Georgia attracts entrepreneurs from around the world with its open economy and simplified business registration procedure. The country offers significant tax benefits and minimal administrative barriers, making the process of launching and running a business as comfortable as possible.
Why is Georgia the perfect place for your business?
Georgia stands out among other countries thanks to its attractive tax policy and friendliness towards foreign investors. The country offers various legal forms for conducting business, among which individual entrepreneurship (IE) and limited liability companies (LLC) are especially popular due to their flexibility and simplicity of registration.
Advantages of registering a company in Georgia
- Low tax rates
They vary from 0% to 20%. The percentage depends on the tax system and type of activity. IT companies enjoy tax benefits. Businesses registered in Free Industrial Zones often are exempt from paying taxes.
- Comfortable immigration policy
Non-residents can live in the country for 365 days without a visa. After a year, they can cross the border with any state and re-enter, resetting their stay period.
- Effective laws
There are no legislative acts that are just "written on paper".
- Remote administration
Taxes can be paid and declarations submitted remotely. Banks offer convenient online banking. State services can be accessed online.
- International business operations
For other countries, Georgian firms are not considered offshore.
- No corruption
In Georgia, real business qualities are valued, not the "size of the wallet". Recommendations from former employers also carry significant weight. It is considered shameful to promote "one's own". Monetary gratitude is also frowned upon - it is considered dishonorable.
- No requirements for the number of founders and the amount of authorized capital
A company can be owned by a foreigner, a citizen, or both at once. A foreigner can simultaneously be the director of the enterprise. The authorized capital can be zero.
Legal forms of business
Registering a business in Georgia is simple. To start a business in Georgia, you first need to decide on the organizational and legal form. You will have to choose from four main types of companies:
- Limited Liability;
- Joint Liability;
- Limited Partnership;
- Joint-stock.
Additionally, you can register a cooperative or become an individual entrepreneur. The most popular form among legal entities is limited liability companies – they account for 98% of active companies and enterprises.
What documents you will need:
- A passport or a notarially certified power of attorney of a representative who will perform registration actions on behalf of the entrepreneur;
- An application form (filled out by a Justice House operator);
- A charter of the company, notarially certified and signed by all founders;
- Documents proving property ownership or lease to confirm the legal address;
- Payment of the state duty and provision of the receipt.
Registration of an Individual Entrepreneur in Georgia
Registering an individual entrepreneur (IE) in Georgia is a simple and accessible way to start a business. To register an IE, it's necessary to decide on the type of activity, prepare the necessary documents, and apply to the Justice House or the tax service. Georgia offers favorable conditions for entrepreneurs, including a simplified registration procedure and a minimal set of documents, making the country attractive for opening an IE. Opening an IE in Georgia allows you to quickly start a business and gain access to local and international markets.
Conditions and procedure for registering an IE, small business status
The process of registering an individual entrepreneur or small business status in Georgia involves several key steps, which can be done either in person or remotely. Initially, one should apply to the Justice House to submit an application, and then to the tax service for registration and status acquisition. When registering remotely, all documents must be translated into Georgian and notarized. This process also involves preparing and submitting all necessary documents, registering in the relevant registers and tax service, as well as obtaining small business status to use the preferential tax rate.
An important aspect is the possibility of obtaining free consultation regarding the registration procedure, tax burden, and reporting, as well as assistance in opening a multi-currency card account at a bank. These measures are aimed at simplifying the business process in Georgia and making it accessible to entrepreneurs from different countries wishing to take advantage of the attractive conditions and benefits of the Georgian jurisdiction.
Taxable base, income tax rate for IE
- If the annual revenue of a small business does not exceed 500,000 GEL, the tax is 1% of the turnover;
- If the annual revenue exceeds 500,000 GEL, the Individual Entrepreneur loses the small business status, and the tax rate increases to 3% of the annual turnover.
Pros and cons of the IE ownership form in Georgia
Pros:
- Simplicity of creation processes,
- No need for a seal,
- Only one tax is paid,
- Simplified accounting procedures,
- Simplified decision-making process.
Cons:
- Cannot obtain some licenses,
- Not suitable for joint business,
- Requires constant personal participation,
- The owner's personal accounts are subject to debt recovery.
Registration of a Limited Liability Company (LLC) in Georgia
Registering an LLC in Georgia is a straightforward process designed to be maximally efficient for both residents and foreigners. The main steps include preparing the necessary documentation, such as an identity certificate and company charter, and submitting these documents for registration. Georgia's favorable business environment is highlighted by simplified registration procedures, allowing for quick establishment of LLCs, often in just a couple of days.
Process of registering a limited liability company in Georgia
Registering an LLC in Georgia involves several main steps: first, submit an application to the Justice House, and then register with the tax authority. Notably, the entire process can be completed remotely for foreign entrepreneurs, provided that all documents are accurately translated and notarially certified. This simplicity of the process underscores Georgia's desire to attract foreign investments and simplify business operations within the country.
Tax rate for a limited liability company in Georgia
In early 2019, Georgia signed 55 treaties confirming the avoidance of double taxation with countries such as Ukraine, Belarus, Singapore, Germany, China, the United Kingdom, Ireland, and many others. This certainly becomes a key advantage in terms of taxation, but there are other benefits as well. For example:
- Exemption from state duty on initial capital;
- Corporate tax rate of only 15%;
- Existence of free industrial zones, a virtual zone for IT developers - legal offshore zones within the country.
Thanks to this, Georgia becomes a country with one of the most liberal, reliable, and transparent tax regimes among other European and Central Asian countries.
In the modern world, opening your own business is one of the most important steps towards financial independence and successful development. Our company offers a full range of services aimed at supporting entrepreneurs in the process of registering and opening companies in Georgia. We deeply understand all the nuances and requirements related to the business registration process, allowing us to provide qualified assistance at every stage of creating your company, whether it's an LLC or an IE. Our specialists will thoroughly consult you on all necessary documents and procedures, simplify the registration process, and help make it as smooth and understandable as possible.
We value the time and aspirations of our clients, so our approach to each entrepreneur is individual. Whether it's questions about how to open an LLC step by step, where to start the registration process, what documents are needed to open a business, or how to register an IE in Georgia, our team is always ready to offer effective solutions and professional support. By using our services, you not only gain a reliable partner but also a valuable source of information and support on the path to the successful development of your business in Georgia.