Benefits of Starting a Business in Georgia: Low Taxes, Simple Setup, and More
- Giorgi Gamsakhurdashvili
- 7 days ago
- 7 min read
Table of contents
Why open a company in Georgia?
If you’re wondering why open a company in Georgia, here’s a simple answer: it works.
No hidden costs. No inflated promises. Just fast setup, low taxes, and real access to banking and residency.
That’s why entrepreneurs, digital nomads, and freelancers are moving their operations to Georgia and not looking back.
You don’t need a local partner. You don’t need a huge budget. And you definitely don’t need to wait weeks for approval. Whether you’re a solo consultant billing international clients or a SaaS founder expanding into new markets, Georgia offers a stable, founder-friendly setup.
It’s not just about costs. It’s about control. When you register your business in Georgia, you actually own it. You can open a business bank account in your name, manage everything online, and reduce your global tax burden legally. Most importantly, you don’t waste time dealing with nonsense paperwork.
Low taxes that actually work
Georgia is one of the few low tax countries for business that keeps things simple. No inflated tiers. No progressive traps. The rules are clear, and the system is designed for business owners who want to stay lean.
If you register as an Individual Entrepreneur with Small Business Status, you can legally pay just 1 percent on turnover. That’s not profit. That’s revenue. As long as your activity qualifies and you stay under the income limit, it’s one of the cleanest deals available anywhere.
For LLCs, the corporate tax is 15 percent but only on distributed profits. That means if you’re reinvesting into growth, hiring, or equipment, your retained earnings stay untouched.
Here’s what else makes the Georgian tax system stand out:
No tax on foreign-sourced income if you’re a Georgian tax resident
Zero tax on crypto trading or passive capital gains from abroad
5 percent dividend tax if you pay yourself profits
Clear rules on VAT, with monthly or quarterly filings depending on revenue
For many founders, especially digital service providers, these tax benefits are a game changer. You’re not just saving money. You’re building a structure that scales globally without bleeding cash on compliance.
Company formation made simple
Company formation in Georgia is as close to frictionless as it gets. You can register an LLC or an I.E. in as little as 24 to 48 hours. All you need is a passport and a few prepared documents. If you’re outside Georgia, you can use power of attorney or set it up online with the help of a local partner.
No need for authorized capital. No local director requirement. And no complicated multi-week government procedures. Georgia’s company register is fast, digital, and responsive.
The process looks like this:
Reserve your company name
Submit your ID and basic company info
Provide the articles of incorporation
Register with the tax authority
Get your extract and you’re officially active
There’s a reason why more than 10,000 international entrepreneurs use the Georgia company register every year. It works without the drama. Once your company is registered, you can immediately open a business bank account, apply for Virtual Zone status, or start billing clients abroad.
Need a real checklist? Start with our corporate bank account setup guide and list of required documents.
Business banking that supports growth
One of the main reasons entrepreneurs choose Georgia is the ease of banking. Getting a business bank account in Georgia is fast, affordable, and flexible. You don’t need to deal with endless background checks or overcomplicated KYC.
Banks like Bank of Georgia, TBC, and Basisbank offer multi-currency accounts in GEL, USD, and EUR. You get full IBAN access, online and mobile banking, real-time currency exchange, and the ability to run your business from anywhere.
You can manage salaries, automate tax payments, set alerts, and export statements for your accountant, all from a clean, well-designed dashboard.
Better yet, you don’t need to be physically in Georgia to get started. With the right support and a power of attorney, you can open a business account remotely.
Our complete banking guide walks you through every option and update.
Residency that complements your business
Georgia separates legal residency and tax residency, which gives you flexibility as a founder. You can open a business and a bank account without living here full-time. But if you do want to move your base or optimize your tax position, the system supports it.
There are two main paths to Georgian tax residency:
Spend at least 183 days in Georgia over a 12-month period
Qualify through high net worth status (GEL 3 million+ in assets or GEL 200,000+ income for 3 years)
Once you’re a tax resident, you unlock all the benefits:
No tax on foreign-sourced income
Simpler bank compliance
More favorable treatment for international transactions
Access to Georgia’s 50+ double taxation treaties
The best part? You don’t need to give up your existing residency or citizenship. You can build your legal base in Georgia while continuing to work globally.
Read more about how tax residency in Georgia can boost your structure here.
Special benefits for digital businesses
If you’re in IT, software, or digital services, Georgia’s Virtual Zone is worth your attention. It gives registered companies 0 percent corporate tax on income earned from foreign clients.
That means a web developer based in Tbilisi who invoices a UK agency pays no corporate tax. A small SaaS company selling subscriptions to US customers? Also zero corporate tax.
To qualify, your company must:
Be registered in Georgia
Apply for Virtual Zone status (which is free)
Provide digital services to clients outside of Georgia
There’s no physical office requirement and no minimum revenue. Just a clean, legal setup with major tax advantages.
Want help deciding if Virtual Zone status is right for your business model? We’ll walk you through it.
Business infrastructure that helps you grow
Starting a business in Georgia isn’t just about setup. It’s about operating smoothly once you’re live. The good news? Georgia offers real infrastructure for growing companies.
Coworking spaces are everywhere. Fast internet is the norm. You’ll find accountants who understand crypto and developers who can join your next project. If you're building a distributed team, Georgia gives you a base with the services to support it.
Need logistics? Warehouses, fulfillment centers, and courier options are all active. Looking for professional support? You can get a reliable lawyer, notary, or translator in under an hour.
You’re not just choosing a cheap country. You’re choosing one where modern infrastructure supports serious business.
If you’re planning long-term operations or remote team expansion, the business support here keeps up.
Strategic location, global access
Georgia sits between Europe and Asia. That makes it a perfect launchpad for companies that deal with international logistics, sourcing, or remote clients.
You can fly to Istanbul, Dubai, or Berlin within a few hours. Customs are efficient. Digital products and financial services move without restrictions.
If you’re used to complicated visas, Georgia will surprise you. Citizens from over 90 countries can enter visa-free and stay up to one year. That includes EU, UK, US, Canada, Australia, and most Latin American and Southeast Asian countries.
Want to stay longer? Apply for legal residency through business registration, property ownership, or income. It’s fast, transparent, and doesn’t require relocation.
Whether you’re running a fully remote agency or want to set up shop in Tbilisi, the location makes sense.
Compliance that doesn’t slow you down
One of the top reasons to open a company in Georgia is how little time you’ll spend on compliance. Monthly tax filing takes minutes. VAT and revenue tax can be scheduled and paid online. There are no random audits or shifting rules. Everything is written, accessible, and enforced predictably.
Here’s what most businesses deal with monthly:
Revenue tax (1 percent for I.E.s or 15 percent for LLCs on distributed profits)
VAT filing (if registered)
Payroll contributions (2 percent pension fund for salaried employees)
Simple e-filing through the Revenue Service portal
That’s it. No surprise bureaucracy. No triple-checking your numbers in three languages. And no overpriced “compliance packages” like in other countries.
Need to pay taxes from abroad? The banking system and Revenue Service are both online. You don’t need to be in Georgia to stay compliant.
If you want a deeper look at monthly obligations, check out our banking compliance guide.
Why Gegidze makes it easier
Registering a company is only the beginning. Getting it right is what matters. That’s where we come in.
At Gegidze, we help founders set up a business in Georgia with the full picture in mind. That includes:
Choosing the right structure (I.E., LLC, Virtual Zone)
Registering your company and handling all filings
Opening a business bank account with the right bank
Applying for tax residency or legal residency if needed
Connecting you with accountants and keeping your filings clean
Making sure you’re set up to scale, not just survive
We stay updated on which banks are easy to work with, which tax rules are changing, and how the system works in practice. That’s what keeps our clients out of trouble and focused on growth.
Our team works in multiple languages, supports remote clients, and knows how to get things done, no fluff, no waiting.
Final checklist
If you’re still asking why open company in Georgia, here’s what you’re really getting:
1 percent tax on revenue for I.E.s
15 percent corporate tax only when profits are distributed
No tax on foreign income for residents
Remote-friendly company formation in 2 days
Simple banking with multi-currency accounts
Access to the Virtual Zone for 0 percent IT tax
Visa-free stays and fast residency options
Low bureaucracy and fast e-filing
Support infrastructure for serious founders
Not every country gives you a real advantage. Georgia does.
Ready to start your business in Georgia?
We’ll help you choose the right setup, get your bank account approved, and stay compliant every month.
Frequently Asked Questions (FAQ)
Why open a company in Georgia instead of other countries?
Georgia offers fast setup, low taxes, and easy banking without hidden requirements. It’s ideal for freelancers, remote founders, and small businesses looking for legal structure, 1% tax on revenue, and no tax on foreign income.
How much tax will I pay if I register my business in Georgia?
Individual Entrepreneurs with Small Business Status pay just 1% on turnover. LLCs pay 15% on distributed profits. Tax residents also enjoy full exemption on foreign-sourced income.
Can I open a company in Georgia remotely?
Yes. With a power of attorney, you can register your company and open a business bank account without visiting Georgia. Gegidze handles the full process on your behalf.
What documents do I need to open a business bank account in Georgia?
You need your passport, company extract, tax ID, and a short description of business activity. Some banks may request notarized documents or translations. See the full list in our banking document guide.
Is Georgia a good country for digital businesses and IT services?
Yes. Georgia offers 0% corporate tax under its Virtual Zone program for IT companies working with foreign clients. The application is free, and the process is fast.
