Georgia is becoming a popular jurisdiction for doing business locally as well as internationally. Due to having an edge over its competitors in terms of global access, logistics, tax benefits, talented professional, and standard of living it has attracted foreign investors from all over the globe. The country has also gathered a lot of appreciation in the past few years in the field of entrepreneurship and technology.
The internet has opened many possibilities to the business world. And among such possibilities lies development of software right at the top. The export of software is the main source of revenue for a host of IT companies operating globally. But in most of the cases, the revenue earned from exporting the software outside the borders of the country is taxed, due to which the companies end up paying a substantial amount of their earning on taxes. What if there are countries where such an income is not taxed? Does it sound incredible? The answer to the question is the Republic of Georgia. According to the Georgian Tax Legislation, a special status is provided for the companies exclusively working on the IT sector. “Virtual Zone Entity” is the legal entity that performs IT activities and has been granted a special status by the tax authorities of Georgia. The profits generated by the Virtual Zone Entity from the supply of information and services outside Georgia are exempted from tax.
Georgian legislation defines a Virtual Zone as “any legal entity related to Information Technology”. It must involve any process of research, development, support, design, production, and implementation of computer information systems and software design. The Virtual Zone IT companies are also called Information Technology Zones.
In addition to the aforementioned features, Georgia also offers to right business environment for IT companies to take advantage of.
If you are interested in setting up IT company in Georgia, you can avail the status of Virtual Zone Entity by following just a few steps. We at Business Setup Worldwide are here to help you. You can get in touch with our advisors in Georgia who has years of experience in this field. We will make the process relatively easier for you by offering maximum assistance, support, and advice during the registration process. If you wish to know more about Virtual Zone and the process of setting up a business in Georgia, do contact us today.