Free Industrial Zone Company in Georgia
A Free Industrial Zone company is the right structure when your business moves physical goods — manufacturing, assembly, processing, re-export or warehousing. Inside Georgia's zones at Tbilisi, Kutaisi and Poti, a licensed company is exempt from corporate income tax on permitted zone activities, from property tax on property in the zone, and from VAT and customs duty on goods entering and leaving the zone, with 100% foreign ownership allowed. Two things make the decision less obvious than the tax table suggests: trade with mainland Georgia carries a 4% levy in both directions, and every zone company pays the zone operator an annual licence and lease fee. We compare the zones on your actual cost base, then handle the licence, the company and the customs setup. Terms and fees are set by the zone operators and change; we confirm current figures in writing before you decide.
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What we do
- Zone selection — the Tbilisi, Kutaisi and Poti zones compared on licence and lease cost, warehouse and production space, port and airport distance, and the profile of business each operator actually accepts.
- Feasibility check against the alternative — for many service and IT businesses a standard LLC, Virtual Zone status or International Company Status is cheaper than a zone licence, and we say so before you spend money.
- Licence application — we prepare and file the application with the zone operator, including the activity description and the documents on owners and management.
- Company registration and zone permit — incorporation of the zone company, registration with the Revenue Service, and the permit for the specific licensed activity.
- Space and operations — lease of warehouse, office or production area inside the zone, plus the practical setup for staff and utilities.
- Customs, banking and accounting — bank accounts, customs procedures for import, export and re-export, and monthly bookkeeping that keeps track of the 4% levy on both sales to and purchases from mainland Georgia.
How it works
Requirements call: we map your goods flow, space needs and target markets, and shortlist the zones that fit.
Cost comparison: you receive a written comparison of the shortlisted zones against a mainland company, with licence, lease and tax effects quantified.
Licence: we file with the zone operator and answer their questions — this step sets the timeline, because the company itself can be incorporated within days once the licence is agreed.
Registration, space and customs: we incorporate the zone company, complete tax registration, sign the lease, set up the customs regime and open the bank accounts.
Operations: we take over accounting and reporting, monitor mainland trade for the 4% levy, and handle the annual licence renewal.
Facts worth knowing before you decide
The licence sets the timeline
The zone operator has to approve your activity first. The company itself is quick; the licence application and the lease are what take the time.
Employees report their own income tax
In a zone company the payroll tax is not withheld by the employer — the employees declare and pay it themselves. New zone employers regularly trip over this.
It cannot be combined
Free Zone status excludes Small Business Status and International Company Status. You pick one regime, not two.
This page describes our service and gives general information — it is not tax or legal advice. Tax rates, thresholds, eligibility conditions and competent authorities can change, and the rules of your country of residence apply alongside the Georgian ones. We confirm the current position for your case, in writing, before you order. · Last reviewed 07/2026
Frequently Asked Questions
Which taxes does a Free Industrial Zone company actually pay?
Inside the zone, income from permitted zone activities is exempt from corporate income tax, property in the zone is exempt from property tax, and zone operations plus import and export are VAT and customs-duty exempt. Trade with mainland Georgia is the exception: a 4% levy applies both to goods supplied to a Georgian-registered person and to goods received from one, with supplies between zone companies excluded. Employees still owe personal income tax, but in a zone company they report and pay it themselves rather than having it withheld from payroll — a difference that catches new zone employers out.
Which zone should I choose?
Poti suits sea freight and re-export because it sits at the port. Kutaisi works for manufacturing and assembly with good road and airport access and larger plots — note that it has more than one operator, with different fees. Tbilisi fits businesses that need to be close to the capital, staff and customers. The tax treatment follows the same statutory rules everywhere, so the decision usually comes down to logistics, available space, and the licence and lease terms of the individual operator.
Can a zone company sell inside Georgia?
Yes, but not tax-free. Goods supplied from the zone to a person registered in Georgia carry a 4% levy on the consideration, and the same 4% applies to goods the zone company buys from a Georgian mainland supplier, calculated on market price. Customs formalities apply as they would for an import. If most of your buying and selling happens inside Georgia, a mainland company is normally the better structure — we run that comparison before you commit to a licence.
Is a Free Zone company useful for IT or consulting?
Rarely. The zones are built around goods, space and customs treatment, and the licence and lease costs are hard to justify without physical operations. IT and service companies usually do better with Virtual Zone status, International Company Status or a standard LLC under Georgia's 15%-on-distribution model. We compare these options honestly rather than selling the more expensive setup.