GEORGIA COMPANY REGISTRATION

Preface: Registering a company in Georgia becomes effortless when you have the right guidance. Fionza Consultants takes the wheel, allowing you to allocate your valuable time and resources to more critical aspects of your business.

With our efficient approach, you can depend on our team of experts to guide you seamlessly through the entire process of incorporating your business in Georgia. Our primary objective is to ensure that your Georgia-based business is operationally ready in just 5 weeks.

Our comprehensive service package covers all your essential needs for establishing a business in Georgia:

HOW LONG DOES IT TAKE TO REGISTER GEORGIA COMPANY AND OPEN CORPORATE BANK ACCOUNT?

Registering a company in Georgia is a swift process, typically taking just 5 business days once we have received all the necessary due diligence documents from directors, shareholders, and beneficial owners. The best part is, Fionza Consultants can handle the entire registration process without requiring you to make the trip to Georgia.

If you’re interested in delving deeper into the process, Fionza Consultants has thoughtfully prepared a step-by-step guide outlining all the necessary steps for Georgia business incorporation.

Once your business is successfully registered with the National Agency of Public Registry, Fionza Consultants will swiftly proceed to open a versatile multi-currency corporate bank account for your newly established business. Depending on the nature of your business activities, we will systematically secure tailored banking solutions with either a reputable local bank or an international bank. Within a mere 4 weeks, you can anticipate receiving your corporate bank account numbers and internet banking access.

As a result, you can confidently expect to commence your operations and start issuing invoices under your Georgia business within just 5 weeks from the moment you engage Fionza Consultants.

For our esteemed international clients operating in the financial services sector, it’s important to note that your business may require financial licenses before you can commence legal operations.

WHAT TYPES OF COMPANIES ARE THERE?

Georgia’s strategic location at the crossroads of Europe and Asia, coupled with its multiple Free Trade Agreements (FTAs) with the EU and China, makes it an attractive destination for investors. Registering a business in Georgia offers access to both European and Chinese markets. Georgia offers various types of business entities, including Limited Liability Companies (LLC), partnerships, free zone companies, and branch offices, each catering to different business activities.

Before incorporating a business in Georgia, Fionza Consultants thoroughly assess the client’s business model to recommend the most suitable entity, taking into account factors such as the nature of the business activity, tax obligations, and potential personal liability.

Limited Liability Company (LLC): The LLC is the most common choice for foreign investors. It’s a straightforward and independent legal entity, providing shareholders with limited liability, meaning they are not personally liable for business debts. Key requirements for a tax resident LLC include:

1. 1 shareholder of any nationality
2. 1 director of any nationality
3. Local registered office address
4. No requirement for paid-up share capital
5. Shares cannot be offered to the general public

Partnership: Georgia offers General and Limited Liability Partnerships. General Partnerships involve partners personally liable for their own incomes or debts. Limited Liability Partnerships involve partners with varying roles, with the general partner having unlimited liability and decision-making power. Fionza Consultants recommend LLPs for local law, accounting, or audit firms, while LLCs are suitable for most other businesses.

Joint Stock Company (JSC): A JSC is a business with shares registered at the Georgian Stock Exchange. It requires only one founder and no minimum share capital. Shareholders decide on authorized capital but have no personal liability for business losses or debts. Registration by an independent registrar and appointment of a supervisory board may be necessary depending on shareholder numbers.

Free Zone Company: Free Zone Limited Liability Companies are located in Georgia’s free zones, offering tax exemptions such as corporate tax, import/export tax, property tax, and VAT exemptions for imported goods.

Branch Office: A branch office is an extension of the parent company, with the parent company fully liable for branch office liabilities. There are no limits on investment or ownership, but a local registered agent/secretary is mandatory.

Incorporating a business in Georgia is a strategic move for accessing European and Chinese markets, and Fionza Consultants can help you navigate the process and choose the right business entity for your needs.

HOW TO REGISTER COMPANY IN GEORGIA?

Step 1: Selecting the Ideal Business Structure Before forming your company, it’s crucial to determine the right business structure. Fionza Consultants can provide guidance to help you choose the optimal entity that aligns with your specific needs. In Georgia, the most common business structure is the Limited Liability Company, also known as a company limited by shares.

Step 2: Reserving Your Company Name Fionza Consultants will assist you in reserving your desired company name through the Georgia Corporations Division. The Secretary of State will conduct a comprehensive name search to ensure its availability.

Step 3: Setting Up a Corporate Bank Account Following the successful reservation of your company’s name, Fionza Consultants will proceed to open a corporate bank account for your business. Most banks in Georgia do not require a minimum paid-up capital. Some reputable options include TBC Bank, Bank of Georgia, and Finca Bank.

Step 4: Document Preparation and Business Registration Fionza Consultants will handle the process of registering your business in Georgia through the Entrepreneurial Register, which is administered by the National Agency of the Public Registry. The required documents for company registration in Tbilisi, Georgia include:

The company’s charter.
An application containing essential details such as the business name, legal entity, registered address, share capital amount, and documentation identifying members of the supervisory board and management board.

The application must be properly signed and notarized by a public notary. Once signed, it’s submitted to the National Agency of the Public Registry along with proof of payment for the registration fee.

Step 5: Tax Registration After successfully registering your company, Fionza Consultants will guide you in obtaining an identification number and a certificate of state and tax registration. We will also assist you in registering your business as a VAT payer if your anticipated annual turnover exceeds 100,000 Georgian Laris or if you deal with the production or importation of excisable goods.

By optimizing these steps, you can efficiently establish and operate your business in Georgia.

BUSINESSES THAT STARTED IN GEORGIA

In the thriving economic landscape of Georgia, there is a conducive environment for businesses of all sizes to flourish. Here’s a compilation of prominent companies, headquartered in Tbilisi, the capital of Georgia:

Silknet JSC – Leading the way in Fix and Mobile Telecommunications.
TAM Management – A key player in the Aerospace industry.
JSC RMG Copper – An integrated leader in the oil and gas sector.
Telasi – Providing conventional electricity solutions.
Wissol Petroleum – Engaged in Exploration and Production in the energy sector.

This list highlights notable businesses contributing to the vibrant business landscape of Georgia’s capital, Tbilisi.

TYPES OF BUSINESS LICENSES IN GEORGIA

To operate legally and in compliance with regulations in Georgia, businesses must obtain the necessary licenses in addition to standard incorporation documents. Specific permits and licenses are mandated for certain sectors such as healthcare, construction, telecommunications, gaming, energy, security, and more.

Here are examples of business licenses in Georgia:

General Manufacturing License
General Trading License
Special Trading License (limited to specific activities)
IT Production/Service License
Consulting License
General Service License
Financial Service License (including Banking)
Warehousing License
Logistics License

These licenses ensure that businesses across various industries can operate legally and in compliance with the regulatory framework in Georgia.

WHY CHOOSE TO REGISTER COMPANY IN GEORGIA?

Georgia Business Landscape Overview for Foreign Investors

Political Environment

Georgia ranks 56th worldwide in the 2020 Corruption Perceptions Index by Transparency International, indicating a relatively low level of corruption.

Economic Factors

The official currency in Georgia is the Georgian LARI.

Georgia offers a competitive corporate tax rate of 15% and provides tax exemptions for payroll, social security contributions, and wealth or insurance.

With over 50 Double Taxation Avoidance Agreements (DTAAs), Georgia facilitates import-export operations by preventing double taxation.

According to the World Economic Forum’s Global Competitiveness Report, Georgia scores 60.61%, positioning it as the 74th most competitive country globally.

Social Aspects

Georgia boasts a high literacy rate of 99.4%, although it ranks low in English proficiency in Europe.

The country has a relatively small population of 11 million, limiting the domestic market, especially in sectors like tourism and manufacturing.

Technological Advancements

Georgia’s financial industry hosts various businesses, with the government introducing financial licenses such as forex brokerage, insurance, and asset management licenses over the years.

Legal Environment

In the latest World Bank annual ratings, Georgia ranks 7th globally for ease of doing business, thanks to minimal legal requirements.

The official language in Georgia is Georgian, leading to business documents and government correspondence being in this language. Fionza Consultants can assist in overcoming potential language barriers for seamless communication.

Environmental Considerations

Georgia is ranked 94th globally in the Environmental Performance Index, reflecting its environmental performance.

When considering business incorporation in Georgia, it’s essential to factor in these aspects of the business landscape to ensure a safe and legally compliant operation while pursuing long-term business goals.