Registration of a company in Georgia is a procedure that interests many entrepreneurs who want to protect their assets and get the opportunity to enter international markets. The country did not sign an agreement on the automatic exchange of information, which allowed it to maintain a high level of confidentiality. Also, the state was able to create favorable conditions for doing business and ensure the active development of a market economy.
Georgia is a jurisdiction that is located on the border of Europe and Asia. Therefore it is often considered both a European and an Asian state. Such a favorable location provides firms with access to the market of the European Union and Asian countries, which is also worth considering for entrepreneurs who intend to open a company in Georgia. The country borders the Russian Federation, the Republic of Azerbaijan, Armenia, and Turkey. Georgia has access to the Black Sea. The state language is Georgian. Currency is lari (GEL).
Advantages of registering a company in Georgia:
The main advantages of opening a company in Georgia are:
- Stable economic situation.
- Favorable location;
- High level of confidentiality;
- Reliable banking system;
- There is no capital gains tax;
- The possibility of establishing a business by non-residents;
- The ability to remotely open a company;
- Favorable conditions for doing business;
- Fast process of establishing an enterprise in Georgia;
- Lack of exchange controls;
- Free Trade Agreement with Turkey;
- Established trade relations with China and other Asian countries.
Organizational and legal forms of companies in Georgia
The establishment of a company in Georgia can be in the form of:
- Limited Liability Company;
- Individual Entrepreneurship;
- General Partnership;
- Limited Partnership;
- Joint Stock Company;
- Cooperative;
- A special trading company.
Registration of a Georgian company can be carried out by persons of any residence (except for the creation of an individual entrepreneur). It is also possible to acquire an enterprise in Georgia.
Registration of LLC in Georgia
Foreign investors often decide to open a company in Georgia in the form of an LLC. Such a company must have at least 1 founder and no more than 50 shareholders. All shareholders are liable equivalent to the number of their contributions.
The founders of an LLC can be both legal entities and individuals. The name of the enterprise must be in Georgian and contain a designation of the organizational and legal form. The use of the Latin alphabet is also allowed. Also, the name of the company can be non-unique if the field of activity is different.
Stages of company registration in Georgia
If you decide to start a business in Europe, please note that Georgia is included in the list of five countries in the world that occupy a leading position in the ease and speed of setting up a business. The procedure for opening a company does not take much time. It is also worth noting that you can open a Georgian company remotely.
To register a company in Georgia, you should:
- collect a package of documents;
- fill out an application;
- submit documentation and application for registration;
- pay the appropriate fee;
- get a VAT number and taxpayer status.
Please note that some activities require a license in Georgia. According to the current legislation On Licenses and Permits, licensing is required in case of establishing a company in the following areas:
- energy;
- security;
- health care;
- ecology and environmental protection;
- for registration of gambling businesses in Georgia.
Documents required for registration of a company in Georgia:
- Identity documents of the founder, beneficiaries, and directors;
- Notarized charter;
- Confirmation of the presence of the legal address of the company;
- Registration application;
- Proof of payment of the fee.
An important document that should also be provided to the regulators of company registration and opening an account in Georgia is the beneficiary’s criminal record certificate. It is not necessary to provide data on the authorized capital.
Taxation
If you decide to register a company in Georgia, you should also consider the applicable tax rates:
- Corporate income taxes
The corporate income tax (CIT) rate is 15%. Non-resident enterprises carrying out economic activity in Georgia through a permanent establishment are subject to CIT in respect of income from Georgian sources.
- Value Added Tax (VAT)
The standard VAT rate is 18% and applies to the sale of all goods and services supplied to the country.
- Customs duties
Depending on the types of products, the general rates for imported goods are 0%, 5%, and 12%.
- Payments of interest, royalties, or other income
This category of income is taxed at a rate of 15%.
Free industrial zones of Georgia
It is also worth noting that foreign entrepreneurs are allowed to register a company in the FIZ of Georgia. Free industrial zones are known for more loyal business regulation requirements in relation to taxation and customs regimes. Under the Tax Code of Georgia, PPE is characterized by:
- lack of currency control;
- multi currency transactions;
- the presence of tax incentives;
- exemption from licensing (for some types of activities, an accelerated procedure for obtaining a license in Georgia is provided);
- no restrictions on the repatriation of assets.
The country has such FIZ:
- Kutaisi;
- Poti;
- Tbilisi;
- Hualing;
- Virtual zone.
