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Starting or managing a business in Georgia as a foreigner often brings up specific questions. To help you navigate the process, we’ve gathered answers to some of the most common queries we receive regarding company registration, banking, taxes, residency, and other legal aspects. Find quick answers below. For advice tailored to your unique situation, please contact us directly.
What's the easiest way for a foreigner to register a company in Georgia?
The most common and often easiest way is to register a Limited Liability Company (LLC). The process involves preparing basic documents (passports, proof of legal address), filing an application with the Public Registry, and paying a small fee. It can often be done within 1-2 business days, especially with legal assistance.
Can I register a Georgian company remotely without visiting Georgia?
Yes, remote company registration in Georgia is possible. You can grant Power of Attorney (PoA) to a legal representative (like our law firm) in Georgia who can handle the entire registration process on your behalf, including submitting documents and dealing with authorities.
What's the main difference between an LLC and an Individual Entrepreneur (IE) in Georgia?
The key difference is liability. With an LLC, your personal assets are protected from business debts (limited liability). As an Individual Entrepreneur, you are personally liable for all business obligations. LLCs are generally preferred by foreigners establishing a more formal business structure.
Is it difficult for foreigners to open a corporate bank account in Georgia?
It has become more challenging due to strict KYC/AML regulations. Banks require detailed information about the business, its owners, source of funds, and sometimes proof of local business ties (“economic substance”). Success often depends on proper documentation and clear communication.
What documents are typically needed to open a business bank account in Georgia as a non-resident director/founder?
Generally, banks require the company’s registration documents, director/founder’s passport (often requiring physical presence for verification), completed KYC questionnaires, and information about the business activity and planned transactions. Requirements vary slightly between banks.
Do I need a physical office, or can I use a virtual office / legal address service in Georgia?
A registered legal address in Georgia is mandatory for company registration. You do not necessarily need a physical office initially; using a registered legal address service (virtual office) is a common and accepted practice for fulfilling this requirement.
What is the corporate tax rate in Georgia for an LLC?
Georgia uses the “Estonian model.” Corporate Income Tax (CIT) is 0% on reinvested profits. A 15% CIT is paid only when profits are distributed (e.g., as dividends) or on specific non-business related expenses.
How does the Small Business Status (1% tax) work in Georgia?
This status is mainly available for Individual Entrepreneurs (and LLCs under very specific, limited conditions) with an annual turnover below GEL 500,000, engaged in permitted activities. It offers a simplified 1% tax on turnover but has limitations and is not applicable to all business types.
Can starting a business in Georgia help me get a residence permit?
Yes, investing in or running a business can be grounds for applying for a Georgian residence permit (e.g., investment or work permits). Specific requirements regarding investment amount, turnover, or employment must be met. Legal guidance is recommended for the application process.
What kind of legal services in Georgia do foreign entrepreneurs typically need?
Common needs include company registration, assistance with opening bank accounts, drafting contracts, obtaining residence permits, tax consultation, ensuring regulatory compliance, and acquiring necessary business licenses.
Do I need specific business licensing in Georgia for my activity?
Some business activities require special licenses or permits (e.g., financial services, gambling, pharmaceuticals, construction, tourism). It’s crucial to check if your specific activity needs business licensing in Georgia before starting operations.
Why is Georgia considered an attractive place to start a business?
Key attractions include the ease of business registration, low overall tax burden (especially the 0% tax on reinvested profits), strategic location between Europe and Asia, relatively low operating costs, and a developing, investment-friendly economy.
What are the ongoing compliance requirements for a Georgian company?
Basic ongoing requirements include maintaining a registered legal address, filing monthly/annual tax declarations (depending on tax status), adhering to accounting standards, and potentially submitting annual financial statements.
Is it necessary to hire a Georgian lawyer for company registration and setup?
While not legally mandatory, it’s highly recommended, especially for foreigners. A lawyer ensures correct documentation, navigates local procedures smoothly (including potential language barriers), helps avoid common pitfalls (especially with banking), and ensures full compliance, saving you time and potential future issues.
How can your law firm help me with business registration and legal issues in Georgia?
We provide comprehensive support for foreigners, including company registration (LLC, IE, Branch), securing a legal address, expert assistance with opening corporate bank accounts, obtaining residence permits, tax advice, contract drafting, and ongoing legal compliance support tailored to your business needs.
