Corporate Bank Account Opening In Georgia
Georgia’s ultra-modern banking system supports companies’ growth and business development projects.
Georgian financial institutions are open to an international corporate clientele who wish to diversify their activities and assets in Georgia.
Business owners will follow a few requirements to open a corporate bank account in Georgia. Georgian banks want to follow the OECD guidelines. The bank will carry out Know Your Customer’s due diligence and the Ultimate Beneficiary Owner.
Why Does A Legal Entity Need A Corporate Bank Account Opening In Georgia?
Georgian law does not require a Legal Entity to have a business bank account to conduct transactions.
A legal entity needs to open a corporate bank account in Georgia if this company:
- Accepts or makes card payments
- Have employees
- Do physical operations in Georgia.
Also, a physical corporate bank account is mandatory for companies registered for VAT. You will need it to fill out tax returns and pay business taxes to the Georgian Revenue Service.
Why Does A Legal Entity Need A Corporate Bank Account Opening In Georgia?
A standard Georgia corporate bank account opened at one of the physical banks in Georgia provides the following main points:
Business Debit Cards
They allow the company and its employees to make business purchases.
Receive Income From Your Business
In GEL, but also in USD, EUR, or GPB if you receive payments from your foreign customers.
PoS Terminal
Accept card payments in person. Some terminals can also register cash payments.
Pay VAT & Tax Duties
Suppose your company is a VAT payer. A physical Bank Account is mandatory to pay the Revenue Service. This corporate bank account in Georgia is required for any tax refund.
If Your Company Receives Card Payments
In theory, a corporate bank account opening in Georgia supports online card payments. In practice, only a few businesses (especially those accepting international cards) will take advantage of this service in 2022. The National Bank of Georgia’s banking regulations is under development on these matters. This online payment service should come in force at the beginning of 2023.
Prove Your Turnover To Get A Residency Permit
You can use this corporate bank account as proof of turnover to get a residency permit through your business activity.
Corporate Bank Account Opening In Georgia For Individual Entrepreneur
Individual Entrepreneurs (I.E.) can receive the income generated by their Individual Enterprise in any bank account opened in their name or their Individual Enterprise’s name.
As an Individual Entrepreneur (I.E.), your business is attached to you as an individual. Thus, Individual Entrepreneur, can accept business income into their personal account in Georgia.
Open Two Personal Accounts In Georgia
Separating your Individual Entrepreneur, business income, and personal transactions is advisable. Opening two personal bank accounts is wise to distinguish your business transactions from your private transactions.
Individual Entrepreneur Bank Account and Revenue Service (R.S.)
For Individual Entrepreneur, a personal bank account connected to the R.S. is enough as long as the name of the I.E. matches the name of the personal account opened in the Georgian Bank.
Advantages Of A Personal Bank Account In Georgia For Individual Entrepreneur
For Individual Enterprises, a personal bank account works the same way as any other.
Easy Opening
Much easier to open than a corporate bank account opening in Georgia.
Easy Cash Payment
Receive cash payments through cash machines throughout Georgia. It avoids the mandatory requirement of having a cash register to receive money.
Receive income in GEL, USD, EUR, or GBP.
You can receive or send transfers in many currencies. Your account come with GEL, USD, EUR, and GBP. You can add other currencies on request.
Debit Cards
You can use debit cards in your name to pay for expenses and online purchases.
Separated Accounts
Business income and expenses are separated from your finances.
Good Banks, Good E-banking Services
Banks in Georgia provide you with comprehensive online e-banking services.
FAQs About Corporate Bank Account Opening In Georgia
There are many banks in Georgia. TBC and Bank of Georgia (BOG) are the two largest commercial banks in the country. Popular among foreigners, TBC and BOG (Bank of Georgia) have a significant presence throughout Georgia. You will find branches of these banks everywhere.
They offer roughly the same services to companies. For practical reasons and to avoid inter-bank complications in Georgia, opening your personal and corporate bank accounts in the same bank is more interesting. Having your personal and corporate accounts in one bank will make your banker’s work easier and avoid certain problems.
Happy Georgia is one of the leading companies in corporate bank account opening in Georgia. We have a great experience in this field.
Our corporate bank account opening service is not just a mere introduction to the bank. Depending on the bank’s compliance and the complexity of your business structure, we help you understand and provide business details, commercial information about your business model, and revenue sources that a Georgian bank wants to know to approve your corporate bank account application.
Happy Georgia’s banking expert helps are here to help you. You can contact us anytime and get our advice.
Opening a business bank account usually takes more time than opening a personal account. We need to appropriately provide the bank with a business model and business plan forms and the bank account’s purpose/use that a Georgian bank wants to know to approve your business bank account application.
Typically, a Corporate Bank Account Opening in Georgia takes an average of 5 working days up to 15 working days.
Yes, you can. Your physical presence is not required. Suppose you wish to open a remote bank account in Georgia. In that case, you can give a Power of Attorney to your Trustee in Georgia. Your attorney can carry out the whole bank account opening procedure on your behalf.
Only U.S.A citizens who hold foreign bank accounts must share bank account information (limited to annual balances) via the FATCA agreement.
For others, note that Georgia is not a Common Reporting Standard (CRS) member and does not share your bank account information with anyone. However, Georgia should implement this standard by September 2024 or 2025, maybe later.
Suppose Georgia becomes a CRS member in the coming years. In that case, All CRS member countries could obtain specific financial information from your Georgian bank account upon official request from the Georgian governmental departments, tax authorities, and the National Bank of Georgia and vice-versa.