Establishing your marketing agency here in Georgia offers a compelling mix of operational benefits and a highly advantageous tax structure, particularly attractive for agencies serving international clients. Key financial advantages include:

• VAT Exemption on International Services: When providing marketing services to clients located outside of Georgia, your agency's services are typically exempt from the standard 18% Value Added Tax (VAT). This significantly enhances your ability to offer competitive pricing in the global marketplace.
• Growth-Oriented Corporate Taxation: Georgia operates a distinct corporate profit tax system where the 15% tax applies only when profits are distributed to owners/shareholders. Crucially, this means any profits you decide to retain and reinvest directly back into expanding your agency, whether for hiring talent, investing in new technology, or funding market expansion, are not subject to corporate tax at that point. This policy directly fuels faster growth by allowing you to utilize pre-distribution profits for development.

This combination of VAT exemption for foreign clients and the ability to reinvest profits tax-free at the corporate level makes Georgia a strategically smart base for ambitious marketing agencies focused on international markets and sustainable growth.

Choosing Georgia, particularly its vibrant capital, Tbilisi, as a base for your business offers a compelling package of efficiency, strategic advantages, and a notably business-friendly tax environment. Key reasons include:

• Simplified Business Setup & Operations: Georgia is globally recognized for its ease of doing business. Company registration is remarkably swift, often achievable within just one business day, reflecting significantly reduced bureaucracy compared to many other nations.
• Advantageous Corporate Tax System: Based on the Estonian model, the tax system is designed to foster growth. Georgia's corporate profit tax applies only when profits are distributed to owners (at a 15% rate). Crucially, profits that you choose to reinvest directly back into your company's development, expansion, or operations face a 0% corporate tax burden.
• Clear and Competitive Tax Rates:
  • Personal Income Tax: Generally levied at the tax rate of 20%. (Note: Special regimes exist, like for Small Businesses, which can offer lower rates)
  • VAT: Set at 18%, but importantly, it primarily applies to transactions within Georgia. Exports of goods and many services provided to international clients are typically VAT-exempt.
• Strategic Location: Situated at the crossroads of Eastern Europe and Western Asia, Georgia provides strategic access and connectivity to diverse regional markets.

Combined with its reputation for low corruption and a consistent government focus on attracting investment, Georgia presents a highly attractive environment for both startups and established companies looking to operate efficiently and grow.

Georgia has a 15% corporate profit tax, but it functions differently from many standard systems. This tax, referred to as the "Estonian model," is applied only when profits are distributed to the company's owners or shareholders (for example, through dividends).

Critically, profits that are kept within the company and reinvested – perhaps for expansion, purchasing new equipment, research, or simply boosting working capital – are not subject to this 15% tax. This system is designed to strongly encourage businesses to reinvest their earnings back into their growth and operations within Georgia.

There isn't a single "better" option; the ideal choice between registering as an Individual Entrepreneur (IE) or forming a Limited Liability Company (LLC) depends heavily on your specific business activities, scale, risk tolerance, and plans for using profits. The analysis could be broken down into different parts, like liability protection, taxation structure, accessing and using profits, stability and scalability. See more on the blog.