Georgia, business, personal experience. Company registration in Georgia. Everything you need to know about the free industrial zones of the country How to start a business in Georgia
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Set of company documents
The standard package of corporate documents includes:
- Certificate of registration (extract from state register)
- Company charter
- Meeting minutes
- License
The documents will be prepared bound in Georgian-English with the certification of a local notary. Apostille certification is paid separately if necessary.
Order lead times
The deadline for completing an order for registering a new company and opening a bank account is 3 weeks.
Rated service
Given the fact that the register of directors and shareholders are in open access, we recommend using a nominee service. The cost of services of a nominee director is $790 per year. This amount includes all standard documents, for example, a general power of attorney for the account manager for a period of 1 year, an agreement with a nominee director. The cost of services of a nominee shareholder is $490 per year.
The company must conduct business only with foreign counterparties. If the company does not hire employees and does not pay salaries, then there is no obligation to keep records and declare income.
Opening a bank account
The opening of a bank account in the Bank of Georgia is carried out remotely and almost simultaneously with the registration of the company on the basis of a power of attorney prepared by the director of the company. Further, the nominee director issues a full-fledged general power of attorney for the representative of the client or beneficiary to manage the bank account.
Confidentiality
There is no register of beneficiaries in Georgia, that is, information about the real owner of the company is confidential. However, data on directors and shareholders (surname, name or designation) are available in the public register.
General information about jurisdiction
Georgia- a state in the western part of Transcaucasia on the eastern coast of the Black Sea.
total area
Capital
Population
The population is 3.73 million people.
Official language
Georgian.
Currency unit
Georgian lari (GEL).
State structure
Unitary state with a mixed form of government.
Economy
The leading industries of Georgia are: food, light and chemical industries, mechanical engineering, ferrous metallurgy, non-ferrous metallurgy.
Georgia is good alternative classic offshore zones. The country has several free economic zones (FEZs), where companies are exempt from taxes, but the jurisdiction is not considered offshore. The absence of the “offshore” stamp opens the door to service in the best banks and conduct business around the world.
- The cost of a classic company: from 2550 euros:
- The cost of a tax-free company with a license: from 7500 euros;
- Opening time: 1-2 days.
5 advantages of Georgia for registering a company
The first advantage is the absence of taxes, but not everyone knows about it. Georgia is not an offshore zone, but inside the country the government has created several free economic zones, within which companies are exempt from taxes. Classical companies are also attractive.In fact, Georgia is an alternative to classic offshore companies, since foreigners are completely exempt from any corporate taxes when working with non-residents of Georgia. This is relevant only for companies registered in one of the four free economic zones. The absence of taxes is the main, but not the only advantage, there are others:
- Convenient location - close to Russia, Ukraine, Kazakhstan, Turkey and the European Union;
- Russian is spoken in the country;
- Remote maintenance is possible;
- Companies in SEZs are exempted not only from income tax, but also from VAT;
- Free trade regime with the EU, Turkey and CIS countries.
A classic company is an LLC, that is, an analogue of a Russian LLC. In such companies, liability is limited to property. legal entity. This type of company is not tax-free, but it has a number of other advantages: - It is possible to remotely open both a company and a bank account;
- Quick registration - standard period: 2 days from the date of receipt of all documents;
- Obtaining a VAT number;
- There is no requirement for a minimum authorized capital;
- Only distributed profits are taxed.
Another significant advantage of classical companies is that you pay taxes only on distributed profits. FEZs are good because they do not have taxes, but it is important to remember that along with this, the state charges such firms a fixed annual licensing fee. For small business(with a distributable income of less than $50,000 per year) - a classic company will be more profitable.
The cost of registering a classic company
Registration of a company in Georgia with our help - 2550 EUR. Included in cost:- Consultation;
- Assistance with the preparation of documents;
- Company registration (both remote registration and personal presence are possible);
- BankofGeorgia – it is possible to open an account without a visit to Georgia;
- TBCBank - opening an account only with a personal visit.
- A certified copy of the passport of the director and shareholder;
- Consent from the director and shareholder;
- Power of attorney certified by a notary from the shareholder.
Company service
Annual renewal company (including the renewal of the legal address) costs 2,100 euros per year.With our help, you can also solve all issues with accounting. The cost of accounting services depends on the number of transactions for the reporting period and starts from 100 euros per month. 
There are two terms - free economic zones (FEZ) and free industrial zones (FIZ). Both terms are used to mean the same thing. Sometimes there is a third definition - FreeZone. For ease of perception, we will use the term SEZ - free economic zone.
FEZ is a territory within Georgia, which is endowed with a special status. Companies registered within the SEZ are exempt from paying corporate taxes, and also receive additional preferences.
There are 4 free industrial zones in Georgia, the main of which for 2019 are two:
- Tbilisi Free Zone (TFZ);
- Hualing Kutaisi (KFZ).
- Production;
- Trade;
- Pharmaceutical activities of the first and second groups;
- Textile production;
- Production / processing food products;
- Distribution/transportation of natural gas;
- Warehousing or transit of products;
- Logistics.
Available Benefits
The basic tax rates in Georgia are:Companies in SEZs are exempt from all of the above. This is also true in the case of exporting goods through the territory of Georgia.
The only tangible tax that companies in the FEZ pay is 4% of the transaction value when trading with companies located inside Georgia outside the FEZ. For those companies whose activities are related to other countries, this tax is irrelevant. 
Tbilisi Free Zone is a unique business environment that is focused on international investors and foreign business. The zone is located in the capital of the country, which provides a number of significant advantages:
- Developed infrastructure;
- Availability of qualified labor force;
- Transport accessibility and logistical convenience.
The zone is perfect for export-oriented companies, as well as entrepreneurs operating in a field that is not on the list of prohibited ones. The following areas of activity are prohibited on the territory of the Tbilisi FEZ:
- Work with weapons, weapons and ammunition;
- Production and trade in nuclear and radioactive substances;
- Import, storage, production and / or trade in narcotic, psychotropic and tobacco substances or raw materials for their production;
- Import, storage, production and/or trade in excisable goods.
The cost of registering a company
Cost of company registration: from 7500 EURIncluded in the price:
- Company registration: 2000 euros for an individual and 2500 euros for a company - the fee is paid once;
- License: from 4000 to 8000 euros - the fee is paid annually;
- Rent: from $18 per 1 sq. meter for 1 year - the fee is paid quarterly or annually. Various formats of rooms are available, there are ready-made warehouses class A.
We will help you at all stages of registration - from the initial consultation to receiving constituent documents your new company.
The documents
To register a company, you must provide the following package of documents:- Copy of foreign passport;
- Constituent documents foreign company(if a Georgian company is registered as a foreign legal entity);
- Minutes of the meeting on the establishment of the enterprise;
- Consent of the person appointed to the position of director;
- A copy of the identity document of the person registering as a founding partner and director;
- Charter of the SEZ company;
- Consent to register the legal address of the Free Industrial Zone Enterprise on the territory of the FEZ.
The list above is relevant only for foreign citizens. For example, for Russians, Ukrainians and other non-residents. Citizens of Georgia can also open a company in the FEZ - that is, on the territory of their own country, but in their case the requirements for documents are different. We know how to work with all types of clients - so please contact us for advice, regardless of your citizenship and tax resident status.
Timing
As a rule, it takes 1-2 working days from the moment of providing the finished package of documents to open a company.
FEZ Hualing Kutaisi is located in the second largest city of Georgia. The territory of the SEZ occupies 36 hectares, and is located 19 kilometers from Kutaisi International Airport and 95 kilometers from seaport Poti. 
FEZ Kutaisi is great for export-oriented companies, as it has excellent transport accessibility with five countries: Russia, Ukraine, Romania, Bulgaria and Turkey.
Given the fact that Georgia has a free trade regime with the EU, Turkey, the CIS countries and the EFTA countries (Switzerland, Liechtenstein, Iceland, Norway), this location opens up a lot of advantages for export-oriented businesses.
Kutaisi offers businesses an excellent transport infrastructure, which includes:
- Car roads;
- Railway transport;
- International Airport;
- Sea port.
Company registration process
The first step is to contact us. We will advise you and find the best solution together.- International passport;
- A document (original) confirming the address of residence (for example, an invoice for public utilities or current bank statement).
As a rule, registration takes 1-2 business days.
The cost of registering a company in Kutaisi
The cost of registering a company in Kutaisi is from 7500 euros. The exact cost depends on required license. Included in cost:- Consultation;
- Registration of a company (with a personal visit to Georgia, own trip is paid separately);
- Escort by a representative from FIZ Kutaisi upon obtaining a license;
- Registration of a legal entity with the tax office;
- Provision of a legal address for a period of 1 year;
- Preparation of an apostilled package of constituent documents;
- Assistance with opening an account in a Georgian bank.
Licenses
As in the FEZ in Tbilisi, the principle of licensing applies in the FEZ Kutaisi. To conduct business, you must obtain a license and annually renew it. For this, a license fee is charged, which directly depends on the type of activity.There are the following types of licenses:
- Industrial;
- General trading;
- Special Trade - different from common themes, which is issued for companies that work with one type of product;
- Consulting license;
- Service license;
- Financial and banking license;
- Logistics;
- Contract license.
Relatively high price licenses are a disproportionately low price for the absence of taxes. If the distributed profit exceeds $40,000, then a company in Kutaisi FEZ is more profitable than a classic LLC. 
Residence permit in Georgia
In addition to the FEZ, Georgia gives foreigners another opportunity related to taxes.Upon obtaining a Georgian residence permit and the status of a resident of Georgia, a foreigner is exempt from paying taxes received outside the jurisdiction. This effective method how to reduce the tax burden, for example, in the case of dividend payments of offshore companies.
How to get a residence permit in Georgia
The country has a simplified procedure for obtaining a residence permit for foreigners who are officially employed. Thanks to this, you can get a residence permit in Georgia according to the following scheme:- Registration of a company in Georgia (classic or in FEZ);
- Employment in your own company.
For a residence permit, it is also required to have an address of residence in the territory of Georgia.
During the process of obtaining a residence permit, you will need to come to the country three times:
- To register a company and apply for a residence permit;
- After obtaining a residence permit to apply for an ID card;
- To get an ID card.
Timing
According to the accelerated procedure, a residence permit is issued 2 weeks after the application.After that, you need to come to the country and apply for an ID card, which also takes about two weeks.
Price
- Registration of a classic company + obtaining a residence permit - 8500 euros;
- Registration of a company in the FEZ Kutaisi + obtaining a residence permit - from 15,000 euros;
- Renewal of a residence permit - 6000 euros (the cost of extending a residence permit does not include the cost of extending the company).
We are ready to offer you complete solution your tasks - opening classic companies, registering companies in the free economic zone of Tbilisi or Kutaisi, as well as obtaining a residence permit in Georgia.
Ease of registration and low tax rates are the realities of entrepreneurship in this country
Georgia is climbing steadily in international rankings reflecting the ease of doing business. In the European Doing Business 2017, it entered the top 20 for the first time, overtaking Italy, Spain, Greece and other countries. Comfortable conditions have been created for those who decide to move to Georgia and become an entrepreneur there. Step-by-step instruction about what package of documents, how much money and time it will take to open a business in this country.
What you need to know at the start
Georgia has a law “On Entrepreneurs”, according to which all the rules for starting and running a business are the same for foreigners and citizens of Georgia. Companies are registered with the National Public Registry Agency under the Ministry of Justice of Georgia, where data and documents about them are kept in public access, including the charter. This means that each person can easily obtain information about the activities and participants of a particular company.
State and tax registration companies are held in the Houses of Justice at the same time - according to the principle of one window. Only VAT registration and obtaining the status of an electronic payer require a separate application to the Revenue Service, which controls taxes in Georgia.
Some activities require state permission or licenses. First of all, these are areas related to the health and safety of a person, country and environment(health care, construction, communications, energy, gambling, etc.). Full list such areas are contained in the law "On licenses and permits". A foreign businessman can request permission for licensed areas of business on a par with a Georgian one.
There are no requirements for the minimum amount of authorized capital for organizations in the law; moreover, an entrepreneur may not even report this information to the state. Banks are the only exception. Any person can become the head of the company, regardless of his citizenship.
Which form of registration to choose
This choice depends only on the desire of the businessman. “In Georgia, the forms of individual entrepreneur and LLC are most often chosen. Other species usually use large companies, - analyzes the expert on corporate law Tariel Chochishvili. “The key differences between legal entities are in the rights of owners and the responsibility of the founders.”
Basic forms of registration:
individual entrepreneur;
society with limited liability;
joint-stock company;
joint liability company (partnership with unlimited liability);
limited partnership (limited liability partnership);
cooperative;
company branch.
Individual entrepreneur is not a legal entity. At the same time, he is personally liable to creditors for any obligations arising in connection with his business activities.
“To become an individual entrepreneur, you need to register in Georgia,” notes Oleg Zobov, an entrepreneur, owner of a travel company in Georgia. “And if you have not purchased your housing here, you will have to ask for help with the registration of Georgian citizens.”
"According to a series international agreements(including in the post-Soviet space, including Russia), a foreigner is liable with all his property available to creditors, regardless of the country in which this property is located,” explains Tariel Chochishvili.
Limited Liability Company is the most popular form of business. The liability of founders to creditors is limited only by the property of the company, and to each other - by shares in the total capital. A company can be established in Georgia by any individual or legal entity, and its capital is divided into shares only once, without the right to issue new ones.
Joint-stock company- entity, authorized capital which is divided into shares. Shareholders can issue shares different types and increase the capital of the company by issuing additional shares. A responsibility joint-stock company limited to the value of assets, and shareholders are not liable for the company's obligations to third parties.
Solidary Responsibility Society- a company in which several partners carry out permanent and independent business activities on behalf of the company. The founders are personally responsible for the obligations of the company. Partners can only be individuals.
Limited company brings together several partners to operate under a common brand name. The Company has two types of partners: limited partners (limited partners), whose liability to creditors is only to pay the guarantee amount, and full partners (complementaries), whose liability is not limited. Dividends may be distributed among the limited partners.
cooperative is created with the aim of developing a common business and increasing the profits of its participants. First of all, this form of business is aimed at achieving the interests of all participants, and making a profit fades into the background. The cooperative is a legal entity. The liability of cooperative members to creditors is limited to their own property.
Company branch- subdivision of the subject entrepreneurial activity, is not a separate legal entity. The founder's liability cannot be limited to the assets of the branch itself: it bears liability for all obligations of the branch.
How to file your business
“Opening a business will take no more than 30 minutes,” says Georgian entrepreneur Solomon Mamuchishvili. “To do this, you need to come to the House of Justice, fill out documents together with consultants and pay all fees on the spot.”
If an entrepreneur does not speak Georgian, the presence of a “translator” is obligatory for him, that is, a person who will help to familiarize himself with the documents and correctly understand the employees of the registration services.
The future individual entrepreneur needs to have an identity document, a questionnaire that can be filled out on the spot, and a receipt for payment of the state duty. If the businessman does not own the real estate in which he is to conduct his business, then the consent of the owner or a drawn up and certified agreement on the use of the specified object (lease, hire, etc.) will be required.
The cost of registering an individual entrepreneur in Georgia is 20 lari (about $ 8) when registering in one working day and 50 lari ($ 21) in case of issuing documents on the day of application
For commercial organizations More documents needed:
application (filled in by the operator accepting the documents);
a copy of the identity card;
agreement/charter signed by all partners/founders and duly certified;
receipt for payment of state duty.
If these papers are submitted by a representative of the founders, he must have an identity card and documents confirming his authority. Registration documentation can be certified by a notary or an employee of the House of Justice.
The name of the company is written only in Georgian, but this will not affect the possibility of using the Latin alphabet on signs along with the Georgian version.
The cost of registering a company is 100 lari (approximately $42) in case of registration of a package of documents in one working day and 200 lari (approximately $83) in case of urgent registration.
Taxation
On January 1, 2017, a provision came into force in Georgia according to which law firms may not pay income tax if they send funds for business development.
For legal entities, the standard rate for value added tax is 18% (for electricity, shipping, tour operators, a zero VAT rate is applied). Income tax - 15%, income tax - 20%.
An individual entrepreneur can take advantage of a preferential taxation regime: if his income does not exceed 30 thousand lari (about 12.5 thousand dollars) per year, then he is exempt from taxes. This rule does not apply to trade, the work of financial companies (for example, currency exchange offices), licensed activities and individual entrepreneurs with employees. If a businessman earns up to 100 thousand lari (about 42 thousand dollars) a year, then he will have to pay 5% income tax.
There are three preferential taxation regimes in Georgia.
"Free industrial zones" for the export of Georgian goods to the EU market.
"Free warehouse enterprise" for international shipping companies.
For an international financial company, which is exempt from income tax and tax on income from securities.
How to close a business
“We need to submit documents for closing the company to the House of Justice, and if it has no debts to creditors, then there will be no problems. The Revenue Service will tax audit, which can take up to three months. Based on the results of the check, the registration of the company is canceled in the register,” explains Tariel Chochishvili.
You can cancel the registration of an individual entrepreneur within one working day. The liquidation process of a legal entity must be completed no later than four months in case the company has no debts.
Instead of a resume
Sometimes a person is separated from his own business only by the lack of information on how to properly organize his business. In Georgia, it is easy to get help and support from the professional community. There are state and private programs to support small and medium-sized businesses, co-finance business projects.
In the last 10 years, Georgia has become an attractive country for investment. An important fact is that not only millionaires can open a business in Georgia in 2020, but people with very modest financial possibilities.
This state occupies the first lines of all international tables, highlighting how easy it is to start a business for a foreigner who wants to move to another country. In 2019, according to Doing Business, Georgia overtook such countries as Greece in the number of registrations of new companies.
In the Europe and Central Asia region, the most high ratings were in Georgia, which moved to 6th place compared to ninth place last year.
How did Georgia impress those who saw the views of Doing Business specialists?
- Ease of registration of any company.
- Minimal participation of state structures in the conduct of business of companies.
- Low level of corruption in the country.
Important: On June 21, 2019, the President of the Russian Federation signed a Decree on the ban on air traffic with Georgia. The document will come into force on July 8, 2019. The ban applies to all Russian airlines that previously operated direct flights to Georgia.
There is a law according to which the rules for doing business in Georgia are the same for both foreign citizens and local residents.
- Registration of a company of any orientation begins at the nearest state registry agency, where you will need to provide the required information and documentation about the newly opened enterprise.
Note. All documentation of the state register is in the open Internet access, anyone can get acquainted with it.
- The company or enterprise is then registered with the House of Justice. Everything goes according to the principle of "LLC", that is, registration is carried out according to the principle of "one window". However, in order to register for VAT and obtain the status of a taxpayer in the electronic version, you will have to write another application.
For most entrepreneurs, at this stage, the registration of the business ends. But there are some activities that require special permission:
- Healthcare.
- Building.
- Means of communication.
- Energy.
- gaming business.
To start activities in the above areas, a license is required. When receiving it, the entrepreneur is not required to indicate the minimum amount of capital that he is going to invest in his business. That is, only the bank can request information about finances, other structures do not have the right to do so.
Note. In 99.9% of cases, neither foreign citizens nor local entrepreneurs have problems with business registration.
What kind of business to open to a foreigner
Most often, foreign businessmen of an average hand open:
- Restaurants cafes, bars, shops.
- Hotels, hotels, hostels.
- Schools, courses, etc. educational institutions. Moreover, the gap in the services offered is huge, from an autistic kindergarten to math courses or a ballroom dance school.
- Tailoring studio.
- travel companies.
- Rent of premises. Many foreigners buy apartments in cities with a large number of tourists or students and then rent them out. The same thing happens with non-residential areas. That is, a room is bought where a shop, a hairdresser, etc. is equipped, and then it is rented out. (You can read it by following this link.)
- Firms for hiring workers and service personnel.
Wealthy businessmen open:
- Construction companies.
- Casino.
- Pharmacies.
Note. In order not to be disappointed, one should take into account the peculiarities of the temperament, character and habits of the citizens of the country in which it is planned to start a new business.
Tourism boom in Georgia
Georgia is experiencing a tourism boom. In 2019, twice as many tourists entered the country as people live there. That is, with a population of less than 4 million people, Georgia received more than 8 million guests per year. This is a very good indicator even for the countries of Europe, not to mention the Transcaucasus.
Of course, with such an influx of visitors, the tourism business in Georgia cannot be unprofitable and it has room to develop.
Important! Since it became clear that Russians are treated well in Georgia, the flow of tourists from Russia is growing exponentially, which means that there is a need not only for businessmen, but also for Russian-speaking workers in 2020:
- guides.
- administrators.
- Coaches (for example, in ski resorts), etc.
The dynamics of the entry of Russian tourists to the countries of the Caucasus in 2013 - 2017 (thousand people)
Demand creates supply, and this has made the tourism business in Georgia the most attractive for Russians. (You can read the article on this by following this link.)
Business taxes
Business taxes in Georgia depend on the status assigned to a particular project. More details can be found by following this link.
tax rates in Georgia
Microbusiness and small business
Micro and small businesses are eligible for preferential tax treatment in 2020. Thus, micro-businesses, in general, are not subject to income tax, and small businesses in Georgia are subject to it in a preferential regime.
Business status is defined as follows:
A micro businessman does not pay taxes and is exempted from using a cash register.
- Small business. The status of a small business owner is assigned to an individual, economic activity which for the current calendar year has brought income approaching 100 thousand lari.
Small business income tax - 5% per year. However, if a businessman submits documents confirming that 60% of his profits went to the cost of improving the business, the tax is reduced to 3% per year.
Note. When taxed individual entrepreneurs, salaries of employees are not considered business improvement expenses and are not taken into account when income tax is reduced from 5% to 3%.
When can the business status be changed?
The status of "micro business" changes to the status of "small business" in cases where:
- The annual income exceeds 30 thousand lari.
- If a micro businessman's inventory balance exceeds GEL 45,000.
The status of "small business" changes to the status of "medium/large business" in cases where:
- The annual income exceeds 100 thousand lari.
- At the end of the reporting year, the owner of a small business has a balance of inventory exceeding 150 thousand lari.
To obtain the status of a micro or small business, you should apply to any service center or the country's tax authority.
Note. If an enterprise was sanctioned three times in a year for not using cash register, an entrepreneur may be banned from doing business for some time.
When choosing a country for doing business, modern entrepreneurs face many difficulties. It turns out that there are not so many places in the world that provide profitable terms for these purposes. The US economy is no longer developing as dynamically as it used to be, and in the European Union countries will have to face excessive red tape and high taxes.
Even when starting a business in emerging economies (China, India and Turkey), non-residents will have to deal with corruption, poor infrastructure and unpredictable government policies.
What is the way out of this situation? Are there other countries in the world that can offer businessmen not only good conditions for doing business, but also low taxes along with ease of registration? The answer is yes! And the most striking example of this is Georgia. Let's look at the main reasons why it is so profitable to open a company in Georgia today.
Open a company in Georgia - start doing business in a promising country
The main argument in favor of the decision to open a company in Georgia is the stable and positive dynamics of the development of the economy of this country. Until recently, it was decadent and almost hopeless. But, thanks to the ongoing policy and cooperation with the European Union, it was able to overcome the crisis and become one of the most attractive and profitable places for foreign investment and opening a company in Georgia. The conditions that it offers to entrepreneurs from other countries are suitable for enterprises of any size.
As a developing country, Georgia needs access to foreign capital, as well as an influx of skilled and entrepreneurial people. Recognizing these needs, the government has been doing its best for the past decade to make it as easy and cost-effective as possible to open a company in Georgia.
The fruits of this policy of the Georgian leadership have already made themselves felt. This year, the country ranked 24th in the World Bank's Doing Business Survey. It also ranks 6th in the world in terms of ease of starting a business.
According to the forecasts of independent experts, such positive statistics will not only continue in the future, but will also show better results. Therefore, now Georgia is one of the most popular places for doing business by residents of other countries. She overtook not only her neighbors - Russia, Turkey, Armenia and Azerbaijan, but also Greece, Italy, Spain and other European countries.
Why should you open a company in Georgia?
Before making a decision and opening a company in Georgia, evaluate all the advantages of doing business in this country. Although its population is less than 4 million people, and it itself is not rich in natural resources, these facts are fully compensated by its advantageous geopolitical location. Georgia is located right on the border of Europe and Asia and has good economic relations with the EU, USA, China, Turkey and Iran.
Georgia signed a long-term and comprehensive free trade agreement with the EU in 2014 and is currently in free trade negotiations with China. In addition, the country's business community hopes that a similar agreement will be signed with the United States in the coming years.
Companies from the Chinese association Hualing have already taken advantage of Georgia's favorable trade regime, using it as a hub for transporting goods between the two continents.
Tourism, the energy sector and the real estate sector are actively developing in Georgia now. This encourages influential people from all over the world to open a company in Georgia. For example, about opportunities in the tourism and energy sectors, read the articles: “Issuing a residence permit in Georgia when investing in tourism. Three good reasons" and “Business in Georgia for foreigners. New opportunities in the energy sector». Also read Additional information about this country and the services available in it in corresponding section of our portal.
Open a company in Georgia. Possible suggestions
So, having decided to open a company in Georgia, you need to choose what type it will be.
Entrepreneurial activity in the country is regulated by the Law of Georgia on Entrepreneurs, the first edition of which was adopted in 1994. Since then, it has undergone several changes and revisions designed to improve efficiency. corporate governance. Legislative and normative base countries involves the registration and activities of the following types of companies on its territory:
- Joint-stock company.
- Limited Liability Company.
- Solidary Responsibility Society
- Limited society.
- General partnership.
- Cooperative.
- Branch of a business or company.
- Individual entrepreneurship (registered as an individual, not a legal entity).
- Joint venture (registration is not required, the consent of the registered enterprise is sufficient).
Regardless of which of the above models will be the choice in order to open a company in Georgia, this process in Tbilisi or other cities of the country does not require significant costs. An interested entrepreneur must simply pay a registration fee of 100 Georgian Lari (about $40 at the current exchange rate).
How to open a company in Georgia in a simplified manner?
The low cost of registering a company in Georgia is not the only reason to open a company in Georgia. The government of the country, as far as possible, has simplified the registration process. Now it is available even for those who have little knowledge about how to start a business. Here are the main facts about the ease of design:
- Single registration process for both government and tax purposes.
- There are no minimum capital requirements.
- The articles of association of a company may be drawn up in any language.
- To open a company in Georgia, registration requires a minimum of one business day procedures.
Once you have decided that a promising region in the Caucasus is the place where you want to profitable investment, you can safely start a business here and affordable price open a company in Georgia.
First you need to pay a commission fee, the amount of which is quite acceptable. You then register your company with the National Public Registry Agency. This process requires several steps: first, submit a completed application, a notarized copy of your company's articles of association, and proof that you have paid the registration fee.
This process also requires a document confirming the existence of the premises and its correspondence with the registered address of your new company, as well as the written consent of the person appointed to the position of director of your company. Note the fact that although Georgia welcomes startups, it still puts forward certain conditions in order to open a company in Georgia.
The procedure for registering a branch is more complicated than others, as you will have to submit additional documents regarding the company's activities outside of Georgia.
Once you have paid the fee and submitted a completed application, you will also need to open a bank account in Georgia. Luckily, this area the country has surprisingly good development. You will also be satisfied with the customer service provided by Georgian banks, which are described as the best in the former Soviet Union.
To open an account in a Georgian bank and register a company in Georgia, the following services will help you:
Open a company in Georgia to pay the lowest taxes in the region
After opening a company in Georgia, you will face the peculiarities of taxation in this country. It is much more attractive than in other European countries. It has a corporate tax rate of 15%, a flat income tax rate of 20%, a 5% tax on dividends and interest, and a 1% property tax.
In addition, from January 1, 2017, entrepreneurs who wish to open a company in Georgia and operate in the territory of this country will not be charged capital gains tax when they reinvest in business development.
There are three regimes for preferential taxation in Georgia:
- Free industrial zones (FIZ), where goods exported to the EU countries are not taxed.
- Free warehouse enterprises in which benefits are provided international companies engaged in cargo transportation.
- Another exemption regime is provided by international financial companies. They are exempt from taxes on income and income from securities and dividends.
Open a company in Georgia - get active support from the state
Another positive argument in favor of the decision to open a company in Georgia is the operation in the country of numerous public and private programs that help support and develop the country's business sector.
They are not only providing consulting services but also co-financing various projects. For example, during the three years of the "Produce in Georgia" program, more than 3 thousand projects were financed for a total of 29 million lari.
What else do you need to know in order to open a company in Georgia?
Although Georgia does not have initial capital requirements for company registration, you will need to prove the right to use the premises/premises for it. To do this, you need to purchase or rent real estate in Georgia.
Fortunately, foreigners have property rights on equal terms with the citizens of Georgia. Although previously it was forbidden for foreigners to buy agricultural land, but in 2014 the law was revised, and citizens of other countries received such an opportunity.
Purchase Registration real estate pretty simple. You just need to submit your application and also attach a notarized version of the contract and documents confirming your identification.
Similar procedures will need to be completed in the case when you want to open a company in Georgia and register it in rented premises. The only difference is that you will need to submit a notarized copy of the contract not for the purchase, but for the lease of the premises.
Perspective and accessibility are the main reasons to open a company in Georgia
Summing up, we can highlight the following main advantages, thanks to which an increasing number of businessmen from other countries want to open a company in Georgia:
- Prospects for the development of the country's economy.
- Advantageous position and access to both European and Asian markets.
- Simple registration conditions, speed and minimum requirements for registration.
- Active support of business by the government of the country.
- Favorable tax conditions.
Do not miss a great opportunity to open a company in Georgia and start profitable business in this wonderful country.
