Company Registration in Georgia

Georgia is a top-rated country for business registration among clients who wish to conduct business activities with the countries of the Caucasus, Central Asia, the Middle East, and Turkey. The reforms in the 2000s and 2010s have created an attractive business climate in this country.
Georgia has obtained the status of a candidate for the European Union and has real prospects for further European integration. However, company registration in Georgia has numerous peculiarities; if they are not considered, there is a risk of rejection. Therefore, it is better to entrust the procedure to specialists.
Lawtter Solutions offers its clients services for registering legal entities in Georgia. We can open companies in any region of the country and guarantee business registration in the shortest possible time. We provide turnkey services.

Cost of service

1 600 EUR*

Time required for registration

5-7 days

Income tax

0%, 15%

Type of company registration

Without a personal visit

*The costs are for informational purposes only. Contact the lawyers at Lawtter Solutions to find out what services are included in the incorporation cost.

Advantages

Advantages of Georgia for Starting a Business

Georgia is a promising jurisdiction for starting a business. It offers clients several important advantages, including:

1

Favorable geographical position

Georgia has access to the Black Sea and is at the crossroads of trade routes. Registering a company in Georgia makes it convenient to do business with the countries of the Caucasus, Turkey, Central Asia, and the Middle East.
2

Political and economic stability

Georgia is a politically stable state with a low level of corruption. Its economy is developing and has already achieved significant success.
3

Preferential regimes for trade with European Union countries

Georgia has an association agreement and several documents that allow the use of preferential customs regimes.
4

No currency control

There are no currency controls in Georgia, which simplifies reporting.
5

There are free economic zones

You can open a business in Batumi or Tbilisi and operate with a low tax burden.
6

Ability to manage your business from anywhere in the world

You don't have to be based in Georgia to run your company.
7

No automatic exchange of information

Georgia has not signed an agreement on automatic information exchange, which is an important advantage for those who want to maintain confidentiality.
8

Double taxation treaties

They are concluded with 52 countries, including Ukraine, the UK, France, Germany, China, etc.
9

Georgia is a whitelisted jurisdiction

It is critical to know that Georgia is not a classic offshore. It is on the white list of most jurisdictions in the world, including the USA, European Union countries, and Ukraine.

Individual Enterprise

The basic form of business is the individual entrepreneur. Entrepreneurs can operate with a low tax burden. However, there are restrictions on maximum profit, number of staff, etc. It is a suitable option for running a small business.

 

Limited Liability Companies

Shareholders of a company are liable for their obligations only within the organization’s authorized capital. Such companies can be both residents and non-residents of Georgia.

 

Joint Stock Company

Companies of this type are open joint-stock companies. Registration of this type of company in Georgia allows the free distribution of shares. The number of shareholders is not limited. Shareholders are fully liable for the company’s obligations, regardless of the size of the authorized capital.

 

General Partnership

Organizations of this type are partnerships with an unlimited number of partners. There is a general partner who is fully liable for the company’s obligations. The other partners have limited liability within the limits of their shares.

 

Limited Partnership

Organizations of this type can also have an unlimited number of partners. However, in this case, the liability of all partners is limited to their share in the partnership.

Director

Each company must appoint at least one director. Directors can be residents or citizens of any country. They must be at least 18 years old. A person on the sanctions list cannot be appointed as a director.

 

Shareholder

Shareholders must be present in every company. There can be at least 1 shareholder. It can be a legal entity or an individual who has reached the age of 18 years. A shareholder cannot be on the sanctions lists.

 

Address

The company must be located in the relevant region of Georgia. For example, if it plans to open a business in Batumi, the office must also be located there.

 

Name

The company’s name must be unique, and the ending must be correct. In particular, Limited Liability Companies must have the ending of LLC, Joint Stock Company ends with JSC, General Partnership ends with GP, and Limited Partnership ends with LP.

 

Authorized Capital

There is no requirement to pay authorized capital. Georgian legislation does not stipulate a minimum amount of authorized capital requirement. However, it must be declared.

 

Local Account

Opening a local bank account when registering a company in Georgia is unnecessary. A bank account opened in any country can be used to operate in Georgia.

Registration Agent

Under Georgian laws, a company is not required to have a registration agent and secretary.

 

Reporting

All companies are required to prepare and file accounts within a specified period.

Before opening a company in Georgia, you must familiarize yourself with taxation’s peculiarities. Georgia has a global principle of taxation: the profit of resident companies is taxed on the worldwide income regardless of the place of provision of services, counterparties, and structure of the company. However, profit tax is not payable until the distribution of dividends.

 

The territorial principle of taxation applies to companies registered in the Virtual Zone or Free Industrial Zone in Georgia. Income is taxed only if it is received from local counterparties within Georgia. Therefore, taxes differ from those in other regions of Georgia when registering a company in Tbilisi, Poti, Batumi, or Kutaisi.

 

Profit Tax

Georgia’s profit tax is 15%. However, the profit of a company registered in the Virtual Zone or Free Industrial Zone is exempt from taxation, provided there are no settlements with local counterparties within Georgia.

 

Value-Added Tax

VAT is 18% for local companies in Georgia. For companies registered in the Virtual Zone or Free Industrial Zone, a 0% rate is applied.

 

Tax on Dividends

Tax on interest, dividends, and royalties is 5% for local companies. No such tax exists for companies registered in the Virtual Zone or Free Industrial Zone.

Before starting a business in Georgia, it is essential to familiarize yourself with the reporting requirements. This country requires annual reports to be filed and, in some cases, audits.

 

Annual Report

Companies must electronically file annual financial reports for the reporting calendar year by October 1 of the following year (10 months after the end of the fiscal year). The fiscal year lasts 12 months. The tax period in Georgia is one calendar year – from January 1 to December 31. For a newly established company before December 1, it starts from the moment of its registration and ends on December 31.

 

Audit Reporting

Companies that meet the following criteria are required to file auditor’s reports:

  • total assets over GEL 50 million;
  • annual income over GEL 100 million;
  • the number of employees exceeds 250 people.

Companies also file audited financial statements if they meet such criteria:

  • the value of the company’s assets is within the range of GEL 10 million to 50 million;
  • the revenue is from GEL 20 million to 100 million;
  • the number of employees is 50–250 persons.

Individual Enterprise

The basic form of business is the individual entrepreneur. Entrepreneurs can operate with a low tax burden. However, there are restrictions on maximum profit, number of staff, etc. It is a suitable option for running a small business.

 

Limited Liability Companies

Shareholders of a company are liable for their obligations only within the organization’s authorized capital. Such companies can be both residents and non-residents of Georgia.

 

Joint Stock Company

Companies of this type are open joint-stock companies. Registration of this type of company in Georgia allows the free distribution of shares. The number of shareholders is not limited. Shareholders are fully liable for the company’s obligations, regardless of the size of the authorized capital.

 

General Partnership

Organizations of this type are partnerships with an unlimited number of partners. There is a general partner who is fully liable for the company’s obligations. The other partners have limited liability within the limits of their shares.

 

Limited Partnership

Organizations of this type can also have an unlimited number of partners. However, in this case, the liability of all partners is limited to their share in the partnership.

Director

Each company must appoint at least one director. Directors can be residents or citizens of any country. They must be at least 18 years old. A person on the sanctions list cannot be appointed as a director.

 

Shareholder

Shareholders must be present in every company. There can be at least 1 shareholder. It can be a legal entity or an individual who has reached the age of 18 years. A shareholder cannot be on the sanctions lists.

 

Address

The company must be located in the relevant region of Georgia. For example, if it plans to open a business in Batumi, the office must also be located there.

 

Name

The company’s name must be unique, and the ending must be correct. In particular, Limited Liability Companies must have the ending of LLC, Joint Stock Company ends with JSC, General Partnership ends with GP, and Limited Partnership ends with LP.

 

Authorized Capital

There is no requirement to pay authorized capital. Georgian legislation does not stipulate a minimum amount of authorized capital requirement. However, it must be declared.

 

Local Account

Opening a local bank account when registering a company in Georgia is unnecessary. A bank account opened in any country can be used to operate in Georgia.

Registration Agent

Under Georgian laws, a company is not required to have a registration agent and secretary.

 

Reporting

All companies are required to prepare and file accounts within a specified period.

Before opening a company in Georgia, you must familiarize yourself with taxation’s peculiarities. Georgia has a global principle of taxation: the profit of resident companies is taxed on the worldwide income regardless of the place of provision of services, counterparties, and structure of the company. However, profit tax is not payable until the distribution of dividends.

 

The territorial principle of taxation applies to companies registered in the Virtual Zone or Free Industrial Zone in Georgia. Income is taxed only if it is received from local counterparties within Georgia. Therefore, taxes differ from those in other regions of Georgia when registering a company in Tbilisi, Poti, Batumi, or Kutaisi.

 

Profit Tax

Georgia’s profit tax is 15%. However, the profit of a company registered in the Virtual Zone or Free Industrial Zone is exempt from taxation, provided there are no settlements with local counterparties within Georgia.

 

Value-Added Tax

VAT is 18% for local companies in Georgia. For companies registered in the Virtual Zone or Free Industrial Zone, a 0% rate is applied.

 

Tax on Dividends

Tax on interest, dividends, and royalties is 5% for local companies. No such tax exists for companies registered in the Virtual Zone or Free Industrial Zone.

Before starting a business in Georgia, it is essential to familiarize yourself with the reporting requirements. This country requires annual reports to be filed and, in some cases, audits.

 

Annual Report

Companies must electronically file annual financial reports for the reporting calendar year by October 1 of the following year (10 months after the end of the fiscal year). The fiscal year lasts 12 months. The tax period in Georgia is one calendar year – from January 1 to December 31. For a newly established company before December 1, it starts from the moment of its registration and ends on December 31.

 

Audit Reporting

Companies that meet the following criteria are required to file auditor’s reports:

  • total assets over GEL 50 million;
  • annual income over GEL 100 million;
  • the number of employees exceeds 250 people.

Companies also file audited financial statements if they meet such criteria:

  • the value of the company’s assets is within the range of GEL 10 million to 50 million;
  • the revenue is from GEL 20 million to 100 million;
  • the number of employees is 50–250 persons.

Registration companies

Company Registration Process in Georgia

Company registration in Georgia includes 5 stages. They are as follows:

01

Due Diligence and KYC Verification

Gathering basic information and documents about the planned activities and company structure, conducting KYC verification with the company's participants.
02

Name Verification

Verification of the company name for uniqueness and availability in the Registry of Companies.
03

Document Preparation

Preparation of registration forms and collection of necessary documents for filing with the Registrar of Companies.
04

Filing of Documents

Submission of prepared documents to the Registry for further processing and entering company data.
05

Preparation of Internal Company Documents

Preparation of corporate statutory documents for the registered company.

Documents

What Documents Do You Need to Open a Company in Georgia?

To open a company in Georgia, you must submit a document package. You can explore a list of required documents below:

  • Identity document. You can provide a copy of your passport or national passport.
  • A document confirming the residence address, separate from a passport, national passport, or driver’s license. For example, it can be a utility bill for three months or a bank statement.