Company formation in Georgia the country
Why go ahead with a company formation in Georgia the country?
- Very easy to do – takes less than 24 hours once documents are submitted (preparing and translating documents takes between 3-5 days).
- Georgia ranks 7th in the Ease of Doing Business ranking by the World Bank.
- Affordable – prices start from €500.
- Can be done remotely through power of attorney.
- Access to top-notch multi-currency banking.
- For the standard LLC: Corporate tax rate of 15% and dividend tax rate of 5% but no taxes on reinvested profits. This means that as long as you don’t do a payout, you do not pay any taxes. That said, a sole proprietorship is a better option for most individuals and is subject to different taxation.
- There are even corporate structures that get taxed at a rate of 0%.
- Proper support services in place for accounting, tax filing, etc.
- Minimum of only one shareholder.
- 100% foreign ownership is permitted.
- Low corruption levels – similar to the Czech Republic.
- Easy to get residency.
- Multiple structures available:
- LLC
- Sole Proprietorship used by many digital nomads
- IT company with 5% taxes (can be 0% if you are located in a jurisdiction with double taxation agreements that reduce dividend taxes to zero)
- A few other structures
1. Company Formation for a Limited Liability Company (LLC) in Georgia the country
LLC - Remote opening
- Documentation preparation, translation and registration in 3-5 days
- Certificate of Incorporation in a Digital format
- Official registered company address – this stays valid until it is changed. Note that it serves no functional purpose and cannot receive mail, though the Georgian government does most correspondence electronically anyway.
- Tax registration with Georgian Revenue Service
- Government fee for company registration
Extra Services |
Price |
| Bank Account Opening – for companies with economic substance in Georgia | €1250 |
| VAT Registration – only for doing business in Georgia | €200 |
| Full registration of in the Virtual Zone registrar – for IT companies | €1500 |
Please note that monthly tax filing is not performed by my agent in-house. He will however be able to recommend accounting services that start at around 120-150 euros per month.
Use the contact form below if you have any questions or would like to speak to my agent.
2. Sole Proprietorship
This is an incredibly affordable and tax-light structure used by many digital nomads. You get taxed only 1% of turnover up to GEL 500,000. Once you reach that threshold, you get taxed 3% on turnover for the remainder of the year. However, if you exceed the GEL 500,000 threshold two years in a row, you will lose your status as a small business and you will be taxed a flat 20% of profits. Additionally, consulting and accounting services are now excluded from the 1% regime.
You are required to file taxes monthly. My agent can file on your behalf monthly for 50 euros per month, or he will walk you through the process for a one-time 250 euro fee after which you can file by yourself. Be aware that you must keep an active Georgian eSIM to access the Georgian Revenue Service online system.
Additionally, you only get taxed on Georgian-sourced income and have access to great banking. Be aware that any work you do in Georgia, even if it is for foreign clients, is considered Georgian-sourced. So if for example, you are a web developer doing work in Tbilisi for a client in Spain, you will be taxed on this income.
The main drawback? It is not technically a company, so there is not limited liability. That said, anyone attempting to sue you will have to do it locally in the Georgian bureaucracy in the Georgian language. While you don’t have limited liability, most people will not have the ambition to pursue you given the complications.
One more point to note: should you have a sole proprietorship and also become a permanent resident of Georgia, you will be expected to contribute 2% of turnover annually to an individual pension account as a retirement provision.
Sole Proprietorship - Remote opening
1% tax on turnover up to GEL 500,000- Documentation preparation, translation and registration in 3-5 days
- Certificate of Incorporation in a Digital format
- Official registered company address – this stays valid until it is changed. Note that it serves no functional purpose and cannot receive mail, though the Georgian government does most correspondence electronically anyway.
- Obtention of tax number
Sole Proprietorship - On-location opening in Tbilisi
1% tax on turnover up to GEL 500,000- All above-mentioned services included.
Extra Services |
Price |
| Bank Account Opening with Company Registration Package | €1000 or €500 in-country |
Use the contact form below if you have any question whatsoever or would like to speak to my agent.
3. IT company formation in a virtual zone in Georgia the country
This is a special structure of an IT-related LLC that can be set up in a virtual zone near Tbilisi. The corporate tax rate is 0% and the dividend tax is 5% for any business conducted outside of Georgia.
However, the dividend tax rate can be reduced to 0% if you are located in a jurisdiction that has double taxation agreements with Georgia specifically allowing dividend taxes to be reduced to zero, for example Cyprus or Dubai. To achieve this you would need economic substance in Georgia, such as employees or a physical office so that your company is a tax resident of Georgia from the perspective of the other country.
IT Company in a Virtual Zone
0% corporate tax rate and 5% dividend tax rate- LLC documentation and registration in 24 hours
- Certificate of Incorporation in a Digital format
- Official registered company address for 1 year
- Corporate bank account opening (USD, EUR, GBP, GEL)
- Obtention of tax number
- All government fees included in the package
- Full registration of the IT company in the Virtual Zone registrar
Use the contact form below if you have any question whatsoever or would like to speak to my agent.
4. Other company structures in available in Georgia the country
The following structures are also available but will likely only be suitable in rare cases:
- Limited Partnership
- Joint-Stock Company
- General Parnership
- Branch Office
- Free Trade Zone Company (Free trade agreement with both EU and China – perfect for manufacturing, as this only applies to physical products – not services)
- A hotel in a designated Tourism Zone with tax advantages
A Word of Caution
I am not an expert in company formation. I just have a great network of people who can get things done at fair prices thanks to all the travels and deals I’ve done internationally. Maybe Georgia is not the best jurisdiction for your business – I don’t know. My certified agent in Georgia is an expert on Georgia, but not necessarily on all the other structures available worldwide.
If you want to discuss your structure and all the tax implications before making a move, you can discuss with my tax experts who help people with all their international tax issues and questions. Click here to find out more about their services.
If you are confident Georgia is right for you, then do get in touch with me and let’s get started!
Other available services in Georgia:
Articles on Georgia:
- 9 reasons to get Residency in the Republic of Georgia
- The Real Estate Investment Market in Tbilisi, Georgia
- One of the Best Structures for Digital Nomads: The Sole Proprietorship in the Country of Georgia