Open a Company In Georgia | 6 Advantages of Doing Business in Georgia
Single director or shareholder is sufficient to open a company in Georgia. There is no restriction on the nationality or local residency for the director or shareholder of the LLC company. Moreover there is minimum limit for the initial capital to open a company in Georgia.
There are several benefits to┬áopen a company in Georgia because:
- To┬áopen a company in Georgia is simpler compared to the procedures in central Asian countries. A company can be incorporated and registered successfully within a week in Georgia.
- The company incorporation application is made to the governing body of National Agency of Public Registry which can be done by the legal & authorised agent or one of the company directors;
- Because of the benefits and advantages provided to the foreign investors, the company today stands at the 9th position (World Banks chart) in terms of providing maximum ease in businesses.
Foreign investors can leverage the benefits offered by the Georgian government to larger extent in terms of tax regime as well as :
- Georgia has the lowest corporate tax structure which is currently set at the rate of 15% whereas countries like Kyrgyzstan, Turkmenistan and Uzbekistan have much higher. Georgia stands at the 4th rank when it comes to lowest corporate tax.
- Foreign companies incorporating a brand/subsidiary in Georgia have the advantage of no capital duty, social security contribution, payroll tax and branch remittance tax;
- If the company has been incorporated in GeorgiaÔÇÖs trade free zone then the company is exempted from company income tax, property tax and VAT on import/export tax for certain products.
In addition, there are certain income tax exemptions on the foreign incomes to:
- Companies which are in the trading business and annual income sourced from Georgia that is less than USD $420000, or
- 5% on the custom value of goods traded with foreign customers;Companies in the financial institution segment that has 90% of foreign income of their total income.
Clients choosing to┬áopen a company in Georgia will also have the benefit of:
- Client planning to expand their business in Georgia and neighbouring countries like Russia, which is culturally similar to Georgia, have a great opportunity to tap;
- By choosing Georgia, clients can also leverage the benefit of ÔÇťOne Belt, One RoadÔÇŁ project which will be passing through the country connecting China. This is a mega project that will connect Asian countries with the Europeans. Any company that is investing in Georgia will be able to take advantage of the same.
Few more advantages to open a company in Georgia are:
- Georgia has double taxation avoidance treaties signed with some of the major countries in the world like India, Germany, China, the United Kingdom, Singapore, and Ireland among others, in total 52.
- As per the Heritage Foundation Index of Economic Freedom study in 2017, Georgia ranked at the 13th position for the freest economies in the world. The criteria for the ranking included freedom of business, trade, monetary, financial, investment and labour markets. The minimal trade regulations in Georgia for labour market helped Georgia to gain the maximum rank