Main benefits of the jurisdiction:
Georgia became an important jurisdiction in international tax planning, offering a tax-friendly environment, stable legal system and developed banking system, Located in a trade strategic area between Asia and Europe.
Having successfully adopted the DCFTA that results in having eliminated all customs duties for goods originating in Georgia being imported into the EU
Its free trade agreement (FTA) with China is effective which makes Georgia the second European country (after Switzerland) that has FTA with China
Currently, Georgia is ranked as one of the best places in the world for ease of doing business.
Some of the main tax incentives in Georgia and offered entities:
• STC regime: exemption from tax for trading performed outside of Georgia
• IFC regime: exemption from tax for international financial services and holding companies selling shares of foreign entities
• VZC regime: exemption from tax for providing IT services outside of Georgia
• FIZ Companies: exemption from any corporate tax and withholding tax
LLC (Limited Liability Company) in Georgia
Georgian LLC can be widely used for any kind of business whether performed locally or internationally. There are no restrictions in regards to business activities. There are also no restrictions in regards to nationality and residence of directors and shareholders of the company. Bank account for the LLC can be easily opened in Georgia, whether for resident or non-resident clients.
In most cases remote opening is available provided there is a local attorney appointed (e.g. our firm).
Taxation: Corporate Profit Tax – 15%, payable only when the dividends are distributed.
Otherwise the tax will not be paid during the year or at its end.
STC (Special Trade Company)
STC regime is designed for Georgian companies dealing with international trade. The company is structured in the same way as the local LLC.
The condition of obtaining the STC certificate is trading outside of Georgia, but around 10% of traded goods should run through Georgian customs.
Example: company established in Georgia buying goods from China and selling them to Germany.
Taxation: exemption from corporate income tax in Georgia.
![]()
IFC (International Financial Company)
IFC regime is designed for Georgian holding companies and companies dealing with international finance. The company is structured in the same way as the local.
The condition of obtaining the IFC certificate is carrying out financial services and/or financial operations outside of Georgia. Profits from sales of securities issued by the IFC or held by the IFC are exempt from corporate taxes and capital gains taxes in Georgia.
Example: company established in Georgia performing financial services internationally or purchasing shares of a UK startup company and disposing them in the future.
Taxation: exemption from corporate income tax in Georgia.
VZC (IT Virtual Zone Company)
VZ regime is designed for Georgian companies dealing with IT (information technology) services exported outside Georgia. The company is structured in the same way as the local LLC and the VZ license issued by the Revenue Service.
The condition of obtaining the VZ certificate is performing IT services to entities located outside Georgia.
Example: Georgian company performing software development services to a British company.
Taxation: exemption from corporate income tax in Georgia.
Free Industrial Zones (FIZ) in Georgia
All Free Zones provide generous investment incentives such as the possibility of 100% foreign ownership, no corporate taxation, no restriction on repatriation of capital and profits, no exchange control, no restrictions on investment in any sectors.
Important considerations:
- Importing goods from Georgia to Free Zone is exempt from all taxes except 4% duty
- Importing goods from other countries than Georgia is exempt from all taxes
- Exporting goods abroad are exempt from all taxes
- Exported products to the territory of Georgia should include VAT and 4%.
- No classical offshore company, tax authorities will still issue a tax residency certificate
- In many cases, we can offer remote bank account opening
Disclosure rules:
No CRS (Common Reporting Standard)
Georgia is not a member of Common Reporting Standard (CRS) that makes the jurisdiction attractive for clients that want to maintain their confidentiality.
Time to incorporate: around 2 working days. Remote registration possible. Shelf companies available.