Company Formation Georgia
Updated on Sunday 20th May 2018
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Georgia represents an attractive investment environment for foreign companies as the incorporation process takes a very short time if all the requirements are fulfilled. Aside from the easy incorporation process, foreign investors will be glad to know that their companies will benefit from the same rules as the local companies.
Company incorporation in Georgia
Any person - no matter his or her nationality or residency - can be a director or a shareholder in a company in Georgia. Shareholders of a Georgian company can be natural persons or legal entities. The company must have a local registered office (BridgeWest offers this type of service) and no start-up capital is required for incorporating a limited liability company in Georgia. The first step when deciding to open a company in Georgia is to decide upon the name of the new company. The next step will be preparing the certificate of incorporation or articles of association that will require information about the business activities, the shareholders, the shares that will be issued and the company structure. The client must also appoint a registered agent, set up the corporate records books and prepare the corporate bylaws.
If the investors do not want to go through the incorporation process themselves, they can name representatives who, through power of attorney with the specific apostil and notarization of a Georgian public notary, will be allowed to conduct the incorporation process. The power of attorney will be useful in setting up a bank account for the new company also. Once the registration with the Agency of Public Registry is concluded, the new company will receive its certificate of incorporation and it will be allowed to conduct business activities. After the registration process is completed, the new Georgian company is also required to register with the tax authorities. The registration process is simple only requiring an application form that contains data about the shareholders, directors and management board, a certificate of the bank account, the registered office and the articles of association of the company. As mentioned above, the incorporation process and registration for taxes are very simple and fast, taking about one week to have the company established and running business operations in Georgia.
Bridgewest provides the following services:
- drawing up the articles of association that can be signed through power of attorney (Georgian laws require powers of attorney for any public notary proceedings);
- drawing up documents for company incorporation in Georgia: specimen signatures, identification papers copies, application forms required for company registration;
- arranging public notary proceedings (all procedures for company incorporation are done in front of a Georgian public notary);
- providing a registered office in Georgia on demand; the registered office serves as headquarters for the company in Georgia and it will be made public;
- setting up a bank account for the company in Georgia; BridgeWest will help in setting up the share capital bank account, as well as a current bank account once the company is incorporated;
- recommending a Georgian accountant, as accounting services are needed for new businesses in Georgia.
The limited liability company in Georgia
The Georgian limited liability company is the most common type of company as it requires no minimum share capital, it can have at least one shareholder and its shareholder or shareholders will be held liable for the company’s debts and obligations to the extent of their contributions.
The joint stock company in Georgia
The joint stock company in Georgia requires at least one shareholder. There is no minimum share capital required for the incorporation of a joint stock company, but it must have an authorized capital. The shares of a joint stock company in Georgia can be traded on the stock exchange.
The limited partnership in Georgia
Limited partnerships in Georgia can have at least two natural persons or legal entities as founding members and one of the shareholders will be considered a general partner and will have full responsibility for the company’s debts and obligations, but it will also have managing rights, while the limited partners will be held liable to the extent of their contributions and have no decision-making rights.
Taxation in Georgia
The standard VAT rate in Georgia is 18% and a zero VAT rate applies to exports, tourism facilities, international transport and transfers of gold to the National Bank of Georgia.
The corporate tax in Georgia is set at 15%. For Georgian companies, the tax on dividends and interests is set at 5% for both local and foreign entities and individuals.
BridgeWest is also able to offer ready-made Georgian companies and VAT registration.
Please contact us for more information about how to open the company in Georgia and prices.