Open a Company in Georgia

Our company – Business Setup Georgia LLC – provides legal services, designed to cover all the aspects concerning the registration of a local business by foreign investors who want to start a company in Georgia.

What recommends you in assisting foreign businessmen for opening a company in Georgia?

Business Setup Georgia LLC is based in Tbilisi, the country’s capital city, and has an experience of 15 years in the field of company formation. Its specialists are focused on offering high quality services and currently Business Setup Georgia LLC provides a wide range of services. We offer:

1. legal services (in branches of civil law, insurance law, business licenses and permits or intellectual property law);
2. company formation services (legal advice in choosing a suitable business form, assistance in incorporating any of the company types available under the Georgian legislation), etc.;
3. investors can rely on professional advice for immigration matters (applying for a residence permit or obtaining Georgian citizenship);
4. we also provide real estate services (legal assistance in drafting specific real estate contracts);
5. our team offers accounting services (preparing the company’s financial statements or implementing the accounting procedures available here).

We can assist:

1. investors who are in Georgia and want to participate in the registration procedure;
2. foreign businessmen overseas, who can’t arrive in person in Georgia, but who want to register a company with the help of local specialists.

What are the procedures involved when a client opts for starting a Georgian company remote?

The procedure involves the following:

1. signing the power of attorney, through which our team can obtain the right to represent a businessman in the registration formalities;
2. the client will need to complete the Company Incorporation Form;
3. after the power of attorney has been signed, our team will prepare the registration file;
4. the file is then submitted and the company is incorporated;
5. we will then need to sign a different power of attorney for a different registration procedure – the setup of a corporate bank account;
6. once we have obtained the power of attorney, we will open on the client’s behalf the Georgian bank account in the preferred currency (it is possible to open a bank account in EUR, USD or GEL).

What are the fees you charge for setting up a company in Georgia?

Investors who opt for the remote registration will pay a fee of USD 1,000, while those who will be physically in Georgia and will reach us at our office will pay a fee of $950.

When do I need to make the payment for registering a Georgian company?

The payment for our services should be made prior to starting the registration formalities.

What types of legal entities can investors set up in Georgia? 

There are a few types of entities the foreign investors can establish in Georgia: 

• the limited liability company;
• the general/ limited partnership;
• the subsidiary;
• the branch office. 

Can I obtain virtual office services in Georgia?

When starting a business activity in Georgia, one of the compulsory requirements is to have a business address and an official business office. Although most of the companies need an actual office, where the company’s employees meet according to the schedule of the company, numerous business activities can be developed through the services of a virtual office (we can help you select a suitable package).

What are the main taxes for companies in Georgia? 

Below, our consultants present the main taxes:

• in Georgia, the standard value added tax (VAT) rate is 18%;
• it is important to know that a company has to register for VAT purposes in Georgia once its VAT-taxable turnover exceeds GEL 100,000 in any continuous 12-month period;
• the corporate income tax rate for a company in Georgia is 15%, charged only when profits are distributed (Estonian model, in force since 2017; 20% for commercial banks, credit unions, microfinance organisations and loan providers);
• dividends distributed by a company are subject to a 5% dividend tax rate.

Are there any benefits if I want to invest in the IT industry?

Yes, if you are a businessman interested in the IT sector, please know that you can discover here a set of benefits, as reflected below:

1. certain IT activities can benefit from the Virtual Zone Company status, which provides specific tax advantages;
2. this applies to IT companies which carry out business operations such as web design, SEO, software development, etc.;
3. these companies can benefit from a 0% VAT rate and 0% profit tax for the services delivered outside the country;
4. for legal assistance needed to obtain Virtual Zone Company status we charge a fee of $600.

Do foreign businessmen need to associate with local partners?

No, foreign investors can set up local companies that have full foreign ownership, as it is not required to establish a business with the participation of a local businessman.

How can a foreign investor reside in Georgia? 

Georgia is a business-friendly country, which has developed over the years its connections with other jurisdictions. Foreign businessmen who want to register a Georgian company can apply for an investment residence permit, provided that they invest at least USD 300,000 (in GEL equivalent). If this condition is satisfied, the businessman receives a residence permit for up to 5 years, which can later lead to permanent residence.

Local and foreign investors who need to set up a company in Georgia may contact our specialists in company formation who will offer full assistance for company registration and other additional services.