Company Formation In Georgia Country
may Reduce your Tax to Nearly 0%
Company formation in Georgia Country is one of the World’s easiest corporate registration and incorporation procedures. Company registration in Georgia is easy, fast, and efficient. Set up a company in Georgia takes 2 or 3 business days. Register a company in Georgia Country also has relatively low registration fees.
Thanks to its innovative and dynamic business culture, Georgia has considerably simplified all its bureaucracy and taxation system. Companies benefit in Georgia from a fair corporate tax policy and simplified accounting. The Limited Liability Company is the most common form of a legal entity. Foreign investors can also create other types of companies with huge tax benefits: Individual Entrepreneurs with Small Business Status (1% tax), IT company LLC with Virtual Zone Status (5% tax), Free Zone Company, and International Company.
Georgia ranks 8th in the World Bank’s Ease of Doing Business report 2020
For ten years now, most of Georgia’s reforms have been oriented toward developing a free, open, and transparent private-sector driven market economy to improve the business process in Georgia. Georgia ranks 8th in the World Bank’s Ease of Doing Business report 2020. Georgia is one of the leading countries in the World in terms of company formation, dealing with the most simplified bureaucracy required to launch and operate a company.
Company formation In Georgia Country: the Limited Liability Company
The LLC (Limited Liability Company) is Georgia’s most common and popular form of business entity. Easy to manage, no minimum capital seed is required, foreigners can own an LLC fully and can set up an LLC remotely without traveling to Georgia. If you registeran LLC company in Georgia, you benefit from 15% Corporate Income, 5% Dividends Tax, and 0% if the profits are reinvested. Read more about LLC Company registration in Georgia here.
Set Up An LLC Company In Georgia: Key Facts To Know
- There is no minimum capital seed required to open your LLC in Georgia.
- One or more foreign owners/directors can own an LLC in Georgia.
- The Company Owner(s) and Director do not have to be Georgia resident(s).
- Employees can be Georgian or foreigners from any country.
- You are not personally liable for debts if the Company goes bankrupt or is sued.
Register an LLC company in Georgia: Key Tax Benefits
- 15% Corporate Income Tax
- 5% Personal Dividend Tax
- Wages are subject to a 20% withholding tax from the gross salary paid on behalf of the employees. An additional 4% is due if your employees are Georgian citizens or residents.
- 20% Personal Income Tax. If you work alone in your Company and pay yourself dividends, you do not have to pay Personal Income Tax – just the Corporate Income Tax of 15% and Dividend Tax of 5%.
- 18% VAT. If the gross amount of VAT taxable turnover during 12 calendar months exceeds 100,000 GEL, you must register your business as a VAT taxpayer to the Revenue Service of Georgia. You can voluntarily report to VAT to benefit from a VAT refund on your company purchases.
- 0%CIT. The Company’s profits are not taxed until they are distributed to individuals and not taxed if distributed to another Georgian resident legal entity or reinvested.
Company Formation In Georgia Country: The Individual Entrepreneur With Small Business Status
Freelancers, welcome to Georgia! Foreigners, residents, and non-residents benefit from special statutes granting them many advantages. If you want to set up a company in Georgia that you are the sole owner of, the Small Business Status offers incredible tax advantages!
The Status of Individual Entrepreneur in Georgia is designed for freelancers and self-employed individuals with a foreign source of income and anyone else operating or planning to operate a sole proprietorship business in Georgia. With this Status, if your gross annual turnover does not exceed 500,000 GEL (125,000€), you only pay a 1% tax!, and 0% if you make a turnover less than 30,000 GEL (7,500€).
Register An Individual Entrepreneur Company In Georgia: Key Points And Tax Benefits To Know
- Your annual gross turnover shall be between 30,000 GEL (7,500€) and 500,000 GEL (125,000€) to fully profit from the Small Business Status. You will then benefit from a 1% tax on your income.
- If your annual gross turnover is over 500,000 GEL, you will be taxed at 3% on your turnover for all income above this amount.
- The hiring of employees is allowed. In this case, a 20% withholding tax applies to the gross salary + 4% tax is due if your employee is a Georgian citizen or a person resident in Georgia.
- If your VAT taxable transactions exceed 100,000 GEL during any continuous 12 calendar months, in that case, you need to register as a VAT taxpayer immediately and pay 18 % VAT on all future transactions that qualify for VAT.
- Accounting is light. You need to keep a record of expenses designed for Small Business accounting.
- If your annual turnover exceeds 500,000 GEL for two consecutive years, Georgia will cancel your Small Business Status as of the following fiscal year. In this case, we advise to set up an LLC company in Georgia.
Set Up An Individual Entrepreneur Company In Georgia: How To Get The Small Business Status?
- Register an Individual Entrepreneur company in Georgia Country.
- You are the sole director of the business.
- Be Not on the list of excluded business activities.
- It is not necessary to be a permanent resident or citizen of Georgia to set up a company in Georgia Country.
Read more about the Individual Entrepreneur company granted with Small Business Status and how to set up such a company in Georgia.
Company Formation In Georgia Country: The IT Virtual Zone CompanyThe country’s leadership decided to create The Virtual Zone to improve Georgia’s IT technologies sector. Also known as the “Information Technology Zone”, this special Status allows a Georgian Limited Liability Company, whose activity is related to the IT field, to benefit from tax exemptions: 0% corporate tax, 0% VAT, and 5% tax on dividends when the distribution occurs. The only requirement is that the IT company provide its services and products to its clients outside Georgia’s territory. The Virtual Zone Status is a license allowing you to create and sell your IT products and software-based services worldwide in a tax-free regime.
Set Up An Virtual Zone Company In Georgia Country: How To Get The Virtual Zone Status?
- Register a company in Georgia Country (an LLC Company).
- Be on the list of authorized business activities.
- Apply for the Virtual Zone license to the Ministry Of Economics.
- Foreigners are welcome: It is not necessary to be a permanent resident or citizen of Georgia to set up a company in Georgia Country.
Register a company in Georgia granted with the Virtual Zone Status: Key Tax Benefits
- 0% Corporate Profit Tax (instead of 15%).
- 0% VAT on International Business Income.
- 0% Export Tax.
- 5% Tax on distributed dividends.
- The Virtual Zone Person or Virtual Zone Company director can be either a Georgian or Foreign person who can be physically located either in Georgia or abroad.
Company Formation In Georgia Country: The Free Industrial Zone CompanyWhile Georgia already has a very attractive tax system, the Free Industrial Zones offer incredible advantages to investors. Register a company in Georgia Country, in a Free Industrial Zone, create a tax and customs, legal and administrative environment that highly promotes the competitiveness of tenant companies on world markets. If you set up a company in Georgia registered in a Free Industrial Zone, you benefit from numerous tax and customs exemptions for your business expansion into the EU, CIS, Asia, and Middle East markets.
Register A Company In Georgia: Key Tax Benefits Of The Free Industrial Zone.
The Power of Zero!
- 0% corporate income tax
- 0% dividend tax
- 0% personal income tax
- 0% property tax
- 0% V.A.T.
- 0% foreign income tax
- 0% tax on import and export goods, raw materials, equipment and machinery, prefabricated and manufactured products
Set Up a Company In a Free Industrial Zone of Georgia Country
- Register a company in Georgia Country (an LLC Company)
- Be on the list of authorized business activities.
- Apply for the Free Industrial Zone license your company activity is subject to
- Foreigners are welcome: It is not necessary to be a permanent resident or citizen of Georgia to set up a company in Georgia Country and get the Free Industrial Zone License
- Read more about the Free Industrial Zone and how to set up such a company in Georgia.
Company Formation In Georgia Country: The International Company StatusStrategically located on the new silk routes between Asia and Europe, Georgia implemented a new international company status that brings interesting advantages for IT, logistics, and shipping companies. The corporate income tax rate for these companies is 5% (instead of 15%). Wage tax is reduced to 5% instead of 20%. In addition, withholding tax on dividend distributions is 0% instead of 5%.
Register A Company In Georgia: Key Tax Benefits Of The International Company Status
- 5% Corporate Profit Tax (instead of 15%).
- 0% on Dividends (instead of 5%).
- 0% VAT on International Business Income.
- 0% Export tax on exports.
- 5% tax applies to the gross salary of your employees (instead of 5%).
- 0% CIT. The Company’s profits are not taxed until they are distributed to individuals and not taxed (0%) if distributed to another Georgian resident legal entity or reinvested.
Set Up A Company In Georgia Country With The International Status
- Register a company in Georgia Country (an LLC Company).
- Be on the list of authorized business activities for this Status.
- Apply for International Status to the Ministry Of Economics.
- Foreigners are welcome: It is unnecessary to be a permanent resident or citizen of Georgia to set up a company in Georgia Country and get International Company Status. The founder-s and Shareholder-s can be citizens of Georgia, foreigners, residents, or non-residents. And they do not have to visit Georgia to register a company in Georgia
Why Should You Consider To Register A Company In Georgia Country?Bathed by the beautiful Black Sea landscape, Georgia has undergone a stunning transformation in the last twenty years. Situated in a strategic location between Orient and Occident, this very liberal and safe country has become an attractive destination in just a few years, whether as a place to live or as a base to conduct business locally or internationally. At the top of many international indexes, such as the World Bank’s Ease of Doing Business, Georgia is considered one of the most business-friendly and open countries in the World. Its territorial tax system and low taxes for both individuals and companies, the absence of bureaucracy, its efficient banking system, and its integration into the European and Middle Eastern markets are all assets sought after by the connoisseurs who want to set up a company in Georgia. In addition, Georgia has become an extremely dynamic tourist destination, and more and more visitors are visiting this jewel that was almost unknown a few years ago. Do you really want to set up a company in Georgia Country? Get a consultation with one of our advisers.
How Fast Is A Company Registration In Georgia?Thanks to its bureaucracy reduced to the minimum, you can set up a company in Georgia (LLC) in one up to three business days.
What Are The Requirements For A Company Formation In Georgia?To set up an LLC company in Georgia (a Limited Liability Company is the most common legal entity), you shall submit the required documents to the Public Service Hall. To register a company in person, physically, you need to provide P.S.H. with the following documents:
- Your main business activity is defined in the Company Charter
- Passports of the owner(s) and director(s)
- Company charter (usually a bi-lingual charter Georgian-English)
- A Legal Address
- A phone number (Georgian or foreign number)
- An email address
Can You Register A Company In Georgia, Remotely?Your physical presence is not required to set up a company in Georgia Country, whether an LLC, or an Individual Entrepreneur company. You can register your Company in Georgia at distance. Thanks to your Power of Attorney, your representative in Georgia can carry out all the necessary steps for your company registration on your behalf, including the Revenue Service registration.
Can You Open A Business Bank Account For Your Company In Georgia?After your company registration in Georgia, you will need a corporate bank account. Happy Georgia will introduce you to the Bank Manager of one of our Partner banks if you want to open a corporate bank account. We will work with you to ensure that the KYC will be submitted correctly to the Bank to make the opening process management smooth.
Can You Open A Business Bank Account Remotely?Your physical presence is not required to open the corporate bank account of your Company in Georgia. By giving a Power of Attorney to your Trustee, he can carry out the entire opening procedure on your behalf.
Happy Georgia Helps For Your Company Formation In Georgia Country.Our service includes full assistance. We will be with you during the company registration process and advise you on the best solution. Typically, a company formation in Georgia takes 2-3 business days to incorporate. We will help you register your new Company to the Revenue Service of Georgia and introduce you to the Bank to open your corporate account. Ready to set up a company in Georgia? Get a consultation with one of our advisers.
Georgia Country Is A Strategic Bridge Between Ones of the Most Powerful Economic Zones in the WorldAs a gateway between Europe and Asia and a strategic passage for exchanging goods, Georgia’s economy is highly integrated into these main international markets and leading economies. Georgia is only nine days away from China by rail. And it takes another two days to deliver export goods to Europe. Thanks to its strong network of Free Trade Agreements, Georgia Country has access to a market of 2.3 billion consumers without any customs duties. These free trade regimes are in full force with China (including Hong Kong), Turkey, CIS Countries, and EFTA countries (Iceland, Norway, Switzerland, and Lichenstentein). Georgia has also signed a Deep Comprehensive Free Trade Agreement with the EU and a GSP Agreement with the United States, Canada, and Japan.
Georgia Is One Of The Most Business Friendly Countries WorldwideIn addition to its stable policy that creates a transparent and open business environment, Georgia offers many other advantages if you want to set up a company in Georgia. Georgia has a reliable banking sector and a low tax burden, which gives Georgia the reputation of being a highly business-friendly jurisdiction. Georgia is intensively developing its transport infrastructure.
Georgia Country Business Friendly Keys: Georgia ranks 8th in the World Bank’s 2020 Ease of Doing Business reportFor ten years now, most reforms implemented in Georgia have been oriented towards developing a free, open, and transparent business environment led by the private sector. Georgia has simplified its bureaucracy drastically to set up a company and manage a business.
- Starting a Company In Georgia Country 1 day vs. 9,2 days in OECD High-Income Countries (Average)
- Registering a Property in Georgia 1 day vs. 23,2 days
- Getting Construction Permit in Georgia Country 63 days vs. 152,3
- Georgian Administration is very accommodating, and accounting is ultra-simplified.
Georgia Offers Many Other Advantages
- The labor legislation is very liberal and offers flexible employment conditions and competitive salaries. (average monthly salary of USD 422).
- Georgia enjoys a cheap energy price.
- A Low-Tax country. Georgia ranks among the Top 10 lowest taxed economies worldwide for companies and individuals. Number of Tax 5 vs. 10,3 in OECD High-Income Countries (Average)
- Georgia Country is a financial hub. The Georgian banking sector is ultra-modern and reliable.
Georgia Is A Low Tax CountryAccording to the World Bank Report 2019, Georgia is one of the lowest taxed economies worldwide, standing in the 8th position. To achieve this competitiveness, Georgia provides many highly beneficial tax incentives for individuals, investors, and companies. Georgia has a flat rate tax system: it means that the tax rate doesn’t depend on the amount of income the taxpayer receives, but the same rate applies to all taxpayers falling under the subject of a tax. That’s why many investors want to register a company in Georgia.
Georgia Is The Only European Country With A Territorial TaxationBesides being a low-tax country, Georgia is the only European country with a territorial taxation regime. It means that Georgia taxes only local-source income instead of taxing individuals’ worldwide income (foreigners, residents, or non-residents). If appropriately structured, income from non-Georgian sources received by individuals residing in Georgia is fully exempt from taxation. Georgia is an exciting country to establish a tax residency, whether you are a digital nomad, e-commerce business owner, trader, and passive income owner. Dividends received from a non-resident company or pensions from abroad are not taxed either. Local-source Personal Income is taxed at a flat rate of 20%. Here again, special statuses, such as Small Business Status, the Virtual Zone, and the International Company, make it possible to reduce this tax burden by between 1% and 5%.
Georgia Is One Of The Most Open Countries WorldwideGeorgia is one of the most open countries in the World. Citizens of more than 100 countries may reside or work in Georgia for no more than one year without getting any visa or residence permit. During this one year, foreigners are allowed to stay. They may start an economic activity or register a company, enabling them to apply for a residence permit. It is unique in the World and shows Georgia’s progressive policy toward immigration.
A Visa-Free To Attract FDI In Georgia
- Visa-Free Regime with more than 100 Countries, including the European Union, North America, and the United Arab Emirates. You can live in Georgia for one year without any restrictions. A foreigner can work or set up a company in Georgia.
- 6th Safest Country in the World (Numbeo Crime Index 2020)
- Georgia is ranked 12th on Index of Economic Freedom 2020
- The media are free, and Georgia’s freedom of expression is a fundamental right.