Introduction to Georgia Company Formation
Georgia is at the Western Asia and Eastern Europe crossroads with a population of 3.8 million. Georgia’s capital is Tbilisi and run by a unitary semi-presidential republic. They elect their government by having a representative democracy. Hence, Georgia company formation is not difficult here.
In 1944, The Law of Georgia on Entrepreneurs was passed and it is their governing factor for start-ups companies. Since its inception, its amendment has been done several times to make sure that the corporate government is efficient. The legislative and regulatory framework of Georgia allows investors to form a company in their country without making it very difficult for them.
Forming a Company in Georgia
Any person can have a Georgia company formation. That means regardless of their race or nationality, they can become a shareholder or director of a company in Georgia. It could be legal entities or natural persons. The company should have an office that has local registration and there is no need for start-up capital for starting a limited liability company in Georgia.
You need these documents for a Georgia company formation:
- A coloured notarize a copy of your valid passport. The director, shareholder, beneficial owner, and or authorized signatory gets one copy each.
- Proof of address in the country has a date within the last three months. It could be a utility address for each shareholder
- A bank reference’s notarized copy
- Curriculum Vitae (CV) given to the shareholder and director
- If the directors/shareholders are legal in the country, they must submit a complete set of certified documents of the company. If your company has been operating for more than a year, you must submit a certificate of Good Standing.
- Give three company names and it must be in the order of preference
- Attested Power of Attorney which authorizes you to have a Georgia company formation
- Paid capital
The standard VAT rate of Georgia is 18%, but nothing applies to tourism facilities, exports, gold transfers to the National Bank of Georgia, and international transport. Georgia’s corporate tax is at 5% for foreign and local entities. The other taxations in Georgia are:
- Personal income tax is at 20%
- Charging three different rates as import taxes. These are 0%, 5%, and 12%
- The property tax rate is only at a maximum of 1% from the property’s value
- The paid contribution is 2% from the employer, 2% from the employee, and 2% from the government of Georgia
- Deductions and tax benefits obtained from double tax treaties that Georgia’s local authorities signed.
Georgia Company Formation
The most common business structure in Georgia is the limited liability company (LLC).
Limited Liability Company – This type is the most convenient form of business in Georgia. A limited liability company or LLC is a legal entity, and the liability of creditors is limited to the entire property. An LLC can be established by one person or more.
Why Set Up a Business in Georgia?
With Georgia’s strategic location, its policies that are liberal and market-oriented, it is a good place for business setup. Their transport infrastructure is well-developed, and it is an attractive country to foreign investors. Georgia is a business-friendly country that has simplified administrative procedures. Hence, you can open a company in a maximum of three days. They have also reduced the licenses and permissions required. Aside from that, they only have 6 figures of low tax rates, where the corporate profits only must pay taxes if they are distributed. Foreign sourced income is normally exempted from taxes.
You can contact us for your Georgia company formation needs, and we will help you.