Georgia has become a premier place for setting up a company because of the plethora of advantages it provides. Always one step ahead in the game, Georgia has also been named the number one World Economic Reformer in 2007 by the World Bank (Source. World Bank). Successive governments have passed laws which have made Georgia a favorable country for businessmen. Tax exemptions and workforce are a few pros of the high-yielding land. Having said that, the two valuable places in Georgia that return the most profits for businesses are the special economic zones.
What are these Special Economic Zones?
SEZ or special economic zones are two areas meant for businesses that make optimum use of the free and transparent regulations of the country. These have numerous benefits that they offer to entrepreneurs. Georgia has been constantly on the top of the ease of doing business lists created every year by the World Bank. While a free zone in Georgia allows all kinds of businesses to set up a firm on the land, virtual zones only allow IT companies.
Information technology or IT is the backbone of businesses across sectors. It is thus, undoubtedly, one section that has surpassed all the recessionary trends and yields the maximum profit. The virtual zone in Georgia is a dynamic environment for such IT firms to stay profitable and competitive in the market. It provides benefits that, if utilized correctly, can rake in a lot of profits for the companies.
What are the Benefits of a Virtual Zone in Georgia?
Investing in a company to be set up at a virtual zone in Georgia can be a port of call to enjoy privileges that other companies based out of the zone, don’t get. Some such benefits are:
- Exemption from local permits, license, regulations issued by the Government.
- Tax exemption on the export duties on products exported from the customs.
- Tax exemption if the income of the company isn’t distributed
- If the income is distributed to a non-resident, 5% tax is charged
- Exemption from the 18% VAT and 15% Tax if the company provides its services to customers outside Georgia
- Tax exemption if the dividend of the company is given to a local shareholder
What are the Provisions of the Virtual Zone in Georgia?
Georgia is a fertile land where there is an opportunity for a lot of sectors to open up a business. Since a virtual zone in Georgia is meant for IT companies, this special economic zone also provides some added features, which are devised keeping in mind the needs of the companies. They are:
- Robust infrastructure that is ready to use
- Skilled and locally available labor
- No minimum wage law (lowest in the European Union Trade zone)
- Near absence of red tape
- Capitalist economy
Conclusion: The ease of business opportunities make a virtual zone in Georgia, one of the best places to set up an IT company. Should you want to set up a company in one such zone, it is always safe to consult a top consulting company like Kaukapital.