Located in the mid-point of Eastern Europe and Western Asia, Georgia is one of the highest growing investment platforms. As a part of the European Union’s Free Trade Area, the nation is one of the top 10 in the Ease of Doing Business rankings.
Holding the most significant cities like Atlanta, Columbus, Augusta and Savannah, the region has proved to be one of the growing grounds for newbies and experienced business owners.
Business setup in Georgia today has become one of the most straightforward tasks as the government has laid down flexible rules for the industries to come forward, collaborate and grow.
Listed below are the top 5 things you should be aware of before starting a business in Georgia.
Being a businessman, you should also be on top regarding what’s trending in the market. Right from the products to the marketing strategies used by the business investors, a business owner should keep an eye on all the possible grounds.
Irrespective of the business size, holding an upper hand on the marketing trends will help you understand the investment and business moves you should make to compete.
Have a look at Georgia Ranked Fourth for Ease of Doing Business that highlights the recent approaches that have made the destination a favourable business destination.
2.A Defined Business Structure
Apart from knowing the recent trends, any business owner needs to know about the business structure before proceeding.
An entity structure defines the overall skeleton of a business, and it gets finalized based on the available capital and the number of shareholders.
In Georgia, a business investor can proceed ahead with eight structures:
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- General Partnership (GP)
- Joint Stock Company (JSC)
- Cooperative (CO)
- Individual Enterprise (IE)
- Branch Office (BO)
- Representative Office (RO)
To know more about the business structures, follow our latest guide on Types of Business Entities in Georgia
3.Identify the Setup Cost
Being clear about the financial scenario is one of the essential tasks for any business investor/owner. From the initial stage of capital investment until calculating the Business fixed and variable costs, one has to maintain the overall cost proceedings.
Like a compulsion, the business entities operating in Georgia has to bear the following expenses:
- Registration Fees
- Bank Opening Costs
- Registration with the Entrepreneurial Register
- Obtain an Identification Number for the Company
- VAT Registration
4.Be Clear Regarding the Georgian Regulations
Being aware of the legal proceedings helps one to carry out the process in a smooth way. The registration of all companies and businesses in Georgia performs as per the rules and regulations imposed by:
- The Civil Code, 1997
- The Law on Entrepreneurs, 1994
- The Law on Assistance and Guarantees for Foreign Investments
These rules of law stipulate how new businesses set up in Georgia. Any investor willing to start a business in Georgia must get all the documents notarized at the public notary and legalize within the country where the foreign shareholders reside.
5.Know the Tax Scenario
Last but not least, any business needs to know the tax scenario as companies do have to comply with the taxation process.
- The corporate income tax rate levied on a company in Georgia is 15%
- In Georgia, the standard Value Added Tax (VAT) rate is 18%
- Georgia doesn’t apply to excise tax
- Dividends distributed by a Georgian company stands at 5%
Knowing the essentials in the initial stage turns out to be profitable for an investor to take the relevant proceedings accordingly.
At the same time, it is equally essential for the business owner to seek expert’s help to understand the legal procedures involved in the company registration process in Georgia.
At Business Setup Worldwide, we take care of the essentials in the initial business incorporation process. Right from company incorporation to opening a bank account process.
To know more about the same, contact our business advisors today-we’d be glad to assist!