The Virtual Zone Company In Georgia Country:
Happy IT Entrepreneurs!

The Virtual Zone Company In Georgia Country is the perfect plan for IT entrepreneurs and Digital Nomads offering IT services. IT services are booming. Information Technology is at the top among the industries doing well in the global economy. And, for sure, the digitization of the global economy will accelerate. The IT business will become more and more competitive in the coming years.

Have You Heard About The Virtual Zone Company In Georgia Country?

To accompany IT entrepreneurs in this global competition, the Virtual Zone Company In Georgia Country is designed specifically to IT entrepreneurs and Digital Nomads.

Suppose you want to gain maximum efficiencies from your IT business, you plan to set up a new IT company, a new branch of your existing IT company; in that case, the Virtual Zone Company In Georgia Country is perfect to benefit from huge tax advantages, develop your IT business, and make more profits.

According to Article 99 of the Georgian Tax Code, the Virtual Zone Company In Georgia Country does not pay Corporate Income Tax (0% instead of 15%). There is only a 5% tax on dividends when distribution occurs. Suppose these dividends are retained in the company or reinvested, then the tax rate is 0%! Also, with the VZ Status, IT entrepreneurs are exempt from VAT (0% instead of 18%). 

Virtual Zone Company In Georgia Country: Only One Rule To Follow

The only restriction is that such revenue must come from providing IT services and products to customers outside Georgia. The Virtual Zone Company Georgia is perfect if your IT company provides services to international customers. 

What Is Exactly the Virtual Zone Company In Georgia Country?

It is a Free Zone designed for IT businesses. The Virtual Zone Company In Georgia Country offers many tax incentives to IT entrepreneurs and digital nomads.

Georgian Tax code & Virtual Zone Company Georgia

According to Article 8 of the Georgian Tax Code, a legal entity with Virtual Zone, also called Virtual Zone Person Status, is a legal entity operating in the IT sector and obtaining the Georgian government’s certificate.

The texts state that the qualifying activities are «development, support, design, research development, production, implementation, and deployment of computer information systems and related technologies, the result of which is the emergence of software products and services.» It Depends on your exact activity that should best approximate these activities. You can demonstrate that a significant component of your business activity is based on software and software development. For example, you sell e-commerce or Internet marketing software licenses, SaaS (Software as a Service), web development, mobile applications, computer games, web design, and network administration. All business models where there are precise IT services and products based or related to software.

If you are an IT entrepreneur or digital nomad with international invoicing, the Virtual Zone status is highly attractive.

How To Get a Virtual Zone Company In Georgia Country?

The Virtual Zone status is highly attractive if you are an IT entrepreneur or digital nomad with international invoicing. The process to get the Virtual Zone Status is both fast and straightforward.

Creation Of A Virtual Zone Company Georgia

Create an LLC, which is the most popular legal entity in Georgia. The process is fast. The company is registered and ready to operate in 2 or 3 days.

Virtual Zone Status Application

Once the company is registered, its activity is defined in the articles of association; it can apply for Virtual Zone status with the Revenue Service and the Ministry of Economics of Georgia. You must prove that you already have foreign customers by providing proof through a contract or invoices for IT services. Usually, obtaining a Virtual Zone Status takes between 10 and 30 days. Once the tax authorities issue the Virtual Zone Status to the IT entrepreneur or digital nomad, the Authorities Bodies cannot revoke it if the IT entrepreneur meets the main requirement of providing IT services or selling IT products abroad.

Virtual Zone Company In Georgia Country: What Taxes Are Due In The End?

A Virtual Zone Company In Georgia Country is exempt from

• 0% Corporate Income Tax for a Virtual Zone Company In Georgia Country

Instead of the standard rate of 15%

• 0% VAT
  

Instead of 18%. On IT products and services provided outside the territory of Georgia

• 0% Export duties and taxes on IT products and services exported from Georgia.

You can also reclaim VAT (18%) when purchasing from other VAT Taxpayers registered in Georgia. Therefore, you will have to register as a VAT Taxpayer at the Revenue Service of Georgia. 

• 5% Dividends Tax rate.

An IT entrepreneur or a Digital Nomad that provides IT services outside Georgia after obtaining the VZ status will only pay a 5% tax on dividends.

Other Benefits of a Virtual Zone Company In Georgia Country

Beyond being the 8th least taxed economy in the world, one of Georgia’s other advantages is the simplicity of its administrative procedures for starting a business. Bureaucracy in Georgia is kept to a minimum to favor foreign IT entrepreneurs, and digital nomads who consider incorporating a Virtual Zone Status company in Georgia. .

• Deduction of expenses related to the provision of IT products and services from gross income
• A company with VZ status does not need a license, permit, or other regulatory documents to conduct business activities on Georgian national territory. 
• No minimum capital is required. 
• No Virtual Zone license renewal 
• There are no company maintenance or company renewal fees.
• Ultra-simplified accountancy
• The company can be 100% owned and managed from abroad by a foreign citizen.
• Another advantage is that Georgia is a European inspiration country (but without high taxes), beautiful, safe, and above all, low cost.

Please click here to read more information about the Virtual Zone Company in Georgia Country. 

Contact one of our advisers if you want to get a consultation about setting up a Virtual Zone Company in Georgia.