Georgian crypto cuisine. Choosing dishes

It's no secret that Georgia is one of the most loyal countries in the post-Soviet space, where it is not only cozy, but also profitable to do business. This became possible literally over the last 10 years thanks to the colossal reform efforts of the country’s successive leaders, each of whom sought to make it better and richer. Let’s try to figure out how exactly things are going with the cryptocurrency business here in our material today.

Georgia is a very interesting, extraordinary and promising country, both from the point of view of geography and from the point of view of tax legislation. Add here cheap electricity and the absolutely loyal attitude of the authorities towards any business that can replenish the country’s budget. Dilute this with the friendly nature of the Georgians themselves and get a unique recipe for your individual startup in Georgian style. 

Unusuality is present in almost everything.

It’s easy to register a company within an hour. Please receive tax benefits up to a zero rate.

According to the Georgian Law “On Entrepreneurs”, foreigners have equal rights with Georgians to open their own business. The so-called National Public Registry Agency under the Ministry of Justice of Georgia is responsible for registering entrepreneurs. The only caveat: for foreign citizens, either a residence permit or officially registered ownership (rent) of real estate is required.

What is curious is that both state and tax registration can be completed through the “single window” system. All you have to do is come to the House of Justice, fill out the necessary documents and pay the state fee (about $21 for urgency). 

There are no requirements for authorized capital. The most convenient form of legal entity for commercial activities is rightfully considered to be a limited liability company. This option assumes that the founders of the LLC are liable to investors exclusively with the property that is owned by the LLC.

Concerning taxes, the tax rates in Georgia are as follows:

- income tax - 15%;

- VAT - 18%;

- income tax - 20%;

At the same time, legal entities have the right to preferential tax regime. 

As an example, we can cite the possibility of creating an international financial company (including for ICO purposes) with a zero rate on income tax and tax on income from securities. In this case, the tax on dividends will be only 5%. 

At the same time, there are no licensing requirements, as well as a special tax on cryptocurrency business, including the issue of tokens, in Georgia... 

Tax benefits apply not only to legal entities, but also to private entrepreneurs, and depend on the annual profit they receive, namely:

- with income up to $12 thousand - zero rate;

- with income from $12 to $42 thousand - 5% rate.

In addition to the variety of tax benefits, in Georgia you also get a chance to participate in public or private programs for business support.

Despite the fact that there is no government regulation of cryptocurrency in Georgia, it has become, perhaps, the first country in the world where the state land cadastre operates on Blockchain.

Confirmation of the development of the crypto industry, as well as the growing popularity of cryptocurrencies among the population, was the appearance in the country of new cryptocurrency terminals, through which you can buy and sell bitcoins (and not only) for Georgian lari.

Cryptocurrency terminals, produced by the Czech company General Bytes, and installed by TPS, have already appeared in Tbilisi at the New York Burger restaurant near the 26th May Square, as well as on Shalva Dadiani Street. TPS is particularly known for providing exchange services through cash terminals and trading platforms.

However, of all types of crypto industry, mining in Georgia due to the low cost of electricity, occupies a leading position. Thus, a kilowatt-hour in Tbilisi (for commercial high-voltage subscribers) now costs 16.1 tetri (~6.5 US cents). In the regions, the price is lower, and in some high-mountainous areas, consumers do not pay for electricity at all.

At the moment, according to Georgian legislation, mining does not fall under the definition of entrepreneurial activity, and, accordingly, is not subject to taxation. Also, none of the cryptocurrencies is recognized in this country as a means of payment, which means that no transactions with them are subject to currency control by the National Bank of Georgia.

As a result, the largest crypto farm in Georgia was built by BitFury company - a leader among miners and manufacturers of mining equipment. Its data centers are located in Tbilisi and Gori.. To do this, the company was one of the first to receive a loan of $10 million from the Co-Investment Fund, the founder of which is the former Prime Minister of Georgia, billionaire Bidzina Ivanishvili.

As a result, according to the World Bank, about 5% of the population of Georgia is already associated with either mining or trading in the cryptocurrency market, and the country took 3rd place in terms of mining capacity.

At this rate of development, Georgia has every chance of becoming a cryptocurrency paradise for the entire global crypto industry.

According to https://georgia.bc.events/ru/article/kriptobiznes-v-gruzii-kompaniya-za-chas-i-otsutstvie-nalogov-87883