After carrying out radical reforms, a new history of development began in Georgia. From year to year, this rapidly developing country is rising higher and higher in various world rankings. That‘s why start your business in Georgia is so simple. For example, in the Doing Business 2020 report, Georgia was ranked 7th this year in the global ranking and thus now is at the top of the ranking among European and Central Asian countries. The main indicators that allowed Georgia to take such a high position:
- Simplified company registration in one day;
- State structures do not create obstacles in the conduct of company business;
- There is no corruption in the country and any manifestation of it is strictly punishable;
- Low tax rates;
The same year, Global Finance named Georgia the country with the most dynamic investment appeal. The main sectors for investment are energy, tourism, information technology and communications, banking and finance, healthcare and pharmaceuticals, real estate, free industrial zones.
According to the World Bank, Georgia is on the 4th place in the world ranking “Start a new business” and on the 9th place for ease of doing business. Another plus is that Georgia has not signed an agreement on automatic information exchange and it is absolutely safe to register a company in Georgia or open an account in a Georgian bank.
Legal forms of doing business
Registering a business in Georgia – it’s easy. To open a business in Georgia, firstly you need to choose the legal form of organization. You will have to choose from four main types:
- Limited Liability Companies;
- Companies with joint liability;
- Limited partnership;
- Joint Stock Company.
You can also register a cooperative or become a private entrepreneur. The most popular form among legal entities are limited liability companies – 98% of existing companies and enterprises.
How to start your business in Georgia?
After the reforms, the House of Justice operates a “one window” principle, which allows residents and non-residents of Georgia to register any company in a couple of hours. The sequence of actions is as follows:
- Find an interpreter if you do not speak Georgian;
- Bring prepared documents, including a notarized legal address;
- Pay the state duty.
You can open a company without even coming to the country, it is enough to send all the necessary documents certified by a notary, by express mail.
What documents do you need to take with you:
- Identity documents (a power of attorney issued by a notary public if you are not opening a company on your own name);
- A receipt for the payment of state duty;
- Notarized legal address;
- Agreement or charter of the company.
The next step will be tax registration – it should be done immediately after registration in the House of Justice – in any tax inspection convenient for you. The legislation of Georgia allows not to specify the size of the charter capital of the beginning entrepreneurs.
At the beginning of 2019 Georgia signed 55 double taxation treaties with such countries as Ukraine, Belarus, Singapore, Germany, China, UK, Ireland and many others. This certainly becomes a key advantage in terms of taxation, but there are others. For example:
- Exemption from state duty on initial capital;
- The corporate tax rate is only 15%;
- Existence of free industrial zones, a virtual zone for IT developers – legal offshore areas within the country.
This makes Georgia one of the most liberal, reliable, and transparent tax regimes among other European and Central Asian countries.
All of the above facts make it possible to conclude that Georgia is an ideal country for investments and business creation. Bureaucratic procedures are simple and understandable, but you should not forget that there is still a risk without knowledge of the language and peculiarities of the legislation of another country. No matter what budget you have, if you have decided to start a business in Georgia it is better to address people who have already passed this way and know all the pitfalls.
Jara Accounting successfully helps ex-pat companies in Georgia with their business and accounting. Write to us and we will help you open a company in less than an hour.