Since 2003, Healy Consultants Group assists our Clients with Georgia business set up, including i) Georgia company incorporation ii) securing government licenses iii) Georgia corporate bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions in Tblisi, Batumi and other cities.

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Georgia business setup summary

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• Advantages and disadvantages

  Advantages of Georgia company registration

  

  • Georgia is ranked the world’s 7^th easiest place to do business by the World Bank. A simple Georgian LLC:
    • Only needs to appoint one shareholder and one director. 100% foreign ownership is permitted.
    • Does not need any paid-up share capital.
    • Can be incorporated in just two weeks, without the shareholder or director travelling to Georgia.
    • Is inexpensive to renew, with low annual government business renewal costs.
  • Georgia has an attractive tax regime. For example:
    • The standard corporate income tax rate is 15% for a tax-resident Georgian LLC.
    • The country has a network of free zones where companies pay i) zero corporate income tax ii) exemption from VAT on imports iii) no withholding taxes imposed when repatriating capital and iv) zero tax on interest and dividends paid.
    • Georgia has signed 57 double tax treaties with a number of countries including India, Germany, China, the UK, Singapore and Ireland.
  • For manufacturing and distribution companies, Georgia has a strategic geographical location, with access to European, Near Eastern, Middle Eastern and Central Asian markets. For example:
    • The China-Europe railway as part of China’s ‘One Belt, One Road’ project will pass through Georgia, opening up rapid East-West export routes for Georgian businesses.
    • Georgia has several ports on the Black Sea (Batumi, Poti and Anaklia), making it a regional logistics hub.
    • In addition to its attractive location, Georgian businesses can access a network of international free trade agreements the country has signed with i) the European Union ii) CIS states iii) Turkey iv) the UK v) Ukraine vi) China and vii) Hong Kong. Through these agreements, Georgian companies enjoy reduced tariffs on their imports to these regions.
    • Through the General Schemes of Preference scheme, Georgian manufacturers enjoy reduced tariffs on exports to i) the United States ii) Canada iii) the EU and iv) Japan.
    • Labour costs are low compared to much of Europe, with an average monthly wage of just US$425, while electricity costs are also lower than most of Europe.
  • Because of its healthy trading and tax environment, Georgia is considered the world’s 26^th freest economy, and the 18th freest in Europe, according to the US Heritage Foundation. This is above the global average.
  • Other sectors which are attractive to foreign investors in Georgia are i) food production, ii) metals, iii) electronics, iv) pharmaceuticals and v) financial services.
  • Georgia offers investment residence visas for international businesspeople, making it easy for entrepreneurs to relocate to the country.

  Disadvantages of Georgia company registration

  • Companies producing or supplying goods to the domestic Georgian market face several challenges, including:
    • A population of just 3.7 million.
    • Low purchasing power among Georgian consumers, and a low standard of living. Roughly one fifth of the population lives below the poverty line.
  • Though Georgia scores well overall as a place to do business, foreign entrepreneurs may face corruption in daily business life, for example i) when dealing with government departments, ii) when bidding for contracts, iii) when applying for licences and iv) when settling disputes with Georgian companies or individuals. The Georgian legal system is inefficient and foreign business people may receive unfavourable treatment or lengthy court hearings.
  • Georgia historically suffers from political instability, which deters many overseas investors. In particular the country’s relationship with Russia is strained, a situation exacerbated by the Russia-Ukraine war in 2022. For example:
    • The Russian military continues to occupy and control the regions of Abkhazia and South Ossetia in northern Georgia.
    • Although Azerbaijan supplies the vast majority of natural gas, Georgia also depends partly on Russian gas imports. During periods of political tension with Russia, Georgia’s energy security is at risk.
  • Georgia is an unattractive location for high-tech industries or companies employing patented technology. Despite being a signatory to World Trade Organisation (WTO) rules on protecting intellectual property rights, these rights are poorly enforced.
  • Georgian transport infrastructure is in relatively poor shape, hindering the efficient movement of goods and people.
  • The official language is Georgian. While most younger Georgians speak English well, older generations do not. Foreign investors who do not speak Georgian may have difficulty when networking or negotiating deals.