Georgia company registration

DOING BUSINESS IN GEORGIA IN 2020

pay fee by instalmentsbusiness setup without travel

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Georgia. Our services include i) Georgia business registration ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

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 weeks4 weeks4 weeks
How soon can you hire staff?1 week3 weeks3 weeks3 weeks4 weeks4 weeks
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 weeks4 weeks4 weeks
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 months
2 months
5 months
2 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 Georgia LLC:
      • Only needs to appoint 1 shareholder and 1 director, who can be any nationality;
      • Does not need any paid-up share capital;
      • Registration can be completed in 2 weeks, without travel;
      • Has a low annual maintenance fee.
    • Georgia is ranked 14th in the World Bank’s Paying Taxes 2020 index. In practice, that means international Clients benefit from an attractive tax system, from the advantages of the tax-free zones and various government incentives.
    • Georgia’s geographical location benefits from:
      • China’s ‘One Belt, One Road’ project. The planned railway will link China to Europe, passing through Georgia. This will open up fast routes for Georgian export businesses to faster reach Asia to Europe;
      • The country’s position on the Black Sea, with several seaports (Batumi, Poti and Anaklia), which makes it a regional logistics hub;
      • Georgia is culturally similar, and geographically close to, Russia, making it ideal for Clients wanting to expand activities into Russia.
    • International clients can take advantage of reduced tariffs due to the number of existing free trade agreements Georgia has signed with:
      • The European Union, CIS countries, Turkey, United Kingdom, Ukraine, China and Hong Kong;
      • There General Schemes of Preference allow Georgian manufacturers to enjoy a lower tariff when exporting products to the United States, Canada, the EU and Japan;
      • Georgia plans to sign an FTA for goods, trade of services and investments with India and Israel.
    • Georgia has signed 56 double taxation avoidance treaties with countries including India, Germany, China, the United Kingdom, Singapore and Ireland;
    • Georgia was positively ranked the world’s 12th freest economy in the Heritage Foundation’s 2020 Index of Economic Freedom. Georgian overall ranking has increased due to improvements on all indicators related to the rule of law;
    • Clients involved in energy-intensive business can take advantage of low electricity costs of just 4 cents per kWh;
    • Georgia has a talented workforce with an average monthly wage of just US$425, much lower than other European countries;
    • Georgia does not automatically exchange financial data with other countries. It is not a member of the CRS and does not plan to sign an information exchange agreement in the near future;
    • Georgia offers investment residence visas for international businesspeople, making it easy for entrepreneurs to relocate to the country.

    Disadvantages of Georgia company registration

    • Clients wishing to produce or supply goods for the domestic market face several challenges, including:
      • A population of just 3.7 million;
      • Low purchasing power. The standard of living in Georgia is also low. The National Statistics Office of Georgia (Geostat) reports that 20% of the population lives below the poverty line. Some multinational investors may find it a difficult country to adapt to;
    • Georgia has a strained relationship with Russia, which can impact sentiment and investor confidence. For example:
      • Since the 2008 war, Russia’s military continues to occupy and control the regions of Abkhazia and South Ossetia in northern Georgia. This may negatively impact Georgia economy, especially hospitality and real estate;
      • Although Azerbaijan supplies the vast majority of gas to Georgia, Georgia also depends partly on Russian gas imports. During periods of political tension with Russia, Georgia’s energy security is put at risk.
  • Best uses of a Georgian company

    • Georgian international trading companies and international financial companies are tax efficient solutions for Clients with international operations. Such companies can benefit from complete corporate tax exemption on their worldwide income;
    • Clients that wish to explore the Russian market, can consider setting up their operations in Georgia as the country allows easy access to Russia and offers several tax advantages for local companies.

Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: US$11,650
  • Minimum capital: US$1
  • Physical office required: Yes

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 15%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: LLC

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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!