Registering an IT company abroad opens up new opportunities for businesses by allowing them to benefit from various tax incentives and government support measures. Let’s explore the key features of registering in foreign countries, especially in the post-Soviet region, as these have recently become hotspots for IT businesses relocating from high-tax jurisdictions.
Registering an IT Company in Kazakhstan
Business Registration Procedure
In Kazakhstan, foreign investors (non-residents) can only register a Limited Liability Partnership (LLP). The company can be registered remotely, making the process simple and eliminating the need for a physical presence.
Kazakhstan actively supports IT companies by offering significant tax reliefs, especially for residents of special economic zones and tech parks:
- Corporate income tax: IT hub residents are exempt (standard rate is 20% under the general regime, and 3% under the simplified regime).
- Personal income tax on employee salaries: Exempt (standard rate is 10%).
- VAT: Exempt on exported IT services (standard rate is 12%).
Due to these benefits, Kazakhstan remains an attractive jurisdiction for internationally focused IT companies. Sole proprietorships can only be opened by tax residents with a residence permit, making this form less suitable for small companies.
Tax Benefits for IT Companies in Tajikistan
In Tajikistan, entrepreneurs can register either a Limited Liability Company (LLC) or a Sole Proprietorship (SP). The minimum charter capital for an LLC is 500 somoni (~50 euros) for locals and 100,000 somoni (~8,500 euros) for foreigners.
Tajikistan offers appealing conditions for IT businesses, particularly those developing software or offering digital services. Companies registered in Free Economic Zones (FEZs) enjoy tax incentives and reduced customs tariffs. For major investors, tax holidays are granted based on investment volume:
- 2 years for $200K–$500K
- 3 years for $500K–$2M
- 4 years for $2M–$5M
- 5 years for over $5M
FEZ residents are also exempt from VAT (standard 14%) and import duties (5%–15%) on essential equipment. Under the simplified regime, IT companies pay 6% of turnover, which is relatively high compared to other countries.
Registering an IT Company in Georgia
Company Registration
The process is simple and accessible to foreign entrepreneurs. Particularly attractive for IT companies are the statuses of “Virtual Zone Entity” and “International Company.”
Tax Incentives for IT Companies
- Virtual Zone Entity: 0% corporate tax and 0% VAT when providing services to non-residents. However, dividend tax (5%) and employee income tax (20%) still apply.
- International Company:
- Corporate tax: 5% (instead of 15%)
- Dividend tax: 0% (instead of 5%)
- Employee income tax: 5% (instead of 20%)
- Property tax: 0% on business-use assets
To obtain “International Company” status, a business must have at least 2 years of IT experience and demonstrate a local office and employees.
We recommend Georgia mainly for small businesses operating as sole proprietors eligible for the “Small Business” regime with 1% tax and an annual turnover cap of $180,000. LLCs in Georgia cannot qualify for this regime and pay a 20% corporate tax.
Opening an IT Company in Uzbekistan
Foreign investors can register an LLC in Uzbekistan, which is the most convenient form of business.
For IT companies—especially IT Park residents—there are significant tax benefits:
- Corporate tax exemption (standard rate: 15%)
- No mandatory social contributions
- Reduced income tax: 7.5% (standard is 12%)
- Exemption from import duties on essential equipment
These incentives make Uzbekistan an appealing destination for IT companies, particularly those serving global markets.
IT Companies in Azerbaijan
Foreign entrepreneurs in Azerbaijan can register a Limited Liability Company (LLC), the most suitable structure for IT operations.
Significant tax benefits are provided, especially for tech park residents:
- Corporate, property, and land tax exemption for 10 years
- VAT exemption on equipment imports for 10 years
- Employee income tax: 0% up to 8,000 AZN/month, 5% above that
- No social contributions for foreign specialists for 10 years
These benefits make Azerbaijan a highly favorable jurisdiction for export-oriented IT businesses.
Opening an IT Company in Armenia
In Armenia, the most common legal form for commercial activity is the Limited Liability Company (LLC), available to both locals and foreigners.
Until 2024, IT companies could obtain special certificates that provided the following tax reliefs:
- Corporate tax: 0% (instead of 18%)
- VAT: 0% (instead of 20%)
- Employee income tax: 10% (instead of 20%)
From 2024, tax rules have changed:
- Corporate tax for IT companies: now 1%
- VAT: standard 20% applies
- Employee income tax: reduced 10% remains
A major advantage is the ability to open both SPs and LLCs remotely.
Registering an IT Company in Kyrgyzstan
Foreign investors in Kyrgyzstan can register either a Sole Proprietorship (SP) or a Limited Liability Company (LLC), known locally as OsOO.
The High-Tech Park (HTP) provides numerous tax benefits for IT sector residents:
- Corporate tax: 0%
- Sales tax: 0%
- VAT: 0%
- Employee income tax: 5% (standard is 10%)
- Social contributions: 12% of payroll
- Additional HTP contribution: 1% of revenue
Thanks to its low tax burden, Kyrgyzstan is an excellent choice for IT companies targeting global markets.
Where is the Best Place to Register an IT Company?
Each country offers unique advantages for IT companies. Kazakhstan offers full tax exemption for tech park residents. Tajikistan provides tax holidays in FEZs. Georgia has special statuses with significant tax advantages.
However, for both small and large companies, Armenia and Kyrgyzstan stand out as the most favorable jurisdictions.
Armenia vs. Kyrgyzstan — Key Differences:
- Tax burden: Kyrgyzstan offers near-zero taxation (0% profit tax, VAT, sales tax) and a 5% income tax. Armenia applies an automatic 1% corporate tax for IT companies. Both allow remote registration for SP and LLC.
- Reporting: In Kyrgyzstan, accounting is done in Russian; in Armenia, it is in Armenian.
These factors make Armenia and Kyrgyzstan especially attractive for international IT businesses looking to optimize taxation and streamline registration.