MOST SUITABLE OPERATING BUSINESS MODELS IN TBILISI FREE ZONE

Manufacturing Projects

Scenario:

A German citizen registers a company in TFZ in 1 day. The company rents ready-made industrial premises. Connection to utilities is provided by the administration of TFZ. The company starts production and supplies finished products in the region and to EU countries. It can obtain CT1 and EUR1 certificates for manufactured products, which allows trading without quotas and taxes in the CIS countries, EU, Turkey, Ukraine and China.

Tax advantages:

– Import and export duties, VAT, property, income taxes, withdrawal of dividends – 0%

– 100% of profits can be repatriated, and dividends can be cashed at any time.

– Imports to the above countries are exempt from import tax.

Trading (Import-Export) Company without Storage in TFZ

Scenario:

Azerbaijani citizen registers a company at TFZ. The company purchases products from Turkey for USD 500,000, delivers to Tbilisi Free Zone for re-export (without storage) in Azerbaijan and Kazakhstan with a 40% profit margin equaling USD 700,000. The company earned USD 200,000 profit.

Tax implications:

The company pays 0% on import and export, 0% VAT.

The shareholder transfers USD 200,000 profit to his local personal bank account with 0% tax on profit, 0% tax on dividends.

Trading (Import-Export) Company with warehouse in TFZ

Scenario:

Uzbek citizen registers a company in Tbilisi Free Zone. The company can either rent ready-made warehouse space in the zone or rent a land plot and build the warehouse itself.

It purchases products from Uzbekistan for $1,000,000, delivers them to Tbilisi Free Zone and stores them for further distribution in the region. The products are exported to Azerbaijan and Turkey with a 50% profit margin of $1,500,000. The company earned a profit of $500,000.

Tax implications:

The company pays 0% import and export duty, 0% VAT.

The founder cashes out dividends of $500,000 with 0% tax.