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

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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

    1. Georgia has one of the world’s freest economies, and has made particular progress in the last year with upholding the rule of law;
    2. The World Bank ranks Georgia the world’s 7th easiest place to do business. Georgia companies:
      • only need one shareholder and one director, and they can be any nationality;
      • do not require any minimum paid up capital deposit;
      • can be registered in just two weeks, without our Client’s travel;
      • have low company annual maintenance fees.
    3. The country has an attractive tax system and a network of tax-free zones;
    4. Georgia is ideally located for Clients wishing to expand into Russia and the Caucasus regions;
    5. Georgia is located on China’s ‘One Belt, One Road’ route. This is likely to lead to massive new investments in infrastructure such as roads, railways and ports, facilitating trade and opening new business opportunities;
    6. Georgia has free trade agreements with the European Union, CIS counties, Turkey, United Kingdom, Ukraine, China and Hong Kong;
    7. Georgia is a signatory to the General Schemes of Preference, giving manufacturers preferential access to sell products in the United States, Canada and Japan;
    8. Georgia has signed double taxation avoidance treaties with 56 countries including India, Germany, China, and the United Kingdom, Singapore, Ireland;
    9. Georgia is a low-cost base:
      • With low electricity costs of just 4 cents per kWh, it is an ideal manufacturing hub;
      • With a deep talent pool and an average monthly wage of just US$425, it is a cost-competitive location for start-ups;
    10. Georgia is not a member of the Common Reporting Standards network. Information about foreign investors, beneficial owners and bank account holders is not shared with global governments and tax authorities;
    11. Georgia has a liberal, pro-business work visa policy for investors.

    Disadvantages of Georgia company registration

    1. Georgia has a tense relationship with Russia since a regional war in 2008. The Caucasus is vulnerable to conflict in future;
    2. The standard of living in Georgia is low, with about 20% of the population living below the poverty line. Consequently, foreign entrepreneurs relocating to Georgia can find it challenging to adapt to the environment.
  • 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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Contact us

For additional information on our company registration services in Georgia, please contact our in-house country expert, Mr. Seth Ochieng, directly:
client relationship officer - Seth