Company Formation in Georgia: The Definitive Guide for NRIs & Digital Entrepreneurs 2025

Last updated: June 2025 | Blueberry – Kerala's Premier Global Trade & Financial Services Facilitator

Why Georgia for Company Formation?

Georgia (the Caucasus country) has quietly become one of the world's most business-friendly jurisdictions. The World Bank consistently ranks it among the top 10 globally for ease of doing business. With a 15% flat corporate tax, a unique Virtual Zone regime offering 0% tax for IT companies, 1–2 day incorporation, and some of the world's lowest setup costs, Georgia is an increasingly popular choice for NRI entrepreneurs seeking a simple, low-cost international structure.

Georgia is also an EU candidate country with a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, providing preferential access to the European market.

Virtual Zone for IT Companies

Georgia's Virtual Zone (VZ) is one of the world's most attractive tax regimes for IT businesses:

0% corporate tax on income from providing IT services to non-Georgian clients
5% dividend withholding tax on distributions (vs 15% standard)
0% VAT on IT services to non-Georgian clients
Qualifying activities: software development, IT consulting, cybersecurity, SaaS, app development

VZ status is granted by the Ministry of Finance and typically takes 5–7 business days to obtain.

Free Industrial Zones

Georgia's Free Industrial Zones (FIZ) — in Kutaisi, Poti, and Tbilisi — offer:

0% corporate income tax
0% personal income tax
0% import/export tax
0% property tax
0% VAT on FIZ transactions

Ideal for manufacturing, trading, and logistics businesses.

DTAA Benefits with India

Dividends: 10% withholding
Interest: 10% withholding
Royalties: 10% withholding

Tax Structure

Tax Type	Standard LLC	Virtual Zone	FIZ Company
Corporate Tax	15%	0% (on non-GE income)	0%
Dividend Withholding	5%	5%	0%
Capital Gains	0% (most assets)	0%	0%
VAT	18%	0% (non-GE services)	0%
Personal Income Tax	20%	20%	0%

Formation Process

Business activity assessment and VZ/FIZ eligibility review
Company name search and reservation
LLC incorporation with NAPR (1–2 days)
Registered address setup
Virtual Zone application (5–7 days, if applicable)
Corporate bank account opening
VAT registration (if applicable)

Costs & Timeline

Blueberry's all-inclusive package: ₹19,999. Incorporation: 1–2 business days. VZ status: additional 5–7 days. View full package →

Banking in Georgia

Key banks: TBC Bank (largest, most NRI-friendly), Bank of Georgia, Credo Bank. Account opening: 1–2 weeks. Georgia banks are generally more accessible than Western European banks for non-residents.

FAQ

What is the Virtual Zone in Georgia?: A special tax regime for IT companies providing 0% corporate tax on income from non-Georgian clients. Qualifying activities include software development, SaaS, IT consulting, and cybersecurity.
Is Georgia in the EU?: Georgia is an EU candidate country with a DCFTA providing preferential EU market access. Full EU membership is a medium-term goal.
Is Georgia suitable for NRI IT entrepreneurs?: Yes. The Virtual Zone's 0% corporate tax combined with Georgia's low costs and simple compliance makes it one of the most attractive jurisdictions globally for NRI software and SaaS businesses.