Steps to start a business
- Pursuant to the general rule, it takes 1-2 days.
- The most common type of business entity is a limited liability company.
- There can be 1 participant.
- It is required to have a registered office address and its confirmation from the owner of the premises.
- There are no requirements to the minimum capital and to the terms of its contribution.
Registration of a sole proprietor (an individual entrepreneur)
- It takes 1 day.
- It is required to have a local registration address and its confirmation from the owner of the premises.
- To register a sole proprietorship, only a passport is required.
Opening a bank account
It is the most complicated procedure, uncertain in terms of time and the set of documents necessary to submit to the bank.
- The term for a sole proprietor can take several days.
- The term for LLC goes on case-by-case basis.
In addition to the questionnaire, the bank documents on the company's turnover in other jurisdictions, list of counterparties, service contracts with companies, office lease, lists and copies of employees’ passports as well as other documents may be required.
Check with the lawyers immediately before starting the procedure for details.
Registration as an international company
An international company is a Georgian legal entity, which provides certain types of services abroad and receives income solely from this activity (it is allowed to receive less than 2% of income from other activities).
- A minimum of 2-year experience in IT sphere in certain types of activities
- Ensure that the company has a real presence in Georgia
- International company is exempt from income and profit tax on dividend distribution.
- Income tax on salaries of employees of an international company is reduced from 20% to 5%.
- Exempt from property tax (excluding land tax) if the property is to be used or used for an approved for an international company activity.
- 5% is corporate income tax, payable on profit distribution.
- 2% is a pension fund tax on resident employees.
Obtaining the status of a person in the virtual zone
A virtual zone person status can be granted to a company registered in Georgia and engaged in IT activities (research, maintenance, development, design, production and implementation of computer information systems resulting in the creation of software products).
Profit taxes and VAT:
- If information technologies were created on the territory of Georgia and were sold abroad.
- Profit tax — 0%, VAT — 0%
- If the work is done for a Georgian client, including the Georgian branch of a foreign company.
- Profit tax — 15%, VAT — 18%
- Other taxes:
- 5% — dividend tax
- 20% — income tax on employees
- 2% — tax to the pension fund from the resident employees
For more information on the status of the person of the virtual zone, see our material below.
We will be happy to accompany you every stage of the way
Experts in the field
Consulting on issues of doing business in Georgia: developing a strategy for entering the market, determining the legal model of construction business, consulting on special legal regimes.
A mobile game publisher from Latvia
Supporting the opening of a branch office for a Latvian publisher of mobile games in Georgia. Consulting on the contractual arrangements of the client's business, office lease agreement and special regimes in Georgia.
International software developer
Consulting on the possibilities of conducting company's business in Georgia. Supporting legalization of the company's employees in Georgia, consulting on tax issues, reviewing and analyzing employee contracts. Organization of a legal "helpdesk" for the company's employees.
International GameDev Studio
Consulting project on development of a multi-jurisdictional business restructuring scheme with inclusion of Georgia as an R&D center. Creation of contractual bundling of business within the group of companies. consulting on application of preferential tax regimes and attraction of foreign counterparties.
Large mobile application developer
Consulting a mobile application development company whose products are at the top of the download list in the USA and Europe. Support in opening a company, hiring employees and obtaining a status allowing the use of special preferential regimes in Georgia
International holding for distribution of IT products
Consulting on establishment of a representative office in Georgia, taking into account the structure of contractual relations and the nature of the client's transactions