Georgia’s strategic location makes it an attractive hub for global entrepreneurs. Establishing a presence here means quick company registration and accessing a legal system designed to reduce bureaucratic obstacles.
However, before forming a company, selecting a legal structure truly matters. Among the various business entities in Georgia, choosing a limited liability company can be a practical choice, as it serves many purposes. At BSW, we simplify the process of incorporating a limited liability company in Georgia and explain how we can assist you.
What is a Limited Liability Company in Georgia?
A limited liability company, also known as an LLC, is the most common form of business entity registered in Georgia. The liability of each and every partner is limited to the share capital they contribute to the business.
The shareholders and the directors of a limited liability company in Georgia don’t have to be natural Georgian citizens. Moreover, their details will remain private and away from public scrutiny.
What are the Benefits of Setting up an LLC in Georgia?
If you're an entrepreneur or new to business, selecting LLC as your business structure is a wise decision. Here are some benefits that illustrate why starting an LLC in Georgia can be advantageous for you:
Hybrid Structure
The limited liability company in Georgia is a hybrid form of business structure. It combines the features of both a partnership and a corporation. That means it can shift the tax burden from the corporation to the individual members, thus sidestepping double taxation.
Limited Liability
When you register an LLC in Georgia, you can enjoy limited liability. That means the members (owners) of the company are liable only up to the amount they have invested. Thus, their assets are not at stake when it comes to fulfilling the business obligations.
Hassle-Free Incorporation
Georgia is known for its straightforward legal framework. The Law of Georgian Entrepreneurs clearly outlines the process of setting up an LLC in Georgia. Minimal documents with swift processing ensure the firm is set up without complications or delays. A limited liability company in Georgia is typically set up in a relatively short period.
Suits Diverse Businesses
The limited liability company in Georgia is a versatile business structure that suits a diverse range of business types. From sole traders to large corporations, anyone can choose this business structure as a viable option.
No Paid Up Capital Requirement
Registering an LLC in Georgia requires no paid-up capital, and the companies can legally conduct business without it.
100% Foreign Ownership
There is no residency requirement for registering an LLC in Georgia. A foreign country resident can efficiently process the Georgia LLC registration and unlock the associated benefits.
Favourable Taxation
Georgia follows the "Estonian Model" of taxation, under which corporate profits are taxed only when distributed to shareholders as dividends. If you keep the money within the company to cover expenses or reinvest for growth, the corporate income tax rate is 0%.
When you do decide to distribute profits, the company pays a flat 15% Corporate Income Tax, and the person receiving the dividend pays a 5% withholding tax. This unique structure allows businesses to scale rapidly by deferring tax payments until they actually take profit out of the company.
How to Form an LLC in Georgia?
As we have discussed earlier, LLC is the most common business form registered in Georgia; it is affordable and simple to incorporate. Here are the essential steps you need to consider before forming a limited liability company in Georgia:
Step 1: Choose a Business Name
The first step in Georgia LLC registration is selecting a name that is not already registered in the Georgia Entrepreneurial Registry. The name must end with "LLC" (or "შპს" in Georgian). You can check the name availability on the National Agency of Public Registry (NAPR) website.
Step 2: Obtain a Legal Address in Georgia
Every limited liability company in Georgia must obtain an official legal address in Georgia.
Step 3: Prepare the Foundation Agreement and Charter
Under the Law of Georgian Entrepreneurs, your "Articles of Association" consist of two parts: the Foundation Agreement (listing owners and shares) and the Charter (the company's internal rules).
Most founders opt for the “standard charter” template approved by the Ministry of Justice. It is free, pre-translated, and helps speed up the process. If you have complex partnership rules, you can create a custom charter instead. However, note that the custom version must be translated into Georgian and notarized to be legally valid for filing.
Step 4: Register at the Public Service Hall
You (or a representative with a power of Attorney) must then visit a Public Service Hall branch (a government institution that provides services such as ID issuance, property registration, and business registration). There, you must submit your passport, the charter, and the address consent. You will then receive an electronic extract as your official proof of incorporation.
Step 5: Obtain Your Unified Tax ID
When you open an LLC in Georgia, you must obtain a tax identification number. It serves as your personal or business identifier within the country's tax system, managed by the Revenue Service of Georgia.
Step 6: Open a Bank Account
After obtaining a tax ID, you then take your business extract and passport to a bank to open your corporate accounts.
What are the Documents Required for Forming a Limited Liability Company in Georgia?
While incorporating a limited liability company in Georgia, you are supposed to submit certain documents. Here is the list of documents you have to submit for your Georgia company formation:
- Valid Passport Copy of founders, representatives, and directors
- Foundation Agreement
- Articles of Association
- Consent of the Property Owner (Legal Address)
- Apostilled Power of Attorney (when using a local representative)
What is the Cost to start an LLC in Georgia?
The cost to start an LLC in Georgia is highly accessible due to its budget-friendly fee structure. The government mandates a modest administrative fee for standard registration. The total startup expenses generally include variable costs for document translation, notary services, and the acquisition of a legal address. However, to get a clear understanding of the Georgia LLC formation cost, contact Business Setup Worldwide.
Why Choose Us?
Forming a limited liability company in Georgia sounds straightforward, but you may face significant language and administrative barriers. This is where Business Setup Worldwide comes in.
Our experts, skilled in multilingual services, are here to guide you through major language obstacles. Moreover, if you encounter any legal issues in the country, we are here to help ensure proper compliance. Our professionals have years of experience in LLC formation in Georgia and are well-versed in the country's regulatory framework. Contact us now to get started!
