In the recent years, Georgia is rising up to be the most competitive market in the region. With numerous incentives to the startups for the development of the business environment, the country is striving hard to reach the top position and widen its outreach in the market. Local and foreign investors wanting to set up a company in Georgia must also know about the provision of double-taxation treaties signed in the country. Currently, Georgia has 54 treaties for the avoidance of double-taxation which can be an added advantage while incorporating a company.
When it comes to an already established foreign business, an investor can always choose to enter Georgia by forming a branch office in the country. It can be helpful in expanding an already established business. The Georgian branch office business activities are limited to the scope of operations defined by the parent company. Such entity must also appoint a branch representative residing in Georgia in order to oversee the branch operations in Georgia.
How to Set Up a Branch Office in Georgia?
Branch office in Georgia is a sub-unit and is not separate from the Georgian legal entity. It also means that the parent company is liable for the debts and obligations of the Georgian branch. And since the branch office is not a separate legal entity, the incorporation procedure will generally be short and less expensive than any other business entities. The steps for branch office registration are as follows:
- Choose a business form for your branch office. As a general rule, foreign investors can set up a branch as a limited liability company or as a public company. It depends on the legal entity under which the parent company is registered
The registration fees for different types of entities are as follows:
|TYPE OF ENTITY
|Branch office of a Joint Stock Company
|Branch office of an LLC
|Branch office of a JLC
|Branch office of a Limited Partnership
|Branch office of a Corporation
- Fill an application form and attach all the necessary documents as mentioned in the form
- Once all the documents are submitted, the authorities will examine the same
- The application shall be approved within 2-4 days and necessary license and company registration certificate will be provided
- A power of attorney’s presence is needed when you file for company registration at the authorities
Documents Required to Establish a Branch Office in Georgia
- The parent company’s decision to open a branch in Georgia
- The original Articles of Association of the foreign company that wants to operate through a branch office
- A document containing the names of the authorized representatives for the branch and corporate details referring to the parent company
- Identification details for the appointed director of the branch registered in Georgia
- A receipt proving that the registration fee has been paid with the relevant authority
- Passport photocopies of the director to be appointed at a branch
- The application for registration should be accompanied by signature samples (facsimile) of person(s) responsible for leading the branch (director or directors). The sample of a signature should either be certified by notary or made at the Tax Inspection itself in attendance of a responsible Tax Inspection official
Additional Documents Required for the Branch Office
- Company name of a branch
- Legal address of a branch
- The legal name of the founder of a branch and its registration details, legal address, the name of the body that registered the business entity, the date of registration and identification code
- Date of submission of the application for registration
Please note that documents issued, samples of the signatures needed, should be notarized and legalized/ or apostilled in the founder’s country, translated and notarized in Georgia.
If you are interested in opening a branch office in Georgia, feel free to reach out to us help you in registering your company in a hassle-free way. We at Business Setup Worldwide will guide you through the process smoothly and in a cost-effective manner. Contact us today.