Business Setup Georgia
How to Setup your business in Georgia
Business Setup in Georgia take time to explore and research ideas for your business. At this stage, take into consideration your own interests, skills, resources, availability, and the reasons why you want to form a business. You should also consider the likelihood of success based on the interests of your community, and whether your business idea will meet an unmet need. Read our article for more tips on how to evaluate business ideas.
After you select an idea business startup in Georgia, consider drafting a business plan to determine your chances of making a profit. When you create a plan, you will have a better idea of the startup costs, your competition, and strategies for making money. Investors and lenders will want to review your business plan before providing financial assistance, and you can be prepared by drafting a plan before you start soliciting funding.
Business insurance in Georgia can shield your assets from the effects of unplanned calamities including legal actions for personal injury and natural disasters. Your business may benefit from general liability insurance to defend you against claims of property damage or bodily injury, or cyber liability insurance to pay legal and settlement costs in the event of a data security breach. An insurance agent can assist you in examining the various coverage options for your company.
Choose a legal framework
|Types of companies|
Limited Liability Company (LLC, Ltd)
Joint Stock Company (JSC)
General Partnership (GP)
Limited Partnership (LP)
Minimum share capital
for LTD Company
Minimum number of
shareholders for Limited Company
|Time frame for the incorporation|
|Corporate tax rate|
|Dividend tax rate|
|Are Shelf Companies Available?||No|
|Do you supply a Registered Address/Virtual Office?|
Registered address – Yes;
Virtual office – No
|Local Director Required||No|
|Annual Meeting Required||No|
|Is Accounting/Annual Return Required?||No|
|Foreign-Ownership Allowed||Yes -100%|
|Any tax incentives (if applicable)||5% tax for Virtual Zone Company (which works in IT or IT-related sector)|
|Any Tax Exemptions Available?||Free Industrial Zone with 0% tax|
Steps for company formation in Georgia
- In order to open a company in Georgia, the following steps have to be followed by both local and foreign investors:
- select one of the company types that is most suitable for the business activities that will be developed in Georgia;
- select a suitable company name and register with the National Public Registry of Georgia;
- the company’s representatives have to prepare and notarize the statutory documents;
- register with the Entrepreneurial Register, which will issue an identification number and a certificate of state and will handle the tax registration procedure for the new company;
- open a corporate bank account at any local commercial bank.
We can help you with every procedure if you need to start a company in Georgia.
- There are a few types of entities the foreign investors can establish in Georgia:
- – the limited liability company,
- – the general/ limited partnership,
- – subsidiary,
- – branch office.
Please note that the subsidiary is considered an independent business structure, as opposed to the branch office.
- Georgia levies tax on all types of businesses. For further details on Georgia’s state business taxes, see Georgia State Business Income Tax.
- single-person businesses. As part of their personal state income tax returns, they pay state taxes on business income (Form 500).
- Partnerships. On their personal tax returns, partners must pay state taxes on partnership income.
- LLCs. On their personal tax returns, members must pay state taxes on their portion of LLC revenue. LLCs must also submit a separate state tax form, either a partnership return or a corporation return. Depending on how the LLC is categorized for federal tax reasons, a special form may be required.
- Corporations. State taxes must be paid by shareholders on corporate dividends. On his or her individual state tax return, a shareholder-employee who receives a salary must also pay state income tax. Additionally, Georgia corporation taxes are levied on the corporation itself.
- • the company charter – which is the formal document that establishes the legal entity that will operate in Georgia;
- • the document which stipulates the value of the contribution of each member;
- • an application which contains information regarding the name of the company, the legal entity of the company, the amount of share capital, documents for naming each member of the supervisory board and management board;
- • in the situation of a company set up as a limited liability, the application should also contain the address, the business plan, date of starting the business and details providing information on the founder of the company (name, address, place of birth and his or her profession).
- registration fee: the registration fee is GEL100 (approximately EUR32) for the standard registration procedure (completed in one day) or GEL200 for the straightforward registration;
- virtual office cost: the virtual office is the least expensive way of obtaining a business address in Georgia, and the cost for it is approximately EUR20/month;
- minimum share capital: when opening a limited liability company, there is no requirement concerning the company’s capital;
- company formation fee: our team of specialists in company registration in Georgia can provide full assistance at a very competitive price, of approximately EUR 900;
- accounting costs: the price starts from approximately EUR150/month, and it includes bookkeeping assistance and advice on the corporate taxation system.