How to Set Up a Holding Company in Georgia for Indians 2026

May 10, 2026

Georgia (the Eastern European country, not the US state) is one of the world's most underrated business destinations for Indian entrepreneurs. With 1% corporate tax for Virtual Zone IT companies, 0% capital gains tax, and the world's fastest company formation process (1 day), Georgia offers extraordinary value for budget-conscious founders.

Why Georgia is a Hidden Gem for Indian Entrepreneurs

1% corporate tax for Virtual Zone (VZ) IT companies on foreign income
0% capital gains tax on sale of shares
0% VAT on services to foreign clients
Company formation in 1 day — world's fastest
Lowest setup cost — USD 200–500 total (approx. ₹16,000–42,000)
DTAA with India — reduced withholding tax
No minimum share capital
Simple annual compliance — low accounting costs

Understanding Georgia's Virtual Zone (VZ) Status

Virtual Zone status is Georgia's flagship tax incentive for IT companies. To qualify:

Your company must provide IT services or software
Income must come from clients outside Georgia
Register as an IT company with the Georgian Revenue Service

VZ companies pay just 1% corporate tax on qualifying foreign income — compared to India's 25.17%.

Step-by-Step: Forming a Georgia Holding Company

Step 1: Choose Company Type

Register an LLC (Shpk — Shezghuduli Pasuxismgeblobis Kompania) — the Georgian equivalent of a private limited company. This is the most common structure for foreign entrepreneurs.

Step 2: Register at House of Justice

Visit any House of Justice branch in Georgia (or use a registered agent). Registration fee: GEL 100 (approx. USD 35). Same-day registration is standard.

Step 3: Apply for Virtual Zone Status

Submit an application to the Georgian Revenue Service for VZ status. This is a separate step from company registration and typically takes 5–10 business days.

Step 4: Open Corporate Bank Account

TBC Bank and Bank of Georgia are the two main options. Both are internationally connected and offer online banking. Account opening: 1–3 days.

Step 5: File ODI with RBI

Indian residents investing in Georgia must file ODI with RBI under FEMA. Annual performance reports are also required.

Step 6: Annual Compliance

File annual tax return with Georgian Revenue Service
Maintain simple accounting records
Disclose in Schedule FA of Indian ITR
Submit ODI annual performance report to RBI

Georgia vs Other Jurisdictions — Cost Comparison

Jurisdiction	Setup Cost	Annual Compliance	Tax Rate
Georgia	USD 200–500	USD 500–1,000	1%
Estonia	€200–500	€500–1,500	0% (retained)
Singapore	SGD 1,000–3,000	SGD 2,000–5,000	5–8%
UAE	AED 10,000–25,000	AED 5,000–15,000	0% (FZ)