IP Company in Georgia for Indians & NRIs 2026 | 1% Tax on IP & Royalty Income

Georgia's Virtual Zone (VZ) status allows IT and IP companies to pay just 1% corporate tax on income from foreign clients — making it the lowest-cost, lowest-tax jurisdiction for Indian software companies, SaaS founders, and IP owners who serve international clients.

Offshore Tax Saving Structure — Holding Co → IP Co / Service Co → Indian Entity → Founder

Why Georgia for IP Holding?

• ✅ 1% corporate tax on IP/royalty income from foreign clients (VZ status)
• ✅ 0% VAT on services and royalties to foreign clients
• ✅ 0% capital gains tax on IP asset sales
• ✅ Company formation in 1 day — world's fastest
• ✅ Lowest setup cost — USD 200–500 total
• ✅ DTAA with India
• ✅ No minimum share capital
• ✅ Simple annual compliance — low accounting costs

Virtual Zone (VZ) Status — What Qualifies?

Virtual Zone status is available to Georgian companies that:

• Provide IT services or software to clients outside Georgia
• Earn income from software licensing, SaaS, or IP royalties from foreign clients
• Are registered as an IT company with the Georgian Revenue Service

Note: VZ status applies to income from foreign clients only. Income from Georgian clients is taxed at standard 15% rate.

IP Tax Structure — Georgia vs India

Step-by-Step: Setting Up a Georgia IP Company

1. Register LLC (Shpk) at House of Justice — same day, GEL 100 fee
2. Apply for Virtual Zone status at Georgian Revenue Service
3. Transfer or develop IP within Georgian entity
4. Draft royalty/licence agreement with Indian entity at arm's length
5. Open corporate bank account (TBC Bank or Bank of Georgia)
6. File ODI with RBI; disclose in Schedule FA of Indian ITR
7. Maintain simple annual accounts and tax returns

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