Registration of companies in the virtual IT zone of Georgia
1500$
from 10 days
Design of a virtual IT zone in Georgia with Georgia Assistant
If you want to optimize your taxes and become part of the IT Virtual Zone in Georgia, we are ready to help. Our company provides full support for the registration process, allowing you to focus on developing your IT business, rather than solving bureaucratic issues.
The price includes:
preparation of documents, preparation and obtaining of the VZP virtual zone status for the company, turnkey support
Required documents:
company incorporation documents, international passport, Georgian phone number, email, financial documents
Georgia is actively working to strengthen its position as an attractive hub for information technology, attracting investments and stimulating the development of IT companies. The government is taking active steps to create a favorable environment for business, including in the field of computer technology. The result of these efforts is the creation of a virtual zone offering a preferential tax regime for enterprises engaged in information technology.
What is the virtual zone of Georgia?
A virtual zone is not a physical territory, but a special status granted to businesses that develop software or software-based solutions, as well as other digital products. This status allows companies to benefit from significant tax benefits, simplifying the process of registering and running a business. Unlike certain territories with preferential taxation found in other countries, such as, for example, special economic territories in Cyprus, the special zone for IT in Georgia is not tied to a geographical location. Its main characteristic is a special tax regime that applies to types of activities, and not to the location of the enterprise.
Why register an IT company in the virtual zone of Georgia?
Transferring a legal entity to the virtual zone is an attractive option for many entrepreneurs, especially for those operating in the international market.
- Minimal tax expenses. The status significantly reduces the tax burden, providing an opportunity to focus on business development.
- Simplified registration procedure. Registration of a legal entity in Georgia is relatively simple, especially with the help of professional services.
- High confidentiality. Georgia is not a member of the automatic exchange of financial information, which ensures a high level of confidentiality for clients.
- Lack of bureaucracy. The country is known for its relatively low level of bureaucracy in the field of doing business.
- Access to a skilled workforce. In recent years, the country has demonstrated a high level of development of information technology, offering access to qualified employees.
- Geographical location. The country’s strategic location makes it easy to work with foreign clients and partners from Europe and Asia.
Features and legal nuances of the status of a virtual zone
- It is not a geographic territory. The virtual zone is not tied to a specific territory. The status is granted to legal entities, regardless of their location, subject to the established requirements.
- A legal entity must have a registered legal address in Georgia, which must be real, not digital.
- Constituent documents. A standard package of constituent documents is required to obtain the status.
- Annual reporting. Enterprises are required to submit annual financial statements in accordance with the requirements of the Georgian Tax Service.
- Restrictions on activities. The status is granted only to legal entities operating in the field of information technology, as defined by law.
- Validity of the certificate. The certificate of the status of “virtual zone person” has a limited validity period (usually 1 year), it must be renewed.
- Procedure for obtaining a certificate. The process of obtaining the status includes submitting an application, the necessary documents to the authorized body, it takes a certain amount of time (usually up to 10 working days).
- Licenses, permits. Enterprises with the status of “virtual person” are generally exempt from the need to obtain additional licenses and permits for their activities.
- Confidentiality. Although Georgia is not a participant in the automatic exchange of tax information (CRS), it is necessary to take into account possible changes in this aspect of international cooperation.
- Restrictions on cooperation with residents. Transactions with residents of Georgia may deprive a legal entity of benefits.
- Language barrier. Not knowing the Georgian language can significantly complicate the process of registration and interaction with government agencies.
- Banking services. Opening a corporate account in a Georgian bank can be difficult, especially for non-residents.
Taxes for companies registered in the virtual zone
The tax system of Georgia is one of the most loyal in the world. Companies registered in the virtual zone are exempt from paying many taxes, including VAT, profit tax. However, this exemption is valid on the condition that the income is received exclusively from transactions with foreign clients.
Legal entities registered in the digital space are exempt from paying profit tax, VAT, export tax, but on the condition that their activities are aimed exclusively at exporting services and goods outside Georgia. Any transactions with residents of Georgia are subject to standard taxation. The only tax that “virtual persons” are required to pay is a dividend tax of 5%. However, there are legal ways to minimize or avoid it, such as using international agreements on the avoidance of double taxation.
If an enterprise hires residents, it is obliged to withhold and transfer to the budget income tax on wages (20%) and contributions to the Pension Fund (2%). However, the law does not oblige companies to hire local employees.
Requirements for companies wishing to register in the virtual zone
To obtain the status of a virtual person, enterprises must meet certain requirements established by the legislation of Georgia. These include:
- Legal address: The company must have a registered legal address in Georgia.
- Constituent documents: Documents confirming the establishment of a legal entity are required.
- Annual reporting: The company is required to submit annual financial statements.
- Scope of activity: The company’s activities must meet the criteria established for the virtual zone.
- Solvency: The company must have sufficient capital to operate.
Procedure for registering a company in the virtual zone of Georgia
- Selecting the name and form of a legal entity. Usually, they register an LLC.
- Preparing constituent documents. Drawing up the charter, minutes of the meeting, and other necessary documents.
- Submitting an application for registration. Registration at the House of Justice in accordance with the established procedure and form.
- Opening a corporate account. Necessary for receiving and carrying out financial transactions.
- Submitting an application for obtaining the status of a virtual zone. Contacting the relevant government agencies.
Independent registration is associated with many risks, including incorrectly completed documents, non-compliance with legal requirements, delays, and additional expenses.
How to Register an IT Company in the Virtual Zone of Georgia
Georgia Assistant is a consulting firm that provides services for registering IT companies in the virtual zone of Georgia. We take on all the complexities of the process, offering comprehensive support, which includes:
- Consultations. We provide detailed consultations on registering a company, obtaining the status of a virtual zone.
- Preparation of documents. Our lawyers will prepare all the necessary documents, ensuring their proper and accurate completion.
- Registration. We will conduct the entire registration process, including submitting applications to government agencies.
- Opening a corporate account. We will help you open a corporate account in a Georgian bank, providing support at all stages of the procedure.
- Accounting support. We provide accounting services, ensuring timely and correct payment of taxes.
- Legal support. We provide legal support at all stages of doing business.
Advantages of working with Georgia Assistant:
- Time savings. You will avoid long independent study of complex legislation, reduce the number of visits to government agencies.
- Minimization of risks. Our lawyers minimize the risks of errors and delays.
- Quality guarantee. We guarantee high quality of services, compliance of documents with all requirements.
- Comprehensive approach. We offer comprehensive solutions covering all stages of business creation and management.
Corporate account in the Georgian bank for IT companies from the virtual zone
Opening a corporate bank account is a necessary step for companies registered in the virtual zone. It allows you to receive payments from customers, carry out international transactions and effectively manage the company’s finances. Georgia Assistant provides support in opening accounts in reliable Georgian banks, helping to overcome potential difficulties associated with bank requirements for foreign companies. We will help you collect the necessary documents, prepare an application and interact with banking authorities.
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FAQ
This is a special regime for IT companies, providing tax benefits, including VAT exemption and reduced corporate tax rates.
Suitable services include software development, IT consulting, data management, web development and other technology solutions.
The main advantages are low tax rates, simplified reporting and ease of doing international business.
If you need help opening an account for a company, you can use our service or buy a ready-made company with an open account.
Yes, foreign citizens and companies can register and enjoy benefits if they meet the requirements of the IT zone.
You will need a passport or company incorporation documents, information about the type of activity and information about the owners.
The process usually takes 5 to 10 business days, depending on the complexity.
Participants are required to operate in the IT sector, submit tax reports on time and comply with Georgian laws.
No, registration is possible remotely by proxy.
The cost depends on the complexity of registration and additional services. The exact price can be found out during the consultation.
Yes, it is possible to manage a company remotely.
Self-registration may lead to delays, incorrect paperwork, additional costs, and tax issues.
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