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Joint Stock Company (JSC) 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

$135

Annual Fee

$0

Forming a Joint Stock Company (JSC) in Georgia as a Software Development Agency 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 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?

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. $500,000 revenue)

Gross Revenue$500,000
Corporate Tax-$75,000
Formation Cost-$135
Annual Fee-$0
Net Profit$424,865

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 Software Development Agency

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.

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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