Virtual zones in Georgia and everything worth knowing about them
For many entrepreneurs, registering a company in Georgia is a profitable event, as there are special tax zones for certain types of business in the country. They are virtual and relevant for companies that are developing in the field of IT. Creating additional benefits will increase the growth of the economy, to develop this area.
How did virtual zones appear and what are their benefits for entrepreneurs
The main advantage of registering a business in this area is tax exemption. In this regard, after the creation of such zones, it has become more profitable to develop an IT business for non-residents than in their own state.
The growth in the number of foreign companies that started their business in the virtual zone has caused a change in the pace of IT development in Georgia. Given the rapid growth of indicators of the country's economy, infrastructure development, registration has become a lucrative offer with minimal risks.
OT began to function after the adoption of the relevant law. Subsequently, amendments were made to other acts, as well as to the NK of the country. Based on the law, a company that is registered in such a zone in Georgia will be exempt from customs duties, excise and value added tax. The rule concerns organizations that provide goods outside the country.
What companies can pay taxes on such conditions:
• Engaged in IT research;
• Specializing in the development and implementation of IT products;
• Consumers of the company's products and services are non-residents of Georgia.
Despite the benefits available, companies located in the virtual zone must pay dividend tax. It must be paid if the profit is distributed, the amount is 5%. For owners - non-residents of the country taxation is considered taking into account the agreement on the avoidance of double taxation. This agreement was signed by Georgia with many countries, their number exceeds fifty.
Nuances of doing business
In order for a company to be included in a virtual zone, you need to obtain a special supporting document - a certificate. It is issued only after the company has been assigned the appropriate status. On average, the duration of this procedure is about 10 days.
The certificate can be issued within two business days after the company is assigned a status. The certificate is the main document, businessmen do not need to issue an additional package of papers. When planning a business in a virtual zone, you can contact the IT-OFFSHORE for advice and other services related to registration.
For a company to function, only directors are allowed on the staff. A resident can register a company, a citizen of any state. Plus registration is that employees do not need to be residents of the country, as well as physically stay in the territory of Georgia. Registration of a company is quite simple.