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Limited Liability Company (LLC) 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

$37

Annual Fee

$0

Forming a Limited Liability Company (LLC) in Georgia as a Software Development Agency means a total tax burden of 15.0% and an official formation cost of $37. There is no minimum capital requirement. Standard formation takes 1-2 business days, or Same 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

$720

Ongoing (per year)

$210

Detailed cost calculator →

Why Limited Liability Company (LLC) 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?

Limited Liability Company (LLC) formation requirements

Minimum capital

None

Standard timeline

1-2 business days

Expedited timeline

Same day

Local director

Not required

Registered office

Virtual office allowed

Notarization

Required

Foreigners can own 100% of the company and act as the sole director. No local resident director or partner 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-$37
Annual Fee-$0
Net Profit$424,963

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 (B2C) must register and charge 18% VAT. B2B transactions are generally handled via the reverse charge mechanism.

Banking & payments for Software Development Agency

Opening a corporate bank account in person is extremely fast, often taking just 1-2 days at major banks like TBC or Bank of Georgia. Remote opening via Power of Attorney is possible but faces stricter KYC/AML compliance checks and may take several weeks.

Supported payment gateways

2CheckoutPayoneerUnipayTBC PayBank of Georgia E-commerce

Remote-friendly accounts

  • Payoneer

    Widely used by Georgian IT companies and freelancers to receive USD/EUR payments from international clients. Fully remote setup.

  • Wise Business

    Great for multi-currency holding and international transfers. Georgian LLCs can open accounts, though availability of local GEL details may vary.

Georgia incentives & advantages

Virtual Zone Person (VZP)

0% Corporate Income Tax and 0% VAT on export revenue. Only a 5% dividend tax applies upon distribution.

International Company Status (ICS)

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

Free Industrial Zone (FIZ)

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

Limited Liability Company (LLC) formation steps

1

Choose a unique company name and verify its availability in the Georgian Public Registry.

2

Draft the bilingual Articles of Organization and the Director's Consent form.

3

Obtain a legal registered address in Georgia (a virtual office is acceptable).

4

Notarize and apostille passport copies and a Power of Attorney if forming the company remotely.

5

Submit the application to the Public Service Hall (or via the eCorp portal) and pay the $110 state filing fee.

6

Receive the Extract from the Entrepreneurial Register (Certificate of Incorporation) and your 9-digit Tax ID.

7

Open a corporate bank account (in-person at TBC/Bank of Georgia or remotely via Payoneer/Wise).

8

Register on the Revenue Service portal (RS.ge) and apply for special tax statuses (e.g., Virtual Zone) if applicable.

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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