Company Registration in Georgia Made Effortless with 3E Accounting

Company Registration in GeorgiaGeorgia is located in the Caucasus. It has a reputation as a strategic and historic trading center at the crossroads of trade and commerce between Asia, the West, Russia, and the Middle East. The real bridge between these major geopolitical groups, Georgia is ideally positioned to access these major markets and now benefits, thanks in particular to the treaty signed in 2015 with the European Union (EU), from direct access to a market of nearly one billion people. Its innovative and dynamic business culture opens Georgia to foreign investment. As well as offering a welcoming environment for investors who intend to incorporate a company in Georgia, in any economic field.

In addition, it has one of the simplest registration procedures and low fees as well. The various entities, as well as the company registration in Georgia, will be explained in further detail.

 

The Things to Consider for Company Registration in Georgia

There are a few different business entities you can choose from. There are three types which will be broken down below.

Limited Liability Company (LLC)

  • The incorporation of an LLC requires the appointment of one shareholder and one director. They can be foreigners living outside of the country.
  • Takes approximately 1 week for incorporation.
  • A virtual office is sufficient, there is no need for a physical office.

Joint Stock Company (JSC)

  • The JSC is similar to the LLC, the difference lies in relation to the shares, a JSC may issue both common and preference shares. The shareholder can freely transfer their shares without consent from the other shareholders.
  • A virtual office is sufficient, there is no need for a physical office.
  • A resident director or representative is not required.
  • Takes approximately 2 weeks for incorporation

Special Trade Company

  • Also known as International Trading LLC. This is an entity that does trade with global clients.
  • A minimum of one (1) shareholder and director.
  • A resident director or representative is not required.
  • A local shareholder is not required
  • This requires a local office
  • Takes approximately 4 weeks for incorporation

For the above-mentioned entities, minimum share capital of US$1 is required. There is a corporate income tax of 15%, which an annual financial statement must be submitted to the tax authority. It takes approximately 4 weeks to open a corporate bank account.

International Finance Company

  • To obtain an international finance company status, there are certain requirements that need to be fulfilled
    • Securing the financial services licenses required by its business, and
    • Then, submit to the Georgia Revenue Services an application
  • A minimum share capital of US$100,000 is required.
  • A resident director or representative is not required.

Branch Office

  • This entity is usually preferred by entrepreneurs who wish to expand an already existing business.
  • The branch office is limited to the scope of operations defined by the parent company.
  • A branch representative residing in Georgia must be appointed in order to oversee the branch’s operations in Georgia.
  • Ease of registration and effective control the parent company has over the Georgia entity are among the advantages of a branch office.

Representative Office

  • This entity is for investors that wish to promote and explore the Georgian market, without carrying any commercial activity in the country.

Company Registration in Georgia

 

Why Invest in Georgia?

The strategic geographical location from the standpoint of trade and commerce. As it lies at the intersection of Europe and Asia. Georgia is also culturally similar and geographically close to Russia which is advantageous for Clients that wish to expand their business in that area. Georgia is one of the countries that China’s “One Belt, One Road” project will pass through. The railway will be the link that links the Asian countries with the European continent. Thus, making it even more ideal for entrepreneurs to invest in Georgia. Not to mention the attractive tax regimes that the Georgian government has implemented on top of the 55 double taxation avoidance treaties that Georgia is in with various different countries. Among them are India, Germany, China, the United Kingdom, Singapore, Ireland, etc.

Besides that, there is also the talented pool from which the entrepreneurs can take their pick and it is affordable too! This is thanks to the top-ranked skill development, vocational education and training programme run by the Organisation for Economic Co-operation and Development (OECD) namely the OECD Eurasia Competitiveness Programme. The EU-Georgia Comprehensive Free Trade Agreement also benefits Georgia by allowing Georgian companies to set up a subsidiary, a branch or a representative office in the EU and vice versa. Thanks to this, more job opportunities are being created in Georgia and citizens are directly benefiting from it.

The process of business registration in Georgia is quite simple when broken down but it can also be quite tedious and complicated. Should you require any assistance or services, we provide these services to ensure a smooth integration into the economy in Georgia.