Main advantages of registration in the virtual zone of Georgia

Registration of an IT company in the virtual zone of Georgia provides a number of significant advantages that make this jurisdiction attractive for international IT businesses.

One of the key advantages is a significant reduction in the tax burden. Zero rates of corporate tax and VAT on exports of IT services allow companies to significantly save on taxes, increasing their profitability and competitiveness in the global market. This is especially beneficial for startups and developing companies, allowing them to reinvest more funds into business development and scaling.

The procedure of company registration and obtaining the status of a virtual zone in Georgia is characterized by simplicity and speed. Registering a legal entity usually takes no more than one or two business days, while obtaining virtual zone status takes about 5-10 business days. The absence of annual license fees and simplified tax reporting procedures also reduce the administrative burden on companies.

An important advantage is that there are no residency requirements for the owners and directors of the company. This means that the founders and directors of an IT company can be citizens of any country and reside outside Georgia, which provides greater flexibility in business management.

The Georgia Virtual Zone provides an opportunity to conduct business remotely. Companies can conduct and manage their operations entirely remotely, without the need to rent an office or hire local employees (although, as noted earlier, economic presence may increase the chances of application approval).

Finally, Georgia provides a high level of confidentiality for banking operations, as the country is not a member of the Common Reporting Standard (CRS). This may be an important factor for companies that value financial privacy.