Welcome to GFTZ#
Why incorporate in the Republic of Georgia?#
- No profit tax (tech exports) — source see FAQ.
- No sales tax (tech exports) — source see FAQ.
- No social insurance or other labor taxes — source.
- No tax on foreign source income for residents — source 82.1U.
- No wealth or inheritance tax — source.
- No dividends tax (FIZ) — source 130.7.
- No propery tax (FIZ) — source 9.5.
- No import tax (FIZ) — source 9.6.
- Double taxation treaties with 54 countries — source.
Personal income tax#
- Low personal income tax 20% — source.
- Personal income tax is simple to calculate (flat 20%) and paid online — source.
- Company has no paperwork on personal income tax (FIZ) — source 9.8.
- 106 countries' citizens can live and work in Georgia perpetually — source.
- 106 countries' citizens can arrive with no paperwork — source.
- No minimum wage — source.
- 13th best IQ (out of 43) — source.
- 60% of young people speak English — source.
- Flexible labor laws — source p. 177.
- Employment agreements can be done in English language — source 6.2.
- Employment agreements optional for less than 4 year old companies — source 6.1.2.
- Low labor cost. Avg. USD $ 464 per month (Tbilisi) — source.
- 6 Month probationary employment allowed — source p. 13.
- Banks registered on London Stock Exchange — sources BOG & TBC.
- No foreign exchange or capital controls — source.
- No restrictions on capital repatriation — source.
- Next day bank account opening (receive personalized debit card the next day).
- No minimum deposit required on business bank account.
- Most banks offer multi-currency accounts in GEL, USD, and EUR.
- Can transact in USD or any other currency (FIZ 8.2) — source.
- No end of year audit required if sales under USD $ 8M — source.
- Annual financials can be prepared by non-CPAs if sales under USD $ 8M — source.
- Annual financials are filed online — source p. 10.
- Either cash or accrual accounting can be used — source p. 26.
- Accelerate depreciation on capital assets to 100% on 1st year — source.
- Statute of limitation of 6 years — source p. 18.
- 100% foreign company ownership allowed — source p. 12.
- No minimum capital requirement — source p. 17.
- No maximum limit on shareholders — source 51.3.
- Can register company by overseas applicant without physical presence.
- Next day company registration — source.
- Only USD $ 2 fee to add a shareholder to the registry.
- Shares can be of different classes (JSC) — source 52.1.
- No initial capital deposit required on register company — source 51.1.
- A company can be registered with a single shareholder — source 51.1.
- A board of directors is optional for non-public companies — source 55.1.
Good international rankings#
- 3rd best "procedures to start a business" (out of 140) — source p. 177.
- 7th best "Burden of govt. regs." (out of 140) — source p. 177.
- 8th safest for crime (out of 110) — source.
- 9th best "Total tax rate, % profits" (out of 140) — source p. 177.
- 13th best "economic freedom" (out of 178) — source.
- 16th best "ease of doing business" (out of 190) — source.
- Low corruption — source.
- Enterprise re-domiciling is allowed (both in and out) — source 5.7.1.
- Investors can have contracts governed by law of country of their choice, including ICSID — source p. 8.
- Can be invested in by AngelList syndicate (is not PFIC or CFC) — source.
- Good weather. Warm for 8 months — source.
- 84% Eastern Orthodox Christian — source.
- There are no restrictions on imports into Georgia — source p. 14.
- Electricity is USD 8c kwh (35% cheaper than the U.S.) — source.
- No sales tax or duty on overseas purchases under USD $ 120 — source
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