is placed between two actively trading continents; Europe and Asia. It forms a gateway between the two and gains from this strategic confluence in terms of trade and business.
On top of that, the Georgian government has taken wise steps in the purview of benefiting the entrepreneurs and budding businesses in the country. The set up of a free zone in Georgia has made a huge impact on the economic development of the country. Business personnel and aspiring entrepreneurs can visualize a whole new level of setting up and run profit-seeking companies.
Currently, there are four free zones in Georgia, one in the capital city Tbilisi, two other in the city of Kutaisi, and the last one is in Poti.
How Do The Free Zones Benefit Businesses In Georgia?
An entrepreneur can avail tons of benefits by setting up a business in the free zones. Firstly, the free zones provide cost-effective manufacturing opportunities. The other benefits include a competitive market and easy access to international economies. Not only that, the businesses established in free zones enjoy different tax exemptions, and a lot more.
What are the advantages of investing in Georgia?
The most lucrative advantage that attracts a lot of investors is the exemption from corporate taxes. If an entrepreneur sets up a business within the periphery of the free zones of Georgia, he/she can avail a permanent tax exemption on exports.
The other advantages include:
- There is no minimum capital required to set up a business.
- Businesses can even be run from foreign countries
- Easy personal account creation in Georgian banks.
- In addition to what a business enjoys in a regular place in Georgia, a free zone company also tales benefit of no anti-offshore measures.
- The companies in the free zones enjoy tax exempted dividend withdrawals.
- The trading business owner does not need to pay any corporate tax.
What are the differences in privileges seen in the four free zones?
Most of the benefits and privileges are the same in all of the free zones in Georgia. However, there are some changes in tariffs that are charged and services provided by these zones. According to businesses, the most developed zone for manufacturing and trading is the Hauling Kutaisi free zone.
However, should someone be thinking of setting up a large industry, the Poti free zone is the way to go. That space has a larger accommodation facility with features and concomitant infrastructure that can benefit huge industries.
Conclusion – Georgia is a suitable place to set up new businesses due to its strategic location. On the other hand, the free zones in Georgia have made provisions for new enterprises to thrive. By and large, if it is about setting up a business, then Georgia, especially its free zones is a perfectly suitable place.