Virtual Zone
A Georgian LLC with Virtual Zone status pays no profit tax on income from IT services delivered to clients outside Georgia, and no VAT on those exports. Dividends are still taxed at 5%. It is a strong regime for software companies with real activity in Georgia, and a weak one for a letterbox.
Information technology activities: research, development, support and production of software and related products, delivered to persons outside Georgia. Consulting that happens to be about IT does not qualify, and neither does reselling software built elsewhere. The status is granted by the Ministry of Finance on application and can be withdrawn if the activity does not match.
Since the regime was tightened, approval and continued use depend on the development actually taking place in Georgia: typically a local employee or team, a Georgian office and Georgian costs. A founder may live abroad, but the qualifying work must be done in the country. Without that, the Revenue Service can deny the exemption and tax the income as ordinary profit.
LLC registration: one working day in person, longer by power of attorney
Virtual Zone application: typically seven to ten working days, in practice up to 60 days
Corporate bank account: after KYC, with office lease and employee in place
The International Company status (Ordinance No. 619) offers 5% profit tax on distribution and 5% tax on salaries for IT and maritime companies, but requires at least two years of relevant history and real operations with staff in Georgia. For a new company, Virtual Zone is the usual starting point; our partner quotes International Company status after a free call.