Georgia is a country located at the crossroads of Eastern Europe and Western Asia. It is known for its rich history, diverse culture, and stunning landscapes. Georgia has experienced periods of independence and foreign domination throughout its history, which have contributed to its unique identity and blend of cultures.
Georgia is situated in the South Caucasus region, bordered by Russia to the
north, Azerbaijan to the southeast, Armenia to the south, and Turkey to the southwest. It also boasts a
coastline along the Black Sea to the west. The country’s strategic location has made it a key player in
regional politics and trade routes.
Size and population:
Georgia covers an area of approximately 69,700 square kilometers (about 26,900
square miles). The country has a population of around 3.7 million people, with Georgian being the
Georgia employs a civil law legal system based on the constitution adopted in 1995.
The country has made significant efforts to improve its legal system and combat corruption, aiming to
attract foreign investment and establish a strong and stable business environment.
Georgia has developed a modern and efficient banking system that has contributed to the country’s economic growth. The banking sector is renowned for its stability and innovation, attracting foreign banks and investors. The country has also been proactive in adopting financial technologies, making
services such as online banking and digital payments widely available.
Georgia has adopted a favorable tax regime that aims to attract foreign investment and promote economic development. One of the key features is the low corporate income tax rate, which has been set at 20%.
Corporate tax rates range from 0 – 20%
Value Added Tax (VAT) is 18% (applicable only in certain cases).
Free Trade Agreements:
Georgia has signed various free trade agreements that contribute to its economic openness and international integration. The country is a member of the World Trade Organization (WTO) and has free trade agreements with the European Union (EU) and several other countries. These agreements provide businesses with preferential access to key markets, stimulating trade and investment.
Company formation in Georgia
An attractive tax system, a business-friendly environment, a pleasant climate, and hospitable people make Georgia an ideal destination for entrepreneurs. Registering a business in Georgia is a straightforward process, and the tax and reputation benefits for owners are tremendous.
Why should you register a company in Georgia?
Quick and easy registration process – the registration process takes up to 7 days. The same applies to companies registered using a Power of Attorney.
Low corporate tax rates – Depending on the type of business, the corporate tax rate can vary from 0% to 20%. Companies are fully exempt from taxes on certain activities in Free Zones. Special tax advantages apply to IT companies (5% tax), small businesses (1% tax), and sea shipping (5% tax). In general, even a regular limited liability company (LLC) does not pay any tax on corporate income unless distributing dividends.
No Restrictions on Foreign Ownership or the Number of Directors – There are no restrictions regarding ownership of a company in Georgia. A company can be owned by Georgian nationals, foreign citizens, or both simultaneously. The owner of a Georgian company can also be a legal entity
registered outside of Georgia. Additionally, a foreign shareholder in a Georgian company can serve as its director. A company can have either one director or multiple directors sharing responsibilities.
No Minimum Capital Requirement – A company may be registered in Georgia without any capital injection.
Remote Company Formation – Setting up a company in Georgia does not require physical presence, as the company can be registered via Power of Attorney.
Over 56 Double Taxation Avoidance Treaties with different countries – Georgia has double tax avoidance agreements with over 56 different countries. These treaties enhance the attractiveness of Georgia's tax benefits.
Steps for Company Formation in Georgia:
1) Consultation and Document Collection
At this stage we need to:
1) Determine the form of the legal entity best suited for your business
2) Choose a company name
3) Provide information on the founder(s) and the director(s)
4) Specify the legal address of the company
1) Passport(s) of the founder(s)/director(s)
2) Power of Attorney
2) Company Registration and Bank Account.
Company registration is typically completed within 7 days from the receipt of all required documents.
Opening a bank account can be done in just two working days.
You have the flexibility to manage your company from anywhere in the world. Additionally, we offer a range of services, including accounting, legal, and other business support services, to assist you further.