Member of RAKIA Prepared by RAKIA Georgia Free Industrial Zone LLC Tbilisi, May 2014.

Member of RAKIA

POTI FREE INDUSTRIAL ZONE

Prepared by RAKIA Georgia Free Industrial Zone LLC

Tbilisi, May 2014

POTI FREE INDUSTRIAL ZONECompany 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.

► 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

Quick Facts► First free zone in the Caucasus Region► Established in June 2008► Started operations in 2009► Fully functional since November 2010► Location - Black Sea port city of Poti, Georgia

► Free Zone Area –300 HA► Distance: 320km to Tbilisi► 70km to Batumi

POTI FREE INDUSTRIAL ZONECompany Overview

POTI FREE INDUSTRIAL ZONECompany 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.

► Machinery & equipment► Automotive – Cars, Spare parts, Tires► Heating Systems & Pumps► Metals & Precious Metals► Chemical products► Pharmaceutical & beverages

Top Trade Products

► Chemical & Beverages Ethanol, Helium, Perfume► Light Manufacturing

Roofing, Batteries processing,Building materials

► Upcoming ProjectsPlastic Processing (UAE), Oil processing (Estonia), Logistics Terminal (UK), Sp. Parts (Azerbaijan) Pharmaceuticals trading (Uzbekistan)

Manufacturing In Place

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

► 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)

INVESTING IN POTI FIZAdvantages to Investors

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.

Country Advantages► Stable democracy► Transparent laws &

regulations► Corruption-Free

Environment ► Excellent Geostrategic

position► Free Trade Agreements

► DCFTA with EU, CIS, Turkey

► Investor friendly environment

► Government commitment on Investment protection

► Efficient banking services

► Project financing availabilities

► Low crime rates► Low living costs

WHY GEORGIA? WHY POTI FREE ZONE?

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)

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

INVESTING IN POTI FIZADVANTAGES – Strategic Location

South Europe

West EuropeEast Europe

Midlle East

Russia

China

India

IranIraq

► 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

1075 km

1167 km

1100 km

1110 km

204

km450 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 14 days




Transportation time: 8 days Transportation time: 5 days

INVESTING IN POTI FIZADVANTAGES – Sea Routes

► 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

Land Plots – from 7 USD per 1 sqm/annually Warehouses/Closed Building Spaces – from 75 USD per 1 sqm/ annuallyOffices – from 130 USD per 1 sqm/ annuallySmart Offices – from 1900 USD/ annually

FACILITIES/PRODUCTSINVESTING IN POTI FIZ


Railway line – 146 mLoad/unload area – 900 sq.m


Planned Railway Freight Station and Loading Terminal

Companyregistered

at Poti FIZ

From Georgia

From Other

Countries0 % - Tax on Import 0 % - VAT

Product Import to FIZ

4 % - duty (out of Invoice Value)

0 % - VAT

0 % - Tax on Export 0 % - VAT0 % - Tax on Profit0 % - Tax on Dividend0% - Tax on Property

4 % - duty (out of Invoice Value)0 % - VAT0 % - Tax on Profit

ToGeorgia

ToOther

Countries

Buyer Company in Georgia

0 % or 12 % - Tax on Import18 % - VAT

INVESTING IN POTI FIZIMPORT & EXPORT -Taxation

Product Export from FIZ

INVESTING IN POTI FIZInvestors projects in Poti FIZ

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

Global Gases Georgia LLC

Poti FIZ registered company Global Gases Georgia LLC, Plot#257, 2000 sq.m has started Helium processing unit

Current Project status – finalized

Aroma FragrancesLLC

Poti FIZ registered company Aroma Fregnances, Plot#265, 1000 sq.m already started construction of perfume ingredients factory

Planned Project Current status (under finalization)


Planned Project Current Project status (Ongoing Construction)


Geospirtprom LLC

Poti FIZ registered company Geospirtprom LLC, Plot #337, 30000 sq.m has started ground works for construction of ethanol factory

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.

Under Construction


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

AFG Internati onal 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


POTI FREE INDUSTRIAL ZONEContact details

TBILISI HEAD OFFICE 34 Chavchavadze str. 0179 Tbi l is i , GeorgiaTel : +995 32 227 77 33/248 54 85Fax: +995 32 227 77 66/248 54 87E-mail : [email protected] Web: www.potifreezone.ge

POTI OFFICE Chavchavadze Str. , Poti Free Industrial Zone 4400 Poti , GeorgiaTel : +995 493 22 52 54/5/6Fax: +995 493 22 52 59

THANK YOU FOR YOUR ATTENTION!

mailto:[email protected]

http://www.potifreezone.ge/

Member of RAKIA Prepared by RAKIA Georgia Free Industrial Zone LLC Tbilisi, May 2014.

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Transcript of Member of RAKIA Prepared by RAKIA Georgia Free Industrial Zone LLC Tbilisi, May 2014.