Business Registration in Georgia-Which advantages you may expect
Registration of a business in Georgia offers numerous advantages, particularly due to its streamlined bureaucratic processes. Georgia has emerged as one of the most attractive locations for investors, especially for small and medium-sized enterprises. The key benefits include:
Favorable Tax Environment: Georgia boasts relatively low tax rates and various incentives. Notable features include:
- Free industrial zones.
- A unique corporate income tax system (corporate income tax is due only in case of distribution of dividends to shareholders (not annual basis)).
- A mere 1% tax rate for individual entrepreneurs classified as “small businesses.”
- No taxation (0% personal income tax) on foreign-source income for natural persons.
- A 5% or approx. 8-10% effective tax rate specifically for IT companies.
- 0% Corporate Income Tax for trade companies which use Georgia as logistic hub for importing and re-exporting goods.
Minimal Bureaucratic Burden: The business registration process is straightforward, reducing administrative hurdles.
Extensive Double Taxation Treaty Network: Georgia has double taxation agreements with 58 countries, facilitating international business operations (HERE you can find the list of the double taxation agreements signed by government of Georgia).
Low Corruption Levels: The country maintains a low level of corruption, enhancing the business climate.
Reduced Administrative Oversight: Compared to the EU, Georgia has fewer regulations and lower administrative controls.
Cost Efficiency: Lower wages and utility costs contribute to overall reduced operational expenses.
Strategic Geographical Location: Situated on the Black Sea coast, Georgia serves as a bridge between Asia and Europe, making it a key point along the Silk Road.
High Investment Potential Across Various Sectors: Key areas include tourism, real estate, agriculture, manufacturing, IT, and outsourcing services.
Free Trade Agreements: Georgia enjoys free trade with EFTA countries and China.
These factors collectively make Georgia an appealing destination for business relocation. This article will outline the procedures for business registration, which is the first essential step for new ventures in Georgia.
Looking to Register Your Business in Georgia? TPSolution is here to help! We offer fast, reliable, and hassle-free business registration services tailored to your needs. Contact us now for expert assistance!
Starting a Business in Georgia: Business Registration Procedures
Business registration in Georgia is conducted at a Public Service Hall (PSH), which operates under the Ministry of Justice. The main PSH location in Tbilisi is at #2 Zviad Gamsakhurdia Right Embankment, 0106 Tbilisi, Georgia. This section will detail the registration processes for two common business structures: Limited Liability Companies (LLCs) and Individual Entrepreneurs (IEs).
Timing of the Business Registration Process in Georgia
Typically, the registration process in Georgia can be completed within one business day. After submitting all required documents, confirmation of registration is usually received by the next day if all documents are accepted. For those seeking expedited service (available for an additional fee), the entire process can be completed on the same day.
Government Fees for LLC Registration in Georgia
The cost for registering an LLC is 200 GEL (around $74), plus an additional 26 GEL for an English version of the registration extract and 7 GEL for each signature confirmation. If expedited service is chosen, it incurs an extra fee of 200 GEL. Therefore, total costs are roughly:
- Ordinary Registration: ~250 GEL (~$93)
- Expedited Registration: ~450 GEL (~$167)
Government Fees for Individual Entrepreneur Registration in Georgia
Registering as an Individual Entrepreneur incurs a fee of about 60 GEL (approximately $22) under normal procedures, which includes the English version of the registration extract. If expedited processing is desired, this fee increases to around 85 GEL (approximately $31).
Documents Required for Business Registration in Georgia
The documents necessary for registering a Limited Liability Company (LLC) in Georgia vary based on several factors:
Type of Shareholder/Director: Is the shareholder and/or director an individual or a company?
Presence in Georgia: If an individual, will the shareholder/director be present in Georgia during the registration process?
In case the shareholder is a company: Is the shareholder company a Georgian entity or a foreign one?
Incorporation Minutes: Will the newly registered company use the standard minutes of incorporation published by the Georgian government, or will modified minutes be utilized?
The registration process is more straightforward if the shareholder/director is an individual present in Georgia and if the company uses the standard articles of association/statute published by the Georgian government, which are aligned with Georgian law on entrepreneurs.
Required Documents for Individual Shareholders/Directors Present in Georgia
If the shareholder/director is an individual present in Georgia and using standard shareholder minutes, the following documents are required:
- Shareholders’ Decision: Also known as the “Agreement of Foundation.” If TPsolution provides business registration services to you, we will prepare two copies of this document in both Georgian and English. If the shareholder/director is a foreigner, these documents must be printed and signed in front of a Public Service Hall representative.
- Copies of Passports: Each applicant must provide copies of their passports. In some cases, translations into Georgian may be required, which must be notarized if the name is difficult to pronounce in Georgian.
- Consent from Property Owner on providing legal address: A written consent from the owner of the real estate that will serve as the company’s legal address. This consent can either be notarized or provided and signed on-site at the Public Service Hall.
- Translation Confirmation: A signature from an independent translator confirming that the Georgian and English versions of each document are identical. The translator does not need to be a professional but must not have any vested interest in the company.
- Payment Receipt: A receipt confirming payment of the registration fee. Payment can be made in cash at the bank branches inside the premises of Public Service Hall or by card at the registration desk.
Additional Requirements for Shareholders/Directors Not Present in Georgia
If both the shareholder and director are individuals not present in Georgia, a properly apostilled (or notarized/legalized) Power of Attorney (PoA) must be submitted along with copies of their passports. We can assist with drafting the PoA and translating documents into Georgian, which will then be notarized.
Additional Documents if the shareholder is a foreign company
If a foreign company is a shareholder in the newly registered Georgian company, additional documentation is required:
- Shareholder Company Registration Documents: An extraction of registration documents from the foreign (founder) company.
- Articles of Association of the shareholder company: This document should specify who has decision-making authority regarding establishing a subsidiary in Georgia, appointing directors, etc.
- Shareholder Decision/Minutes: Documentation detailing decisions made by shareholders regarding establishing a subsidiary and appointing directors.
- Power of Attorney: A PoA document for representation during registration.
- Passports of Decision-Makers: Copies of passports for each individual involved in establishing the company in Georgia.
All the above-mentioned documents need to be apostilled, notarized or legalized, depending on the country in which the document is obtained.
Registration of Physical Person Taxpayer in Georgia
The status of a physical person taxpayer differs from that of an Individual Entrepreneur (IE), affecting both registration processes and tax obligations. The tax number remains consistent regardless of whether one registers as an IE or as a physical person taxpayer.
Individuals are required to register as Individual Entrepreneurs if they regularly engage in economic activities in Georgia and their services are not subject to withholding tax (e.g., if they do not provide services to Georgian entities).
Registration Process for Individual Entrepreneurs
Registration occurs at the Public Service Hall, where having a legal address is mandatory. The property owner must provide written consent for their property to be used as this address.
Conversely, individuals who do not regularly conduct economic activities but require a Georgian tax number can register simply as physical person taxpayers at a branch of the Georgian Revenue Service (GRS). They do not need a legal address; providing a factual address suffices without requiring consent from property owners.
An example scenario necessitating registration as a physical person taxpayer includes situations where obtaining a Georgian tax residency certificate requires having a tax number.
Looking to Register Your Business in Georgia? TPSolution is here to help! We offer fast, reliable, and hassle-free business registration services tailored to your needs. Contact us now for expert assistance!
Service: Registration of Limited Liability Company (LLC)or Individual Entrepreneur (IE) in Georgia
TPsolution provides a comprehensive suite of business registration and accounting services under the “One-Window Principle”.
Our extensive experience spans various professional services, particularly in assisting clients with business registration in Georgia.
We offer a complete package of business registration services, which includes:
Initial general Consultation: Guidance on the necessary documents for company registration.
Tax Consultation: A one-hour tax consultation as a first step of the project is strongly recommended to help clients understand the tax implications of their company in Georgia, including tax rates, reporting obligations, and potential tax benefits or risks. Understanding these factors is crucial before proceeding with registration to prevent unexpected issues later.
Preparation of Registration Documents: We prepare essential documents for company registration, such as shareholder decisions and Power of Attorney (if applicable), and facilitate Georgian translation and notarization of the Georgian translation of these documents.
Support at Public Service Hall: We assist clients during the registration process at the Public Service Hall, either in person (when the shareholder/director is present) or remotely (when procedures are conducted based on Power of Attorney).
Provision of Legal Address: A legal address is included in the registration service fee for a specified period.
Company or IE Registration on Napr.gov.ge: We handle the registration process on the official government platform.
Taxpayer Page Registration: We complete the necessary information on the taxpayer page at rs.ge, the platform of the Georgian Revenue Service.
Bank Account Support: We assist in opening a business bank account in Georgia.
Additional Support: Tailored support based on specific client needs.
After your company or individual entrepreneur is registered and a bank account is opened, we continue to offer accounting/bookkeeping, tax reporting, and ongoing tax consultation services. This ensures you receive all necessary support through our one-window approach.
For a complete list of services that TPsolution LLC has successfully provided to Georgian and international clients over more than five years. To see the full list of service we offer please visit our website.
Opening a Business Bank Account for LLC in Georgia
After registering your LLC, the company director or an authorized attorney can visit a branch of “Bank of Georgia” or “TBC Bank” (Other Georgian banks are also possible but we recommend those banks) to apply for a business bank account. It’s essential to bring the following documents:
- Business registration confirmation;
- Passport;
- Power of Attorney (if applicable);
- The bank’s application filled on place;
- The bank may request additional documents but such documents are usually requested via email communication, thus electronic versions can be provided to the bank.
The bank will review the application, typically responding within a few days, although some accounts may be opened immediately.
It is challenging to predict whether the bank will approve the account, because if a bank rejects such rejection comes without detailed explanations, citing “internal policy.” Each application is assessed individually, and decisions can be subjective. To enhance your chances of approval, consider these factors:
Ensure effective communication with the bank. Hiring local consultants who speak Georgian can help avoid misunderstandings due to language barriers and advise your what documents to prepare before applying to the bank.
We can support you at the process of opening your business bank account in Georgia.
Struggling with Business Bank Account Setup in Georgia?
Business Registration Procedures and Services in Georgia – Summary
This guide offers a detailed overview of the business registration process in Georgia, emphasizing its numerous advantages and providing clear steps to help new businesses establish themselves successfully. It outlines the essential documents needed and highlights the simplicity of the registration procedure or challenges which may be faced. The process can often be completed remotely within a few days.
While the article serves as a valuable resource for understanding business registration, it is not intended as legal advice and does not cover all possible scenarios.
For more details and/or for receiving our professional assistance in the process of your business registration in Georgia, you can directly reach out to us by filling out the contact form here: https://tpsolution.ge/contact or sending the email to: Info@tpsolution.ge
Frequently Asked Questions about Business Registration in Georgia
Yes. There are no restrictions on foreign shareholders, whether individuals or entities, in establishing a company in Georgia.
No. Foreigners can serve as directors of Georgian companies without any limitations.
Yes. A residence permit is not required for a foreigner to be appointed as a director of a Georgian Limited Liability Company (LLC).
There is no minimum capital requirement. You can start an LLC in Georgia with zero capital.
Yes. Citizens from any country can register as individual entrepreneurs in Georgia without additional preconditions.
Yes. Foreigners can register as individual entrepreneurs in Georgia even if they are not tax residents or do not have a Georgian residence permit.
Yes. Registration information for LLCs and individual entrepreneurs is public and can be accessed through the official website of the Public Service Hall.
Yes. There are currently no legal restrictions preventing foreigners or non-tax residents from obtaining small business status, provided they meet the necessary criteria.
Yes. A legal address is a mandatory requirement for registering any company in Georgia.
Yes. Having a legal address is also necessary for registering an individual entrepreneur.
Yes. Renting an office is not legally required for business registration; however, the company must have a legal address. Note that having an office may positively influence banking relationships and in some cases for the purpose of enjoy certain tax benefits.
No. Under Georgian law, an individual entrepreneur is classified as a natural person, unlike Limited Liability Companies (LLCs), which are recognized as legal entities separate from the owner individuals.
Yes. As of 2024, Georgia is a member of the Common Reporting Standard (CRS) system, facilitating international tax compliance and information sharing.