Georgia [endonym: Sakartvelo] is a Caucasian country. It is located in South Caucasus, connecting Europe to Asia, and is spanned by several mountain ranges (many of volcanic origin) and plateaus. Georgia is a part of the European Union’s Free Trade Area. It features in the top 10 in the Ease of Doing Business Index by the World Bank Group, and is one of the least corrupt countries in the Black Sea region. In the mid-2000s, a series of reforms were undertaken in Georgia, courtesy the Rose Revolution, leading to its GDP growing in double digits each year thence.
Because of the country’s topography and climate, agriculture and tourism are the primary industries here. Of late, hydroelectric energy production has been gaining pace in Georgia – due to the presence of over 26,000 rivers in the territory to harness. Consequently, Georgia is a major exporter of electricity in the Caucasian region. Georgian railways are a major means connecting the Black Sea and the Caspian Sea. The nation also has 4 international airports, and a well-connected road network.
Company Incorporation in Georgia
A company in Georgia can be set up as one of the following legal entities.
- Sole Proprietorship: A sole proprietorship is a company owned by a single individual. It is the simplest, least regulated form of business entity. The founder, referred to as the sole proprietor, fully controls the sole proprietorship, and there is no distinction made between the owner and the company. Therefore, the owner bears unlimited liability, i.e., is fully liable for the debts and obligations of the company, to the extent of one’s personal assets.
- General Partnership: A general partnership in Georgia can be formed by 2 or more people. The other stipulations for a general partnership remain 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. The general partner bears unlimited liability for the company’s debts and incomes, unlike the limited partner who has limited responsibilities as far as one’s contributions to the company’s capital are concerned.
- Limited Liability Company: A limited liability company in Georgia 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.
- Joint Stock Company: A joint stock company (JSC) is a company that has its shares listed at the Georgian Stock Exchange. A JSC may issue both common and preference shares. And, like a limited liability company, its shareholders are not personally liable for the debts or obligations of the company.
- International Trading Company: An international trading company, or special trade company, in Georgia can be formed by someone wanting to trade overseas, provided the goods being traded cannot be of Georgian origin or sold to Georgian customers. Such a company enjoys corporate income tax exemption on its trading income. To be incorporated as a special trade company, one must reserve a warehousing space in an approved warehouse, and submit a special trade status application to the Georgia Revenue Services.
- International Financial Company: If a company in Georgia offers financial services to overseas customers, it can be incorporated as an international financial company, provided the income sourced from foreign clients exceeds 90% of the company’s total income. Such a company can benefit from complete corporate tax exemption on the income derived from sale of financial services and securities to clients abroad. To be incorporated as an international financial company, one must obtain the licences required for the provision of the financial services, and submit an application to the Georgia Revenue Services.
- Branch Office: A branch office is an offshoot of a company located abroad that wishes to conduct business in Georgia.
- Representative Office: Foreign companies may open a representative office in Georgia. A representative office is not permitted to conduct manufacturing or commercial activities, but may carry out market research or promotion for its parent company.
Benefits of Company Incorporation in Georgia
A business can be opened in Georgia owing to its following advantages:
- Georgia occupies a very strategic location on the world map, linking Asia and Europe, and has cordial relations with the European Union (EU), US, China, Turkey, and Iran.
- Georgia has over 50 double taxation avoidance treaties with different countries including the UK, Singapore, Germany, India and China.
- Company registration in Georgia is simple and involves few steps, and can be completed in a week.
- The economy of Georgia is liberal, and the government promotes business incorporation and FDI.
Who We Are
Business Setup Worldwide is a platform to help you set up a business in Georgia. Right from incorporation, registration and licensing to tax consultancy, we facilitate the formation of your company through counselling and incubation.
Business Setup Worldwide's proprietary business design techniques, combined with its specialized regional know-how and global reach, enable our clients to anticipate changes in customer priorities and the economic market, and then shape their businesses and improve operations to make use of opportunities created by those changes.
Business Setup Worldwide helps entrepreneurs and investors establish their company in Georgia. We take care of the Banking, Visa, Legal, and Licensing formalities, and allow corporates to focus on their company formation process without having to worry about the legal formalities. We guide you through your business setup, with your business vision at the centre of our ecosystem, at all times.
Our commitment to professionalism, extensive capability across various industries, proactive learning in the ever-changing global environment, and the ability to conceive innovative strategies and provide comprehensive support in executing such strategies distinguish Business Setup Worldwide, and provide the competitive edge in ensuring business growth. If you are wondering how to set up your company in Georgia, do reach out to us. We’ll be glad to help.