Many foreigners often search online for “how to open an Sole Proprietorship or LLC in Georgia.” Why? This beautiful country is not only known for its hospitality and delightful cuisine but also for its favorable business climate and its prestigious 7th place ranking in the Ease of Doing Business Index. Many are eager to establish an IE in Georgia for these reasons.
Key Benefits of Georgia:
- Economic stability and sustainable growth
- Convenient location for accessing European and Asian markets
- The option to remotely register a company
- Favorable tax regimes: IE turnover tax for small business is only 1% (up to 500,000 GEL annually)
- Visa-free entry for citizens of many countries.
- Ability to do business globally
- Easy liquidation
- Remote company and bank account setup—just contact us 😉
Before deciding to move your business to another country, it’s essential to thoroughly research business registration requirements and tax policies.
Business Registration Options in Georgia:
- Sole Proprietorship or Individual Entrepreneur (IE)
- Limited Liability Company (LLC or LTD)
As in many other countries, LLCs and IEs are the most popular forms of business registration. Opening an IE in Georgia typically takes just 1-2 days.
Choosing the Right Business Structure
The key factors to consider are the number of participants and the nature of the business activity, which influences the tax burden and potential benefits available under Georgian law.
Main Tax Rates in Georgia:
Tax | Rate |
---|---|
Sole Proprietorship | 1% (turnover) or 20% (net profit) |
VAT | 18% |
Corporate income tax | 15% |
Dividend tax | 5% |
Import tax | Up to 12% |
Personal income tax | 20% |
Withholding tax | 5-15% |
Property tax | Up to 1% |
Excise duties | No general rate |
It’s important to note that many taxes in Georgia are based on the Estonian model, which means the actual tax burden may differ from the nominal rates. Georgia also has over 50 double taxation agreements with countries worldwide.
Preparing for Registration
After developing a business plan and selecting the appropriate business structure, you can begin gathering the necessary documents:
For IE Registration:
- Notarized legal address in Georgia
- Passport
- Application form
- State duty payment receipt
For LLC Registration:
- Notarized legal address in Georgia
- Bilingual company charter
- Passports of the owners
- Application form
- State duty payment receipt (110 GEL or 210 GEL for expedited registration)
Due to the complexity of completing forms, translations, and notarizations, it’s often beneficial to hire a legal firm for remote registration using a power of attorney. This ensures a quick and error-free process, avoiding common mistakes like incorrect name transliterations or improperly formatted documents.
Once the documents are ready, the registration process includes:
- Submitting the application to the Public Registry and paying the required fees
- Submitting documents and receiving the certificate from the House of Justice
- Registering with the tax authorities
- Opening a bank account under optimal terms
With its favorable economic environment, stability, and international access, Georgia remains an ideal location for foreign entrepreneurs to relocate their businesses and achieve their goals.
To Open a Sole Proprietorship in Georgia, the Following Documents Are Required:
- Notarized legal address for the IE in Georgia
- Passport
- Application form
- Payment receipt of the state fee
For LLC Registration, the Following Documents Are Needed:
- Notarized legal address in Georgia
- Bilingual company charter
- Passports of the owners
- Application form
- Payment receipt of the state fee (110 GEL, or 210 GEL for expedited registration)
Despite the relatively short list of documents, there are nuances in their preparation, including translations and notarization. For this reason, it is advisable to use the services of a legal firm for remote registration, which can be done through a power of attorney. This approach ensures a smooth and high-quality registration process, saving time, effort, and avoiding potential errors in document preparation, such as incorrect name translations or formatting issues.
Here’s what to do next:
- Prepare a notarized power of attorney according to the required format (apostille may be necessary in some cases).
- Provide copies of the passport(s) of the company owner(s) and information on the registration or residential address in any country.
- Choose the company name in English (it is advisable to have several options).
- Review the company charter and confirm the legal address.
Once the documents are prepared and verified in Georgia, professional translators will translate them into Georgian, and legal experts will prepare and notarize the necessary documents.
Next Steps for Registration:
- Submission of the application to the Public Registry and payment of state fees
- Submission of documents and issuance of the registration certificate at the House of Justice
- Registration of the company with the tax authorities
- Opening a bank account under optimal terms
The favorable economic conditions, stability, and the ability to work globally make Georgia a priority destination for international citizens seeking to relocate their businesses and achieve new goals. At MyReloc, we handle company and account registration in Georgia efficiently, affordably, and with the utmost care, ensuring you are fully satisfied with the results. We provide consultations on all matters and comprehensive support throughout the registration process and further optimization of your business activities in Georgia.