Company registration in Georgia
Company registration in Georgia is one of the most common methods of investing in this country and obtaining residence in Georgia. In recent years, Georgia has had the highest economic growth among the countries in the region, and the World Bank has assigned Georgia the sixth rank in the world in terms of the best investment opportunities.
On the other hand, this country ranks third in the world in terms of ease of starting a business and ranks 12th in the world in terms of free trade. The country of Georgia has attracted the attention of investors and global businesses due to its international political and commercial relations and proper socio-economic security and the good behavior of the Georgian people towards foreigners, and this has caused an increase in the number of company registration in Georgia.
Benefits of Company Registration in Georgia
Registering a company in Georgia, as a favorable country for investment, has many advantages, which we will discuss below:
- Global Market Access : By registering a company in Georgia, you gain access to global markets. Positioned as a gateway between Europe and Asia, Georgia offers favorable opportunities for expanding your business activities internationally.
- Advanced Financial System : Georgia boasts an advanced financial system, which presents a significant advantage for establishing a company in the country. With a thriving economy, modern banking facilities, and sophisticated financial tools, companies can effectively manage their finances and engage in international trade.
- Simple Company Registration Process : Registering a company in Georgia is a straightforward process that minimizes hassle. Entrepreneurs can complete the registration within one business day, making it especially appealing for small and medium-sized enterprises.
- Favorable Tax Environment : Georgia is renowned for its favorable tax system. Low taxes in the country incentivize entrepreneurs to launch their businesses and enjoy financial benefits.
Overall, registering a company in Georgia, a nation that prioritizes commercial and investment growth, offers a wide range of advantages and facilities that foster business development.
Obtaining Residency by Registering a Company in Georgia
One viable method for obtaining residency in Georgia is through company registration. As an entrepreneur, this opportunity not only allows you to establish a profitable business but also grants you residency in the country. To navigate this process successfully, you can rely on the comprehensive and specialized consultancy services provided by experienced experts at SisnoGroup.
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Conditions for company registration in Georgia
To carry out economic activities in Georgia, company registration is required, and more than 90% of economic activities are done with company registration. You can see company registration licenses anywhere in the country; even in small shops in the city. In the process of company registration in Georgia, 100% business ownership is possible for foreigners, and you do not need native (Georgian) people to join your business. The most popular type of company in Georgia is the limited liability company, and at the end a short explanation will be given about other types of companies.
Documents for company registration in Georgia of limited liability type
1.The presence of shareholders along with the original passport
2.Official translation of shareholders’ passports into Georgian
3.Preparation of the company’s official articles of association in Georgian and English.
Procedures of Company Registration in Georgia
After visiting the SisnoGroup office for a free consultation, you can prepare the company’s articles of association and chart with your lawyer and complete the relevant forms. Shareholders must send their passports to official translation offices to be translated into Georgian. Then go to the Public Utilities Office with the prepared documents and accompanied by a lawyer, and after receiving the appointment, sign the documents and submit the request to the Public Utilities Office. Finally, you will pay government fees related to company registration in Georgia.
After the license of company registration in Georgia is prepared, you can register the subject of the company’s activities in the form of special codes approved by the tax department. Then go to the Tax Office and get the tax code of the company. At this stage too, experts will accompany you and it will take less than half a day. The next step is coordination to establish a tax consultation meeting. You can arrange a free consultation session with a certified Georgian accountant to get information about taxes. After this meeting, you can hire an official accountant and receive your tax machine.
The fee of company registration in Georgia
If you want to register your company in Georgia, it will be enough to pay only $480 on the same working day and $400 on the next working day, which includes the entire work, including government fees. Please note that registering a company in Georgia is not complicated, but there are some points that are very important to follow. In order to avoid financial frauds and gain your confidence, it is recommended not to trust people seeking profit. SisnoGroup’s legal department, using experienced lawyers in legal affairs, performs all matters related to company registration, which includes the following:
1.Advice on starting a business and company registration in Georgia
2.Company registration in the public service department
3.Introducing an accountant to receive free tax advice
4.Drafting of the official constitution
5.Registering at the Tax Office and receiving a tax code
6.Payment of all government expenses
7.Advice and assistance in receiving the apparatus tax machine
Minimum Capital Requirement for Company Registration in Georgia
As previously mentioned, registering a company in Georgia is a straightforward process that applies to both local and foreign entrepreneurs. It can typically be completed within one business day. The minimum capital required to establish a company, however, varies depending on the type of company and its structure. For instance, the minimum capital needed for a Limited Liability Company (LLC) may differ from that of a Joint-Stock Company (JSC).
In most cases, the minimum capital required for registering a company in Georgia is relatively lower compared to other countries. It’s worth noting that the minimum capital requirement may fluctuate depending on the prevailing conditions and regulations in place during the company registration process. Therefore, it is advisable to consult a local legal expert or a business consultant who specializes in this area before commencing the registration procedure. They will provide you with accurate information regarding the specific regulations and minimum capital required for registering a company in Georgia.
Types of company registration in Georgia
Company registration in Georgia with limited liability or LLC (Limited Liability Company)
If you are looking for company registration in Georgia, you should know that more than 95% of companies in this country are in the form of limited liability. To register this type of company, you need at least one shareholder, who can also be the CEO of the company. Due to the fact that the difference between the types of companies is in financing and how to respond to obligations, company registration in Georgia of a limited liability is the most popular type of company registration in this country. In this type of company, the CEO can only use the assets of the shareholders in the company if he needs to answer the obligation or debt, and the shareholders do not have to use their personal assets to pay them.
Company registration in Georgia as an individual entrepreneur or IE (Individual Entrepreneur)
If you register as an individual entrepreneur or IE in Georgia, you will not need to pay any fee or contract to transfer to another person. For example, if you are an accountant who performs official accounting activities for one or more companies and receives a salary, in this case you will be registered as a personal entrepreneur. But if you want to transfer part of your work to others and give them rights, you will need to register the company.
Company registration in Georgia with limited partnership or LP (Limited Partnership)
To register a company in Georgia as a limited partnership or LP, shareholders are divided into 2 categories; it means full shareholders and limited shareholders. Every company must have at least one full shareholder to register. In this type of company, the full shareholders are responsible for the company’s obligations, in addition to the company’s assets, from their personal assets. But limited shareholders are liable for obligations only from their assets in the company. Difference between these 2 categories of shareholders is in dealing with obligations.
Company registration in Georgia as JSC (Joint Stock Company)
In Georgia, registering a joint-stock company or JSC, which is a large joint-stock company with high capital and traded on the stock exchange, is very difficult, especially for a start-up company. Shareholders in this type of company are only liable for the assets of the company and their liability is not limited to their personal assets.
Company registration in Georgia as a general partnership or GP (General Partnership)
To register a company in Georgia, you can use the type of general partnership or GP, which stands for General Partnership. In this type of company, shareholders are responsible for the company’s obligations, such as in a limited liability company (LLC), but with the difference that in addition to the company’s assets, personal assets must also be pledged to meet the obligations.
Company registration in Georgia of a cooperative group
In a cooperative group, people gather together with common goals and interests and participate in doing work. For example, there is a group of people who own land and want to find a developer for their land who will build a part for them and keep the rest for themselves. This type of company registration is called a cooperative group.
Setting Up Business in Georgia
Embarking on a business venture in Georgia, a country blessed with a strategic geographical location and favorable investment regulations, holds great appeal for entrepreneurs and investors. Below, we will get into the main steps and key considerations for initiating a business in Georgia:
- Research and Planning: To lay a solid foundation, it is crucial to conduct thorough research on the local market, customer needs, competitors, and applicable regulations. Creating a comprehensive business plan that encompasses a SWOT analysis and robust marketing strategies is an essential initial step.
- Selecting the Company Type: Georgia offers a range of company types for initiating a business, such as Limited Liability Company (LLC), Joint-Stock Company (JSC), and more. Choosing the most suitable company type based on the nature of the business activities and objectives is of utmost importance.
- Company Registration: The process of registering a company in Georgia is relatively straightforward and is typically overseen by a local lawyer or legal firm. This stage entails selecting a unique company name, preparing the necessary documents, and fulfilling the relevant fee requirements. It is essential to ensure that the chosen company name is not already in use in Georgia. Additionally, the identification of managers and shareholders of the company along with the preparation of their complete documentation is crucial.
- Taxation and Financial Regulations: Gaining familiarity with the tax system and financial regulations pertaining to businesses in Georgia is vital. This encompasses aspects such as income tax, profit tax, share tax, and value-added tax, which must be diligently adhered to.
- Workforce Acquisition: Acquiring a skilled and dedicated workforce poses a challenge that should be carefully considered when embarking on a business venture in Georgia. Selecting and training suitable employees and cultivating a positive work environment can significantly contribute to the growth and advancement of your business.
FAQ about company registration in Georgia
No, you only have to pay taxes when your company starts operating.
No, if you haven’t found an address for yourself yet, you can use ready-made or so-called legal addresses that are provided to you for a very small amount, and after you determine your location, you can Change your address.
No, not at all.
No, in this country of Georgia, the principle of uniqueness is based on the company registration code in Georgia, and it does not matter if several companies are registered with the same name.
Yes, but note that obtaining residence through company registration in Georgia is not immediate and the application can be submitted after some time when the company has been active in terms of business and paid its taxes.