Company Formation in Georgia – Great Alternative to Offshore Zone Formation
Company formation in Georgia becomes highly demanded, here are the main reasons:
Income Tax – 0%. It’s absolutely true! You pay income tax 15% only when dividends are distributed.
You can establish a company without a visit, and manage it absolutely remotely.
Bank account in Georgian banks or outside of Georgia. You can easily open an account for your company in Georgia or in any other country. Georgian Tier 1 banks provide first class service with modern banking apps and exceptional functionality.
0% VAT for most cross-border transactions. Usually business-to-customer services provided through electronic means of communication outside of Georgia are VAT exempt. Business-to-business services provided to foreign company are also VAT exempt.
No paid-up share capital required. You can open a company even with 1 GEL.
You will definitely like Georgia, its culture and cuisine. If one day you decide to relocate to Georgia, you can easily obtain residency permit, after some time spent here you can apply for Georgian citizenship.
How easy is it to do business in Georgia? According to reports by WBG, Georgia is ranked the 24th country in terms of ease of doing business out of the investigated 189 countries. In the last twelve years, Georgia has had the best results in business, and the density of business tripled during this period. WBG report analyzed ten factors, and based on the analysis, here are the scores awarded to Georgia.
Access to electricity was ranked 6th;
Contracts enforcement ranked 5th;
Access to credit ranked 1st;
Ease of starting a business ranked 3rd out of 189 countries;
Property registration ranked 2nd;
Georgia
One of the best locations to register your international company is Georgia. The fees involved in company registration is low compared to any other location in the world. Secondly, the process involved in company formation in Georgia is made simple by the elimination of a lot of bureaucracy. Finally, Georgia gives you other strategic advantages should your company embark on an adventure to invest in other foreign countries.
Specificity of Company Formation in Georgia
Company formation in Georgia is just a piece of cake if you approach us! For company formation we would invite you to visit this beautiful country and meet our lawyers in Tbilisi. The whole process will take only a couple of hours.
If you would like to establish your company in Georgia remotely, it’s doable. We’ll prepare a draft of PoA that has to be notarized and apostilled together with you ID doc and sent to our office in Tbilisi. We will register your company within a couple of business days.
Just like every other country, Georgia has specific laws, rules, and regulations for company formation. The registration of companies in Georgia is done in accordance with the civil code 1997, laws of assistance, and guarantees for foreign investments and laws on the entrepreneurial act of 1994. These laws offer directives on how to set up businesses in Georgia. An example is for a company registration process; the necessary documents have to be translated to local Georgian language. Do not worry, it’s also on us!
Foreign investors willing to set up subsidiary company in Georgia must notarize mother company documents; this is done at the public notary.
The registration documents should also be validated in the foreign investor’s country of incorporation according to the provisions set by the Hague convention.
Company Formation in Georgia and Registrations Fee
The following are the necessary costs for company registration in Georgia.
The company registration fee which is usually GEL 100 or EUR 32. This cost is for the standard registration procedure, which usually takes one day. Alternatively, you can pay GEL 200 for an instant/immediate registration;
A legal address and secretary fee. The cost is approximated at EUR 300 annually, depending on location.
Minimum share capital. No capital set requirements for company formation in Georgia;
A company formation fee. We will guide you through the company registration process; Our fee is approximately EUR 700. It includes our assistance to draft and file all required documents, translations, notary costs, courier costs.
Accounting costs. These prices are approximated to be a minimum of EUR 50 per month; it includes all related accounting services such as a guide on corporate taxation system and bookkeeping services;
Types of Companies Available for Company Formation in Georgia
Limited liability companies in Georgia can be set up by either an individual or an already existing legal entity. Limited liability is the most preferred business form in Georgia since it specifies the liability of the company shareholders that is the minimum amount of shares they can own in the company at any given time. The formation of any limited liability company is based on the LLC charter, which outlines the company’s internal regulations.
Foreign investors are at the freedom to set up other business entities besides the limited liability companies. Foreigners and local investors are free to start up other entities, such as partnerships that are both general and limited partnerships. Foreign legal entities are free to diverse into Georgia through franchising, branch offices, and setting up local subsidiaries. A point to note, subsidiary, unlike branch office, is considered as an independent business structure.
Taxation
The most common tax in Georgia is the Value added tax rated at 18%. There are no reduced rates to this. However, Georgia offers a 0% value-added tax on exports, internal shipping services, energy, tourism services, gold transfer to the National Bank of Georgia. Companies must register for value-added tax as long as they make a minimum annual revenue of GEL100 000. There is no income tax in Georgia. Corporate tax rate is 15%.
Company dividends are a subject of a 5% dividend whether paid to the individual or foreign legal entities. Should the dividends be distributed from a local Georgian company to another local company, then no dividend taxes are applicable. Any foreigner interested in starting a company in Georgia should know that the country is very receptive to foreign investments.
Legal System
development is allowing foreign investment into the country. For any foreign businessman interested in investing in Georgia, all you have to do is to seek a business visa as long as you are ready to invest more than GEL300 000. Should this condition be met, you will be awarded as permanent resident permit, but before all these, it’s empirical that you confirm the investment value with an auditor in Georgia.
Also, note that investing in Georgia is not restricted to the above stipulation; as such, you are free to even start a lower investment in the hope that it will grow. Should you start such a lower investment note that you will be given a permit that will expire after one year of operations. These regulations are assigned to a foreigner who works as a freelancer, i.e., sole trader. Still, he or she will have to show a bank statement proving that they have sufficient capital to reside and operate in Georgia.
As a freelancer, you can seek for the C2 visa category, which is inclusive in the ordinary visa. Contact our company for more specialties and details on how to go about the registration process and to meet the requirements.
Foreign businessmen can also use other visas to trade in Georgia, such as diplomatic visas and A5 visas, which you can use upon your arrival in Georgia for specific business dealings. As a businessman, you may also need an ordinary visa, a C3 category visa that is necessary when attending workshops, and other short- term business events in Georgia.
Documents Required for Registration
Georgia is open to investment from both locals and foreigners. To register your company in Georgia you will have to submit necessary documents:
1. A company charter.
2. A document stating the value and the contribution of each company shareholder in the company.
3. An application with details such as company name, the amount of company capital available from shareholders, details of members of the company management team, legal form.
But do not worry it’s all on us, we will prepare everything for you!
Afterward these documents should be submitted to the authority, and then we can proceed a local bank account opening. To open the bank account with local banks in Georgia, you have to provide certain documents that will be requested by the bank. After completing these procedures, you can officially start your commercial operations.
Company Formation in Georgia – The Process
Company formation in Georgia is not a complicated task. The following steps apply to both local and foreign investors:
Selection of the legal form most suitable for your business and the mean of formation (with a visit or remotely);
Selection of the company name;
Preparation of statutory documents (Articles of Association, PoA if remote option selected);
Statutory documents certification by a public notary in Georgia;
Incorporation of the company at business registry and obtaining a tax number;
Application for a bank account opening.
We Know That This is Important for You
The full cost is known and fixed in advance.
We fix all the conditions in the contract.
Consultant on all legal issues in Georgia.
International experience in our team professional international lawyers.
We have experience in supporting almost all types of business: from agricultural to blockchain technologies.
Our specialists speak English, Georgian, German, Estonia, Russian, Chinese languages.
We will support you during the course of your business in Georgia.
We provide various legal services that are focused on covering all the specifics involved in company formation in Georgia. With our company, we guarantee a quick and efficient company registration process with minimal costs incurred.
Hiring our services to mean that you will have 23 years’ experience in the process of company formation in Georgia and our staff are committed to delivering nothing less but quality services beyond your expectations. Our company currently provides numerous services as listed:
Legal services. We offer you services related to intellectual property laws, civil laws, permits and business licenses, insurance laws, corporate laws, among others;
Company registration services such as guidelines on the type of business to start and assistance related to the incorporation of any type of company you are interested in registering in Georgia.
We got all your needs covered, and we offer the services incomparable to other intemediaries. Our experience, expertise, and quality of service delivery set us unique from others.As a similar alternative, we are also happy to offer company formation in Estonia.
Would you like to start with company formation in Georgia, please contact our specialists. We have different solutions to assist you with opening, without a visit!
If company formation in Georgia does not meet your business goals, as alternative you can consider company in Estonia.
Get a personal offer!
FAQ (Frequently Asked Questions)
1. How long does it take to register a company in Georgia?
Processing Time: 7 business days; registrations can be expedited for an additional fee. Processing in 2 business days involves an additional fee. Processing in the same business day (if submitted before noon on a weekday) costs an additional EUR 250. Private Financial Services will register the business without requiring you to travel to Georgia.
2. Which variant of the company is most often used to open in Georgia?
A Limited Liability Company is the most popular business form in Georgia.
3. Can a foreigner be the owner and director of a Georgian company?
No Restrictions on Foreign Ownership
All the directors and employees of a Georgian company can be foreigners. They are not required to reside in Georgia or have a local address. A foreigner can be the only director and the 100% owner of a company.
4. What are the requirements for a limited liability company?
The capital of the company must consist of shares. Promotions must not be distributed to the general public. All data about the shareholders and directors of the company must be publicly available. A limited liability joint stock company must have a registered office in Georgia following applicable law.
5. What are the requirements for setting up a private limited company?
Each partner has a liability that is limited to the share capital used in the business. This information should be publicly available. Each LLC submits financial statements for the previous year regularly.
6. What should be the mandatory minimum capital of a company in Georgia?
Georgia does not put forward a mandatory minimum in financial terms for the existence of the company.
7. What are the annual costs for maintaining a company in Georgia?
The first-year company’s lowest registration fee is EUR 500. For a precise quotation, please contact us!
8. Are there any restrictions on the activities of the company?
In Georgia, every company is entitled to choose a field of activity at its discretion and run a business without limitation, unless such activity is directly prohibited by the “law or a permit or license” is required to perform the activity. Special permits and licenses for doing business in Georgia are required only for companies whose activities will be related to medicine, construction, communications, gambling, energy, security, etc.
9. How can I get more information?
Private Financial Services provides a full range of corporate services in Georgia, including company registrations, bank accounts, license assistance, cryptocurrency and fintech projects, the gambling industry, and much more.
The Private Financial Services team will be happy to discuss matters in more detail.