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Georgia company registration

DOING BUSINESS IN GEORGIA IN 2023

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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.

Compare different Georgian entitiesTax resident LLCInternational Trading LLCIntl. Finance Company
Free zone LLC
Virtual IT Zone CompanyRepresentative office
Also known asLLCSpecial trade companyIntl. finance companyFree industrial zone companyVZERepresentative office
Best use of company?All products and servicesTrading with global ClientsFinancial servicesManufacturing & export tradingIntl. IT servicesMarketing & research
How soon can you invoice Clients\sign sales contracts?1 week3 weeks3 months3 weeks1 month1 month
How soon can you hire staff?1 week3 weeks3 weeks3 weeks1 month1 month
How soon can you sign a lease agreement?1 week1 week1 week1 week2 weeks1 week
How long to supply corporate bank account numbers?2 months2 months5 months2 months2 months2 months
How long to supply company registration/tax numbers?1 week3 weeks3 months3 weeks1 month1 month
Corporate tax rate on annual net profits?15%0%0%0%0%None
Limited liability entity?YesYesYesYesYesNo
Government grants and tax incentives available?
YesYesYesYesYesNo
Government approval required for foreign owners?NoNoNoNoNoNo
Resident legal representative required?NoNoNoYesNoYes
minimum paid up share capital?US$1US$1US$100,000US$100,000US$1None
Can bid for Government contracts?YesYesYesYesYesNo
Corporate bank account location?Bank of GeorgiaVTBLiberty BankPeoples BankVTBTBC Bank
Can secure trade finance?YesYesYesYesNoNo
Legally tax exempt if properly structured?NoYesYesYesYesNo
VAT payable on sales to local customers?18%18%18%0%0%Cannot trade
Average total business set up engagement costs?US$11,650US$18,150US$32,550US$17,030US$12,150US$11,200
Average total engagement period?2 months2 months5 months2 months3 months3 months

Expand table

Accounting and tax considerationsTax resident LLCInternational Trading LLCIntl. Finance CompanyFree zone LLCVirtual IT Zone CompanyRepresentative office
Statutory corporate tax payable?15%0%0%0%0%None
VAT payable on sales to local customers18%0%18%0%0%Cannot trade
Withholding tax on payments to overseas shareholders?5%5%5%5%5%5%
Must file annual financial statements?YesYesYesYesYesYes
Monthly VAT reporting to the Government?YesYesYesYesYesYes
Social contribution tax?2%2%2%2%2%2%
Access to double taxation treaties?YesYesYesYesYesYes
This entity enjoys Government incentives?YesYesYesYesYesYes
Legally tax-exempt entity?NoYesYesYesYesNo
Company RegistrationTax resident LLCInternational Trading LLCIntl. Finance CompanyFree zone LLCVirtual IT Zone CompanyRepresentative office
Minimum number of shareholders/partners?111Parent company11
Minimum number of directors/managers?111111
Minimum paid up share capital?US$1US$1US$100,000US$1US$1N/A
Shareholder and Director documents must be translated?YesYesYesYesYesYes
Shareholder and Director documents must be apostilled?YesYesYesYesYesYes
Foreign director must obtain work permit?YesYesYesYesYesYes
Shelf companies available?YesYesYesYesYesYes
Time to incorporate a new entity?2 weeks3 weeks2 months3 weeks4 weeks4 weeks
Can easily convert to a local PLC company?YesNoNoNoNoNo
This entity will likely be regulated by?Ministry of FinanceMinistry of FinanceMinistry of FinanceMinistry of FinanceMinistry of FinanceMinistry of Finance
Business ConsiderationsTax resident LLCInternational Trading LLCIntl. Finance CompanyFree zone LLCVirtual IT Zone CompanyRepresentative office
Can invoice local customers?YesNoNoYesYesNo
Can hire local staff?YesYesYesYesYesYes
Can rent local office space?YesYesYesYesYesYes
Can secure resident visa for business owner?YesYesYesYesYesYes

Monthly VAT reporting to the Government?Yes
Maximum number of staff allowed?No maximum limit
Our Client must travel to Georgia?No
Can be wholly foreign owned?Yes
Maximum shareholding for foreigners?100%
Govt. approval required for foreign owners?No
Temp. physical office solutions available?Yes
You need local resident as bank signatory?No
Withholding tax on payments to shareholders?5%
Must appoint an auditor?Yes
Dividends received are legally tax exempt?No
Security deposit to be kept with Government?No
Must sign an office lease agreement?No
S.holder/director docs attested?Yes
Foreign non-resident director needs a work permit?No
S.holder/director docs translated?No
Expatriate to local staff ratio?Depends on business activity
Other useful information
Georgia has signed free trade agreements?Yes
Georgia is a member of WIPO/TRIPS?Yes
Georgia is a member of the ICSID?Yes
Average customs duties suffered?0-12%
Average monthly office rent? (US$/sq m)35
Minimum statutory annual salary?US$7,1 for private and US$125 for government sectors
Average US$ salary for local skilled staff?US$425
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Moderate

Georgia business setup summary

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  • Advantages and disadvantages

    Advantages of Georgia company registration

    business registration facts in Georgia

    • Georgia is ranked the world’s 7th 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 26th 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:
    • 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.

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For additional information on our company registration services in Georgia, please contact our in-house country expert, Mr. Seth Ochieng, directly:
Director of Client Engagements - Seth
  • Mr. Seth Ochieng
  • Director of Client Engagements
  • Contact me!
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