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Company registration in Georgia

Photo 1 - Company registration in Georgia

About Georgia

Georgia is a country with a strategically advantageous location between Europe and Asia, as well as good infrastructure for carrying out activities. Over the years, the jurisdiction has worked on reforms, the result of which is reflected in world ratings:

- TOP-10 in the world in terms of ease of doing business;

- TOP-10  in the world in terms of low tax rates.

 

Establishment of free industrial zones and a virtual zone for IT companies have a particular importance in creating a suitable investment climate in Georgia. Company that is registered in one of the free industrial zones of Georgia receives preferential tax conditions, benefits from free trade agreements, government support programs and many others.

 

Thanks to the particularly favorable tax privileges of free industrial zones and the virtual zone, jurisdiction has become a good alternative to offshore countries, since the company receives tax discounts, but without an “offshore” label.

BENEFITS FOR COMPANY REGISTRATION IN GEORGIA:

  • Georgia is not an offshore country and is not included to the blacklist
  • Simplicity and fast terms of company incorporation
  • A company registered in Georgia is similar to an ordinary LLC company
  • Non-residents can 100% own real estate in Georgia
  • There are no laws regarding the residence of the founder or director of the company
  • The company has the right to distribute dividends at any time + there is the possibility of 100% repatriation of profit
  • An account can be opened in Georgia for Georgian company (whether it is a local resident company or a company registered in the free industrial zone or virtual zone)
  • Georgian banks open multicurrency accounts and support transactions in US dollars, EUR and other currencies
LEGISLATION

The following laws regulate Georgian companies activity:

  • The Law on Entrepreneurship
  • Law on commercial (non-commercial) organizations
  • The law on information technology zones

Legislative acts provide for the operation of several PPEs: Tbilisi, Kutaisi, Poti.

FORMS OF ORGANIZATIONS

A limited liability company (LLC) can be created in the free industrial zones and virtual zone.

 

The most popular legal form for incorporating a resident organization is LLC.

Photo 1 - Company registration in Georgia

TO REGISTER A COMPANY IN GEORGIA: REQUIREMENTS

SOCIETY WITH LIMITED LIABILITY (LLC), INCORPORATED IN THE FREE INDUSTRIAL ZONE KUTAISI:
  • Authorized capital. There are no rules regarding the minimum required amount of authorized capital, but in practice 100 lari is used as a standard.
  • Shares are not issued, the authorized capital is divided into shares of participants.
  • Director. There must be at least one director, who is an individual or legal entity, resident of any country.
  • Shareholder (participant). There must also be at least one participant, individual or legal entity, of any residency. It is allowed if the shareholder is at a director simultaneously.
  • Secretary is not required.
  • Data on the director and shareholder are publicly accessible.
  • Georgian company of free industrial zone is not obligated to submit annual financial statements. There is no obligation to undergo an audit either. But it is advisable to keep accounting records.
  • A company in Georgia must have a registered address in the territory of the selected free industrial zone.
  • In order to to conduct activity in free industrial zones, it is necessary to obtain a license, the type of which depends on the type of business of the company: international trade, e-commerce, industry, consulting services, services, financial services.
IT COMPANY, INCORPORATED IN THE VIRTUAL ZONE OF GEORGIA:
  • Statutory fund. The minimum required size is not set.
  • Shares are not issued, the authorized capital is divided into shares of participants.
  • Director. There must be at least one director who is a natural person or legal entity and resident of any country.
  • Shareholder (participant). There must also be at least one participant, individual or legal entity, of any residency. It is allowed if the shareholder is a director at the same time.
  • Secretary position is not required.
  • Data on the director, shareholder, authorized capital are publicly accessible.
  • A monthly and annual report is required.
  • An IT company established in the virtual zone of Georgia must have a registered office in the country.
  • IT companies that work on the development, design, production, implementation and sale of software products (IT products) can apply for registration of a company in a virtual zone.
  • After the company is registered in the virtual zone of Georgia, an electronic certificate of incorporation is issued, which is open-ended.
RESIDENTIAL COMPANY OF GEORGIA:
  • The minimum required size of statutory fund is not set.
  • Shares are not issued and the authorized capital is divided into shares of participants.
  • Director. There must be at least one director, who is an natural person or legal entity, a director can be a resident of any country.
  • Shareholder (participant). There must also be at least one participant, natural person or legal entity, of any residency. It is allowed if the shareholder is a director at the same time.
  • Secretary is not required.
  • Data on the director, shareholder, authorized capital are publicly accessible.
  • Reporting is obligatory.
  • A Georgian resident company must have a legal address in the jurisdiction.
TAXATION

 

Companies registered in FIZ Kutaisi

IT companies registered in a virtual zone

Resident (local) companies

Corporate income tax

0% (instead of tax, companies pay a fixed license fee annually).

When working in Georgia, the income tax will be 4%.

0% (if profit is derived from IT services outside Georgia)

0% (if the company plans to distribute profits and pay dividends, the tax rate will be 15%)

 

Dividend tax

0%

Dividends can be received at any time, without waiting for the end of the fiscal year. Dividends may be paid to the founder’s bank account both in a Georgian bank and abroad.

5%

5%

 VAT

0% (if goods do not cross the territory of Georgia)

0% (if services are not provided in Georgia or to Georgian companies)

18%

Property tax

0%

до 1%

до 1%

Import tax

0%

12%, 5% и 0% (depending on the type of product and the country of the exporter)

12%, 5% и 0%

Export tax

0%

0% (software products)

0%

Payroll Tax (Income Tax)

20%

20%

20%

More
CURRENCY CONTROL

Is absent.

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TREATIES FOR THE AVOIDANCE OF DOUBLE TAXATION

Georgia has signed more than 50 treaties for the avoidance of double taxation, including a signed treaty with Ukraine.

More

Planning to buy an “offshore” in Georgia, use the advice of our lawyers:

+38 (098) 737-88-88

We will help you to incorporate a company in Georgia (a resident company, an IT company in a virtual zone, a company in the free industrial zone Kutaisi) or in another jurisdiction.

The cost of registering a company in Georgia is formed for each specific business and depends on the organizational form and place of incorporation, check the final price of the finished firm with our lawyers depending on your individual needs.

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