Company Formation Georgia

Even if the registration of a company is based on simple principles, it is recommended to request the services of local specialists in company formation, considering that there can be language barriers. Our company – Company Formation Georgia Group – provides legal services, designed to cover all the aspects concerning the registration of a local business by foreign investors who want to start a company in Georgia.

Steps for company formation in Georgia

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.

How can a foreign investor register a company in Georgia?

If a foreign businessman wants to set up a limited liability company in Georgia, he or she can start the procedure by registering it with the Entrepreneurial Register. The institution will require a set of company documents, which are compulsory during the registration procedure. The necessary documents for company formation in Georgia are the following:

• 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 that 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, the 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).
  After depositing the above-mentioned documents, the representatives of the limited liability company have to open a bank account. The corporate bank account can be set up at any commercial bank in Georgia, after providing certain documents requested by the institution. After this, the limited liability companyis entitled to start its commercial activities.

What are the main incorporation aspects related to the Georgian LLC?

Thecapital of the limited liability company opened in Georgia is divided into shares and the responsibility of each member islimited to the value of his/her shares. The shares of the company can be transferred and the members have the right to leave them as inheritance. If a member of the company owns a single share, that share can’t be sold. At the same time, it is important to know that the entity registered as a limited liability company must add in its trading name the particle “LLC”, the abbreviation available for this legal entity.

Another important aspect referring to the limited liability company in Georgia is that this entity can be set up by an individual or by a legal entity who want to start a company in Georgia. This is themost common business form registered in Georgia due the liability of the shareholders, which is limited to thenumber of shares they own in thecompany. Eachlimited liability company is founded on a charter, which prescribes the internal regulations of the company.

Alimited liability company (LLC) in Georgia is a legal entity that can be set up by maximum 50 shareholders and may be incorporated byat least one founder. This is the most popular type of legal entity preferred forincorporation by both local and foreign investors and our team of specialists in company formation in Georgia can offer in-depth assistance regarding theregistration of this business form.

What are the main taxes for companies in Georgia?

In Georgia, thestandard vvalue-addedtax (VAT) rate is 18%. There are no reduced rates, but a 0% VAT rate applies to exports, services of tour operators, electrical power, international shipping activities or transfers of gold to the National Bank of Georgia. The corporate income tax rate for a company in Georgia is 15%. As a general rule, Georgia does not apply the excise tax, but certain categories of products can be subjected to thistax. It is important to know that a company has to register for VAT purposes in Georgia as long as thecompany’s annual revenue is ofminimum GEL 100,000.

In Georgia, dividends distributed by a company are subject to a 5% dividend tax rate, no matter if the dividends are paid to a non-resident entity or an individual. However, in the case of the dividends distributed from a Georgian company to another local company, there is no tax base. Businessmen who want to open a company in Georgia should know that, overall, the country provides an attractive and welcoming business environment.

Among the available types of companies in Georgia, the limited liability company is the most popular legal entity selected by foreign investors in the country. The liability of the members of this type of company in Georgia is limited only to the amount of their contributions, and this is an important advantage and one of the reasons why entrepreneurs choose to open an LLC in Georgia. The registration of a limited liability company in Georgia (abbreviated LLC) usually takes a couple of days and the investors must follow a series of steps to legally incorporate the company. Our company formation agents in Georgia can guide you through the incorporation procedure and help you open an LLC in Georgia.

Businessmen who want to open a company in Georgia as a limited liability company should know that the main rules of law which apply to this business structure are the Civil Code and the Law on Entrepreneurship. Besides the fact that the shareholders benefit from limited liability, which is limited to the share of their investment in the company, this company type is characterized by the following as well:

• There aren’t any capital requirements imposed for opening an LLC in Georgia;
• The company’s capital has to be divided into shares which can’t be offered to the general public;
• The company’s founders (or founder) can be foreigners or local citizens;
• The company can be set up by natural persons or by other legal entities;
• The limited liability company in Georgia can be registered with only one director;
• The details of the company’s shareholders and directors have to be made public;
• It is legally required to have an official business address in Georgia for the limited liability company.

Besides these, the limited liability company in Georgia can appoint a company secretary, but this procedure is not compulsory. This company type must also submit tax returns following the accounting requirements available in Georgia and it must hold an annual general meeting; our team of specialists in company registration in Georgia can provide more information on other characteristics of this business form and the procedure of opening an LLC in Georgia.

The registration of a company in this country is concluded through the National Agency of Public Registry, an institution that operates under the Ministry of Justice. Once registered here, the company will receive an identification number and extract issued by the Registry of Entrepreneurs and Non-Entrepreneurial Legal Persons. This extract can also be obtained through the online platform of the National Agency of Public Registry, where all types of companies, including the Georgian limited liability company, can request this document.