The government has simplified the procedure of business registration for foreigners in Georgia and eliminated the risks associated with currency control, transaction passports and other corporate procedures, which is why a large number of entrepreneurs from all over the world are increasingly considering the country as a place where they can move an existing business or start from scratch to get nice bonuses in the form of asset protection and reducing the tax burden on business.
The country has a Law “About Entrepreneurs”, which makes it as convenient for foreigners to start and run a business in Georgia as it is for its citizens. For example, there are no requirements for a minimum amount of authorized capital for organizations, moreover, entrepreneurs may not even provide this information to the state. In principle, the state imposes the same requirements on both residents and non-residents. The only difference is that a non-resident has to have a legal address, although citizens can use the address at their residence, which is absolutely legal.
Any person, regardless of their citizenship and place of registration, can become the head of the company. Foreign companies with local bank accounts can sell and buy foreign currency without restrictions. What are the main aspects of doing business in this country and what attracts entrepreneurs here? In this article, we will tell you in detail what is needed to register a business for foreigners in Georgia as soon as possible.
Anyone who wants to start a business in Georgia can do it within one or two days, it is enough to come to the House of Justice. The following documents are required for this purpose when registering:
- An electronic application, which is filled in by an operator on site;
- Copy/scan of the ID card;
- Charter or agreement signed by all founders;
- Document on payment of the state duty;
- Notarized legal address;
- Translator in case you do not know Georgian language.
As you can see, in order to open a company in Georgia you need a minimum set of documents. At the same time, the state duty is only about 100 GEL if you want the legal entity to be registered the next day, or about 200 GEL to receive registration on the same day.
There are 5 types of legal entities in Georgia, which can be opened – LLC, JSC, JLC, LC, cooperative. You can learn more about legal forms from our video on this topic. After the registration of the company it is necessary to get registered in the tax service, which also will not take much time. If you want to start a business in Georgia, it is not necessary to open a legal entity at all. Many ex-pats in Georgia either get the status of an individual entrepreneur or micro business.
There is a concept of microbusiness in Georgia – in fact, it is a definition for self-employment. Because of this, this status has its limitations:
- the absence of hired employees;
- annual turnover not exceeding GEL 30,000;
- possibility to engage only in certain types of activities that do not require a license.
As soon as your income exceeds the above mentioned amount or you hire employees, you will be transferred to the status of self-employed. The advantage of this type of registration is that you do not need to come to the House of Justice – you can register the status of a micro businessman immediately in any branch of the Tax Service within thirty minutes with only ID card.
This is an ideal way to open a business in Georgia for foreigners from scratch, which is used by those who are at the very beginning of their journey.
You can get IE status in any House of Justice, it will take several minutes to prepare and receive documents, registration can be received the same day for 50 GEL or next day for 100 GEL.
To get the status of IE you need to bring the only passport and rental agreement, if you register IE, not at the address of residence, notarized legal address, and foreign passport. After registration of IE it is necessary to be registered in the tax service.
Taxes in Georgia
Georgia is a country with low taxes and a limited number of activities that are subject to licensing. For most types of activities, taxes look like this:
- Individual entrepreneur – 1% of revenue or 20% of net profit;
- Legal entity – 18% VAT, 15% income tax;
- Microbusinesses do not pay taxes.
- value added tax – 18%;
- on corporate profit – 15%;
- on dividends – 5%;
- income (salary) tax – 20%;
- import tax – 0% or 5% or 12%;
- on property – up to 1%;
- tax at source – from 10 to 15%;
- excise tax – not a fixed amount.
As you can see, opening and doing business for foreigners in Georgia is possible within a couple of days, and after that, you can start working immediately. But in order to correctly determine the relevance of the business that you want to open in Georgia, it is worth turning to the experience of professionals.
Jara Accounting Company has been providing assistance and support in business registration, accounting, and tax consulting since 2017 and is ready to share this experience with you. Write to us and we will help you make the right choice.