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Kutaisi and Kulevi Free Industrial Zones (FIZ) are unique platforms for doing business in Georgia. Located in different regions of the country, they offer foreign and local companies a number of advantages, including preferential taxation, developed infrastructure and convenient location. Let's compare these two zones and find out which one is better for your business.
Comparison of Kutaisi and Kulevi SIZ
| Indicator | Kutaisi SIZ | Kulevi SIZ |
|---|---|---|
| Location | Kutaisi, center of Western Georgia | Kulevi, Western Georgia, close to seaport |
| Specialization | Light industry, manufacturing, logistics | Oil refining, heavy industry |
| Infrastructure | Well developed for light industry | Developing, focus on oil refining |
| Investor | Georgian International Holding | Initially SOCAR Georgia Investments, then CEFC China Energy Company Limited |
| Land area | 27 ha | 599790 m² |
Kutaisi FIZ is ideal for companies engaged in light industry, consumer goods production and logistics. All conditions for the development of these types of activities have been created here.
Kulevi SIZ is more focused on heavy industry and oil refining. Due to its location and developing infrastructure, it is attractive for companies related to the energy sector.
General advantages of FIZ
- Tax incentives: Full exemption from major taxes (income tax, VAT, dividend tax, property tax).
- Developed infrastructure: Ready-made production and warehouse facilities, modern communications, logistics services.
- Convenient location: Proximity to transport routes and sales markets.
- Government support: The Georgian government provides comprehensive support to companies operating in FIZ.
- Simple registration process: Fast and transparent company registration procedure.
Company registration process
Registering a company in any of the FIZ is a simple process. You will need:
- Choose a PPE: Decide which zone is best for your business.
- Prepare documents: Collect the necessary documents (charter, founder's passport, etc.).
- Submit an application: Submit an application for registration to the administration of the selected PPE.
- Obtain a license: Obtain a license to carry out activities.
- Open a bank account: Open a corporate bank account.
Types of business
Various types of activities can be carried out in a PPE, including:
- Production
- Logistics
- Trade
- Financial services
SIZ infrastructure
Both SIZs offer their residents:
- Ready-made production and storage facilities.
- Modern communications (electricity, water, sewerage, Internet).
- Logistics services.
- Administrative buildings and offices.
Cost of services
The cost of services in the SIZ depends on the selected zone and the type of rented premises. Overall, the cost of rent, utilities and licenses is competitive.
Advantages and disadvantages
Advantages:
- Tax incentives
- Developed infrastructure
- Convenient location
- Government support
- Easy registration
Disadvantages:
- Dependence on the zone administrator
- Restrictions on some types of activities
The choice between Kutaisi and Kulevi FIZ depends on the specifics of your business. If you plan to engage in light industry or logistics, then Kutaisi FIZ will be a more suitable option. For companies involved in oil refining and heavy industry, the best choice will be Kulevi PPE.
ESPERO group is ready to help you choose the optimal PPE and go through the entire registration process.
