Why Open a Company in Georgia?
Georgia has become one of the most attractive jurisdictions in the world for entrepreneurs, freelancers, and international investors. With low taxes, fast registration procedures, and the ability for foreigners to own 100% of a company, the country offers a practical and business-friendly environment.
Unlike many EU jurisdictions, company formation in Georgia is straightforward and affordable. Most businesses can be registered within 1–2 business days, and ongoing compliance requirements are relatively simple. This makes Georgia especially appealing for digital entrepreneurs, consultants, e-commerce sellers, and international service providers.
- Fast company registration (often within 24–48 hours)
- Low corporate tax environment
- 100% foreign ownership allowed
- No minimum share capital for LLC
- Remote setup possible via Power of Attorney (POA)
- Access to the 1% Small Business tax regime for eligible Individual Entrepreneurs
Main Business Structures in Georgia
Before starting the registration process, it is important to choose the correct legal structure. The two most popular options for foreigners are:
Individual Entrepreneur (IE)
An Individual Entrepreneur is the simplest and fastest business form in Georgia. It is especially popular among freelancers, consultants, and online service providers.
Best for:
- Freelancers and remote workers
- Digital nomads
- Consultants and solo founders
- Low-risk service businesses
One of the biggest advantages is eligibility for the Small Business Status, which can reduce income tax to just 1% of turnover (subject to conditions and limits).
Limited Liability Company (LLC)
The Georgian LLC is the most common structure for growing businesses and companies with partners. It provides liability protection and a more formal corporate image.
Best for:
- Businesses with multiple shareholders
- Trading companies
- Higher-risk activities
- Companies planning to scale
There is no minimum share capital requirement, and foreigners can fully own the company.
Step-by-Step: Company Formation in Georgia
Opening a company in Georgia is relatively simple when handled correctly. Below is the standard process.
Step 1: Choose the Company Structure
Decide whether an Individual Entrepreneur or LLC better fits your goals. This decision affects taxation, liability, and reporting requirements.
Step 2: Select and Reserve the Company Name
The proposed business name must be unique in the Georgian registry. A quick availability check is usually performed before filing.
Step 3: Prepare Required Documents
Typical documents include:
- Passport copy of the owner(s)
- Legal address in Georgia
- Founding documents (for LLC)
- Power of Attorney (if opening remotely)
All foreign documents may require notarization and, in some cases, apostille and translation.
Step 4: Register with the National Agency of Public Registry
The company is officially registered with the Georgian Public Registry. Standard processing is usually 1 business day, with expedited options available.
Step 5: Tax Registration
After incorporation, the business must be registered with the Revenue Service. At this stage, eligible Individual Entrepreneurs can apply for Small Business Status (1% tax regime).
Step 6: Open a Corporate Bank Account
A Georgian bank account is typically required for operations. This can often be arranged locally or remotely via Power of Attorney, although final approval always depends on the bank’s internal compliance policies.
Understanding the 1% Small Business Tax Regime
One of Georgia’s most attractive features is the Small Business Status available to qualifying Individual Entrepreneurs.
Under this regime:
- Income tax can be reduced to 1% of gross turnover
- The annual turnover limit applies under Georgian legislation
- Designed primarily for service-based businesses
This regime is widely used by freelancers, IT specialists, consultants, and online entrepreneurs. However, proper structuring is important to ensure eligibility and compliance.
Can Foreigners Open a Company in Georgia Remotely?
Yes — in many cases, foreigners can open a company in Georgia without visiting the country by using a notarized Power of Attorney (POA).
Remote setup typically includes:
- Company registration via POA
- Tax registration
- Legal address arrangement
- Bank account assistance (subject to bank approval)
However, some banks may later require a personal visit depending on their compliance review and risk assessment.
How Long Does Company Formation Take?
- Company registration: 1–2 business days
- Tax registration: same day or next day
- Bank account opening: a few days to several weeks (depends on bank compliance)
Proper document preparation significantly speeds up the process.
Common Mistakes to Avoid
- Choosing the wrong business structure
- Not applying for Small Business Status on time
- Using an unsuitable business activity description
- Underestimating banking compliance requirements
- Poor tax planning from the beginning
Need Help with Company Formation in Georgia?
If you want to open an Individual Entrepreneur or LLC in Georgia, professional guidance can save time and prevent compliance issues. Our team assists foreign clients with company registration, Small Business Status applications, bank account support, and ongoing legal and tax coordination.
