Georgia is becoming an increasingly popular jurisdiction for doing business. Georgia offers great ease of business creation and management. The absence of exchange control rules, the free entry and exit of foreign capital, the relatively low cost of services, the stability of the banking system, its geographical location as a gateway between Europe and Asia make Georgia an attractive destination for international companies outside the EU. It should also be noted that Georgia has not made any commitments to Automatic Exchange of Bank Information or to the OECD's TIEA agreement.
If the income of the Virtual Zone Entity is not distributed as dividends, there will therefore be no taxation in Georgia.
Georgian legislation defines the activities of a Virtual Zone Entity widely as "any legal entity related to Information Technology". However, according to the law, a VZE must involve into its activity "any process of research, development, support, design, production and implementation of computer information systems and software design".
It could therefore be said, on the basis of this legal definition, that any online product/service produced and provided by a VZE entity can be considered as an 'information technology activity', on the condition that the entity carries out research, development, support and design activities and holds the intellectual property rights for the product concerned.
The Georgian VZE is becoming a very interesting new solution for international IT companies developing an offshore customer base from Georgia.
BGG's services offer for the incorporation of your Virtual Zone Entity includes all the necessary support for the creation and management of your company in Georgia, accounting and tax advisory services, as well as your representation before public authorities and banks in Georgia.