Georgia
15% (on distribution only — 0% on retained profits)
Corporate Tax
1 day
Setup Time
GEL 1 (~$0.35)
Min. Capital
100%
Foreign Ownership
#7
Ease of Business
Georgia is one of the world's most overlooked company formation destinations — and among the easiest. A Georgian LLC can be formed in a single day for under $100. The tax system is distribution-based, meaning retained profits are taxed at 0% and distributed profits are taxed at only 15%. The Virtual Zone status offers 0% corporate and dividend tax for IT companies earning foreign-source income. The Small Business status offers just 1% tax on turnover up to GEL 500,000 (~$180,000). Banking with TBC Bank and Bank of Georgia is reliable and internationally accessible. The limitation is that Georgia's business reputation is less globally recognised than Western jurisdictions, and some payment processors or banks outside Georgia apply extra scrutiny to Georgian entities.
- Digital nomads based in or relocating to Georgia
- IT companies and software developers qualifying for Virtual Zone 0% tax
- Freelancers and consultants with international clients seeking ultra-low costs
- Solo founders who want the absolute lowest-cost legitimate company structure
- E-commerce operators targeting non-Georgian markets
- Entrepreneurs seeking a territorial tax system with no tax on foreign-source income
Virtual Zone status requires the company to be an IT company and earn income from non-Georgian sources. The 0% rate applies to qualifying IT income only — non-IT businesses and Georgian-source income are taxed normally. Additionally, if you are personally tax-resident in a higher-tax country (e.g., Germany, France, UK), that country may still tax you under its own CFC or place-of-management rules. The Georgian structure works as a tax-efficient vehicle only if your personal tax residency is also in a low-tax or territorial-tax jurisdiction.
At a Glance
Available Business Structures
Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1–2 hours (in-person); 1–2 weeks (remote)
Georgia has two dominant banks — TBC Bank and Bank of Georgia — both of which offer strong online banking and international transfer capabilities. In-person account opening in Tbilisi is straightforward and typically completed in under two hours. Remote account opening is possible through TBC's digital onboarding but takes longer and may require additional documentation. Wise Business works well as a secondary account for receiving payments in EUR, GBP, and USD. Georgian banks are generally more welcoming to non-resident founders than banks in most Western European countries.
Visa & Immigration
Georgia offers visa-free entry for citizens of 95+ countries, allowing stays of up to one year without a visa. The "Remotely from Georgia" programme allows digital nomads and remote workers earning at least $2,000/month from foreign sources to live and work in Georgia. Georgia also offers a residence permit for business owners and investors. Important: residing in Georgia for 183+ days in a calendar year makes you a Georgian tax resident, subject to the 20% flat income tax on worldwide income (though foreign-source income may be exempt under the territorial system).
Free Zones & SEZs
4 free zones available
Common Mistakes
Assuming Virtual Zone status applies to any business
Fix: Virtual Zone is exclusively for IT companies earning income from non-Georgian sources. If your business is not in the IT sector — for example, consulting, e-commerce, or marketing — you do not qualify. Non-IT businesses should consider the Small Business status (1% turnover tax) or the standard distribution-based regime (15% on dividends) instead.
Ignoring personal tax residency obligations in your home country
Fix: Georgia's 0% or 15% corporate rates do not override your personal tax obligations. If you are tax-resident in a country with CFC rules (most of the EU, the US, the UK), that country may tax you on the Georgian company's income regardless. Consult a tax adviser in your country of residence before relying on the Georgian tax structure.
Trying to open a bank account remotely without preparation
Fix: While remote account opening is possible, it is significantly easier to open a Georgian business bank account in person at a TBC Bank or Bank of Georgia branch in Tbilisi. If you cannot visit, prepare comprehensive documentation including notarised passport copies, proof of business activity, and a detailed description of your company's operations.
Overlooking the VAT registration threshold
Fix: VAT registration becomes mandatory at GEL 100,000 (~$37,000) annual turnover. If you exceed this threshold without registering, you face penalties. Monitor your revenue and register proactively as you approach the threshold.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.