How to open an offshore in Georgia

How to open an offshore in Georgia

To open an offshore in Georgia, it is better to register in the so-called Free Industrial Zone (FIZ), either in Tbilisi, Poti, Kutaisi. Instead of income tax, you will have to pay an annual fixed fee, which depends on the type of economic activity of the company. There is also no need to submit reports and undergo an audit regularly. Goods are not subject to export-import duties. Also, it is not necessary to pay VAT for money transfers between companies that are registered in different FIZ.

Advantages of an offshore in Georgia

Although Georgia is not a typical offshore country, some benefits and advantages differentiate it from other European countries. For example, it is cheaper to live here than in the EU, and business costs are relatively low.

Other advantages include:

  • Quick opening of a business - 1 day.
  • The authorities have abolished a huge number of taxes, including social tax. As a result, out of 26 taxes that had existed, there are only four left.
  • Taxes can be calculated electronically, which helps to avoid mistakes due to human error, and it also saves time.
  • The time for clearing goods at customs has recently decreased.
  • The country has a free trade agreement with the EU, so there is no need to pay customs fees for Georgian goods if you are going to sell them in Europe.
  • For companies that plan to trade with Japan, the U.S., and Canada, there are various benefits.

Taxes are worth mentioning separately. If your turnover is less than €30K, you don't have to pay VAT, but if your turnover is higher than that, the tax is 18%. Local businesses do not pay any fees to a pension fund, social fund, etc. They are also exempt from tax if they export goods to another country. Income tax is not paid before profits are distributed to the assets of shareholders.

Georgians pay special attention to bank secrecy. Financial institutions do not pass data on customer accounts to international regulators. This means that information about customer deposits in Georgia is not available to the tax authorities of other states.

How to open an offshore in Georgia

A foreigner can easily open a company in Georgia. If there is no time to come to the country in person, you can issue a power of attorney to a representative of our company. We will help you to gather documents quickly and open an offshore company and a bank account.

Things you need to start company offshore

The first thing you need to do to register an offshore company in Georgia 2022 is to choose the organizational and legal form. LLC is the most popular one, but you can also open a joint stock company, a branch, a representative office, etc.

Before filing the documents you must prepare the company charter and fill in the questionnaire correctly. All papers should be prepared in the Georgian language and notarized if needed. Specifying data about the owners, shareholders, type of activity, and detailed information about company management is necessary. The registrar may require other certificates, which should be provided as well.

The registration procedure consists of the following steps:

  • Payment of state fees - 100 GEL for ordinary registration, 200 GEL for quick registration. Bank fee is 1 GEL.
  • Registration at the Ministry of Justice and getting an identification number.
  • Tax accounting.
  • Opening of a corporate bank account.

Georgia has recently shortened the list of activities that require licensing, but in some cases you still need to get it (for example, if you are planning to work with cryptocurrency).

How to register an offshore in Georgia

To open an offshore in Georgia, contact IT-OFFSHORE experts.

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