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Company Formation in Georgia

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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 Business Environment

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.

Why Choose Georgia for Company Formation?

The key advantages of a Georgia company registration are described below:

Services we offer for Company Formation in Georgia

Benefits of company registration in Georgia with InteliumLaw

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.

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Types of Companies 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.

Requirements for registering 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:

For Parent Company:

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.

Georgia Company Formation Process

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:

Preliminary Consulting:

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.

Gathering Documents and Information:

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.

Preparing Drafts:

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.

Submission of the Application:

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.

Registering with Revenue Authorities:

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.

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Georgia company registration: Companies with special status

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:

Virtual Zone Company (VZE) in Georgia:

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.

International Company Status in Georgia:

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.

Company registration in Georgia: Taxation

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.

Ready to Start Your Business 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.

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FAQ

How much does it cost to register a business in Georgia?

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.

Can foreign nationals or non-residents establish a company in Georgia?

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.

How do I choose the most suitable company structure for my business?

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.

How long does it take to complete the company formation process 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.

What legal requirements do I need to meet for company formation in Georgia?

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.

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Incorporation of Companies Abroad

Business registration abroad

The main task of every entrepreneur is the development of his business. And the main condition for the realization of this goal has always been an increase in sales. A successful solution will be to increase profitability thanks to entering the foreign market. And for this, an entrepreneur must understand how to open his own company abroad so that it fully meets the requirements of the local legislation. Advantages of registering a company abroad Registering an enterprise in another country has many advantages. Many states care about attracting entrepreneurs from other countries. Therefore, the local government introduces special privileges and creates the most loyal conditions for the activities of foreign companies. The modern market dictates new conditions to entrepreneurs. One of the main trends in it is a very high level of competition. Therefore, company owners are often forced to enter foreign markets in order to be able to continue business development and increase profitability. Sometimes the choice of a foreign jurisdiction for conducting business may be determined by the specifics of the business itself and its regulation in the relevant state (for example, obtaining licenses). Among the main benefits for entrepreneurs, the following can be noted: selection of a jurisdiction with optimal conditions and legal basis for the company; an opportunity to attract more investors; increasing the number of buyers and clients; the ability to find markets with minimal competition; the opportunity to use benefits from the state; favorable taxation systems. When a business owner chooses a jurisdiction, it is important for him to consider all the nuances of the company’s activities. For some, the most important are the registration deadlines and the absence of bureaucratic complications. For others, the most important thing is a wide range of registration forms. Some businessmen are looking for opportunities to remotely manage and open virtual offices. For some, a loyal taxation system is a priority. Most often, favorable competitive conditions are offered in Asian countries. Incompletely developed markets make it possible to bring the company to a fairly high level of profitability in a short period of time. Also, in Asian countries, you can count on the provision of various grants and loans on preferential terms. Each Asian country offers different conditions. For example, in Malaysia, entrepreneurs will have the lowest costs for establishing and developing a business. In general, the costs of maintaining a company here are among the lowest. The markets of European countries are already fully developed. But businessmen in this region are most attracted by the stability of the country’s economy, protection by local legislation, as well as the jurisdiction’s reputation in the eyes of potential partners. How to quickly and easily open a company abroad? It is quite difficult to implement this task on your own. Help will be needed even at the initial stage – during the selection of a jurisdiction. After all, how efficiently your company will work in the future depends on this. Our company performs Incorporation of Companies Abroad on optimal terms. Professionals will analyze your company’s activities and select the state with the best conditions. At the same time, they necessarily take into account all the wishes of the customer and the peculiarities of local legislation. Our experienced lawyers know all the nuances of this procedure. Therefore, business owners do not have any problems with the preparation of documents or obtaining the necessary permits. By contacting our company, you will not only get a great opportunity to scale your business, increase profits and reduce costs, you will relieve yourself of troubles when performing these tasks. Our specialists will provide professional support and help you achieve the desired result. Leave Us A Message And we wil get back to you Contact Us Our cases Other services Leave a request for a service The accumulated experience and tracking of future changes in this area allow us to be proactivefor our clients and develop the most adapted business structures to modern conditions. By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.

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Bank and merchant accounts opening

Inteliumlaw has a developed network of foreign banks and non-banking financial institutions, as well as payment aggregators around the world to offer our clients tailored Payment Solutions for Business. We help our clients with the selection of an institution for opening an account that meets their goals and wishes and fully support the account opening process, including bank compliance stage. We provide services for opening personal and corporate, current, savings and wealth management accounts, merchant accounts, accounts in crypto-processing, which allow our clients to accept payments in crypto-currencies. Corporate accounts well-functioning Corporate Bank Account is an important element for any type of businesses, regardless of jurisdiction or industry. Company exists only on paper if it does not have a bank account. It could not be a fully-functional market participant, conduct its activities, accept incoming and make outgoing payments, accumulate earned funds, and distribute profits. Even working with cryptocurrencies, in order to organize transparent activity of your business, increase economical substance, etc. your company will need a bank account, as well as solutions allowing processing of crypto-payments on your web-site and conversion of cryptocurrencies into fiat. Based on the analysis of your business, our firm will advise you on payment solutions the most suitable for your business needs and help you to Open Bank Account with a Foreign Bank. It could be a traditional account with a foreign bank and/or account with non-banking financial institutions (Electronic Money Institutions, Payment Institutions), integration with payment aggregator or crypto processing. Process of opening accounts in banking institutions is becoming an increasingly complex. Banks are ready to consider the most transparent businesses with a low-risk level, in particular traditional offline businesses. The nexus approach becomes more popular, as a result just limited number of banks accept foreign companies (not incorporated in/tied to the country of bank location). Given all the difficulties with opening accounts in traditional banking institutions, accounts in non-banking financial institutions (EMI or PI) are considered as solutions for online businesses – software companies, eCommerce, digital marketing, online gambling and others. At the same time, it should be noted that due to the tightening of global legislation in the field of combating the financing of terrorism and money laundering, passing the Know Your Client (KYC) procedure during the acceptance of clients has become more difficult not only in banks but also in non-banking financial institutions. To open an account, it will be important for the client to show the business plan for the project / business, justify the source of wealth for the business and beneficiaries, ideally, disclose the experience in the chosen business field, the planned first contracts with clients, and so on. Inteliumlaw will be happy to assist you with selection of a relevant payment solution for your business, support the process of account opening and make it to the extent possible smooth and easy. If you have any questions or require assistance, please contact our specialists. Personal bank account Opening personal accounts in reliable banking jurisdictions for the placement of distributed profit, saving and disposing of personal funds is a matter of particular importance that every business owner faces. The choice of a bank in this case can significantly affect the level of asset protection. Depending on the goals pursued by the client, it is possible to open two types of accounts: current account and savings account. It should be note that today only few banks are ready to consider foreign clients for the purpose of current accounts opening. In this regard, accounts in non-banking payment institutions (Electronic Money Institutions, Payment Institutions) are becoming increasingly popular, which, due to their functionality, can fully replace ordinary banks. Savings accounts It should be note that today only few banks are ready to consider foreign clients for the purpose of current accounts opening. In this regard, accounts in non-banking payment institutions (Electronic Money Institutions, Payment Institutions) are becoming increasingly popular, which, due to their functionality, can fully replace ordinary banks. Today, the process of personal account opening is no less complicated than the process of opening a corporate account. Banks carefully check the candidacy of potential clients within the KYC procedure. Among others, the key aspects of the research are the source of origin of clients’ funds, its history, reputation, etc. If you are interested in opening of a personal current or savings account, please contact our specialists, we will be happy to help you with your query. Leave Us A Message And we wil get back to you Contact Us Other services Leave a request for a service The accumulated experience and tracking of future changes in this area allow us to be proactivefor our clients and develop the most adapted business structures to modern conditions. By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.

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Ongoing Legal Support

The activities of any company must comply with the current legislation. It is difficult to imagine all processes without legal business support. The specialists of Intellium Law know all the peculiarities of work and legal regulation of various areas of business and have extensive experience in legal support of IT, gambling, e-commerce, cryptocurrency business, production, trade, restaurant business, telecommunications business, investment business, real estate business and other areas. This allows our specialists to provide high-quality business legal support services to companies of any size and form of ownership. Legal support and business protection: what is it? Complex legal support of business involves a whole series of measures aimed at supporting business in compliance with the necessary regulations. It also allows you to prevent and reduce legal and tax risks, protect the capital and interests of the owners of the company/group. The procedure involves legal management of operational activities, verification of counterparties, agreements and documentation. By agreement, legal support may include participation in the company’s litigation, which, in most cases, is not included in the usual package. Many business owners prefer to have an in-house lawyer. But subscription legal business support from law firms offers more advantages. Here are the most famous of them: Cost reduction. Usually, the services of a third-party firm are cheaper than paying the salary of an in-house lawyer on an ongoing basis. Collective support. One specialist will not be able to perfectly understand all the nuances of each process. A team of professionals will cope with any tasks much better. Diligence. One lawyer cannot always cope with a high workload and keep track of all changes in legislation. Speed. The team will be able to cope with a much larger volume of work in a shorter period of time than one specialist. Quality. Usually, in law firms, any task goes through several levels of review from a junior to a senior specialist and final approval by partners. In what cases are business legal support services required? Running a business without subscription legal service and support is a very risky activity. After all, the company carries out activities with a constant risk of violating the current law and is legally unprotected. Therefore, it should be emphasized that legal support of small businesses, medium and large enterprises is a daily necessity. The service of legal support for business purchase and sale agreements and investment projects is also very popular. In this case, the buyer has confidence that the company’s activities comply with the current laws and the criteria stated by the seller, and that the investment asset is properly registered and will not create any legal/tax risks for the investor. Leave Us A Message And we wil get back to you Contact Us Other services Leave a request for a service The accumulated experience and tracking of future changes in this area allow us to be proactivefor our clients and develop the most adapted business structures to modern conditions. By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.

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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.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.

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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.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.