Georgia International Company

[khinkali]

Georgia has announced "international company" status for IT and maritime business.

https://agenda.ge/en/news/2020/3132

After obtaining the status of an international company the company will enjoy reduced property (but not land), profit, dividend (full exemption), and income taxes, with profit and income taxes reduced to five per cent.
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It seems rather like the existing Georgian Virtual Zone status for IT companies.

In order to be granted the status of an international company it is necessary for the company to be registered in Georgia and have at least two years of work experience in the country.
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Run a business for 2 years before finding out if it got the tax status?

Ignoring the oddities for a minute, I can see more places wanting to give corporation tax and dividend discounts to export businesses. "Come here, export goods and services, save some taxes, employ people".

 

[avalanche]

Georgia has one of the most ambiguous taxation codes ever. If ever⁣ you build any serious business in there, there is always a chance to get unexpected⁢ tax bills

 

[khinkali]

I agree, although you can buy advice from the tax office cheaply (I haven't done‌ this). Even a binding ruling looks quite cost effective considering what you'd have to go‍ through to get similar certainty in Western Europe.

But yes, overall it is quite confusing.⁠ The general vibe I pick up is "do pretty much what you want, just don't⁤ upset anyone who can cause you trouble".

 

[Martin Everson]

There are already literally 100's of export⁠ zones around the globe from Malta to Dubai to Nigeria. They have existed for decades⁤ and offer tax free business opportunities. Nothing new that Georgia is doing here.

 

[JohnLocke]

But it is still good that there are such places where it is possible if‌ one can adapt.

 

[khinkali]

@Martin Everson I think what Georgia does right is making it easy. For many nationalities‌ you can do a once a year visa run (ignoring covid). No work permit. Open‍ a company in a day (like UK) open a bank account with no proof of⁠ address (rare). Almost (caveats of course) do what you want. Just it's nice to hire⁤ some local people and help the country.

As for lifestyle, well some of us like⁣ it and some don't. Like anywhere.

As @avalanche said, some things are ambiguous. But nothing⁢ like the scale of SE Asia. And I think Western Europe and USA are even︀ worse if you're trying to do anything in finance.

Still, I totally agree that the︁ hundreds of export zones around the world are not talked about enough. UAE of course,︂ but most people don't have a clue where to find the rest.

 

[Martin Everson]

I totally agree.⁣ It ranks high on ease of doing business and moving there in my books. It⁢ was one of the reasons I lived there for a while. They also have a︀ free trade agreement with EU making it very attractive for business.

 

[Piano]

Bank account without proof of address ?! VERY RARE

 

[saduna]

If you are serious about Georgia, it is possible to arrange for a complete hands‌ off managed company with proper setup for tax advantages not just in Georgia but also‍ in your country of residence. Managed company means you don't need worry about banks, VATs,⁠ etc. that is all taken care of. You can only do this with professionals that⁤ are transparent and you can trust, but cost savings and tax savings can be great⁣ if you have more than $50K revenue. This is easy to do for digital businesses⁢ (no physical goods shipped or processed) and if you are in IT business the company︀ would be income tax free for exports out of Georgia.

 

[MiddleEuroAsia]

Even in Egypt, there⁠ are some extremely attractive tax free export zones there and lots of business opportunities if⁤ you knew what you're doing and have the right connections.
for example, the free zones⁣ in Egypt are hidden gems and are underestimated in my humble opinion, considering the cheap⁢ cost of labor there.
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Also you have︈ banks like HSBC and CIB that gives zero fucks and only asks for your company︉ documentation to open an account. also Egypt seems to fly under the radar as it's︊ cash based society - So not lots of questions asked.

Also if you want to︋ open a manufacture factory here. you can import all the new cutting-edge machinery completely tax︌ free. and in terms of exports, you have to export more than 51% of your︍ product. the other 49% can go to the local market, or you can export all︎ of your product if you wanted to.

just bringing some new thoughts to the table!️thu&¤#

 

[avalanche]

Never trust lawyers to run your business. Thats how you lose it. Thats a rule︂ of thumb

 

[VESTANON]

@avalanche well said...cig-:,

 

[saduna]

really funny 😎

 

[ImKing]

I can't agree more. They are good if‌ you have troubles but they suck to run a business on behalf of others /‍ clients. It's not a viable way to run a business.

 

[jennymaier]

Georgia also has a free trade agreement with the EU, which makes it very attractive‌ for business.Comfortable open currency banking accont ,it makes bisness more easier