Starting a Business in Georgia? Fast Registration Is Only the First Step

Georgia offers an attractive environment for entrepreneurs and international investors. The country provides a relatively fast company-registration process, competitive tax rates and flexible corporate structures. However, successfully starting a business in Georgia requires more than simply registering a company.

How Quickly Can a Company Be Registered in Georgia?

Once all required documents have been properly prepared, a Georgian limited liability company can ordinarily be registered within one business day. Same-day registration is also available through an expedited procedure.

Foreign documents may also require notarisation, legalisation or an apostille and certified translation into Georgian, depending on the country of execution and the nature of the documents.

Main Tax Rates in Georgia

Georgia applies a comparatively straightforward tax system. The principal tax rates relevant to most businesses include:

• Corporate profit tax – 15%: under Georgia’s distribution-based corporate tax model, ordinary retained profits are generally not taxed until they are distributed, although certain non-business payments and deemed distributions may also create a taxable event.

• Value-added tax – 18%: mandatory VAT registration generally arises when VAT-taxable turnover exceeds GEL 100,000 during any consecutive 12-month period.

• Personal income tax – 20%: this rate generally applies to salaries and other taxable income of natural persons.

• Dividend withholding tax – 5%: dividends paid by a Georgian resident company to an individual or qualifying non-resident recipient are generally subject to 5% withholding tax, unless an exemption or applicable tax treaty provides otherwise.

The actual tax treatment may depend on the company’s activities, source of income, ownership structure, transactions with related parties and any applicable double-taxation treaty.

Employing Foreign Nationals in Georgia

Businesses planning to employ foreign nationals must consider immigration and employment compliance from the beginning.

The right to work is linked to the specific employer. Obtaining it does not automatically replace the need for an appropriate visa or residence permit. Foreign employees and their employers must therefore plan the work-authorisation and immigration procedures carefully and comply with the applicable deadlines.

Banking, Accounting and Ongoing Compliance

After registration, the company may also need assistance with:

• opening a corporate bank account and completing bank compliance procedures;

• registering with the Georgian Revenue Service;

• organising accounting and monthly tax reporting;

• preparing employment and commercial agreements;

• obtaining licences or permits;

• protecting trademarks and other intellectual property;

• acquiring or leasing business premises;

• maintaining corporate records and regulatory compliance.

How Metreveli & Partners Can Assist

Metreveli & Partners provides comprehensive legal support to local and international clients establishing and operating businesses in Georgia.

Our services include company registration, preparation of corporate documents, banking assistance, tax and regulatory coordination, commercial and employment agreements, work-authorisation and residence-permit procedures, accounting and financial services, real-estate transactions and ongoing legal support.

Starting a company in Georgia can be fast. Building it on a legally secure foundation requires careful planning.

Contact Metreveli & Partners for professional assistance with starting and operating your business in Georgia.