company registration in Georgia Tbilisi for foreign investors
Georgia is one of the countries that is located in the Caucasus region between the continents of Asia and Europe, and its land area is 69,700 km², many people head to Georgia to start a new life and get a proper job opportunity.
Georgian government is actively seeking to develop the business environment, as it possesses one of the most competitive markets in its region for this.
There are many factors that attract investors to start a company in Georgia such as (Reduced value of taxes, the free market, and liberal Georgia’s economy and stability of the political environment and Georgia Law as the government facilitated the process of registering property, recognized property rights, and made ownership a reason to give full residency in Georgia).
Table Of Contents
- Advantages of opening a company in Georgia for Foreign investors.
- The different kinds of company registration in Georgia Tbilisi
- How to register a company in Georgia?
- Things you should care about before starting your company.
Advantages of opening a company in Georgia for Foreign investors.
1) Motives and facilities in Georgia
Georgia offers many motives for developing the business environment, and three industrial zones have been established in Tbilisi to meet the needs of specific business sectors, given that Georgia has one of the most important competitive markets in its region, enabling you to establish a company in Georgia easily.
2) Company registration is not a complicated process anymore
company registration in Georgia Tbilisi is not a complex process as it is known for most other countries, as Georgia has the advantage of providing tax facilities to investors depending on the company’s activities, with some tax-free locations available.
3) Ease of procedures
Georgia Tbilisi offers many facilities to do business on its soil for foreign investors, unlike most countries in the world.
4) Availability of employment
Students and young people who possess multiple languages besides the Georgian language are among the most coming groups to work in Georgia, and this saves a lot to investors, especially since their monthly salaries are low in relation to the employment in most of the world.
5) Low taxes
Georgia’s Tax Law makes it easier for investors and indigenous citizens in the country, so it only shows the following taxes: (Income Tax – 20%., Corporate Tax – 15%., Value Added Tax – 18%., Excise Tax – Variable Rate, Customs Tax – It has more than a percentage ranging between 0% – 5% – 12%., The real estate tax – 1% of the value of the self-evaluation of the property).
6) Geographical location
Georgia location made it as a strategic country between the countries of Europe and Asia, and this is one of the most important reasons for investing and establishing companies in Georgia, which gives it a wide area of economic movement between neighboring countries, and this facilitates investors to deal with multiple types of areas that the market needs easily and is considered as a commercial corridor and a country Transit of goods between East and West.
The different kinds of company registration in Georgia Tbilisi
1- Establishing a company with limited liability
(LLC) or The Limited Liability Company is a legal entity established by a maximum of 50 investors, to integrate foreign and domestic investors together and enjoy many of the benefits of investing in Georgia.
In case a company is established in Georgia Tbilisi with limited liability, the responsibility of each member is determined according to the value of its shares, and the shares of the company can be transferred or inherited, but in case you own only one share, it cannot be sold.
2- Incorporation of a company by a legal entity
You can build a company in Georgia with a legal entity, not just individuals, and this form is most popular because the responsibility of shareholders is limited to the number of shares they own in the company and are governed by its internal regulations.
How to register a company in Georgia?
Generally, establishing a business in the republic of georgia is an easy process, you don’t need so many complicated steps, through the following paragraphs we will talk about establishing a company as an example for building a business in Georgia.
Registering a company in Georgia country is something that does not require hard steps as it happens in foreign countries, due to the various facilities of the state and the Georgian government, so we will explain to you the steps you need to start your business in Georgia europe.
the first step
What you must do to start a company in Georgia is to go to the House of Justice and obtain a copy of the company charter.
The copy is divided into two parts: a section in the Georgian language and a section in the English language.
The second step
You should write your data in the founding contract referred to previously in the English and Georgian languages (you should seek the assistance of a specialist to write the contract) You must write from the data the company address, which means that you want to find an address for the company and the address can be obtained in two ways:
- First way: rent an office to be the company’s headquarters.
- Second way: You can buy an address from a Georgian citizen or resident to use it as a temporary address for your company, and the owner of the place must go with you to the House of Justice and signature.
York Towers can help you with step, as we provide you with a commercial and residential space suitable for companies and help you with the procedures of company registration.
you only need to connect with us through the mail or the live chat to inform you about the latest offers and prices for our real estate projects.
Things you should care about before starting your company.
You must speak English fluently if you want to complete these procedures alone, otherwise, you should seek help.
Carefully review the data
Write your data and review it more than once in the memorandum of association and make sure it is correct.
Documenting the company’s documents
The rules of the law specify the way in which new companies are established.
Moreover, foreign investors interested in establishing a company in Georgia must document the company’s documents with the public notary, and the documents must be legalized in the country where foreign shareholders reside, according to the provisions laid down by the Hague Agreement.
if you want to set up LLC
In case you want to set up a limited liability company, you have to be present in the country during the incorporation procedures, to submit the required documents to the competent authorities, knowing that the procedure can be implemented in one week as a maximum.
The costs of setting up and company registration in Georgia Tbilisi.
The upcoming paragraphs explain the main sources that you will spend your money at, to set up a company in Georgia Tbilisi.
1- Registration Fees
The standard registration fee (completed in one day) is 100 Georgian lari, equivalent to 32 euros.
2- Virtual office cost:
If you are thinking of establishing your company in Georgia Tbilisi, there are basic stuff you should apply for example Virtual office.
Virtual offices,they cost20 euros per month, and it is the cheapest way to get a business address in Georgia.
3- Minimum Capital
There is no minimum capital when establishing a company in Georgia.
Taxes in Georgia country
Taxes are always a critical matter and something you should consider when you decide to set up a business, in Georgia Taxes are something you definitely will go through if you want to get company registration in Georgia Tbilisi so that we would explain more about this topic.
In Georgia, the VAT rate is 18%, and the 0% VAT rate applies to exports, tour operator services, electric power, international shipping activities, or gold transfers to the National Bank of Georgia.
Georgia’s corporate income tax rate is 15%. As a general rule, knowing that Georgia does not apply consumption tax, but certain categories of products can be subject to this tax, and it is important to know that the company must register for value-added tax purposes in Georgia as long as the company’s annual revenue is from the minimum 100,000 Georgian lari.
Dividends distributed by the company are also subject to a 5% dividend tax, regardless of whether the dividends are paid to a non-resident entity or an individual, however, in the case of dividends distributed from a Georgian company to another local company there is no tax base, Which provides an attractive business environment for starting a company in Georgia.
Through us “ York towers” you can get the help you need to start in establishing your company in Georgia Tbilisi, we will be with you through every step, only by connecting with us through the live chat or the mail.