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Joint Stock Company (JSC) in Georgia — Game Development Studio Formation Guide

Prioritize jurisdictions with strong Intellectual Property (IP) protection and favorable R&D tax credits. If you plan to publish on Steam, Epic, or mobile app stores, consider the withholding tax treaties between your company's jurisdiction and the US to avoid double taxation on royalties.

Last verified: June 13, 2026

Corporate Tax

15.0%

State Tax

0.0%

Formation Cost

$135

Annual Fee

$0

Forming a Joint Stock Company (JSC) in Georgia as a Game Development Studio means a total tax burden of 15.0% and an official formation cost of $135. The minimum capital requirement is 100,000 GEL. Standard formation takes 1-2 business days, or Same day (1 business day) expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$3,087

Ongoing (per year)

$1,700

Detailed cost calculator →

Why Joint Stock Company (JSC) for Game Development Studio?

A business model focused on designing, developing, and monetizing video games for PC, console, mobile, or VR platforms. Revenue typically comes from premium sales, in-app purchases, subscriptions, or publisher funding.

Ideal for

  • Indie game developers
  • Mobile app creators
  • VR/AR studios
  • Esports game developers

Challenges to watch

  • Long development cycles with delayed revenue
  • High platform fees (e.g., 30% on Steam/Apple)
  • Complex international withholding taxes on royalties
  • Protecting intellectual property and game assets

Key decision criteria

  • US tax treaty network for royalty withholding taxes
  • Availability of R&D tax incentives or video game tax reliefs (VGTR)
  • Strong IP assignment laws for contractors and employees
  • Access to global payment gateways for direct sales

Joint Stock Company (JSC) formation requirements

Minimum capital

100,000 GEL

Standard timeline

1-2 business days

Expedited timeline

Same day (1 business day)

Local director

Not required

Registered office

Virtual office allowed

Notarization

Required

Foreigners can own 100% of the shares and act as the sole director. No local residency is required.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $250,000 revenue)

Gross Revenue$250,000
Corporate Tax-$37,500
Formation Cost-$135
Annual Fee-$0
Net Profit$212,365

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 18%. Registration threshold: 100,000 GEL. Non-resident companies providing digital services to Georgian consumers must register and pay 18% VAT.

Banking & payments for Game Development Studio

Opening a corporate bank account in Georgia is straightforward for local residents but has become increasingly difficult for non-residents due to strict AML/KYC regulations. While remote opening via Power of Attorney is legally possible, banks now require strong proof of economic substance and local ties to approve the account.

Supported payment gateways

UnipayTBC PayPayze2CheckoutPayPal

Remote-friendly accounts

  • Payoneer

    Widely used by Georgian IT companies and freelancers to receive international payments in USD and EUR.

  • Wise

    Popular alternative for multi-currency accounts, though availability for Georgian corporate entities may depend on the specific business activity.

Georgia incentives & advantages

Free Industrial Zone (FIZ)

0% Corporate Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.

International Company Status (ICS)

Reduced Corporate Tax (5%), Dividend Tax (0%), and Personal Income Tax for employees (5%).

Virtual Zone Person (VZP)

0% Corporate Income Tax and 0% VAT on export revenues.

Joint Stock Company (JSC) formation steps

1

Draft the company Charter (Articles of Association) detailing share classes, voting rights, and capital structure.

2

Secure a registered legal address in Georgia (virtual office is permitted).

3

Notarize and apostille the founders' passports and Power of Attorney if registering remotely.

4

Submit the registration application and pay the state filing fee (100-200 GEL) at the National Agency of Public Registry (NAPR).

5

Deposit at least 25% of the minimum issued capital (25,000 GEL) into a temporary bank account.

6

Register the newly formed JSC with the Revenue Service of Georgia to obtain a Tax Identification Number (TIN).

7

Open a corporate multi-currency bank account and transfer the initial share capital.

Game Development Studio FAQ

Why does the US tax treaty matter for game developers?

Major platforms like Steam and Apple are US-based. Without a favorable tax treaty, the IRS may withhold up to 30% of your US sales revenue. Incorporating in a jurisdiction with a 0% or low treaty rate for royalties is crucial.

Should I incorporate before starting development?

Yes, incorporating early ensures that all IP created by founders and contractors is legally owned by the company from day one, making it much easier to secure publishers or investors later.

What are R&D tax credits?

Many countries offer tax incentives for software development. Jurisdictions like the UK, Canada, or France provide specific tax reliefs for video game production, which can significantly lower your effective tax rate or provide cash rebates.

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