Start a company in Georgia

Georgia – a small Eastern European state located in Transcaucasia, on the Black Sea coast. In 2020, the country ranked 7th in the world in the ranking of countries with the most favorable conditions for doing business – Doing business. Jurisdiction is not included in the "black" and «gray» offshore lists of international organizations and Ukraine in particular.

Foreigners can open a local onshore company (LLC) in the country, an enterprise in a free industrial (Tbilisi, Kutaisi, Kutaisi Hualing, Poti), virtual zones (IT sphere, Tbilisi).

Official language

Georgian

Legal forms of companies

• OOO – limited liability company;
• JSC – joint-stock company;
• ОСО – joint and several liability company;
• KO – limited partnership;
• cooperative

OOO – the most popular form for doing business by non-residents.

Capital

Tbilisi

Major cities

Kutaisi, Batumi, Rustavi, Zugdidi, Poti

Form of government

Presidential republic

Legal system

Romano-Germanic

Currency

Lari

Registration fee

What's included

1. Consultation.
2. Due Diligence.
3. Preparation of documents and power of attorney for a representative.
4. Providing a legal address.
5. Apostille of documents.
6. Company registration.
7. Notary services

Documents required from the beneficiary

1. Passports of the founder, director.
2. Documents confirming the place of residence of the head, shareholders.
3. Minutes of the meeting.
4. Charter
5. Contract for the lease of premises.

Documents provided after registration

1. Charter
2. Minutes of the founding meeting.
3. Certificate of registration.
4. License (when providing consulting, financial, logistics, IT services, warehousing, trading in certain groups of goods).
5. Letter from the tax office about the assignment of a tax number.

Working algorithm

1. In order for you to know exactly how to open a company in Georgia, Crystal Tax specialists in the field of international, corporate law, and taxation provide a detailed consultation.
2. We carry out the Due Diligence procedure related to the identification of the identity of the business owner.
3. After you pay for the services, we prepare the documents, draw up a power of attorney for the representative.
4. We pay duties.
5. We send documents to the Georgian House of Justice.
6. Obtain a license (if necessary).

Principles of jurisdiction

1. 7th place in the Doing Business ranking in 2020.
2. No currency restrictions.
3. The presence of four industrial free zones and one virtual – to create IT companies.
4. Not on offshore lists in Ukraine and internationally.
5. Good geographical location – between Europe and Asia.
6. Confidentiality of information about the beneficiary (data on directors and shareholders – in the public domain).
7. If a company does business with foreign contractors and does not employ hired personnel, there is no need to submit reports.
8. Low corporate tax – 15%.

Disadvantages of jurisdiction

Small population, low purchasing power, the sale of products on the domestic market is problematic.

Company Requirements

To create an LLC you need:

• minimum 1 director and 1 shareholder, no residency requirements;
• Authorized capital in any amount (recommended amount – from 100 GEL);
• registered legal address.

Only local and IT companies submit reports.

List of banks in jurisdiction

1. Tera Bank.
2. Bank of Georgia.
3. Liberty Bank.
4. Cartu Bank.
5. Procredit Bank.

Corporate law

• Law on Free Industrial Zones (2007);
• Law on Entrepreneurs (2008);
• Law on Information Technology Zones (2010).

Tax Information Agreements

Georgia has not signed the multilateral Convention on the Automatic Exchange of Information, and there are no bilateral agreements either.