Georgia’s economy is considered to be one of the fastest growing economies in the whole of Eastern Europe with the agricultural sector, real-estate, and tourism and hospitality as the leading contributors to the growth of its economy. No wonder it is called an entry gate to the Caucasus and Central Asia. If you are looking towards starting a business in Georgia, then you are on the right path because Georgia is ranked as the 18th country in the world when it comes to ease of doing business.
One of the ways through which you can incorporate a business in Georgia is by forming a limited liability company. Without further ado, let’s get into the crux of the matter- how to open a business in Georgia? But let us first look into the features of setting up a company in this country.
Features of an LLC in Georgia
- Minimum 2 shareholders and maximum 50 shareholders are required
- The liability of the shareholders is limited to the number of shares they own in the company
- Minimum one director is mandatory
How to Start an LLC in Georgia?
The registration of a company in Georgia usually takes a couple of days and the entrepreneurs must follow a series of steps in order to legally incorporate a company. The steps to start your Georgia LLC formation are as follows:
1. Choose a Company Name
Under the law of Georgia, the name of your company must end with the abbreviation “Limited Liability Company”, “LLC”, “Limited Company”. And the term “Limited” is allowed to be abbreviated as “Ltd”. The name of your LLC must be different from the other company’s set up in Georgia.
2. Draft an Articles of Association
A limited liability company must draw up and file the articles of association. This document includes:
- The name of the company
- The name and address of its members
- Other important details about how the company will operate and how it will conduct business in Georgia
3. Register the Company with the Entrepreneurial Register
To register your Georgian LLC with the Entrepreneurial Register requires you to submit a few documents. They are:
- Application of Registration
- Documents evidencing payment of registration fee
The application of registration must be signed in front of a person authorized for the company registration. Or else the application for registering must be certified by the notary.
4. Comply with Tax and Regulatory Requirements
It includes obtaining a Tax Identification Number. A new amendment under the tax code of Georgia stipulates that an enterprise should not commence its activities until obtaining a tax identification number, otherwise fines and penalties shall be imposed.
You’d also need to obtain a Certificate of State and Tax Registration.
5. Open a Corporate Bank Account
An application must be sent to the bank to open your company’s bank account. You can open a bank account in Georgia by a local currency or any other foreign currency.
Documents Required to Set Up an LLC in Georgia
- The company charter, a formal document that establishes the legal entity that will operate in Georgia
- The document which stipulates the value of the contributions of each member
- An application which 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, date of starting the business and details providing information on the founder of the company
- Copy of Articles of Association
If you are still have any queries about the complete process of registering an LLC in Georgia, then we at Business Setup Worldwide are here to help you. Our advisors can be your guide to start your Georgia Limited Liability Company and help you make the process hassle-free. Contact us today.