Why is Georgia one of the best place to do business?
The country attracts businesses with a stable economy. The Georgian tax system is considered one of the best in Europe. State bodies practically do not participate in the affairs of enterprises. The warm climate of the country makes it possible to successfully tourism business. And most of the population is Russian-speaking, which greatly simplifies the signing of contracts for residents of the post-Soviet countries. But these are far from all the advantages of the homeland of winemaking.
7 reasons to open a company in Georgia
Low tax rates
They range from 0% to 20%. The percentage depends on the taxation system and type of activity. For IT companies, tax incentives are provided. Business, registered in SIZ (free industrial zones), often exempt from paying taxes.
Favorable migration policy
Non-residents can reside 365 days in the country without a visa. At the end of the year, they can cross the border with anyone state and drive back. With the rock stay will reset.
Working laws
There are no legislative acts that are simply “written on paper”.
Remote administration
You can pay taxes and file declarations remotely. Banks provide convenient internet banking. Public Services can be used online.
Work in the international arena
Georgian firms are not considered offshore for other countries,
No corruption
In Georgia, real business qualities are valued, not “purse size”. Recommendations from former employers also have significant weight. Here it is considered shameful to promote “their own”.
No minimum requirements for founders and capital
The firm can be owned by both a foreigner and a citizen, or both at once. A foreigner can be a director of an enterprise at the same time. The authorized capital may be equal to zero.
Starting easily a business in Georgia
To start your own business in a matter of days you need to:
- Submit the documents in the House of Justice
- Register at the tax office
- Open a bank account in a banking institution.
Submission of documents
To register a company, the future founder needs to submit a package of documents to the House of Justice:
- Passport or a notarized power of attorney of a representative who, on behalf of the entrepreneur, will perform registration actions;
- Application (it will be filled in by the operator of the House of Justice);
- Notarized and signed by all founder’s charter of the company;
- Documents on the ownership or lease of real estate to confirm the legal address;
- Pay the state fee and provide a receipt.
All papers must be completed in Georgian. Originals in other languages must be translated and notarized.
For a standard procedure, you need to pay a fee – 60 GEL. Documents will be ready the next day after applying. And if in accelerated mode – 110 GEL, everything will be ready on the same day. In addition to the basic fees, you may need to pay additional fees, for example, for the issuance of a certificate of registration in English – 25 GEL.
is better to contact the House of Justice with an assistant – a company representative who will help with registration. So, you can avoid various difficulties, for example, incorrect filling of papers, difficulties with translation.
Tax registration
If the registration was successful, the phone will receive message with TIN and password from personal account. In it you can download a certificate of registration indicating all the data of a legal entity. Now you can go to the tax office. Before visiting it, you need to decide on the main type of activity, the codes can be found in the international directory.
To apply to the tax office you will need:
- international passport;
- 20 GEL in cash;
- Georgian phone number to receive SMS from the House of Justice.
After registration, you need to go through authorization on the website of the tax service. Then – get an EDS in order to sign reports and use government services remotely.
Open a bank account
This procedure is quite complicated. Georgian banks are in no hurry to open accounts on the first request. The company will be examined in detail by the bank:
- Activity;
- Legality of income;
- Whether the founders had experience in conducting activities in the chosen field;
- The risk that the company may be connected to illegal activities or terrorsim;
- The potential of jobs it can create in the country.
After examining the company, the bank will ask questions to its owner, and the answers must be confirmed. If all the stages of registration are successfully passed, you need to know that:
- Georgian banking institutions are suspicious of businesses that transact across borders;
- The register of directors is open and in the public domain. Anyone can receive personal information. To avoid this, instead of an LLC, you will have to open a JSC (joint stock company). So your data will be in the register of private shares and will not be open to everyone;
- The tax system, despite its simplicity, convenience and low rates, has “pitfalls” in the form of reverse charges of VAT or “taxes at source”.
Before opening a business, please contact PB Services. Our qualified lawyers and accountants will advise and help you avoid problems.
Cost to open a business in Georgia
The average cost of service companies that are engaged in the registration of firms is USD 800.
Most often they include:
- Preparation of a package of documents;
- Execution of a power of attorney (for registration through a representative);
- Innings package;
- Assistance with the rental of premises.
Further costs consist of the cost of enterprise administration:
- Accounting support — from USD 100/month;
- Rent of premises – from USD 300-600/month (not mandatory);
- Acquiring – from 1-2% of turnover;
- Banking services – from 0- 2%.
Benefits of working with PB Services
With PB Services , founders don’t have to worry about anything, contact us today to get advice and assistance in starting a business by email at info@pbservices.ge or by phone at +995 (599) 65 44 54.
Our service:
We help our clients:
- Chose the optimal legal form and name of the organization;
- Prepare the information about the buainess and the founders;
- Obtain registration address;
- Collect all required documents;
- Submit them to the necessary state institutions;
- Assist you through all the stages remotely;
- Open a bank account.
Our support:
- Company Name Validity Check. Let ‘s check is its available desired company name. _ They may be duplicated, but you are free to choose a unique name.
- Selection of a legal address. We will help you find the best location for your company in Batumi, Tbilisi and any other city in the country. It can be an office in an ordinary building or in one of the leading business centers.
- Preparation and submission of documents. We will prepare all the necessary documents for the House of Justice, tax and public register. If the company is registered remotely – we will help with notarization of power of attorney and apostille of documents.
- Bookkeeping. Our qualified accountants will provide all the necessary services for accounting and reporting.
