If you are closely related to the field of IT-technologies and want to have a reliable and fairly convenient financial instrument, it is worth considering IT-business in Georgia. It is known that back in 2011 a law was adopted on the so-called preferential taxation, which is valid for IT-company in Georgia. Within the framework of this law, it became possible to easily develop own software, website support, graphic design, blogging, copywriting and other activities within this industry.
The advantages of opening a company in the IT zone
If you decide to open an IT-company in Georgia in the field of IT, it is worth considering that for international business – it is an ideal platform because it has the following advantages:
- the possibility of quick registration, since no more than two days will pass before the receipt of all necessary documents;
- the most profitable way to run your own business, which has a preferential tax system;
- the ability to open a company and an individual bank account remotely;
- maximum convenience associated with the possibility of opening a multi-currency account, which allows you to carry out activities not only with euros and dollars;
- lack of full financial control from the side;
- no need for a license and permits;
- full mobility in terms of doing business, as this process can be carried out, being anywhere in the world;
- such activity is legal, legitimate and transparent;
- confidence in the future, because with the proper development of such a company, income will be enough to ensure a normal life.
Tax treatment for opening a company in Georgia
It is quite easy to open a company in Tbilisi in the IT sector or in any other city in Georgia and this process will be uncomplicated for future entrepreneurs thanks to a reliable and fairly liberal tax regime. This is primarily due to the fact that, compared with ordinary companies, a special preferential tax system is working for IT organizations. When opening such a company, the entrepreneur will be exempt from these types of tax payments:
- VAT exemption;
- income tax exemption;
In fact, the resident of the virtual zone pays only 5% of the tax on derived dividends and income tax in case of payment of wages.
In this regard, we can say that such a tax regime is very convenient for those IT product developers who work with various international customers and customers who are located in different parts of the world. At the same time, company registration for IT in Georgia is in demand due to the fact that there is no need to obtain permits and a license for activity.
In 2021 Tax Administration of Georgia has made adjustments to the interpretation of the Article on activities in the Virtual zone and among the mandatory requirements for compliance with the status of the Virtual Zone ‒ the subsistence (presence) on the territory of the country namely: administrative expenses, for example, renting an office in which employees of the company work, or the presence of specialists from among the citizens of Georgia on the staff.
For those who want to open an IT company in Georgia, it is worth paying attention to the fact that there is nothing complicated in this process. First of all, registration is carried out. At this stage, the legal address of the organization, registration with the Ministry of Justice, and the tax service must be indicated. After that, the entrepreneur submits an application for a virtual zone certificate, within which a preferential tax system operates. At the last stage, a personal account is opened in a banking institution. Moreover, a similar procedure can be carried out both remotely and with the personal presence of the client in the bank, which will require a minimum amount of time.
Write to us and we will help you deal with all the nuances of the tax system and create the most profitable business.