Company registration in Georgia
To register a company in Georgia and actively develop your business not only nationally but internationally as well. It is quite possible that a country like Georgia can help you meet your business expectations.
Annually, Georgia confidently rises in the ranking of countries with the most comfortable business conditions, according to DOING BUSINESS. This country’s government has created favorable conditions for attracting investment, including the attractiveness of the tax system and simplicity of opening and running a business for both nationals and non-residents. In Georgia, as in Ukraine, there are different legal forms of legal entities, but the simplest in management and most common form of doing business is limited liability companies.
Register an LLC in Georgia
The required for registering an LLC package of documents is filed with the territorial directorate of the National Agency for State Registry, which is at the House of Justice or with authorized persons of the State Registry. In particular, the following documents are filed:
- An application for registration of a legal entity.
- The limited liability company’s charter.
- Document of appointment of the company’s director.
- Certificate of contribution costing (if the contribution is made by property).
- International passports of the company’s director and founders (for non-residents—certified by the authorized body of the person’s country of origin by affixing Apostille).
- Charter of the founder’s legal entity, an extract on its registration, and international passports of its director and founders (for non-residents—certified by the authorized body of the person’s country of origin, by affixing Apostille).
- Receipt for payment of the state duty.
All documents must be in the state language of Georgia or have a translation into Georgian with the translator’s notarized signature.
The LLC founders can be individuals and legal entities without any restrictions on the residence of such individuals or entities.
The price of company registration in Georgia
A company registration in Georgia will be a great start for you if you value your time, because here, the registration process takes only one business day. If you need to register a legal entity urgently, then you will be able to receive an extract on its registration on the day of submission of documents, in case they are formalized with due diligence.
Taxes for Georgia companies
Georgia’s tax system is also a loyal and attractive component for attracting investors and developing the country’s economy. Thus, in Georgia, the corporate tax is:
- 15%—income tax.
- 0–18%—value added tax.
- 5%—dividend tax.
- 20%—personal income tax.
In addition to the general tax system in Georgia, there are the following tax regimes:
- The virtual zone.
- Free industrial zones.
The virtual zone for IT companies.
To register an IT company in Georgia for investors wishing to engage in information technology, the most advantageous option is to obtain the status of a virtual zone entity. The advantages are that an entity who exports its services abroad is exempt from all other corporate taxes, including the tax on the export of software products that it develops. The only tax to be paid by an entity with the virtual zone entity tax status is a dividend tax of 5%.
In order to get the virtual zone entity status, it is sufficient to submit an electronic application on the Ministry of Finance of Georgia’s website, which is reviewed within ten days. After you have been granted that status, you may already receive within two days a certificate confirming your special tax status. This certificate is valid for one year, after which it can be renewed.
Free industrial zones for companies in Georgia
A free industrial zone (hereinafter referred to as the FIZ) is an area with certain boundaries and a special status, subject to additional tax benefits and not covered by the competence of local governments.
It is a kind of free zone with additional tax benefits that are not covered by the competence of local governments.
On the FIZ territory there is allowed any business activity, except such as is prohibited by law, namely:
- Manufacture and sale of weapons and ammunition.
- Manufacture and sale of nuclear and radioactive substances.
- Import, storage, manufacture, and (or) sale of narcotics and psychotropic substances.
- Import, storage, manufacture, and (or) sale of tobacco products and (or) tobacco raw materials (except for import for own consumption).
Once registered in the FIZ, the entity must obtain a license to conduct the relevant business activity.
The entity registered in the FIZ is exempt from all taxes except the import and export tax between the FIZ and Georgia—a tax rate is 4%.
No matter which tax system you choose, you will need to open a corporate account with any Georgia bank by filing an appropriate application form with almost the same package of documents as for the entity’s state registration.
At first glance, the business registration procedure in Georgia is standard and simple, however, as practice shows, the registration authority often refuses because of the inconsistency of the documents filed. Therefore, we recommend that you consult the Rezultat law firm’s experts, who will provide you with competent advice or professional preparation of all necessary documentation, which will become a solid basis for a successful career and easy running of your business.