One of the key reasons to open a company in Georgia is its exceptional tax system. Companies operating as IT Virtual Zone entities enjoy a single 5% tax rate, while businesses with Small Business Status (SBS) pay just 1% tax under certain conditions. Ordinary Limited Liability Companies (LLCs) benefit from a 5% tax on dividends, and Georgia follows the popular `Estonian model,` where tax is only paid on distributed profits. This system encourages reinvestment and supports sustainable business growth.
Georgia offers multiple types of business entities to suit diverse operational and legal requirements:
Limited Liability Company
Many clients are interested in how to open an LLC in Georgia. The LLC is the most common choice for businesses in Georgia due to its flexibility and ease of management. It requires no minimum capital and provides liability protection, meaning owners are only responsible for debts to the extent of their contributions. Opening an LLC in Georgia is quick and efficient, making it an excellent choice for local and international entrepreneurs alike.
Joint Stock Company
Ideal for larger businesses, a Joint Stock Company allows for the issuance of shares and access to public or private investment. This structure is perfect for businesses planning significant expansion or seeking to raise capital through stock markets.
Individual Entrepreneur
This status is designed for freelancers, sole proprietors, or small business owners. It offers simplicity and access to Georgia’s extremely favorable tax regimes, with rates as low as 1% under SBS conditions.
Branch Office
A branch office enables foreign companies to extend their operations into Georgia while remaining directly connected to the parent company, which retains full liability for its activities.
Representative Office
Suitable for companies that want a presence in Georgia without engaging in direct commercial activity, a representative office is commonly used for research, promotion, and market development.
General Partnership
A partnership between two or more individuals who share equal responsibility for the business. While straightforward, all partners are personally liable for the company’s obligations, making this less common among international investors.
Limited Partnership
Similar to a General Partnership, an LP distinguishes between partners with limited liability and those with full liability. This setup is useful for businesses where some partners act as passive investors.
Georgia also makes it easy to open a business bank account, providing each account holder with a multi-currency IBAN that includes EUR, USD, and GEL as standard. The banking system is modern, accessible, and efficient, ensuring seamless operations for businesses. For those who require additional privacy or convenience, Georgia also supports the establishment of nominee companies, where a nominee director and/or nominee shareholder can act on behalf of the business owner.
The country’s business-friendly policies further enhance its appeal, especially for those looking to open business in Georgia from abroad. There is no minimum capital requirement for LLCs, and the registration process is quick and efficient. Georgia’s free trade agreements and strategic location between Europe and Asia also make it an ideal hub for international operations.
For expert guidance, we at Georgia Business and Residential Law specializes in helping businesses navigate the formation process. From selecting the right entity type to preparing all necessary documentation and ensuring legal compliance, our team of lawyers simplifies the complexities of starting a business. Whether you’re establishing an IT Virtual Zone company or need assistance with a nominee company setup, our expertise ensures your business is set up efficiently and positioned for success.
If you’re ready to open a company in Georgia, now is the perfect time to take advantage of its unique opportunities. Contact us at Georgia Business and Residential Law today to begin your journey and unlock the benefits of doing business in one of the most dynamic and supportive markets in the world.
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Relocating to a new country can be overwhelming, but Georgia Business and Residential Law is here to make your transition easy.
We specialize in helping individuals and businesses move to Georgia with ease. From obtaining residence permits to navigating property purchases
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Ready to move to Georgia? Contact Georgia Business and Residential Law today and let us help you turn your dream of living in Georgia into a reality.