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Branch Office in Georgia — Software Development Agency Formation Guide

Consider jurisdictions with strong IP protection laws and favorable corporate tax rates for B2B service exports. Estonia's deferred corporate tax or US LLCs for non-residents are popular choices.

Last verified: June 13, 2026

Corporate Tax

15.0%

State Tax

0.0%

Formation Cost

$75

Annual Fee

$0

Forming a Branch Office in Georgia as a Software Development Agency means a total tax burden of 15.0% and an official formation cost of $75. There is no minimum capital requirement. Standard formation takes 1-2 business days, or Same day expedited. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$725

Ongoing (per year)

$200

Detailed cost calculator →

Why Branch Office for Software Development Agency?

A B2B service business providing custom software engineering, web development, and IT consulting to clients globally. Requires robust invoicing, IP assignment capabilities, and easy cross-border payments.

Ideal for

  • Teams of developers
  • B2B service providers
  • Tech consultancies
  • Outsourcing firms

Challenges to watch

  • Managing cross-border withholding taxes
  • Complex IP assignment and ownership laws
  • High banking compliance for large international wire transfers
  • Hiring and paying international contractors

Key decision criteria

  • Does the jurisdiction have double taxation treaties with your clients' countries?
  • Is it easy to open a multi-currency business bank account?
  • Are there R&D tax credits or tech-specific incentives?
  • How straightforward is it to issue equity or options to key employees?

Branch Office formation requirements

Minimum capital

None

Standard timeline

1-2 business days

Expedited timeline

Same day

Local director

Required

Registered office

Virtual office allowed

Notarization

Required

A branch office must appoint a legal representative who resides in Georgia. A foreign national can fulfill this role if they live in the country.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $500,000 revenue)

Gross Revenue$500,000
Corporate Tax-$75,000
Formation Cost-$75
Annual Fee-$0
Net Profit$424,925

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 18%. Registration threshold: 37,000 USD. Non-resident providers of digital services to Georgian consumers must register and charge 18% VAT. Reverse charge mechanisms apply for B2B transactions.

Banking & payments for Software Development Agency

Opening a traditional bank account in Georgia usually requires an in-person visit or a notarized and apostilled Power of Attorney. However, the process is fast once documents are submitted, and multi-currency accounts are standard. Remote founders often use fintechs like Payoneer or Paysera for easier access.

Supported payment gateways

PayPalCheckout.comUnipayTBC PayPaymentwall

Remote-friendly accounts

  • Payoneer

    Popular fintech alternative for Georgian entities to receive international B2B payments in multiple currencies remotely.

  • Paysera

    Licensed in Georgia, offering remote-friendly multi-currency accounts and seamless SEPA transfers for European clients.

Georgia incentives & advantages

Free Industrial Zone (FIZ) Exemption

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

Branch Office formation steps

1

Prepare and apostille the parent company's corporate documents (Articles of Association, Extract from Commercial Register).

2

Draft a formal resolution from the parent company's board of directors to open a branch in Georgia.

3

Issue a notarized and apostilled Power of Attorney if the registration will be handled remotely by an agency.

4

Translate all foreign corporate documents into Georgian and have them notarized locally in Georgia.

5

Secure a registered legal address in Georgia (a virtual office is acceptable for this purpose).

6

Submit the application and all translated documents to the National Agency of Public Registry (NAPR).

7

Register with the Revenue Service to obtain a tax identification number and apply for VAT registration if applicable.

8

Open a corporate bank account with a Georgian bank or an international multi-currency fintech platform.

Software Development Agency FAQ

Where is the best place to incorporate a dev agency?

Estonia is great for reinvesting profits without immediate tax, while a US LLC (Wyoming or Delaware) is excellent for global invoicing and accessing US clients.

How do withholding taxes affect my agency?

If your client's country doesn't have a tax treaty with your company's jurisdiction, they might be required by their local laws to withhold a percentage of your invoice amount.

Do I need to charge VAT or GST to my clients?

It depends on the location of your clients. B2B software services exported outside your jurisdiction are often zero-rated, but you must verify local reverse-charge rules.

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Related terms

Key concepts you'll encounter when forming a Software Development Agency

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