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International corporate law Company registration in Georgia

Taras Miroshnychenko

Head of practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.

Company registration in Georgia

Georgia has been actively positioning itself over the past decade as a jurisdiction with simple business rules and fast administrative procedures. According to international rankings, the country is consistently among the states where a company can be registered in the shortest time – in many cases within 1-2 business days. That is why this jurisdiction has become popular among entrepreneurs from Europe, the Middle East and post-Soviet countries.

However, starting a business in Georgia has not only advantages, but also certain limitations. Companies must keep accounting records, submit tax reports and undergo bank financial monitoring procedures. In addition, foreign founders often face additional checks when opening bank accounts or working with international payments.

We will help not only with the formal procedure for creating a legal entity, but also with choosing the optimal organizational and legal form, tax structuring and accounting support.

Main taxes paid in Georgia

Georgia’s tax system is considered one of the most liberal in Europe. The main taxes for businesses include:

Corporate Income Tax (CIT)

standard rate – 15%;
applies only to distributed profits (dividends or other forms of payment);
undistributed profits are not taxed.

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VAT

standard rate – 18%;
VAT registration is mandatory for turnover exceeding 100,000 GEL within 12 months.

Dividend tax

rate – 5%.

Personal income tax

fixed rate – 20%.

Simplified regime for small businesses

for individual entrepreneurs – 1% of turnover (up to 500,000 GEL per year).

For example, an IT company with a turnover of $200,000 can reinvest profits into development without paying corporate tax, which makes Georgia attractive for startups.

Get legal adviceCompany registration in Georgia is one of the fastest in the world. In the standard case, the procedure takes 1-3 business days.

Main stages:

Choosing a company form. For example, a foreign entrepreneur can register an LLC for a SaaS project or consulting activities.
Preparation of documents. The charter, founder’s decision and legal address are prepared.
Submission of documents to the House of Justice. The state fee is approximately: standard registration – about 100 GEL, accelerated – about 200 GEL.
Obtaining a registration number. The company is automatically registered with the tax service.

In Georgian legislation, there are organizational and legal forms similar to Ukrainian ones:

LLC (Limited Liability Company)

An analogue of the Ukrainian LLC. This is the most common form for small and medium-sized businesses. Example: IT company, consulting or trading company.

JSC (Joint Stock Company)

Analogue of a joint stock company. Used for large businesses, attracting investors or creating holding structures.

Individual Entrepreneur (IE)

Analogue of a sole proprietorship. Example: a freelancer, marketer or IT developer who works with foreign clients and pays 1% tax on turnover.

Lawyers at Prikhodko & Partners often recommend the LLC form for international business, as it is the most versatile for working with banks and investors.