Register an LLC in Georgia

Register a Limited Liability Company in Georgia

Georgia has been working to improve its position in the Doing Business rating.

It has enjoyed a certain measure of success.

In 2020, the country ranked 7th out of 190 countries in terms of ease of doing business, and is generally acknowledged to lead the pack in Eastern Europe and Central Asia for ease of doing business.

Globally, it does have some work to do before it passes South Korea, New Zealand, Denmark, Singapore, and Hong Kong.

Nevertheless, some of the things that make the Republic of Georgia’s an attractive business destination include:

Low tax rates (quite a friendly taxation system)
An easy company registration process (and the ability to register a company remotely)
Low corruption
Simple requirements for accounting and record keeping
57 agreements on avoidance of double taxation

What should you know to register an LLC in Georgia?

First of all, you should know about a Georgian law that stipulates that all existing rules for starting and running a business in the Republic of Georgia apply to foreign nationals and citizens of Georgia equally.

It is called the Law on Enterprises, and you can find it here.

And then there’s the so-called One Window principle in place for government agencies in Georgia.

The One Window is convenient because, as the name would imply, you can apply for just about everything you need in one place.

What you can’t get there is electronic payment status and VAT registration, which you still need to apply for to the Revenue Service (more detailed information available here).

Your company will be registered with the Georgian Ministry of Justice at the National Public Registry Agency.

When registering, you can request your documents. Documents will be in Georgian, also be duplicated in English.

The documents, articles of association, and other company information remain in open access in the public domain and can be found here, where you enter initial company information (identification number, name, etc.).

Georgian legislation makes no requirements for minimum capital, which greatly simplifies the registration of an LLC.

Another advantage to registering an LLC in Georgia is that the company may be headed by anyone regardless of citizenship (whether Georgia or foreign).

How complicated is it to register an LLC in Georgia?

Doing Business 2020 rated Georgia 2nd in the Starting a Business category, which looked at:

number of procedures
time required
cost
minimum capital requirements

Consequently, you could say the entire process is not very complicated.

What exactly do you need for registration?

You can register an LLC in person Georgia, but you can also do it remotely.

To register in person, you need a passport and a company charter
To register remotely, you send us a power of attorney certified by a notary or with an apostille (depending on where you have it certified) and a copy of the main page of your passport, also certified by a notary

And the process itself?

To register an LLC in Georgia in person, you need:

The address where you will register the LLC
A company charter
The government fee – GEL 100

To register an LLC in Georgia remotely:

A translation of your documents into Georgian with notarial certification
We prepare a company charter and other necessary documents (partner meeting minutes, a decision regarding the appointment of director, etc.)
Register the company
Request document originals and have them notarized
And send your certified documents to you

What are the advantages of registering an LLC in Georgia?

Low taxes and easy-to-understand procedures: Key advantages to registering an LLC in Georgia.

What does taxation of an LLC in Georgia look like?

Corporate tax on distributed profits – 15%. Georgia employs the so-called Estonian Income Tax Model, which means that you only pay taxes if you distribute the profits in the form of dividends. If you (a) leave your profit in the company or b) reinvest the profit, then your profits are not taxed at all.
Dividend tax – 5%
VAT – 18%
Following large-scale reforms that ushered in 2021, European VAT procedures are now in place in Georgia. If your business (your activity) is not physically connected with Georgia (i.e., you do not have Georgian clients), you will almost certainly not be affected by VAT
Property tax – 1%
Tax on contributions to the Pension Fund – 2%
The international market is open to you. Black or gray lists of offshore jurisdictions does not include Georgia in it and so you may work with contractors from around the globe without hindrance.
International payment systems are open to you. Wise, Paysera, and Payoneer to name a few all work with Georgian companies.
No restrictions exist on withdrawals from company accounts, making it simple for a representative of the LLC to distribute profits when necessary. The director’s salary may also be revised at any time (i.e., the process is not limited to once per month or once per year).