Simple company setup
A practical base for international founders
Georgia is known for a straightforward registration environment, clear public registries, and founder-friendly setup workflows.
Why Georgia
A practical company base with clear tax advantages.
Most founders arrive here with the same question, phrased slightly differently: is Georgia genuinely a good place to put my company, or does it only look that way from a distance?
This page is the honest version of that answer, in the order the question usually unfolds. What Georgia is good at. How the tax rule really works. Which route fits which business. Where it is the wrong idea. And what actually happens once you decide.
A six-chapter read.The caseThe tax ruleThe routesThe fine printThe processThe numbers
01The case
Four things Georgia is genuinely good at.
Strip away the marketing and the argument for Georgia rests on four specific strengths. Each one is checkable, and each one matters to a different kind of founder.
Tax profile
Profit taxed only on distribution
Corporate income tax (15%) applies only when profit is distributed, plus 5% dividend withholding. Reinvested profit stays untaxed under the Estonian-style model.
Cross-border use
Useful for service and remote businesses
Many founders use Georgia for consulting, IT, trading support, regional operations, and service companies with international clients.
Operational speed
Strong efficiency signals
Georgia ranked 4th of 101 economies in the World Bank B-READY 2025 report and 2nd for operational efficiency, according to NAPR.
Georgia rewards founders whose paperwork matches what they actually do. It is unforgiving of the ones whose paperwork tells a story their business does not.
02The tax rule
The part everyone half-remembers, drawn properly.
Georgia taxes company profit when it leaves the company, not when it is earned. That single shift is what people mean by the Estonian-style model, and it changes the arithmetic of growing a business.
One company, one year, two decisions
What happens to €100,000 of profit, depending on whether you leave it in the company or take it out.
Leave it in
Profit stays in the company and funds hiring, equipment, or working capital.
Profit for the year€100,000
Corporate income tax€0
Dividend withholding€0
Still working for you
€100,000
Nothing is taxed until the day you distribute it. That day can be years away, or never.
Take it out
Profit is distributed to you as a dividend, and both taxes fall due.
Profit for the year€100,000
Corporate income tax, 15%-€15,000
Dividend withholding, 5%-€4,250
Reaches your pocket
€80,750
An effective rate of 19.25% on the money you actually take out.
Illustrative. Real figures are computed on your own accounts, and your tax residency may tax the dividend again at home. That second question is usually the one worth asking first.
Why founders like it
A company reinvesting everything into growth pays no profit tax at all while it does so. Capital compounds inside the business instead of being trimmed every year.
Where it stops being magic
The tax is deferred, not cancelled. The day you want the money personally, 19.25% of it is the price of taking it out.
The question most people forget
Your own tax residency may tax that dividend again when it arrives. Georgia’s rate is only half of your real answer.
03The routes
Six routes, and they are not small variations.
This is where Georgia stops being one offer and becomes a choice. The gap between the cheapest and the most expensive route is not a rounding error, which is exactly why the route has to match the business rather than the ambition.
What each route actually costs
Effective tax on profit, in the situation each route is designed for.
- Micro Business0%
Under 30k GEL turnover, no employees
- Virtual Zone0%
On foreign-sourced IT income
- Free Industrial Zone0%
On qualifying zone activity
- Small Business Status1%
Of turnover, not profit, up to 500k GEL
- International Company5%
On distributed profit
- Standard LLC, reinvested0%
Nothing distributed, nothing taxed
- Standard LLC, distributed19.25%
15% profit tax, then 5% on the balance
A 0% headline is never the whole story: each of these carries eligibility conditions, and the qualifying activity has to be the one you genuinely carry out.
Which regime fits which business?
A side-by-side view of the routes we assess most often. Eligibility always depends on your real activity.
| Regime | Profit tax | Dividends | Best suited for |
|---|---|---|---|
| Standard LLC | 15% on distributed profit | 5% | Consulting, agencies, trading support, holding operations. The default, flexible route. |
| Micro Business (IE) | 0% (turnover under 30k GEL) | Not applicable | Individuals testing an idea. No employees, no income tax below the threshold. |
| Small Business Status (IE) | 1% of turnover (up to 500k GEL) | Not applicable | Freelancers and solo founders billing clients directly as individual entrepreneurs. |
| Virtual Zone Person | 0% on foreign-sourced IT income | 5% | Software and IT companies serving clients outside Georgia. Requires real IT activity in Georgia. |
| International Company | 5% on distributed profit | 0% | Mature IT or maritime businesses with qualifying history and substance. 5% payroll tax for employees. |
| Free Industrial Zone | 0% on qualifying zone activity | 0% | Manufacturing, processing, and trading from a licensed zone (Poti, Tbilisi, Kutaisi, Hualing). 4% applies to trade with Georgian companies outside the zone. |
Rates and thresholds reflect current Georgian practice and may change. Special-status eligibility is assessed case by case before we recommend a structure. Book a consultation to confirm yours.
04The fine print
Strong advantages, but only when used correctly.
Georgia is attractive because the core rules are relatively understandable. Still, the right answer depends on your business model, client countries, founder tax residency, banking needs, and whether any special status genuinely fits. These are the four areas where that gets decided.
Core route
Standard LLC taxation
A Georgian LLC can be a clean and understandable structure for founders who need incorporation, invoices, accounting, and annual compliance.
- 15% corporate income tax, charged only on distributed profit; a further 5% withholding applies to dividends paid to individuals.
- Retained and reinvested profit is not taxed until distribution under the Estonian-style model.
- 20% personal income tax commonly applies to salary/payroll withholding.
Check before launch
VAT and trading activity
VAT planning matters before you invoice clients, import goods, or sell locally. The standard VAT rate is 18%.
- VAT registration depends on the activity, client location, and taxable turnover.
- International services may need separate review before assuming VAT treatment.
- Good invoicing and bookkeeping from day one prevents expensive corrections later.
IT/export cases
Virtual Zone Person
Georgia has a Virtual Zone framework for qualifying IT activities. It can be attractive, but it is not automatic and must match the real business activity.
- Useful to review for software, digital products, and IT service models.
- Eligibility should be checked before promising tax outcomes to clients or investors.
- Contracts, activity evidence, accounting, and substance all matter.
Special regime
International Company status
For qualifying IT or maritime companies, advisors commonly review International Company status as a potential reduced-tax route.
- May be relevant for mature businesses with qualifying history and substance.
- Reported benefits can include reduced corporate and payroll tax treatment.
- Eligibility and ongoing compliance should be confirmed before relying on it.
05The process
From idea to operating company.
We help clients choose the right setup path, prepare documents, add required local services, and move into tax, bank, and ongoing compliance without guessing the next step. Four stages, in this order, every time.
- 1
Choose the route
Standard LLC, IT/export review, or special-regime assessment.
- 2
Prepare documents
Founder details, POA route, address, activity, ownership, and compliance information.
- 3
Register and activate
Company registration, tax setup, accounting start, and service add-ons.
- 4
Become bank-ready
Business profile, contracts, source-of-funds narrative, and document pack.
Need a structure check?
Compare standard setup, banking readiness, and tax routes.
06The numbers
The rates and facts founders ask about first.
Everything above, reduced to the figures you will want to hand to an accountant, an investor, or your own spreadsheet.
15%
Corporate income tax
Charged only when profit is distributed. Retained and reinvested profit is not taxed.
0%
On reinvested profit
The Estonian-style model lets the company grow tax-free until dividends are paid.
5%
Dividend withholding
Personal tax on dividends paid to individuals, on top of corporate income tax.
18%
Standard VAT
Mandatory registration applies above 100,000 GEL taxable turnover in 12 months.
1%
Small Business Status
Turnover tax for qualifying individual entrepreneurs up to 500,000 GEL per year.
0%
Micro Business
Individuals with no employees and turnover under 30,000 GEL per year pay no income tax.
0%
Free Industrial Zone
Qualifying FIZ enterprises pay no corporate income tax and no property tax on zone activity.
20%
Personal income tax
Flat rate on salaries. Payroll withholding handled by the company.
1 day
Company registration
The Public Registry typically registers an LLC within one business day.
Top 5
World Bank B-READY 2025
Georgia ranked 4th of 101 economies overall and 2nd for operational efficiency.
That is the whole argument, honestly told.
What is left is the part no page can answer: whether the route that looks best on paper is the one your actual business qualifies for. That takes half an hour and your real numbers.