The price for this service starts at US$ 3 750
Georgian Government realizes how important the IT sphere is today, and it is determined to actively promote this sector of economy. In 2010, a special tax regime was introduced for the business companies engaged in information technologies in Georgia. Beginning 2011, companies performing software development, web design, website support, and other activities related to computer information systems are entitled to a Virtual Zone status. This status brings IT companies exemptions from the VAT, the income tax, and the customs duties on the condition that they sell their products and services abroad, that is, outside Georgia. A large number of world computer companies do sell their IT products internationally, so they should be interested in lessening their tax burden by obtaining the Georgian Virtual Zone status. This task may seem difficult but it is not, in fact: our company can have a company registered with the Georgian authorities for you, apply for the VZ status on your behalf, and very soon you can start reaping the fruit. You do not have to visit Georgia in order to establish a company there: our representative in this country will deal with all the red tape. Moreover, a Virtual Zone company does not even have to have an office, and its owner can be the only company employee. A legal address is required though, but we will take care of that too.
You have to be aware that registering a company in Georgia by yourself is going to be rather challenging unless you speak the Georgian language. All the application forms and other documents have to be filled out in Georgian. Government officials and bank officers will also speak only Georgian in most cases. Besides, the legislation of a foreign country cannot possibly be grasped in an instant.
Our company will be happy to help you overcome all the challenges related to establishing an operational company in Georgia. We have had legal entities registered in this country for a large number of clients. We have also obtained multiple Virtual Zone status certificates and opened accounts for them in leading Georgian banks. Many our clients are already running IT companies in Georgia and enjoying the benefits of the VZ status. We have skilled English-speaking lawyers on our staff who have vast experience in applying the relevant legislation to solving the legal issues connected with company registration in Georgia. You are welcome to apply for their legal advice if you need any. And our accountants will gladly consult you on taxation and accounting matters.
The price for the combined service of having an IT company registered in Georgia, obtaining the Virtual Zone company status, and opening a corporate bank account is US$ 3,750. This price covers a series of mandatory actions required to start a company in Georgia.
Some specifics of Georgian tax laws
The VZ status allows software developers, web designers and companies engaged in other IT activities save on taxes considerably. Of all the Georgian taxes, the status holders pay only the 5% dividend tax. But even this 5% duty can be legally evaded if your home country has made a double taxation avoidance agreement with Georgia.
Here are a few important things to know about the regulations governing the activities of business companies registered in a Virtual Zone:
- Any receipt of funds to the company account shall be from a foreign partner;
- The company shall have at least one employee who will perform the duties of the director. Company owner or shareholder is entitled to simultaneously holding the director’s position;
- A 20% income tax is payable by any salaried person, but it is this person’s responsibility to pay the money to the state budget in a timely manner. This tax shall not be levied in case Georgia has a double taxation avoidance agreement with the employee’s resident country;
- Products sold to Georgian residents are taxed under mainland taxation conditions;
- Georgia does not exchange its residents’ financial information with other states.
There are many aspects of Georgian tax laws, and quite a few possibilities for tax burden optimization. That is why anyone who wants to do business in Georgia should seek professional advice in order to make use of all the possibilities and avoid the possible pitfalls. Our consultations will help you save large sums on taxes, put your company in full gear in a shorter period of time and thus make a faster return on investment.
Legal address and accounting services in Georgia
Georgian laws prohibit registering a legal entity without a residential address. Finding someone who would let you use his or her address as a legal address for your company would be a difficult thing to do on your own. Besides, you would have to pay a personal visit to Georgia in order to do that. We can help you spare the trip to this country and we will give you a legal address for free, and you can use it for as long as you wish.
Like any regular business company, a Virtual Zone company has to keep the books and submit financial reports in a timely manner. Without the knowledge of Georgian legislation keeping accounts by yourself is certainly going to be risky, especially at the early stage of doing business in this country. Even if you want to be honest with your taxes, you may still find yourself at odds with the tax authorities due to lack of knowledge. For example, any delay in reporting or in tax payment will entail penalties and sanctions in Georgia.
We will be happy to keep the books for you, calculate the taxes and file the reports. The only thing you would have to do is forward the source documentation to us once a month so that our accountants can compile reports for the tax authorities. Clients who use our accounting services benefit in the following ways:
- They obtain high quality accounting support for their business;
- They are guaranteed against any late reporting or tax payment;
- They can be sure that the documents required by banks, audit and other agencies will be prepared on time;
- Our services cost less than the services of an individual company accountant.
The most important thing is that the services we provide will let you concentrate on enhancing your business efficiency instead of wasting your time on accounting routine.
Please be aware that the cost of the accounting support depends on the number of your transactions per month: the more transactions you have, the higher the cost of our service is.
Drafting the constitutive documents for registering a company in Georgia
If you want to use our assistance in setting up a company in Georgia, we will first ask you to fill out a short questionnaire. There you will have to provide the basic information about your intended company, such as its name, type of ownership, expected yearly turnover, and the currency of the corporate bank account. This information will help us determine your needs and the types of services you want to organize an efficient business in Georgia. Filling out this questionnaire is also necessary for drafting the company constitutive documents, such as the company Charter, the Memorandum and Articles of Association, etc. All the documents can be written in English.
When you approve the wordings in these documents, we will send hard copies of those to you together with a power of attorney in the name of our Georgian representative. You will have to sign the documents and have the power of attorney notarized. Then you have to send the document pack back to us via an international postage service.
With the power of attorney and constitutive documents in hand, our representative in Georgia will have the company registered with the state authorities in the shortest time, set up a personal account for you at the tax bureau website, and submit an application for the Virtual Zone status. Please mind that document registration and issuance of the Virtual Zone company certificate takes five working days.
Opening a corporate account in one of the leading Georgian banks
Any business company in Georgia, including IT companies, must have a corporate bank account. Georgian banking system is reliable and it makes a stable profit, which is something the state authorities are very much proud of. As of April 2019, sixteen banks in total operate in Georgia. However, we recommend opening a corporate account either with the Bank of Georgia or with the Silk Road Bank. These financial institutions have qualified English-speaking personnel, and provide a full range of banking services that will meet all your requirements. In particular, you can easily acquire remote access to your bank account: Internet, mobile, and SMS banking are readily available in Georgia.
In addition to what have been said above, our service price also includes provision of access to online banking system, a bank pay card, and a password generator required for making payments via the Internet.
How to set up an IT company in Georgia and put it into operation
In order to start a business in Georgia using the available tax benefits you should do the following:
- Submit the necessary documents to us:
- For a private individual – foreign passport;
- For a legal entity – the company constitutive documents, including the company Charter, the Memorandum and Articles of Association, and an extract from the home country Registry; passports of shareholders, managers, and other beneficiaries. The same holds if a legal entity is one of several company founders.
- Send all the documents and a completed questionnaire mentioned above to our e-mail: firstname.lastname@example.org.
- Pay the cost of our services against the invoice.
- Discuss all the details of the prospective business in Georgia with an expert of ours.
It takes only five working days to have an IT company registered in Georgia, obtain the Virtual Zone status, and open a corporate bank account. Thus, a short time after applying for our services you will have a full-blown IT company in operation and a bank account that you can start using on the day it is set up. Our accounting support will let you focus on software development or anything else you are engaged in, without having to spend time on learning the Georgian tax legislation and keeping the financial records. Please write to us to email@example.com, and you will soon have the following:
- An IT company working under an optimal tax regime;
- A quality accounting service;
- A corporate bank account in one of the leading Georgian banks that you will have remote access to;
- A full set of legal documents for the new company such as the Charter, the Memorandum and Articles of Association, and an extract from the Georgian Registry of commercial and non-profit (non-commercial) organizations.
You can have everything mentioned above in a very short time after contacting us, without even leaving your place of residence.