Set-up A Company in Georgia
Written by Emil Goncharov
Establishing a company in Georgia, whether a regular company of a private person or a subsidiary of another company located outside the country, requires knowledge and experience with Georgian authorities in order to complete the process. In some cases, language can also be an obstacle to establishing a company, so we recommend you to consult a trusted local professional who will accompany you along the way. That being said, it is a relatively a standard and fairly short process that does not involve extraordinary costs unlike most countries around the world so there is nothing to be concern about while registering a new company in Georgia.
Image by Denis Esakov
Starting a business in Georgia takes one day (after all the documents are ready) and it is possible to complete the entire process in the white-domed building that serves as the Public Service Hall. After the registration of the new business, it usually takes several days to receive an official company number. In order to make it simple, we have prepared a guide that you can follow step by step to complete the process of setting up a new company in Georgia. above all that, we recommend contacting a local attorney for professional guidance. Feel free to contact us for help.
Follow these steps in order to set up a company in Georgia:
1. First select a company name and make sure it is not taken
2. Corporate policy and procedure manual for the new Georgian company must be created by a local attorney
3. Decide on company structure (owners and directors) and share distribution if required
4. Take a passport copy of all the owners and directors and make sure it is notary signed + add apostille stamp (from your home country) + translate it to Georgian and notarize it (usually in Georgia as it is cheaper)
5. Go to the Public Service Hall and register the company (you don't need an appointment)
6. During the process of registering a new Georgian company you will be asked to provide a physical address in Georgia (you can receive an address for a low monthly fee)
7. During the new Georgian company set-up in the Public Service Hall, the clerk will ask where you would like to open a bank account so that he can provide all the required documents to the chosen bank (online) so you can later open a business account in the bank
8. In order to transfer money to your new company's bank account, the bank will require additional documents. read about everything related to opening a bank account in the following article
To open a business bank account for a local Georgian company that will serve as a subsidiary of a company located outside of Georgia, please bring the following documents, after being signed by a notary in the country which the parent company located in with an Apostille stamp, and then translated into Georgian and signed by a Georgian notary:
Certificate of incorporation (loyal to the original) of the parent company
Corporate policy and procedure manual of the Parent Company
Annual company details report of the parent company from the corporate authority
Statement of Directors of Parent Company
Statement of shareholders of the parent company
An annual payment voucher to the companies Register office to show that the parent company is still active
Follow steps 1-8 from the previous section (above)
This is a complex process and it is mandatory to consult a local lawyer to guide you. Feel free to reach us so we could help you start a new business in Georgia.
Once the company is registered and you get a company number, you will be required to go to the tax office called "Revenue Service" and register your company there. After registration, you will receive a username and password that you can pass on to the company's bookkeeper so they can report tax/income tax, etc.
In addition, you will have to decide whether you want to register for VAT immediately or use a benefit that allows companies to start paying VAT (18%) only after it reaches a turnover of over 100,000 Lari over the last 12 months. If you choose to use the benefit, you will only need to open a VAT file after the company turnover has passed 100,000 Lari in the last 12 months.
Another unique benefit that Georgian companies enjoy from is avoiding corporate tax (15%) on the company income until a distribution of funds (dividend) is made. You can read more about Georgia taxation in the following article .
* A local attorney should be involved throughout the process - we would recommend a using an speaking English, Russian and Georgian attorney with extensive experience, exceptional service and fair prices as opposed to prices you receive as foreigners.
** To open a bank account in Georgia, you will be required to physically visit the bank or provide a power of attorney to a local attorney/person.
Additional requirements may be found by Georgia public authorities and institutions so you should consult a professional before starting the process of registering a new company in Georgia.
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