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POTI FREE INDUSTRIAL ZONE

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Presentation on theme: "POTI FREE INDUSTRIAL ZONE"— Presentation transcript:

1 POTI FREE INDUSTRIAL ZONE
Prepared by RAKIA Georgia Free Industrial Zone LLC Tbilisi, May 2014 Member of RAKIA

2 POTI FREE INDUSTRIAL ZONE
Company Overview Rakia Georgia Free Industrial Zone LLC (Poti FIZ) was established by RAK Investment Authority UAE. Setting up a Free Industrial zone in Georgia serves the aim to encourage country’s economic growth and derive commercial benefit from potential opportunities. Quick Facts First free zone in the Caucasus Region Location - Black Sea port city of Poti, Georgia Established in June 2008 Free Zone Area –300 HA Started operations in 2009 Distance: 320km to Tbilisi Fully functional since November 2010 70km to Batumi Railway access-170m (1st stage) Railway loading area with ramp Access Roads Customs Zone Warehousing facilities Office Spaces Electricity connection & water supply Security systems Infrastructure available Advantage for the country, people and economy

3 POTI FREE INDUSTRIAL ZONE
Company Overview Advantage for the country, people and economy

4 POTI FREE INDUSTRIAL ZONE
Company Overview (continued) Rakia Georgia Free Industrial Zone LLC (Poti FIZ) is a fully functional zone capable to accommodate businesses of investors from diverse segments. By 2015, FIZ has around 100 active licensee companies and seeks for further expansion through continuous infrastructure developments and attractive packages proposition to its investors. Chemical & Beverages Ethanol, Helium, Perfume Light Manufacturing Roofing, Batteries processing, Building materials Upcoming Projects Plastic Processing (UAE), Oil processing (Estonia), Logistics Terminal (UK), Sp. Parts (Azerbaijan) Pharmaceuticals trading (Uzbekistan) Manufacturing In Place 9 types of licenses and 4 types of lease at Poti FIZ Among other tariffs are: Operational tariffs (visitors & truck entry permits, railway usage etc.) Technical tariffs (building permits, water and other utility connection charges) Activities Allowed Under Licenses Manufacturing & Commercial Raw materials import Manufacturing, Processing, Assembling, Packaging, Finished product export  General Trading (no processing) Import, export, distribution, consolidation, storage or warehousing of all types of products Special Trading (no processing) Import, export, distribution, consolidation, storage of items from similar product lines Warehousing Warehouse development for sub-lease Consulting Consulting in management, finance, investment, legal, labor relations, economics , industrial development, marketing etc. Service Include all material services support Logistic Logistics, transportation, expeditors services Contracting Contracting works within Poti FIZ  Financial / Banking Banking and Financial Institutions Advantage for the country, people and economy Machinery & equipment Automotive – Cars, Spare parts, Tires Heating Systems & Pumps Metals & Precious Metals Chemical products Pharmaceutical & beverages Top Trade Products

5 INVESTING IN POTI FIZ Advantages to Investors WHY GEORGIA?
Investors who are doing or will set up business within Poti Free Industrial Zone can make use of advantages provided by both country and Free Zone itself. WHY GEORGIA? WHY POTI FREE ZONE? Country Advantages Stable democracy Investor friendly environment Transparent laws & regulations Government commitment on Investment protection Corruption-Free Environment Excellent Geostrategic position Efficient banking services  Free Trade Agreements Project financing availabilities   DCFTA with EU, CIS, Turkey Low crime rates Low living costs Business Advantages Simple Business Set-up Procedures Simple application submission Approval & FIZ license issued within ONE day 1 day for State Registration procedures, including bank account opening No limitations on company legal form ownership No obligation to lease a physical facility 100% ownership for foreigners in FIZ 100% capital & profit repatriation No minimum capital required Low costs & tariffs Low leasing & license tariffs Low cost of labor Low cost of utilities Easy Customs Procedures Import/export lead time from as low as 1 hour Clearance Checkpoints for road & rail Cargoes No restrictions on hiring expats No prohibition on the import of products Close proximity to Poti Sea Port Georgia Global Rankings Top Reformer in the world in 2006 2th rank in “Time for business start-up” 14th for Easiness of Doing Business in 2015 10th rank “Easiness of state regulations” 19th in “Investment protection” Sovereign Credit Ratings: BB – positive (FITCH)

6 INVESTING IN POTI FIZ ADVANTAGES – Strategic Location
South Europe West Europe East Europe Russia China Midlle East Iraq Iran India Georgia and correspondingly Poti FIZ are situated on the shortest historic trade route (Silk Road) connecting east and west Strategic Geo-Political & Economic location provides easy access to EU & CIS 1 billion markets , as well Middle East and Central Asia

7 INVESTING IN POTI FIZ ADVANTAGES – Sea Routes
1075 km 1167 km 1100 km 1110 km 204 km 450 km 234 km T U R K E Y B U L G A R I A R O M A N I A U K R A I N E R U S S I A N F E D E R A T I A N Moldova Transportation time: 10 days Transportation time: 2 days from Ambarli Transportation time: 13 days Transportation time: 11 days Transportation time: 16 days Transportation time 14 days Transportation time: 15 days Transportation time: 8 days Transportation time: 5 days Great advantage of Poti FIZ is to be adjacent to Poti Sea Port One of the largest and oldest (150 years) sea port on the Black Sea Port handles both dry and wet cargos

8 INVESTING IN POTI FIZ FACILITIES/PRODUCTS
Land Plots – from 7 USD per 1 sqm/annually Warehouses/Closed Building Spaces – from 75 USD per 1 sqm/ annually Offices – from 130 USD per 1 sqm/ annually Smart Offices – from 1900 USD/ annually

9 INVESTING IN POTI FIZ FACILITIES/PRODUCTS Railway line – 146 m
Load/unload area – 900 sq.m

10 INVESTING IN POTI FIZ FACILITIES/PRODUCTS
Planned Railway Freight Station and Loading Terminal

11 Buyer Company in Georgia
INVESTING IN POTI FIZ IMPORT & EXPORT -Taxation Company registered at Poti FIZ From Georgia From Other Countries 0 % - Tax on Import 0 % - VAT Product Import to FIZ 4 % - duty (out of Invoice Value) 0 % - Tax on Export 0 % - Tax on Profit 0 % - Tax on Dividend 0% - Tax on Property To Georgia Other Countries Buyer Company in Georgia 0 % or 12 % - Tax on Import 18 % - VAT Product Export from FIZ

12 Global Gases Georgia LLC Intermetal Georgia LLC
INVESTING IN POTI FIZ Investors projects in Poti FIZ Global Gases Georgia LLC Poti FIZ registered company Global Gases Georgia LLC, Plot#257, 2000 sq.m has started Helium processing unit Intermetal Georgia LLC Poti FIZ registered company Intermetal Georgia LLC, Plot #286, 5000 sq.m, is constructing roof tiles processing factory. Current Project status – finalized Current Project status – finalized

13 INVESTING IN POTI FIZ Investors projects in Poti FIZ
Aroma FragrancesLLC Poti FIZ registered company Aroma Fregnances, Plot#265, 1000 sq.m already started construction of perfume ingredients factory Current status (under finalization) Planned Project

14 INVESTING IN POTI FIZ Investors projects in Poti FIZ Geospirtprom LLC
Poti FIZ registered company Geospirtprom LLC, Plot #337, sq.m has started ground works for construction of ethanol factory Current Project status (Ongoing Construction) Planned Project

15 SAS PAMAN LLC (Afghanistan)
INVESTING IN POTI FIZ Investors projects in Poti FIZ SAS PAMAN LLC (Afghanistan) Poti FIZ registered company SAS Paman LLC, Plot#430, 5000 sq.m, has started construction of warehouse and cold storage building to be utilized by various companies. BGN LLC (Azerbaijan) Poti FIZ registered company BGN LLC, Plot#262, 2000 sq.m, has started construction of warehouse building for storage and distribution of automobile spare parts. Under Construction Under Construction

16 INVESTING IN POTI FIZ Investors projects in Poti FIZ
AFG International LLC Poti FIZ registered company AFG International LLC, Plot#247, 7000 sq.m, owned by Perdue - one of the biggest US poultry processing companies is going to construct poultry processing unit. Planned Project

17 POTI FREE INDUSTRIAL ZONE
Contact details THANK YOU FOR YOUR ATTENTION! TBILISI HEAD OFFICE 34 Chavchavadze str Tbilisi, Georgia Tel: / Fax: /   Web: POTI OFFICE Chavchavadze Str., Poti Free Industrial Zone 4400 Poti, Georgia Tel: /5/6 Fax:


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