Register an IT company in a Free Economic Zone (FEZ) of Georgia in 2020: is it profitable or not?

Register an IT company in a Free Economic Zone (FEZ) of Georgia in 2020: is it profitable or not?

If you want to register a virtual IT company, our lawyers propose you to choose Georgia. Georgia overcame a crisis and achieved positive dynamics in the economy. To date, various spheres are actively developing here, including banking and finance. A government of this jurisdiction creates a most comfortable conditions for local/foreign investors.

YB Case experts also offer you professional advice on how to open a corporate account with Bank of Georgia or with Terabank.

Benefits of Georgia:
  • tax incentives;
  • low rates;
  • a secure quality banking.

All this makes the country attractive for entrepreneurs, who are focused on international business.

Benefits of registering an enterprise in Georgia

A government has created Free Industrial Zones (FIZ) in this jurisdiction, which gives certain tax benefits. This stimulates a development of entrepreneurship, attracts foreign businessmen.

Deciding to register a company in Georgia and open an account with Terabank, you can use tax benefits without visiting a country.

YB Case note: Georgia has not yet signed an agreement on the exchange of information, is not obliged to transfer a financial data of its clients to other countries.

Read also:
Who is a “virtual zone entity”?

A tax inspection gives preferential status to IT businesses. This taxation status is assigned to a legal entity, that will be engaged in business activities in the field of IT-technologies, is called the “entity of a virtual zone”.

Businessmen, who decide to set up a company in Georgia and open an account with Bank of Georgia, will be exempted from a taxation, if they make a profit from IT services outside a country.

Georgian taxation

An income tax is 15%, a VAT is 18%. A dividend tax rate is 5%. A “virtual zone entity” does not have to pay a dividend tax, if the income is distributed by other legal means.

Do you want to register a tax-free company in Georgia and open a bank account in Bank of Georgia remotely? Study carefully all differences between a FIZ and a virtual IT zone in Georgia.

FIZ

Virtual IT zone

An income tax

0%

0%

A tax on dividends

0%

5%

A tax on salary

20%

20%

VAT

0%

0%

Reports

are not required

are required

Includes

a production, a processing, an import/export, services of any kind

activities in the field of IT-technologies

After registering a Georgian company, you need to open an account with a Georgian bank. We advise you to open an account with Bank of Georgia, open an account with Terabank or open an account with TBC Bank. These banks provide a wide range of services. A main advantages of these banks:

  • a personal approach;
  • innovative banking services and products;
  • 24/7 secure banking (Internet and mobile).
How to open a virtual IT company in Georgia?

If you want to establish an enterprise in Georgia and open an account with a Georgian bank, our specialists are ready to help you today. Also, you can perform various operations remotely from outside Georgia.

You can learn more details from our specialists. Please, refer to us in any way convenient for you. The contacts are listed on our site.

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