Company Formation In Georgia
Nestled at the crossroads of Europe and Asia, Georgia is a hidden gem for entrepreneurs seeking a vibrant, business-friendly destination. With its streamlined company formation process, low taxes, and strategic location, Georgia offers an unparalleled opportunity for European business owners, including those from Germany, to establish or expand their ventures. This article explores why Georgia is the perfect place to start your business and how to navigate the process with ease.
Georgia’s allure lies in its dynamic blend of modern reforms and entrepreneurial spirit. Ranked 7th globally in the World Bank’s Ease of Doing Business index, Georgia has transformed into a hub for innovation and investment. Here’s why it stands out:
Streamlined Registration: Setting up a company in Georgia takes as little as 1–3 days, with minimal bureaucracy and low registration fees starting at €400–€500.
Favorable Tax Regime: Georgia boasts a competitive tax system, including a 15% corporate income tax, 5% dividend tax, and 0% tax on reinvested profits, allowing businesses to grow without heavy tax burdens.
Strategic Location: Positioned between Europe and Asia, Georgia offers access to over 2.3 billion consumers through free trade agreements with the EU, China, Turkey, and CIS countries.
Foreign-Friendly Policies: EU citizens, including Germans, face no restrictions on full ownership, and companies can be set up remotely via power of attorney.
Cost-Effective Operations: With affordable living costs, a skilled workforce, and modern infrastructure, Georgia ensures businesses thrive without breaking the bank.
Whether you’re a tech entrepreneur, freelancer, or investor, Georgia’s welcoming environment makes it an ideal launchpad for your ambitions.
Starting a business in Georgia is remarkably straightforward, especially for EU citizens. Here’s a step-by-step guide:
Choose a Business Structure: Decide on the entity that aligns with your goals (e.g., LLC, Individual Entrepreneur). Consider tax benefits and operational needs.
Select a Unique Name: Verify name availability through the National Agency of Public Registry. The name must include “LLC” or other relevant abbreviations.
Prepare Documents: Gather essential documents, including:
Passport or ID (notarized and translated into Georgian if needed)
Articles of Association (outlining company structure and purpose)
Proof of a registered address in Georgia
Power of attorney (for remote setup)
Register with the National Agency of Public Registry: Submit documents in person or online via the House of Justice portal. Registration takes 1–2 days and includes obtaining a tax ID.
Open a Corporate Bank Account: Choose from reputable banks like Bank of Georgia or TBC Bank. This takes 2–10 days and requires your registration certificate and ID.
Register for Taxes: Enroll with the Georgian Revenue Service. VAT registration (18%) is mandatory only if annual turnover exceeds 100,000 GEL (€33,159).
Obtain Licenses (if needed): Certain sectors (e.g., healthcare, energy) require specific permits. Consult a local expert to ensure compliance.
The entire process can be completed in 1–2 weeks, with remote options making it accessible for Germans without needing to travel.
Georgia’s tax system is a major draw for European businesses:
No Tax on Reinvested Profits: Profits kept in the company are tax-free, encouraging growth.
Low Corporate Tax: 15% for LLCs, with special statuses like Virtual Zone (0%) or International Company (5%) offering even lower rates.
Double Taxation Treaties: Georgia has agreements with over 50 countries, including Germany, preventing dual taxation and easing cross-border operations.
Simplified Accounting: Small businesses and freelancers benefit from light accounting requirements, especially under the 1% Small Business Status.
These incentives allow businesses to maximize profits while maintaining compliance with minimal effort.
Beyond its business advantages, Georgia offers a high quality of life:
Affordable Living: Monthly costs for a single person (excluding rent) are €400–€600, lower than Germany’s €800–€1,200.
Cultural Richness: From Tbilisi’s vibrant cafes to Batumi’s Black Sea coast, Georgia blends tradition with modernity, appealing to expats.
Expat-Friendly: English is widely spoken, and German-speaking communities in Tbilisi and Batumi provide a sense of home.
Residency Options: Registering a company with sufficient turnover (50,000 GEL per employee) can lead to a residency permit, ideal for entrepreneurs relocating with family.
While Georgia’s process is simple, partnering with local experts ensures a seamless experience. From drafting legal documents to navigating tax registration, professional services like those offered by our agency can save time and prevent errors. We provide:
Guidance on choosing the right business structure
Assistance with document preparation and translation
Support for bank account setup and tax compliance
Connections to local accountants and legal advisors
Georgia is a land of opportunity for European entrepreneurs, offering a fast, affordable, and tax-efficient path to business success. Its strategic location, business-friendly policies, and vibrant culture make it an ideal destination for Germans looking to launch or grow their ventures. Whether you’re starting an IT company, freelancing, or exploring new markets, Georgia welcomes you with open arms. Contact our team today for personalized support to turn your business vision into reality in this dynamic Caucasian hub.