STC status is not a general-purpose vehicle. IT companies earning income from software licensing or development will typically find the Virtual Zone or International Company regimes more suitable, as those apply without a requirement to operate inside a physical zone. STC makes sense when the business model involves real commodity flows through a Georgian free zone.
Requirements and registration process
The company must be incorporated directly within the chosen FIZ and must meet the conditions set by the zone's administration. In practice this means leasing office or warehouse space inside the zone and conducting actual commercial activity there. The process involves two steps: first, incorporating a legal entity in Georgia's business registry (typically an LLC), and then applying for STC status with the relevant FIZ administration.
Required documents include the company charter, details of shareholders and the director, a lease agreement for premises inside the FIZ, and a description of the planned business activities. The exact list varies by zone. The typical timeline for obtaining STC status is 2 to 4 weeks after the company is registered.
What the client receives
Once the status is granted, the company operates under zero corporate income tax on profits from permitted activities, with no VAT on intra-zone transactions and no import duties on goods moved through the zone. Dividends paid to foreign shareholders from STC profits are also exempt from withholding tax.
Frequently asked questions
What types of activity are permitted for an STC?
Trading, logistics, distribution, warehousing, and light manufacturing. The specific list of permitted activities is defined separately by each FIZ administration.
Can an STC sell goods on the Georgian domestic market?
Sales into Georgia outside the FIZ are taxed under the standard rules. The preferential regime applies only to operations connected with the zone: imports, exports, and activity conducted inside it.
Does the director need to be physically present in Georgia?
Physical presence of the director is not required for incorporation — documents can be executed under a notarised power of attorney. However, for operational activity inside the FIZ, staff presence on the ground will be necessary.
How does STC differ from Virtual Zone status?
Virtual Zone is designed for IT companies supplying software products and services outside Georgia. STC is oriented toward physical goods flows. The choice depends on the nature of the business: services or physical commodities.
Is there a minimum share capital requirement?
Georgian law does not set a minimum share capital for an LLC. Any capital or turnover requirements imposed by a specific FIZ administration should be confirmed directly with that zone.