Georgia, standing in 2019, has become one of the most sought after countries in the World as a favorable business destination. The country provides a business-friendly environment, the flexibility needed to manage a company, and the provision to earn profits from it. The near absence of red tape in the capitalist economy of Georgia, teamed up with a robust infrastructure has ensured industries skyrocket in the land. The two special economic zones that has been specially designed for businesses and yield the most profit are the free and virtual zone in Georgia.
How do we define a virtual zone in Georgia?
Information technology (IT) is a lifeline of the world economy. Sectors such as industry, commerce, and business base itself on the benefits of IT. The profit margin that one can earn from an IT business is enormous. That is why there are a lot of businessmen who want to set-up an IT company or expand their existing IT firm.
While on the lookout for the perfect place to set up an IT business, out of all the probable destinations, Georgia emerges as the best. It provides a fertile land for businesses to prosper and packs in a lot of perks for businessmen. A virtual zone in Georgia is specifically designated for IT companies. The infrastructure of the zone is designed in a way that it provides the best features that can be beneficial to an IT firm.
What are the benefits of the zone?
There are several regulations and laws passed by successive governments in Georgia, and that has given the country an upper-hand over other destinations. The plethora of advantages provided by a virtual zone in Georgia are listed below:
Exemptions from –
- 15% income tax
- 18% VAT
- Permits, regulations, and local licenses that are issued by the local government and the federal
- Export duty tax
- Tax, if the dividend is given to a local shareholder
- If the income of the virtual zone entity is distributed to a non-resident of Georgia, 5% tax charged
- If the dividend is given to a foreign shareholder, tax is levied based on the double taxation agreement between Georgia and the other country
- Low-cost skilled workforce
- No minimum wage limit
- Ready-to-use infrastructure
- Technologically advanced opportunities
- Dedicated land
What or who is known as a virtual zone entity?
The status of a virtual zone entity is dispensed to an IT company that has registered in a virtual zone in Georgia. Entrepreneurs can register to be a part of this special economic zone even if they aren’t residents of Georgia by giving a lawyer the power of attorney to function on their behalf. This also means that business owners do not need to stay in Georgia to run their companies. A virtual zone entity is eligible to receive all the advantages provided by the zone.
Conclusion: A virtual zone in Georgia is the ideal place for all entrepreneurs who want to set up an IT company. Should you want to know added details, you can contact a Georgia based premier consulting firm, Kaukapital, at https://kaukapital.com.