Georgia company registration in Virtual Trade Zone with 0% corporate Tax
There is a great opportunity for IT business in Georgia
The fact is that according to the Georgian law, companies engaged in activities in the field of IT technologies can receive the status of the Subject of the virtual zone in Georgia, which allows them to have preferential taxation status.
Such status can be obtained from the Georgian Tax Inspectorate for both local and foreign IT-business.
The subject of a virtual zone is a legal entity that operates in the field of information technology and has the status of a special trading company, which is assigned by the tax authority of Georgia.
What are the advantages of company formation in Georgia in the Virtual Zone?
✓ No need to renew a company in Georgia
✓ Liquidation of the company takes 3-7 business days
✓ Foreigner is free to be Director and/or founder
✓ The main advantage of the status of a subject of a virtual zone in Georgia is the exemption from income tax (15%) and VAT (18%) if the company provides its services to customers outside Georgia.
✓ Dividend tax – 5%, it should be paid by the company in favor of the state budget at the time of payment of dividends.
A company having such status can only do IT activities
According to the official interpretation of the Ministry of Finance of Georgia, activities in the field of information technology include “the study, support, development, design, production and implementation of computer information systems, with the result that software products are produced”.
Company registration timeline:
✓ company registration in the virtual zone and opening a bank account can take from 3-4 to a maximum of 10 business days.
✓ Registration of a company in Georgia is possible to do completely remotely, on the basis of a power of attorney.
The cost of company formation in Georgia depends on who will be the founder. Both foreign individual and a legal entity can open a company in Georgia and become its founder. The cost of services includes:
✓ Legal address of the company
✓ Notary services + translation of documents into Georgian
✓ Remote company registration
✓ Registration in the tax inspectorate of Georgia – rs.ge
✓ Registration in the Ministry of Finance of Georgia to assign the status of a virtual person newzone.mof.ge
✓ Obtaining a certificate of the virtual zone – each company receives a unique certificate that allows you to use the preferences of the tax-free zone in Georgia
✓ Opening a bank account for a legal entity in TBC Bank – with the personal presence of a client (https://tbconline.ge) or Bank of Georgia – remotely (http://www.bankofgeorgia.ge)