The Republic of Georgia is an independent country located in the western part of the South Caucasus. It is washed by the Black Sea.
The Russian Federation, the Republic of Turkey, the Republic of Azerbaijan, the Republic of Armenia are among the closest neighboring countries of Georgia.
The country's economy is based on the following industries: engineering, industry (woodworking, chemical and garment industry), metallurgy (ferrous and non-ferrous metallurgy), food-processing industry, agriculture, tourism.
Tbilisi is the capital of the country. The population of the state comprises 3,809,831 people. Batumi, Poti, Kutaisi are the largest cities.
Georgian is the official language in the country. The Georgian lari (GEL) is the state monetary unit. The climate is subtropical.
Georgia is a member of the UN, as well as the WTO, GUAM, BSEC, IBRD, CIS, OSCE and other organizations.
Registration of a company in the Virtual Zone of Georgia and opening of a bank account for a company in Georgia will be a great idea for those who want to start a business from scratch or are looking for a profitable investment project.
Key business benefits
The Republic of Georgia ranked 6th place among the countries with easy terms for doing business according to the popular financial magazine Doing Business in 2019. Moreover, the state was also among the leaders in quantity of registering companies (2nd place), property registration (4th place) and easy taxation conditions (16th place).
If you are interested in registering a company in the Virtual Zone of Georgia or purchasing an off-the-shelf company in Georgia, then we would like to draw your attention to the list of
the following advantages of jurisdiction that create favorable conditions for business activities:
- Stable economic development;
- Calm political environment;
- Favorable geographical location;
- Developed banking system;
- Positive attitude of the authorities towards foreign investors and businessmen;
- Qualified labor resources;
- Absence of agreements on automatic exchange of tax and financial information;
- More than 54 DTA treaties with countries of Europe and Asia.
If you plan to register a company in Georgia or purchase an off-the-shelf company IT company in Georgia, the most priority areas for starting a business in 2019 will be the following: construction, real estate operations, mining, medicine, knitwear goods industry, automobile production, IT.
Popular forms of incorporation
Those who wish to set up an IT company in Georgia remotely can use the favorable conditions of the so-called Virtual Zone of Georgia, in particular, register a company in the Virtual Zone or buy an off-the-shelf company with a bank account in Georgia (VZE).
This form of economic activity has a special tax status (it gives full or partial exemption from corporate taxes), VZE is characterized by minimum requirements for a set of registration documents, simplicity and ease of management, and also offers broad prospects for business development in the field of IT.
Business registration process
Registration of a company in the Virtual Zone will not take much time. In order to create a startup, you will need to fulfill the following conditions of the local Regulator:
- Select a unique name for the company (at the end indicate the form of incorporation);
- Assign directors - at least 1 (an individual of any residency status);
- Сarry out activities related exclusively to the field of IT technologies, in particular: research, development, design, support, as well as the production and implementation of IT-products and services.
We draw your attention to the fact that a director with a resident status as well as local staff is not required when creating a VZE company.
Tax regulation for VZE
If you are going to register a company in the Virtual Zone or open a corporate account in a Georgian bank, then first carefully study the specifics of taxation provided for the Virtual Zone of Georgia. VZE income received in the process of providing IT-services and selling products outside the Republic is not taxable.
In addition, companies registered in the Virtual Zone do not pay the following taxes:
- Corporation tax (basic rate of 15%);
- Value Added Tax (18%);
- WHT (rate 5%), if the profit received is not paid in dividends;
- Dividends - 0% rate if paid to the resident. For payments to individuals and legal entities to non-residents of Georgia, a 5% rate is provided.
Also, there is no currency control in the jurisdiction.
How to start a business in Georgia
If you decide to open a company in Georgia or purchase an off-the-shelf company in the Virtual Zone of Georgia, contacting YB Case employees, you can create a startup within 24 hours, as well as use professional legal services. Our specialists will give you detailed advice on the business climate of the country, help you promptly create bank account in Georgia, and also obtain a certificate of the Virtual Zone through a company representative in Tbilisi.