Two local startups — Helio AI LLC and AI Solutions LLC — have been granted Innovative Startup Status by decision of the Georgian government, a designation that provides a 0% income tax rate and additional benefits, according to Avtandil Kasradze, Chairman of the Innovation and Technology Agency.

Kasradze said one of the government’s key priorities is developing the country’s innovative startup ecosystem.

“For many years, we have supported the growth of an innovative ecosystem through various mechanisms, including introducing a global accelerator in Georgia and financing startup projects. As the ecosystem develops, it has become necessary to introduce additional support tools. The new tax regime for Georgian innovative startups serves exactly this purpose,” he said.

According to Kasradze, the criteria for obtaining the status are demanding, but the support mechanism attached to it is significant. The main goal of the initiative and the associated 0% income tax rate is to reduce the financial burden on early-stage innovation-driven startups that are investing heavily in human capital and technology before generating stable operating income.

To qualify, a startup must be innovative, high-tech and oriented toward global markets. It must also have attracted at least 100,000 GEL in private investment or received a grant of at least 150,000 GEL from the Innovation and Technology Agency.

“A startup that meets these criteria receives innovative status from the government, which means a zero income tax regime for the first three years. We are supporting Georgian startups as much as possible so they can enter global markets, strengthen the national economy and create high-paying jobs,” Kasradze said.