Free Industrial Zone Company in Georgia

What you get#

A company operating inside a Georgian Free Industrial Zone (FIZ) pays 0% corporate income tax on qualifying income, 0% VAT on transactions inside the zone and on goods exported from the zone, 0% import duties on goods entering the zone, and 0% property tax on property held inside the zone. For a physical-goods operation that fits the zone-resident model, that brings tax and customs relief together in a single regime — and we handle the setup and zone-resident registration for you.

The structure has three other clean properties:

Four zones across Georgia. Tbilisi, Kutaisi, Poti, and Hualing. Each has a distinct operational profile. Tbilisi is closer to administrative and logistics hubs; Kutaisi sits on the main east-west corridor; Poti is the Black Sea port zone; Hualing is the Chinese-developed industrial zone in western Georgia. We map the right zone to your activity in the consultation.

Goods can flow in and out without customs friction. Raw materials enter the zone duty-free, get processed or stored, and leave the zone for export — all without Georgian customs duties or VAT applying to the in-and-out movements.

Re-export and processing models are well-served. FIZ status was designed for operations that bring goods into Georgia, do work on them, and send them out. Manufacturing, assembly, processing, packaging, warehousing, and re-export all fit cleanly. Zone-resident companies can also sell goods into the rest of Georgia: those sales carry a 4% charge on the sale revenue, and the goods clear Georgian import VAT at the zone boundary. Services to Georgian customers outside the zone aren't permitted.

For a qualifying manufacturer importing raw materials, processing goods inside the zone and exporting finished products, a Free Industrial Zone can offer significant Georgian tax and customs advantages. We assess the activity and goods movements to confirm the applicable treatment.

What we do#

We handle the full setup end-to-end, mostly remotely. We prepare your Power of Attorney and arrange its notarisation — usually an online notary session, or a notary in your country where needed — together with the apostille and courier to Georgia. You send us a passport scan plus the documentation that supports your zone-resident application. We register your Georgian company, prepare the zone-resident application with the relevant Free Industrial Zone administration, set up your zone address, and handle the bank account file.

Registering the company takes one working day once we file. The zone-resident application then runs separately through the FIZ administration, and its timing depends on the zone and on your operational profile — site, lease and activity. We set out the expected timetable once the zone and your operations are defined. Once approved, the 0% rates apply to qualifying activity from that point forward.

Some zone-specific steps require in-person presence — site selection, lease signing, and certain operational sign-offs at certain zones can need a visit. We coordinate so the visit (when needed) is short and focused on the things that genuinely require it.

What's included#

Eligibility check — we confirm your activity qualifies for FIZ status before recommending the structure
Zone selection — we recommend which of the four zones fits your operational profile
Georgian company formation
Bilingual charter and all founding documents
Notarisation coordination and remote PoA support
Zone-resident application with the relevant FIZ administration
Document coordination through the application review, including responses to requests for additional information
Zone address coordination
Bank account file preparation and onboarding support
A briefing on what to file, when, and how to stay compliant — including the accounting separation for any Georgian-domestic sales

What you'll need to qualify#

Three things. We confirm all three before recommending the structure.

Your activity is physical goods. FIZ is designed for operations that physically work on goods inside the zone — manufacturing, assembly, processing, packaging, warehousing, logistics, re-export. Pure services, software, IT consulting, or other non-physical activities don't fit the zone-resident model. For software companies serving foreign clients, Virtual Zone LLC at 0% corporate tax is the right structure.

Your operation can be located inside the zone. FIZ benefits apply to activity inside the zone footprint. You either lease space inside the zone, build inside the zone, or contract with an existing zone resident for space — the activity has to physically happen there. We work through which zone fits your operational profile (site availability, logistics access, sector concentration) in the consultation.

Your client base is mostly outside the Georgian domestic market. FIZ rates apply to activity inside the zone and to goods leaving the zone for export. Sales into the Georgian domestic market are taxed at standard Georgian rates with clean accounting separation. For most foreign-founded FIZ operations, the entire client base is outside Georgia and the separation question rarely arises operationally; for mixed-market operations, we plan the accounting upfront.

We work through all three in the consultation and recommend the structure that actually fits your situation.

How distributions are taxed#

The 0% Georgian corporate tax means there's no Georgian-side tax on profits before they reach the company's owners. Dividends paid by a FIZ company carry no Georgian withholding tax and aren't added to your Georgian taxable income. What your country of residence charges on them depends on its rules and its tax treaty with Georgia.

If you become Georgian tax-resident yourself — through the 183-day rule or the HNW programme — the picture gets cleaner still. Georgia then taxes neither the company's profit from permitted in-zone activity nor the dividend; whether any other country still taxes you depends on its rules for former residents and citizens.

The structural clarity is worth noting: profit from permitted in-zone activity carries no Georgian profit tax whether it is retained or distributed, and the dividend carries no Georgian withholding. The Georgian taxes that remain are those on activity outside the zone regime — the 4% charge on goods sold into Georgia, import VAT on those goods, and income tax on salaries.

When Free Industrial Zone is the right structure#

Free Industrial Zone fits readers who:

Run a physical-goods operation: manufacturing, assembly, processing, packaging, warehousing, logistics, re-export
Can locate operations inside one of the four zones
Sell mostly outside the Georgian domestic market
Want 0% corporate tax, VAT, import duty and property tax on in-zone physical-goods activity

If your activity is software, IT services, or other non-physical work, Virtual Zone LLC at 0% corporate tax for IT companies serving foreign clients is the right structure — VZ is the equivalent regime for the IT sector. If you're a solo professional billing services to foreign clients, IE with Small Business Status at 1% on turnover up to 500,000 GEL/year is the simplest fit.

For physical-goods operations specifically, FIZ is the regime built around tax and customs relief together. The trade-offs against the alternatives:

A non-FIZ Georgian company doing the same physical-goods activity pays standard Georgian rates on corporate income, VAT on domestic and import-related transactions, and import duties on goods entering Georgia. The FIZ delta is real money.
The operational cost is the zone-residency requirement: your physical operations need to be inside one of the four zones, which constrains site selection and logistics geography to the zone footprints.

For operations whose geography fits one of the zones, FIZ wins decisively. For operations that need to be located elsewhere in Georgia for logistics or workforce reasons, FIZ doesn't apply.

See Compare structures for the full picture across the four featured routes, plus ordinary LLC formation.

Why Happy Georgia#

Independent advisory. No tied banks, no referral fees, no hidden product placement. We recommend what fits your situation — including which of the four zones, including a different jurisdiction if Georgia doesn't fit your operation.

Foreign clients only. Our entire practice is foreigners setting up in Georgia. Every engagement starts from your own situation: where you live and pay tax, who your clients are, and what you plan to do in Georgia.

Fixed pricing, no tourist tax. The same rate for foreign and Georgian clients. We quote in EUR, we honor the quote, no surprises later.

Frequently asked questions#

Can I run a Free Industrial Zone company while living outside Georgia?#

Yes. Directors and shareholders can live anywhere. The zone-residency requirement is about where the company's physical operations happen, not about where you live. Most foreign founders manage the company remotely and visit Georgia for site selection, lease signing, and operational milestones.

How long does the full setup take?#

Registering the company takes one working day once we file. The zone-resident application runs through the relevant FIZ administration, and its timing depends on the zone and on your operational complexity; we set out the expected timetable once the zone and your operations are defined. We don't recommend committing to operational timelines that depend on the 0% FIZ rates until zone-resident status is in hand.

Which zone should I pick?#

Depends on your activity. Tbilisi works for operations that need proximity to administrative infrastructure and the main international airport. Kutaisi sits on the main east-west road and rail corridor. Poti is the Black Sea port zone — strongest fit for ocean-import or ocean-export operations. Hualing is the Chinese-developed zone in western Georgia, with sector concentration in light industry and trading. We map the right zone to your operation in the consultation.

What if I sell some goods to Georgian-domestic customers?#

Goods sold to Georgian customers outside the zone carry a 4% charge on the sale revenue, payable by the 15th of the following month, and the goods clear Georgian import VAT as they leave the zone. Selling services to Georgian customers outside the zone isn't permitted for a FIZ company. Mixed-market operations need clean records separating export sales from sales into Georgia. For most foreign-founded FIZ operations, the entire client base is outside Georgia and this rarely arises; for genuinely mixed operations, we plan the accounting structure upfront.

What about employees inside the zone?#

Standard Georgian payroll tax rates apply to employees of FIZ companies — there's no FIZ-specific reduction on personal income tax for employees (unlike International Company status, which does reduce employee PIT for qualifying roles). For zone-resident operations with substantial workforce, this is worth modelling against IC eligibility if your activity also fits the IT/Maritime sector criteria. Most physical-goods operations don't have IC as an alternative; FIZ is the right answer.

Can I import goods into the zone duty-free and then sell them into Georgia?#

The zone-to-Georgia movement is an import into Georgian customs territory, so import VAT applies. Goods manufactured in the zone are exempt from import duty; goods that were only stored or traded in the zone clear duty like any other import. The sale also carries the 4% revenue charge. The FIZ benefits apply inside the zone and on goods exported from the zone for foreign markets.

Can FIZ status be revoked?#

Yes, if the company's activity changes materially or stops meeting the zone-resident operational requirements — substantive activity outside the zone, conversion to non-qualifying activity, failure to maintain the zone-residency basis. We brief you on the documentation and operational discipline that keeps the status clean over time.

Does FIZ help with Georgian residency?#

It can. An active FIZ company supports residency permit applications. On the work-permit side, directors of Category I, II or III companies are exempt under Article 1(4)(l) of the Law on Labour Migration; directors of smaller companies need another ground or the right to work. See Residency.

What about my home-country tax on FIZ profits?#

Your FIZ company pays 0% corporate tax in Georgia on profit from activity permitted in the zone, and dividends it pays you carry no Georgian withholding tax. What you owe in your country of residence depends on that country's rules and its tax treaty with Georgia. We discuss this in your consultation.

Ready to set up?#

We assess whether FIZ fits your situation in a free consultation, recommend which of the four zones matches your operational profile, and quote a fixed price. If a different structure fits better — Virtual Zone LLC for software activity, International Company for IT companies with qualifying experience, IE with Small Business Status for solo work — we tell you.