Business Statuses in Georgia: Which One Fits You

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International Company Status in Georgia: 5% tax regime for IT and maritime firms International Company Status is a preferential tax regime for Georgian companies in qualifying IT and maritime-services activities. It cuts profit (corporate) tax to 5%, salary income tax to 5%, exempts most business property from property tax, and exempts distributed dividends. The status is granted by the Government of Georgia on application through the Revenue Service, requires at least two years of experience in the permitted activity and real substance in Georgia, and is set out in Government Ordinance No 619 (2020) together with the Tax Code.
Virtual Zone Person Status in Georgia: 0% tax on exported IT Virtual Zone Person status is a tax regime for Georgian IT companies. Profit earned from supplying information technologies created by the company to customers outside Georgia is exempt from profit tax, that supply is exempt from VAT, and exports of the IT carry no export duty. The status is granted within 10 working days by a body designated by the Government (the Ministry of Finance's Financial-Analytical Service) under the Law on Information Technology Zones and the Tax Code. The exemption covers only IT supplied outside Georgia — domestic sales and employee salaries are taxed normally.
Virtual Asset Service Providers (VASPs) in Georgia Since 1 January 2023 anyone providing virtual asset (crypto) services in Georgia must register with the National Bank of Georgia and meet Fit-and-Proper and AML/CFT requirements. The framework defines what counts as a virtual asset service, who must register, and what other financial institutions may also offer. Crypto is not legal tender, and paying for goods or services with it is prohibited except in narrow cases.
Startup Support in Georgia: Innovation Tax Statuses, Grants & Accelerators (2026) Georgia overhauled its startup support in mid-2025. A reform of the Law on Innovations (Law No 718 of 24 June 2025, in force from late September 2025) created three new tax-advantaged statuses — Innovative Startup, Innovative SME, and R&D Service Provider — administered through GITA's Innovations Registry. The Innovative Startup Status gives up to ten years of relief, beginning with full income-tax exemption on qualifying salaries and later reduced 5% and 10% rates on salary and profit. Alongside the statuses sit GITA grants and the 500 Global acceleration programme, Enterprise Georgia's business and export support, and the established Virtual Zone, International Company and Small Business regimes. This guide maps the tools, their thresholds and how they fit together, all checked against the primary Georgian law.
Investor Guarantees in Georgia: rights and protections for foreign investors Georgian law guarantees foreign investors no less than the rights of local investors, the free repatriation of profits abroad, and protection against expropriation except by court decision with market-value compensation.

Registering a business gives you a legal form, such as an Individual Entrepreneur or a company. A business status is a separate, optional designation that may be available once the business has been registered. If you qualify, it changes how your business is taxed or regulated without changing its legal form.

The right status depends primarily on the nature of your business activity and, in some cases, its size or turnover.

The overview below summarises the main business statuses available in Georgia and the types of businesses they are intended for.

For a company (LLC)

International Company IT & maritime · 5% profit / 5% salary Virtual Zone Person IT export · 0% profit on foreign sales Innovation & Startup statuses early-stage / R&D companies VASP registration virtual asset service providers · licensing regime Foreign investment protections applies to foreign investors regardless of form — equal rights, free repatriation, protection from expropriation

Business statuses are optional. Eligibility depends on your business activity and the applicable legal requirements.

Business statuses

Small Business Status — available only to Individual Entrepreneurs carrying on eligible activities. Qualifying businesses pay 1% tax on turnover up to the statutory threshold, making it a popular choice for freelancers and other small businesses.

International Company Status — designed for companies carrying on qualifying IT or maritime activities. It provides reduced corporate and employment tax rates, together with other tax incentives, and is intended for established businesses with genuine operations in Georgia.

Virtual Zone Person — available to IT companies that develop software or provide qualifying IT services to customers outside Georgia. Profits from qualifying foreign-source activities are exempt from Georgian profit tax, and the relevant supplies are generally VAT-exempt.

Startup & innovation statuses — available to qualifying startups, innovative SMEs and R&D companies under Georgia’s innovation framework. Each status has its own eligibility criteria and tax incentives.

VASP registration — required for businesses providing virtual asset (crypto) services. It is a regulatory authorisationissued by the National Bank of Georgia, rather than a tax status, and operates alongside the company’s legal form.

Investor guarantees — not a business status, but a statutory investment protection regime. Foreign investors benefit from protections including equal treatment, free repatriation of profits, and protection against unlawful expropriation.

What to explore futher

Start by choosing your legal form on the Run a Business page. Then open the guide for the business status that best matches your activity.

Each guide explains the eligibility requirements, tax advantages, application procedure, and the circumstances in which the status may be refused, suspended or revoked.

Frequently asked questions

Do I need a status to run a business in Georgia?

No. A status is optional. Without one, an Individual Entrepreneur pays personal income tax and a company pays the standard 15% profit tax under the distribution-based (Estonian) model. A status can reduce or simplify that, but only if your activity and turnover qualify.

Which status is for a solo freelancer?

Small Business Status, which is available to an Individual Entrepreneur and taxes turnover at 1% up to the statutory cap. It is the simplest and most common status for freelancers and small service providers.

Which status is for an IT company?

Two are aimed at IT: Virtual Zone Person status (0% profit tax on software supplied to customers outside Georgia) and International Company Status (5% profit tax and 5% salary tax for qualifying IT and maritime companies). The right choice depends on your size, staffing and exactly what you sell — the detailed guides compare them.

Can one company hold more than one status?

Generally no — the IT-focused statuses are alternatives, and each has its own conditions and exclusions. You choose the one that fits your activity. VASP registration is different: it is a regulatory authorisation to provide crypto services, not a tax status, and applies on top of your company form.

Is a status permanent?

No. Statuses are granted on conditions and can be revoked if you stop meeting them (for example, exceeding a turnover cap, changing activity, or failing compliance requirements). Treat the linked guides as the current framework and confirm the position before you rely on it.

Sources

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