Many entrepreneurs from other countries choose Georgia – a former Soviet Republic in the Caucasus – to register business companies there. This move allows them to go international, protect their assets, optimize their fiscal burdens, and make their business ventures more successful and more profitable.
Below we provide the main reasons why you should consider the opportunity of registering a company in Georgia. Then we describe the requirements that a foreign national has to meet if he or she wants to open a company in Georgia as well as the process of company registration. Finally, we provide some basic facts about the country because you will have to visit Georgia often if you establish an active business company there. If you visit internationalwealth.info web portal, you will find a lot of interesting information about Georgia there.
Why foreign nationals choose Georgia to establish companies there
There are some compelling reasons why you should give Georgia some serious consideration if establishing a foreign company is on your mind. A Georgian-based company can be managed from anywhere in the world. The main advantages that the country offers to international entrepreneurs include the following ones:
- The country does not participate in the exchange of fiscal information in accordance with the CRS. Most other countries exchange the information automatically.
- No foreign country considers Georgia an offshore zone or a tax haven; a company in Georgia is a company in a legitimate jurisdiction.
- Citizens of other countries are free to act as shareholders and/ or directors of Georgian firms.
- A company in Georgia can be registered remotely if you issue a Power of Attorney. Otherwise, you can visit Tbilisi (the capital city) and register the company in person. A Georgian agent will be at your disposal.
- You can open a corporate bank account in Georgia as well if you handle the ‘economic substance’ matter with care.
- The tax system is highly beneficial in Georgia (the ‘Estonian’ model is applied. The company’s profits are not taxed; rather the dividends that are distributed to the company owners are taxed.
- Tax cuts and breaks are available as well as Free Industrial Zones that also bring tax benefits.
- There is no registered capital requirement for Georgian companies.
You will probably agree that these characteristics make Georgia attractive for international entrepreneurs.
What business sector should you choose?
There are some sectors of economy in Georgia where you will find the largest number of business opportunities. First, the IT sector: IT companies enjoy a highly beneficial tax regime in Georgia. Second, international trade: Georgian-based companies can trade all around the world. Third, the service sector: Georgia’s location allows attracting clients from many different countries.
What type of company can you register in Georgia?
Your company in Georgia can have one of the following forms of ownership:
- General Partnership: all Partners are equally liable for company debts by all their property;
- Limited Partnership: limited Partners are liable only by their contributions to the company charter capital but there has to be at least one general Partner who has unlimited liability;
- LLC: a traditional form of company ownership popular with many entrepreneurs because the company founders’ liabilities are limited. In Georgia, a single person can register an LLC;
- Public company to sell ownership shares to the public;
- Cooperative: a joint business venture created by several people who pursue the same goal.
The process of company formation in Georgia
You have to supply several documents to the House of Justice to register a company in Georgia. The documents include the following ones:
- A personal identification document such as passport or an equivalent document. If you would like to open a company in Georgia remotely, you have to issue a Power of Attorney to a trusted agent in the country and have it notarized.
- An application for company registration. The officer in the House of Justice will instruct you on filling out the application form.
- Memorandum and Articles of Association and company By-laws. These documents need to be signed by all company founders and notarized.
- A rent agreement for your company office. A company in Georgia has to have a legal address.
- A receipt confirming payment of the state duty.
When the company is registered, you can set up a corporate bank account in Georgia. You will also have to register the company with the tax authorities of the country. The local legislation does not require that companies deposit their registered capitals.
Basic facts about Georgia
Even though you can register a company in Georgia from the comfort of your home, we highly recommend that you visit the country in person. Georgia is a country with a long history, historic monuments, Black Sea beaches, mountain caves, and pristine nature. Besides, Georgian cuisine and Georgian wines are of exceptional quality.
The country is located in the Caucasus between the Black and Caspian Seas and it borders on Russia, Turkey, Armenia, and Azerbaijan. Georgia is considered a European country.
National currency in Georgia
The national currency in the country is the Georgian lari (GEL). You can easily exchange dollars or euros for laris when you come to Georgia. Bank cards are accepted almost everywhere except farmers’ markets. The lari exchange rate can fluctuate.
Things to do in Georgia
You should certainly visit the city of Borjomi where you will find a fantastic resort built in the European style. You can enjoy the fresh air, wonderful landscapes, and drink the local mineral water that is famous around the world for its curative properties. Several resorts on the coast of the Black Sea are also at your disposal.
You should start your trip, however, with going on excursions around Tbilisi, an ancient city and the capital of Georgia. The Old Town deserves particular attention as many historic buildings can be found there. Not far from Tbilisi, there are other ancient Georgian towns too.
You may also want to pay a visit to Tbilisi Sulphur Baths that offer a perfect opportunity to relax and rejuvenate. The bathing in the Sulphur spring is good for your nervous system and a massage will make you feel even better.
In the evenings, you can visit the local cafes and bars and try the locally made wines. Besides, the cuisine is fantastic in Georgia. It’s spicy but many dishes taste simply superb.
Beautiful nature, delicious food, fantastic wines, and a friendly business climate… Need you look any further?
