When considering company formation, Georgia emerges as a strategic jurisdiction that offers a myriad of opportunities for businesses. Register a company in Georgia can prove to be an exceptionally favorable solution for specific business purposes. This country is known for its business-friendly environment, therefore company registration in Georgia has become an increasingly attractive option for entrepreneurs seeking international expansion. The jurisdiction not only welcomes non-residents but also positions itself as an IT hub, implementing positive reforms to facilitate the growth of IT businesses.
Georgia company registration has several key advantages:
While Georgia offers a host of advantages, it's crucial to approach this option with care. Consulting a legal expert becomes important to gain insights into the jurisdiction and receive guidance on the intricacies of how to register a company in Georgia and enjoy the key benefits provided by the country effectively.
Georgia is a nation uniquely positioned at the crossroads of Europe and Central Asia. Its strategic location has made it a link in the transit of oil, gas, and dry cargo, serving as a crucial route connecting Western Europe and Central Asia. This strategic importance has contributed to the country's prosperity and also made it an attractive location for company formation in Georgia. In 2014, Georgia took a significant step forward by signing an Association Agreement with the European Union, marking a commitment to deepen ties and foster cooperation. This agreement, effective from July 2016, reflects Georgia's dedication to aligning itself with European values and standards. Georgia boasts a robust infrastructure that facilitates trade and connectivity. The country features four major ports—Poti, Batumi, Kulevi, and Supsa—along with six airports, including Tbilisi, Kutaisi, Batumi, Mestia, Ambrolauri, and Natakhtari. The extensive railway network spans 1,992 km, complemented by an international state road network covering 5,298 km. In terms of legal and regulatory frameworks, Georgia excels on the global stage. As of 2022, the country holds the 49th position among 139 nations evaluated in the Law Index, securing the top spot regionally among 14 countries. Additionally, Georgia stands out in safety, ranking 15th among 142 countries globally. Its commitment to fostering a conducive business environment is evident in the World Bank Doing Business ranking, where Georgia secures an impressive 7th place among 190 states. Highlighting its economic policies, Georgia ranks 35th among 176 countries in the Economic Freedom Index as of 2022. This consistent positioning in global rankings underscores Georgia's commitment to creating an infrastructure-rich, legally sound, and economically vibrant environment for its residents and businesses alike. All these factors contribute to its attractiveness for company registration in Georgia.
The key advantages of a Georgia company registration are described below:
Choosing InteliumLaw for your company registration in Georgia comes with a range of benefits tailored to meet your unique business requirements. Our experts offer personalized assistance and guidance throughout the entire process, ensuring a seamless and successful Georgia company formation. Here's what you can expect:
By choosing InteliumLaw, you not only gain a reliable partner for your company registration in Georgia but also access a wealth of expertise aimed at optimizing the benefits for your business in Georgia.
Selecting the right business structure is a crucial decision that impacts various aspects of your enterprise, from tax obligations to legal responsibilities. When register a company in Georgia, businesses can choose from several types of entities, each with its own set of advantages and considerations. Here are the primary types of companies in Georgia:
Each type of company in Georgia comes with its own set of advantages and considerations. The choice depends on your business goals, the level of personal liability you're comfortable with, and the desired tax structure. InteliumLaw can provide insights and guidance to help you with make an informed decision based on your specific needs and register a company in Georgia.
Registering a company in Georgia involves providing specific documents and information to ensure a smooth and legal process. Here are the essential requirements:
Additional Documentation: passport copies of representatives from both the Georgian and foreign companies.
Ensuring that all necessary documentation is accurately prepared, certified, and submitted is crucial for a successful company registration in Georgia. InteliumLaw provides comprehensive support and guidance to streamline this process for businesses seeking to establish themselves in Georgia.
The company formation in Georgia involves a systematic process to ensure legal compliance and a smooth establishment. Here are the key steps in the Georgia company formation process:
Engage in preliminary consulting with InteliumLaw experts. Our team will assess your business needs, evaluate the suitability of Georgia as a jurisdiction, and provide comprehensive guidance on the Georgia company formation process.
Collect all necessary documents and information required for the Georgia company registration. This includes details about your planned business activities, key markets, potential counterparties, as well as personal documentation for the beneficiary and representatives.
InteliumLaw will assist in drafting all necessary legal documents, including the Articles of Incorporation, resolutions, and any other required paperwork. Our expertise ensures accuracy and compliance with Georgian regulations during the company registration in Georgia.
Once all documentation is in order, the application for company formation in Georgia is submitted. This includes submitting the necessary paperwork to the relevant authorities for review and approval.
Upon approval, the company is registered with the Revenue Authorities in Georgia. This step is crucial for ensuring that the new entity is recognized for taxation and legal purposes.
InteliumLaw takes a hands-on approach throughout the entire company formation in Georgia, providing support at every stage to ensure a seamless and legally sound establishment of your business in Georgia.
In addition to the standard legal and regulatory compliance for company registration in Georgia, businesses have the option to benefit from two special regimes, enhancing their operational and tax advantages:
The Virtual Zone Entity status, defined by the Ministry of Finance, covers activities related to the research, development, support, design, production, and implementation of computer and information systems. Directorship: The director of a VZE can be a Georgian or foreign person, located in Georgia or abroad, managing the company's activities and bank account through internet and mobile banking. No Staff Requirement: No legal requirement to maintain employed staff in Georgia, except for the company's director.
Tax Exemptions: Income generated by a VZE is exempt from both VAT (18%) and corporate income tax (15%) when the services are provided to foreign customers outside Georgia. Dividend Tax: Dividends distributed to shareholders, whether physical persons or non-resident legal entities, are subject to a 5% Georgian tax, payable at the time of distribution. Dividends paid to a Georgian shareholder are not included in their taxable base.
Eligibility Criteria: Companies in the IT and Maritime sectors may qualify for tax breaks under the International Company Status. The applying company must derive at least 98% of its annual revenue from allowable sectors. Operational Experience: The company must operate for more than 2 years in the designated sectors and be a Georgian enterprise or represent a foreign enterprise as a branch or subsidiary. Ownership and physical substance in Georgia are also required.
Tax: Companies with International Company Status enjoy various tax benefits, including: Corporate Income Tax: 5% instead of the standard 15%. Salary Income Tax: 5% instead of the usual 20%. Dividend Income Tax: 0% instead of the standard 5%. VAT on Services Abroad: Exempt, making the delivery of services in a foreign country not subject to VAT. Property Tax (other than land): Exempt.
These special regimes contribute to the attractiveness of Georgia for businesses seeking favorable tax environments and strategic advantages. InteliumLaw can guide you through the process of securing these advantageous statuses, ensuring compliance with legal requirements.
From January 1, 2017, Georgia transitioned to a new Corporate Income Tax (CIT) system, aligning with the Estonian model. Under this system, retained profits are not immediately taxable until they are distributed. The objective is not to exempt profits but to defer the taxation moment. Instead of calculating taxable gross income and allowable deductions, a flat CIT rate of 15% is applied to the grossed-up value of specific transactions, including:
This streamlined approach simplifies the tax calculation process for businesses and contributes to a more transparent and efficient taxation system. In addition to the general CIT system, Georgia offers special tax regimes that cater to specific business needs, providing flexibility and tailored financial considerations. These special regimes include, among other, Virtual Zone Company (VZE) and International Company Status that we described for you above. InteliumLaw's expert guidance ensures that your company optimizes tax benefits and financial efficiency in Georgia.
Whether you are entering the IT sector, exploring the maritime industry, or venturing into other fields, Georgia provides a conducive environment for growth. InteliumLaw is here to guide you through the process, offering expertise, insight, and support for a successful Georgia company registration. Contact us today, and let's embark on the journey of starting and growing your business in Georgia. Your success is our priority.
The cost of registering a business in Georgia can vary depending on the chosen legal structure and additional services required. For detailed information and personalized cost estimates, it is recommended to consult with InteliumLaw.
Yes, Georgia welcomes foreign nationals and non-residents to register a company in Georgia. There are no restrictions on foreign ownership or corporate governance, making it an attractive option for international entrepreneurs.
Choosing the right company structure involves considering factors such as business goals, tax implications, and liability. InteliumLaw provides expert guidance to help you select the most suitable structure tailored to your business needs for company incorporation in Georgia.
The company formation in Georgia typically takes a few days. This includes the establishment of a legal entity, registration with the National Revenue Agency, and other necessary procedures.
Legal requirements for company formation in Georgia include providing information on planned business activities, key markets, potential counterparties, and submitting necessary documents. InteliumLaw offers comprehensive support to ensure compliance with all legal requirements.
The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.