{"id":310,"date":"2023-04-18T10:22:17","date_gmt":"2023-04-18T10:22:17","guid":{"rendered":"https:\/\/companyformationgeorgia.com\/?p=310"},"modified":"2023-04-18T10:22:21","modified_gmt":"2023-04-18T10:22:21","slug":"virtual-zone-status-for-an-it-company-in-georgia","status":"publish","type":"post","link":"https:\/\/companyformationgeorgia.com\/virtual-zone-status-for-an-it-company-in-georgia\/","title":{"rendered":"Virtual Zone Status for an IT Company in Georgia"},"content":{"rendered":"\n<p>If you own a particular type of IT company set up in Georgia and you have international clients you might profit from a special tax status. This particular status is regulated by Ordinance No4064-RS (15 December 2010) of the Government of Georgia, named &#8220;Law of Georgia on Information Technology Zones&#8221;. This law offers certain financial benefits&nbsp; from a tax point of view. For the exact details do not hesitate to contact one of our specialists in company formation.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationgeorgia.com\/virtual-zone-status-for-an-it-company-in-georgia\/#what-are-the-tax-benefits-of-starting-a-virtual-zone-it-company-in-georgia\" title=\"What are the tax benefits of starting a Virtual Zone IT Company in Georgia?\">What are the tax benefits of starting a Virtual Zone IT Company in Georgia?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationgeorgia.com\/virtual-zone-status-for-an-it-company-in-georgia\/#how-to-start-a-virtual-zone-it-company-in-georgia\" title=\"How to start a Virtual Zone IT Company in Georgia?\">How to start a Virtual Zone IT Company in Georgia?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyformationgeorgia.com\/virtual-zone-status-for-an-it-company-in-georgia\/#what-are-the-advantages-of-starting-a-virtual-zone-it-company-in-georgia\" title=\"What are the advantages of starting a Virtual Zone IT Company in Georgia?\">What are the advantages of starting a Virtual Zone IT Company in Georgia?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-are-the-tax-benefits-of-starting-a-virtual-zone-it-company-in-georgia\"><\/span><strong>What are the tax benefits of starting a Virtual Zone IT Company in Georgia?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several tax benefits of&nbsp;<strong>opening a business in Georgia<\/strong>&nbsp;under a Virtual Zone:<\/p>\n\n\n\n<ol>\n<li>Tax exemptions:&nbsp;<a href=\"https:\/\/www.companyformationgeorgia.com\/invest-in-georgia\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Start-up businesses in Georgia<\/strong><\/a>&nbsp;under Virtual Zone are generally exempt from certain taxes: value-added tax, profit tax, and property tax. This reduces the initial costs and also increases the overall profit of the Virtual Zone Company<\/li>\n\n\n\n<li>Lower corporate income tax: The general income tax for companies in Georgia is around 15%. Under the Virtual Zone it is 3 times lower, only 5%.<\/li>\n\n\n\n<li>Credits:&nbsp;<strong>The businesses set up in Georgia&nbsp;<\/strong>can easily get tax credits for certain expenses.<\/li>\n\n\n\n<li>Different administrative report:&nbsp;<strong>Virtual Zone IT companies in Georgia<\/strong>&nbsp;could have a simplified tax reporting system, simplifying thus the administrative system.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-to-start-a-virtual-zone-it-company-in-georgia\"><\/span><strong>How to start a Virtual Zone IT Company in Georgia?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Starting a Virtual Zone IT company in Georgia<\/strong>&nbsp;is a multi-step process:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp; Start a business: The first step in opening a company is choosing the type of business you will have. This could be: sole proprietorship, partnership, or corporation. If you encounter problems in deciding and finding the most appropriate choice for you, do not hesitate to contact one of our&nbsp;<a href=\"https:\/\/www.companyformationgeorgia.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>specialists in company formation<\/strong><\/a>;<\/li>\n\n\n\n<li>&#8211;&nbsp; Registration: The next step needed for&nbsp;<strong>company formation in Georgia<\/strong>&nbsp;includes filling out an application and paying the registration fee;<\/li>\n\n\n\n<li>&#8211; Obtain a license: Determined by the type of business, you might need to apply for certain permits and licenses.<\/li>\n\n\n\n<li>&#8211; Choose a Virtual Zone: For the&nbsp;<strong>company incorporation in Georgia<\/strong>, you can choose one of the Virtual Zones, in order to benefit from certain tax benefits. After deciding you need to apply for a certain zone through the&nbsp;&nbsp;<a href=\"https:\/\/www.investingeorgia.org\/en\/\" target=\"_blank\" rel=\"noreferrer noopener\">Georgian Investment Agency.<\/a>;<\/li>\n\n\n\n<li>&#8211;&nbsp; &nbsp;Promote and grow your business.<\/li>\n<\/ul>\n\n\n\n<p>Overall,&nbsp;<strong>opening a company in Georgia<\/strong>&nbsp;involves a number of steps and our&nbsp;<a href=\"https:\/\/www.companyformationgeorgia.com\/about-us\">specialists in company formation<\/a>&nbsp;can help you set up and build a successful business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-are-the-advantages-of-starting-a-virtual-zone-it-company-in-georgia\"><\/span><strong>What are the advantages of starting a Virtual Zone IT Company in Georgia?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the general benefits of starting a&nbsp;<strong>Virtual Zone IT company in Georgia<\/strong>&nbsp;are:<\/p>\n\n\n\n<ol>\n<li>A growing business environment: Georgia has a stable economy, a good infrastructure and safe law and political system<\/li>\n\n\n\n<li>Tax benefits: This special status can bring exemptions from certain taxes<\/li>\n\n\n\n<li>Talented recruitment prospects: Georgia has a wide and skilled workforce in the IT domain.<\/li>\n\n\n\n<li>Location: Georgia is strategically located at the crossroads of Europe and Asia, opening new doors to international collaborations.<\/li>\n\n\n\n<li>Easy funding: Georgia is the home of many investors interested in the IT domain.<\/li>\n<\/ol>\n\n\n\n<p>Overall&nbsp;<strong>the company formation in Georgia<\/strong>&nbsp;offers certain tax benefits that can help reduce the businesses costs and increase the profitability. If you are planning&nbsp;<strong>to set up a business in Georgia<\/strong>, you can&nbsp;<strong><a href=\"https:\/\/www.companyformationgeorgia.com\/contact#jmp\" target=\"_blank\" rel=\"noreferrer noopener\">contact our experts in company formation<\/a><\/strong>&nbsp;for full assistance.<\/p>\n\n\n\n<p>If you want to&nbsp;<strong>open a company in Georgia<\/strong>&nbsp;in the&nbsp;<strong>IT industry<\/strong>&nbsp;or in any other industry, you can rely on our team for professional assistance during the registration procedures.&nbsp;<\/p>\n\n\n\n<p><strong>Georgia<\/strong>&nbsp;is one of the most attractive business destinations in its region, as it provides numerous advantages for foreign investors, one of them being the easiness of registering and doing business.&nbsp;<\/p>\n\n\n\n<p>An important reason to<strong>&nbsp;<a href=\"https:\/\/www.companyformationgeorgia.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">open a business in Georgia<\/a><\/strong>&nbsp;is that the country ranks as the 2nd top destination for the easiness of registering a business (according to the study conducted by the World Bank).&nbsp;<\/p>\n\n\n\n<p>Another matter where&nbsp;<strong>Georgia<\/strong>&nbsp;ranks amongst the top nations is the proper system for registering a property&nbsp; (here, it is ranks as the 5th country). It also has a good rank when it comes to investor protection.&nbsp;<\/p>\n\n\n\n<p>If you will set up a business, the registration steps can be completed by our specialists through the power of attorney. However, after your business will start operating, you will need the services of other types of specialists, such as accountants.&nbsp;<\/p>\n\n\n\n<p>Therefore, you can rely on&nbsp;<strong>our accountants in Georgia<\/strong>&nbsp;for professional accounting services, tailored in accordance to the needs of your business.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you own a particular type of IT company set up in Georgia and you have international clients you might profit from a special tax status. This particular status is regulated by Ordinance No4064-RS (15 December 2010) of the Government of Georgia, named &#8220;Law of Georgia on Information Technology Zones&#8221;. This law offers certain financial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[9,149,147,150,148],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Virtual Zone IT Company in Georgia - Tax Benefits for Foreign Investors<\/title>\n<meta name=\"description\" content=\"Our legal team can help you set up an IT business and benefit from all the tax advantages offered by the virtual zones.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/companyformationgeorgia.com\/virtual-zone-status-for-an-it-company-in-georgia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Virtual Zone IT Company in Georgia - 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