Reasons to open a business in Georgia in 2024, Georgia for foreign entrepreneurs

The main advantage of Georgia is the low tax rates for businesses, including foreign entrepreneurs. Various state programs, benefits, and grants attract investors and have a favorable impact on the country's economy.

The introduction of concepts such as Free Industrial Zone, Virtual Zone, and International Company has contributed to the influx of foreign entrepreneurs to Georgia.

2024 will be no exception, as the country's government does not stop at achieved results but regularly supplements stimulating programs for the development of business in Georgia with new items.

Currently, the preferred areas for the development of foreign business in Georgia are:

• IT technology sector;
• Shipping;
• Manufacturing;
• Construction.

For companies with the status of International Company, FIZ, or Virtual Zone, some taxes are exempted. They only have to pay taxes on profits and salaries to employees.

The main condition for obtaining tax benefits remains confirmation of the presence in the country. At the same time, not only payments for renting premises but also expenses for maintaining companies, the presence of employees residing in Georgia are taken into account.

Companies operating in the Free Industrial Zones (FIZs) in Georgia are almost completely exempt from taxes, and they have simplified reporting requirements and direct access to international trade.

Excellent conditions for foreign entrepreneurs in Georgia are created specifically in the FIZs. Additionally, the geographical location of the FIZs in Georgia allows for savings on transportation costs.

Reduced prices for utilities, including electricity, are provided for organizations in the FIZs. Thanks to this, Georgia has become the third-ranked country in the world in terms of mining and cryptocurrency.

This government program is aimed at supporting medium and large businesses in Georgia. Obtaining an annual license is cheaper than the standard tax payment system.

In addition to low tax rates, stimulating programs for investment attraction, and a simple company registration procedure, there are several advantages for foreign entrepreneurs in Georgia:

• Remote management of bank accounts and control over the movement of funds;
• Low cost of labor;
• No requirement for annual audit;
• Open international trade;
• No taxation on company profits when distributed as income;
• No currency control;
• Possibility of remote company management;
• Confidentiality of income and expenditure data until 2024;
• Central geographic location between leading countries;
• Transparency in business operations, absence of corruption and bureaucracy;
• Infrequent tax inspections, online interaction with tax services.

Anyone can become the owner of a successful business in Georgia by choosing a suitable niche and registering a company. Non-residents of the country have an additional opportunity to obtain a residence permit or Georgian citizenship. Any business in Georgia can develop and bring income to the owner. The country's authorities have done everything possible for this and regularly create new motivating programs to attract foreign investors.