How to Set Up a Company in Georgia: Costs, Benefits, and Step-by-Step Guide

Setting up a company in Georgia is remarkably straightforward compared to many other jurisdictions. Foreigners can complete the procedure in person or remotely through a power of attorney

The process typically takes just one business day and involves: choosing a business structure, preparing documents, registering with the National Agency of Public Registry (via the Public Service Hall or online), opening a business bank account, and registering with the Revenue Service for taxation.

This article breaks down the process of company formation in Georgia step by step. It explains the types of legal entities available, highlights tax advantages and special regimes, outlines the costs involved, and answers common questions from entrepreneurs and expats who are considering Georgia as a business base.

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Benefits of Setting Up a Company in Georgia

Georgia has steadily built a reputation as one of the easiest countries in the world to do business. Ranked highly in global ease-of-business indices, the country combines simple procedures with a liberal regulatory environment.

• For investors, the attraction lies not only in how quickly a company can be established but also in the long-term benefits of operating there.
• Strategically located at the crossroads of Europe and Asia, Georgia serves as a regional hub with access to both markets.
• The economy is open, transparent, and supportive of foreign investment, with minimal bureaucratic barriers.
• Entrepreneurs benefit from a competitive tax regime, including a 0% corporate income tax on reinvested profits, a relatively low dividend tax, and special incentives for small businesses and IT companies.
• Georgia is also party to multiple free trade agreements, giving locally registered businesses preferential access to the EU, China, and regional markets.

For these reasons, Georgia appeals both to entrepreneurs seeking a base for international operations and to individuals looking for a low-tax environment with minimal administrative burdens.

How to Open a Company in Georgia

The first step in company formation in Georgia is deciding which legal entity best fits your goals. Georgia offers several options, but three are most commonly used:

• Limited Liability Company (LLC)
  This is the most popular structure for both locals and foreign investors. An LLC offers limited liability protection, simple management, and no minimum capital requirement. It is well-suited for small to medium-sized businesses as well as larger ventures. Ownership is flexible, with two or more shareholders permitted, and the liability of members is limited to their contributions.
• Individual Entrepreneur (IE)
  This option is ideal for freelancers, sole traders, and very small businesses. It is the simplest to set up and manage, and entrepreneurs who qualify for Small Business Status pay just 1% tax on income up to ₾500,000 annually. However, unlike an LLC, the individual entrepreneur does not benefit from limited liability protection, meaning personal assets may be exposed to business risks.
• Joint Stock Company (JSC)
  While less common, a JSC is suitable for larger enterprises, particularly those intending to raise capital through share issuance. It involves stricter governance requirements compared to an LLC but provides flexibility in managing multiple shareholders and attracting investors. Foreign investors most often choose an LLC due to its balance of simplicity, flexibility, and protection. An IE is better suited for individuals who want to take advantage of Georgia’s unique low-tax regime for small businesses.

Step-by-Step Process of Georgia Company Registration

• Step 1: Select a Company Name.
  The name must be unique and not conflict with existing registered businesses. This is verified during the registration process at the Public Service Hall or online.
• Step 2: Prepare Documentation.
  Core documents include identification for all founders, the company charter or memorandum of association, and proof of a registered address in Georgia. While documents can be in Georgian or English, for official registration, they must be translated and notarized in Georgian.
• Step 3: Submit Application.
  Applications are filed through the National Agency of Public Registry, either in person at the Public Service Hall or via an authorized agent. If applying remotely, a power of attorney can be used to delegate the process to a local representative.
• Step 4: Obtain Registration Certificate.
  Once approved, the company is entered into the public register, and a certificate of incorporation is issued. In most cases, this is completed within 24 hours of submission.
• Step 5: Open a Business Bank Account.
  A Georgian bank account is required to conduct business. Major banks include Bank of Georgia, TBC, and Liberty Bank. Foreign founders can usually open an account in person, and in some cases, remotely through authorized intermediaries.
• Step 6: Register for Taxes.
  Finally, the company must register with Georgia’s Revenue Service to obtain a Tax Identification Number (TIN). Depending on the chosen structure, the business may also apply for special tax regimes, such as Small Business Status or Virtual Zone status.

Can foreigners register a company in Georgia?

Yes. In fact, foreign entrepreneurs do not need to be physically present in Georgia to register a company.

The process can be completed entirely remotely through a power of attorney (PoA) granted to a local representative or legal service provider.

With a PoA, the representative can:

• Reserve and register the company name.
• Submit incorporation documents to the Public Service Hall.
• Open a local bank account.
• Register the company with the Revenue Service.

Most service providers also offer virtual office solutions, providing a registered business address in Georgia without requiring the owner to lease physical premises. There are even expat financial advisors that can help the process along.

This makes the country especially attractive for digital entrepreneurs, consultants, and IT companies that do not require a local office.

Remote registration typically adds a layer of notarization and translation costs, as documents executed abroad must be legalized (apostilled) before being recognized in Georgia.

How much does it cost to open a company in Georgia?

Company formation in Georgia is not only quick but also highly affordable (around $120 to over $500, depending on additional costs) compared to other jurisdictions.

The core costs are limited to government fees, with optional expenses depending on whether professional services are used.

Government fees:

• Standard registration fee: about ₾100 (≈ $40).
• Expedited registration (same day): about ₾200 (≈ $80).

Additional costs:

• Document preparation and bilingual charters: $50–$200.
• Translation and notarization: $20–$50 per document.
• Virtual office or registered address services: $150–$300 annually.
• Professional legal or incorporation services (optional): $300–$800 depending on scope.

How long does it take to register a company in Georgia?

In most cases, a company can be fully incorporated and operational within one week, including banking and tax registration. Using expedited services and local assistance can shorten this to just two or three days.

Day 1–2: Preparation

• Choose a company name.
• Draft charter and gather founder documents.
• Secure a registered address (or engage a service provider).

Day 3: Submission

• File application at the Public Service Hall (in person or via PoA).
• Pay registration fee (standard or expedited).

Day 4: Registration Approval

• Certificate of incorporation issued.
• Company listed in the official register.

Day 5–7: Banking and Tax Registration

• Open corporate bank account with a Georgian bank.
• Register with Revenue Service and obtain Tax Identification Number (TIN).
• Apply for special tax regimes if eligible (Small Business, Virtual Zone).

How to Open a Business Bank Account in Georgia

Foreign entrepreneurs can usually open an account in person by visiting a branch. Some banks and service providers also facilitate remote account opening through power of attorney, though this is not universally available and depends on the bank’s compliance requirements.

For most businesses, account setup takes one to two days after registration, making the process efficient and aligned with Georgia’s reputation for ease of doing business.

Major banks in Georgia include Bank of Georgia, TBC Bank, Liberty Bank, and smaller players such as BasisBank. All offer multi-currency accounts, online banking, and corporate cards.

Requirements typically include:

• Company registration certificate.
• Company charter.
• Identification documents of directors and shareholders.
• Tax Identification Number (TIN).

How much are business taxes in Georgia?

Business taxes in Georgia include a 15% corporate tax on distributed profits, 18% VAT where applicable, and property tax up to 1%.

Once a company is incorporated, it must register with the Revenue Service of Georgia to obtain a Tax Identification Number (TIN). This step ensures the company is recognized for tax purposes and can file returns.

Corporate Taxation:

• Georgia applies an Estonian-style tax system. Profits are not taxed while retained or reinvested.
• A 15% corporate income tax applies only when profits are distributed.
• Dividends paid to individuals are subject to a 5% withholding tax.
• Dividends paid to another Georgian legal entity are exempt.

Value-Added Tax (VAT):

• Standard VAT rate is 18%.
• VAT registration is mandatory if annual turnover exceeds ₾100,000 in any 12-month period.

Other taxes:

• Personal income tax: 20%.
• Property tax: up to 1% (on property value).
• No capital gains tax separate from corporate income tax.

Compliance is streamlined through online systems. Annual filings are required, but the simplicity of the tax structure means ongoing administration is lighter than in most jurisdictions.

Are there any special tax incentives in Georgia for entrepreneurs?

Georgia has introduced several preferential tax regimes that make it especially attractive for entrepreneurs, small businesses, and IT companies.

a) Small Business Status (for Individual Entrepreneurs)

• Available to entrepreneurs with turnover up to ₾500,000 annually.
• Income taxed at only 1% (up to the threshold).
• No corporate tax or dividend tax, as income is treated personally.
• VAT exemption if turnover remains under ₾100,000.

b) Virtual Zone Status (for IT Companies)

• Applies to companies engaged in software development, IT consulting, and related digital services for export.
• 0% corporate income tax and 0% VAT on exported services.
• Dividends distributed are subject to a 5% tax when paid to individuals.
• Recognition as a Virtual Zone Person requires a simple application to the Ministry of Finance.

c) International Company Status

• Available to companies with at least two years of activity in certain sectors (notably IT and maritime services).
• Benefits include:
  • Corporate income tax reduced to 5%.
  • Employee personal income tax reduced to 5%.
  • Dividends exempt from withholding tax.
  • Property tax exemptions for eligible assets.

These regimes make Georgia not only a convenient place to start a company but also a highly competitive jurisdiction for long-term operations, especially for entrepreneurs in technology, digital services, and consultancy.

Siete afflitti dall'indecisione finanziaria?

Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.

Siete afflitti dall'indecisione finanziaria?

Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.