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Georgian Free Industrial Zone (FIZ) Company - Do These Still Work?

Limelight

Mentor Group Gold
What's the current situation with Georgian FIZ (free industrial zone) companies?

From what I understand, it's still possible to establish a tax-free company in Georgia for a flat fee of €3-5K/year + maintenance expenses?

According to the English translation of the FIZ legislation, I should be able to set up shop for exporting my marketing services, since they don't explicitly forbid the export of services.

But... does anyone know what the real situation on the ground is with the FIZ companies as of 2020?
  • Would a FIZ setup work for export of marketing services?
  • I've read some posts here saying that banking can be difficult etc. - is this true?
  • Is is possible to get an EMI account?
  • Are there any hidden fees / obligations / catches to be aware of?
Thanks!
 

avalanche

Entrepreneur
What's the current situation with Georgian FIZ (free industrial zone) companies?

From what I understand, it's still possible to establish a tax-free company in Georgia for a flat fee of €3-5K/year + maintenance expenses?

According to the English translation of the FIZ legislation, I should be able to set up shop for exporting my marketing services, since they don't explicitly forbid the export of services.

But... does anyone know what the real situation on the ground is with the FIZ companies as of 2020?
  • Would a FIZ setup work for export of marketing services?
  • I've read some posts here saying that banking can be difficult etc. - is this true?
  • Is is possible to get an EMI account?
  • Are there any hidden fees / obligations / catches to be aware of?
Thanks!
Beware of Georgian tax law.. It is uncertain and vague. I had consultation before and consultant told me that Georgian gov is divided in their treatment of FIZ companies. Some say that it is not allowed to offer any services under FIZ and tax free is only trade of physical goods. There is a chance that gov can come after you to demand for unpaid taxes later.

Banking is impossible for FIZ, you will need to open bank account in Liechtenstein or in CIM Banque. Transferwise also works
 

khinkali

Active Member
@Limelight please keep us updated if you get anywhere with this.

I am very keen on Georgia for various reasons that have been discussed on this forum many times. The onshoring benefits are good, but the practical issues around FIZ seem complex (approval and banking). Same with IFC (which I am really keen on, but seems too good to be true).

There are two types of tax rulings. A cheap version that gives advice from a tax official, and a more expensive version that is binding. Both are incredibly cheap compared to a similar level of reassurance in UK/EU/USA/etc. I mean let's think for a moment, how much do you spend for half the reassurance in other jurisdictions?
 

avalanche

Entrepreneur
@Limelight please keep us updated if you get anywhere with this.

I am very keen on Georgia for various reasons that have been discussed on this forum many times. The onshoring benefits are good, but the practical issues around FIZ seem complex (approval and banking). Same with IFC (which I am really keen on, but seems too good to be true).

There are two types of tax rulings. A cheap version that gives advice from a tax official, and a more expensive version that is binding. Both are incredibly cheap compared to a similar level of reassurance in UK/EU/USA/etc. I mean let's think for a moment, how much do you spend for half the reassurance in other jurisdictions?
You can also try studying Armenian FIZ. Havent had any experience with them though but Armenian law seems to be more clear about things
 

khinkali

Active Member
@avalanche Georgian law on companies and tax simplicity seems better than other places than I'm used to. But some people suggested that FIZ is not as easy as it looks. And as we all know, Georgian banks hate FIZ now.

Armenia is often recommended for banking, but I don't remember anyone before you suggesting it for incorporation. I shall investigate. :)
 

avalanche

Entrepreneur
@avalanche Georgian law on companies and tax simplicity seems better than other places than I'm used to. But some people suggested that FIZ is not as easy as it looks. And as we all know, Georgian banks hate FIZ now.

Armenia is often recommended for banking, but I don't remember anyone before you suggesting it for incorporation. I shall investigate. :)
Armenia has very solid banking + card processing I totally agree
 

avalanche

Entrepreneur
I've been hearing good things about banking in Armenia.

I've not heard people discuss AM incorporation before. Given my personal situation I am intrigued about pure-crypto collective investment vehicles....
I can tell you for sure, banking in AM is really good.
Just have a legit business and show some transparency
 
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Limelight

Mentor Group Gold
@Limelight please keep us updated if you get anywhere with this.
I decided to go for a Romanian micro-company instead, even though I'd rather live in Georgia... it's just easier to set up in this case, 6-8% tax and done.

The advance ruling is very interesting though - maybe you could pool funds together? I'm sure more people are interested in this - like 500EUR each - and see what the lawyer says?

I might revisit Georgia in a year or two, just need to get my finances in order ASAP right now.
 

khinkali

Active Member
I guess Romania is easier to get into at the moment, though Georgia are about to announce something for freelancers and remote workers.

maybe you could pool funds together
I think the rulings are specific to the tax payer. But they're not expensive.
 

JustAnotherNomad

Entrepreneur
I’ve heard it’s almost impossible to get a bank account opened for RAK offshore companies. They are also not tax resident in the UAE, so they are pretty much useless.
 
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