Opening a business in Georgia 2022
Georgia is a country that is not only associated with wine, mountains, and nature. It is also at the forefront of economic reform. Not only that, in terms of ease of starting a business in Georgia 2022, the state ranks among the best countries, on a par with Singapore and Hong Kong. Georgians are open to foreign investors who are attracted by modern tax solutions and simplified bureaucratic procedures.
Why Start a Business in Georgia in 2022
Georgia has an advantageous territorial position as an intermediary between Europe and Asia. It has a lower cost of living than in the EU, low accounting costs and mandatory payments.
The economic transformation in Georgia is based on favorable conditions for doing business:
- Company registration in Georgia can be done in 1 day;
- A number of taxes were cancelled (only 4 out of 26);
- Many licenses/permits were abolished;
- Customs clearance time is reduced;
- Taxes are calculated electronically, which saves a lot of time;
- In order to speed up a procedure (e.g. business registration), it is enough to pay a higher fee;
- A free trade agreement has been signed, which cancels all customs duties on Georgian goods imported into the EU;
- In 2018, the country entered into a free trade agreement with China;
- Favorable terms of trade with the U.S., Japan, and Canada are in effect.
Additional facilities are available for companies located in free zones - 2 in Kutaisi, one each in Tbilisi and Poti. Here you can register a company, lease an office, warehouses and etc. at short notice.
Registering a business in Georgia makes investors attractive because of mild taxation legislation. Before 2004 there were 26 taxes, now there are four. Including social tax was removed, and the social fund was abolished. Therefore, the companies registered here do not pay any pension, disability and other taxes. Income tax is payable when profits are distributed on the assets of shareholders. VAT is 18%, but if the turnover does not exceed €30K, it is not necessary to pay.
The company is exempt from any taxes when exporting goods abroad. Imports are subject to VAT and domestic tax of 4%.
The country has not implemented a Common Reporting Standard (CRS), so the local authorities do not process and transmit account information to international regulatory authorities. Investors don't have to worry about their money leaking to tax authorities in other countries.
Setting up a company
There are no restrictions on nationality, residency, or residency requirements to open a company in Georgia. The registration process is quick. You need to prepare the charter of the company, fill out all the necessary forms, register at the National Public Registry of the Ministry of Justice of Georgia.
The most popular forms of registration are LLC and joint-stock company. The procedure consists of three steps:
- Payment of registration fees: 100 lari ($30-$35) for standard registration, 200 lari for expedited. You must also pay 1 lari for the bank fee;
- You must register your company in the registry of the Ministry of Justice, as well as its charter to get an identification number;
- Open an account in a bank in Georgia;
- In some cases, for example, if you are going to be engaged in cryptocurrency activity, you may need a license.
How to open a business in Georgia
If you want to open a company in Georgia 2022, contact IT-OFFSHORE experts.