Starting your business can be exhilarating and daunting at the same time. In the new world of 2024, there has been a rise in establishing new businesses, ventures, and start-ups. More people want to run a business than to work for one. Thus, every field that had remained untapped previously, is being penetrated into. Georgia is seeing a colossal wave of diversified businesses.
Fastening firmly on the 6th position on the Ease of Doing Business Index, running a business in Georgia has never been more appealing. To get started with your business in The Republic of Georgia, here's what you have to do:
1. Create a Blueprint for your Business
A blueprint is a plan is an initial step before commencing the plan of action. It lays down the technical drawing of a design or idea. Similarly, a blueprint for your business in Georgia will lay down the mental picture which you already have in mind into a fully fledged business plan. Thus, the "blueprint" is nothing but an effective business plan for your company in Georgia. For setting up your business in Georgia, you cannot go wrong after inscribing an elaborate document which includes all the details about the new business. The products, service offering, potential profitability, human resource and staff options, finances and funds, operational model, production model, leadership and other key details essential for your business, all go into the business plan. A thorough business plan puts things into perspective and spells out just how pragmatically attainable your business setup goals are.
2. Pick a Business Structure that Works
Your next step is to pick a legal structure for your business. A business structure mustn't be chosen at random. Instead, choose a business structure which represents the most suitable option for your company. In fact, the right legal structure adds on to the credibility and viability of your company. The following are the legal structures operating in Georgia:
Limited Liability Company
In Georgia, a limited liability company can be formed by not more than 50 shareholders, among whom the capital is distributed as shares. These shareholders are liable only to the extent of their respective contributions.
A general partnership in Georgia is formed by 2 or more people or partners. The other stipulations for a general partnership remain the same as that for a sole proprietorship. Its partners bear unlimited liability.
Limited Liability Partnership
A limited liability partnership in Georgia can be formed by at least 1 general partner and 1 limited partner. On one hand, the general partner bears unlimited liability for the company’s debts and incomes, and on the other hand, the limited partner has limited responsibilities as far as one’s contributions to the company’s capital are concerned.
A branch office in Georgia is an offshoot of a company located abroad that wishes to conduct business in Georgia.
Virtual Zone Entity
A Virtual Zone Entity in Georgia is a legal entity that performs information technology activities and has been granted a special status by the Georgian Tax Authorities. This type of business entity was introduced by the Georgian Tax Code.
3. Gather the Documents
The required documents for ensuring successful implementation of your business:
- An application: The Application must include the applicant’s full name, the applicant’s place of residence, applicant’s identification number, applicant’s signature, date of filing application and identification document.
- Payment receipt for the registration service fee.
- The same set of documents is required from foreign citizens who wish to register.
The above documents will help you through the process of Registration.
The next step is to get your business in Georgia Registered. Registration of legal entities is performed by the National Agency of Public Registry (NAPR), including both state registration and registration as a taxpayer as per the Law "On Entrepreneurs". To register an enterprise, you must present a copy of identification documents and the Application.
Registration application includes:
- Firm Name
- Organizational and Legal Form
- Location And Legal Address
- The Name, Date, and Place of Birth, Occupation, and place of residence of each founding partner and director.
- Legal address, registration date and number, legal form, and information on authorized representative’s decision-making procedures for the highest governing body.
- Information about each partner’s share of holding, information about any limitations for entity representatives (in case of a limited liability company).
- In case of a limited partnership, notification on limited and personally.
Registration fees are as follows:
- GEL 20- In one working day.
- GEL 50- On the day of applying.
5. Open a Corporate Bank Account
When you start a business in the Republic of Georgia, or any other location or country for that matter, a Corporate Bank Account for your business is one of the most important articles to have into place. By opening a Bank Account in the Republic of Georgia, you will ensure systematic documentation of all transactions. The process of opening an account takes about 30 minutes. You will be required to visit the bank of your choice, provide the necessary documents, fill out a form or forms and you will be ready to go!
Things to remember:
1. Opening a Bank Account must be one of the premier tasks you do. In order to run or start a business, a Corporate Bank account is extremely crucial.
2. Always keep your personal account separate from your business account.
If you wish to start your business in Georgia, we can guide you through the whole process!
Business Setup Worldwide is a consulting firm helping entrepreneurs with company incorporation, accounting, bookkeeping, audit, intellectual property protection, and corporate secretarial services in Georgia. To know more, contact us – we’d be happy to help.