A unique combination: a Georgian company and a corporate account in Bank of Saint Lucia International Limited starting from 6 950 EUR
Establishing a company in Georgia in 2019 from the point of increasing productivity of business is attractive for many non-residents. A small Caucasian country draws non-residents in with the possibility of optimizing taxation and with a free exit of products marked “Made in Georgia” to markets of Europe and China. The latter is especially relevant for Russian citizens. The Georgian jurisdiction helps them to avoid sanctions and allows duty-free trading with EU countries. Moreover, Georgia has Free industrial zones where entities can be registered with benefits, avoidance of taxes and further minimizing of expenses.
To make business on a global level more effectively, as well as to diversify risks related to bank servicing, non-residents are recommended to not only establish LLC in Georgia, but also to open a corporate account abroad. One of the optimum variants for corresponding business is a bank account in Bank of Saint Lucia International Limited (BOSLIL). This financial institution is located in an island state in the Caribbean basin. To open a corporate account there, you do not have to waste time on long trips; employees of the Offshore Pro Group company will undertake all peculiarities related to the process of registration of a company in Georgia and opening a corporate account in BOSLIL, o that in just a few days a customer had fully operating legal entity with a corporate account in a reputable Caribbean bank. The price for remote registration of a company in Georgia with a bank account in BOSLIL without visiting Saint Lucia and Georgia – 6 950 EUR. If legal entities are among founders of a company, the price of the service increases up to 7 950 EUR.
Why you should establish a company in Georgia in 2019
Georgia demonstrates huge success in development of its economy. In recent years, the government of the country had implemented several successful reformations that favorably influenced the investing climate. Thus, by the data of Saxstat, for the first six months of 2019 GDP of Georgia had increased for 4,9%.
Achievements of the country in the economical sphere were noted by the global community; as result, Georgia began taking high positions in various international ratings:
- 9 place among 190 countries in 2018 in the rating “Simplicity of making business” made by the World Bank. The highest points were given to Georgia in nominations: 2 place by simplicity of registration of business, 2 place – by level of protection of investors’ rights, 4 place – by simplicity of registration of proprietary rights, 8 place – by quality of provision of execution of contracts;
- 16 place in 2019 by the level of loyalty of the tax system according to the World Bank;
- 1 place by fighting corruption among countries of the Eastern Europe and Central Asia according to Transparency International;
- 16 place in the rating of economical freedom according to The Heritage Foundation.
According to forecasts of IMF, in 2019 the Georgian economy will increase for 4,6%, in 2020 – for 5%.
Let us consider the main factors arising interests among foreign businessmen, which motivate them to establish a legal entity in Georgia.
To increase effectiveness of management of personal assets, you may use the service and open a personal account for non-resident in Bank of Georgia.
Loyal system of taxation
Since 2017 Georgia applies the “Estonian system” of taxation, which benefit is exemption of entities from tax on income if income will be further forwarded to business development, instead of remaining fixed. Therefore, legal entities can use a part of obtained profit for investing in their activity, which minimizes the taxable base. For the first year of application of new tax rules, Georgian companies managed to re-invest in their development more than 50 mln USD, which positively influenced their financial state.
Apart from support of major business, the government also decreases taxes for small businesses (annual revenue up to 500 000 lari).Starting from the mid-2018, the tax rate on turnover was reduced from 5% to 1%.
Standard amounts of mandatory payments for legal entities in Georgia are as follows:
- tax on income – 15%;
- VAT – 18%;
- tax on real estate – up to 1%;
- tax on import – depends on the type of products: 0%/5%/12%;
- excise tax;
- payments to the Pension Fund – 2%.
Still, if a company is established in Georgia in one of Free industrial zones (FIZ), it is possible to avoid the abovementioned payments.
Learn more about benefits of opening an IT company in Georgia with account in Bank of Georgia.
Registration of a company in Free industrial zone in Georgia
The country has four fully operating FIZ: in Tbilisi, in Poti, and two in Kutaisi (located in the territory of the former bus factory).A huge benefit of FIZ is that if a company is registered there and business is carried only on a global scale, then an owner is completely exempted from taxes. Besides, opening a company in Georgia in the territory of FIZ is lucrative by the following reasons:
- no requirement on tax reporting – i.e., lower costs of bookkeeping support;
- cheap electric energy, Internet, utilities, construction, security and other services – in the territory of FIZ VAT is not applied, i.e. everything is 18% cheaper;
- available cheap workforce – according to the data of Saxstat, the monthly average salary in Georgia is at the level of 318,3 lari (approx. 108 USD);
- FIZ provides all necessary conditions for organization of business: warehouses, land areas, office premises, communications, and customs points;
- advantageous locations of FIZ – all of them are located bear big transport junctions, where it is easier to organize shipment of products abroad.
All the abovementioned motivates non-residents to register LLC in Georgia, as they may significantly reduce their operational and tax expenses.
Convenient geographic location of Georgia
Establishing a company in Georgia is also very beneficial from the point of logistics. The country takes an important strategic location, between Asia and Europe. Its transit resources can be used to advantage by neighbor countries, countries of the Persian Gulf and China to deliver goods to countries of Europe and CIS. Not for nothing China included Georgia in the list of countries-partners within the project “New Silk Way”. By this very route, Chinese manufacturers plan to supply their products in Europe.
Considering a favorable location, the government of Georgia wants to turn the country into a regional logistic center. Recently construction of the main railroad line Baku-Tbilisi-Kars was finished. This transport corridor combines railroads of three countries: Georgia, Azerbaijan, and Turkey, and accelerates delivery of goods and raw materials to Europe.
Not less ambitious project of the government of Georgia is deepening of the sea port Anakliya. This port is to become the biggest in the Eastern part of the Black Sea, and will even more enhance the transit attractiveness of Georgia.
Beyond an important strategic location, the local policy on simplification of access of Georgian manufacturers to markets of other countries must be mentioned. The government of Georgia concluded agreements on free trade with countries of EU, CIS, EFTA, China, Hong Kong, Turkey, owing to which products marked “Made in Georgia” may be delivered there without duties.
It is profitable to establish a company in Georgia in 2019 for Russian citizens. First, the county does not support sanctions; second, it has a free access to markets of countries with more than 1 billion customers; third, Georgians understand and speak Russian; fourth, geographic proximity of boundaries allow minimizing time loss in traveling across countries; fifth, using possibilities of FIZ allows reducing fiscal burden.
Other benefits of the Georgian jurisdiction
It should be also remembered that in Georgia there are no obstacles and limitations with registration of companies. A legal entity can be established as by Georgians, so as by foreign citizens or companies. Legislation does not impose limitations on the amount of the authorized capital, and does not oblige to hire only residents.
Besides, bank services in Georgia are of high quality. It is more beneficial to use premium packages of local banks than of financial institutions in Europe or CIS. Meanwhile, Georgian banks do not exchange the financial information of their customers with tax authorities of other countries subject to requirements of CRS. Owing to this, the data on transactions will not be disclosed to tax authorities of countries where non-residents belong as citizens.
A corporate bank account for a Georgian company in Bank of Saint Lucia International Limited
To diversify risks related to keeping of assets, to better organize cash flows and increase mobility of payments, Georgian companies are recommended to open a corporate account in other jurisdiction. For example, one of the best banks of the Caribbean region, Bank of Saint Lucia International Limited (BOSLIL), can be viewed as an additional servicing bank. The bank is located on an island state Saint Lucia.
BOSLIL is a subsidiary of the investment holding company PROVEN Investments Limited. A supervision over bank activity is provided by the Committee on Regulation of Financial Services of Saint Lucia and the East Caribbean Central Bank. In its operation, the financial institution is guided by international bank principles, while reliability of BOSLIL is verified by available correspondent relations with most of major and reputable world banks.
In BOSLIL, customers may obtain all general bank services: investment programs, multicurrency accounts, deposits on demand, fixed-term deposits, credit cards, long-term and short-term credit programs.
It should be noted that the island Saint Lucia is the offshore jurisdiction, which is actively used by the bank BOSLIL. The bank managed to form a strategic alliance with the international well-known financial group, which positively influenced the promotion of the brand BOSLIL on a global level. As result, the bank managed to expand its options and provide reliable relations with reputable European banks that may provide services of asset management.
Strong points of the bank BOSLIL are:
- high-quality service;
- established correspondent relations with European banks;
- conservative approach to corporate management;
- flexibility in decision-taking.
Bank provides services in English, but if necessary these can be provided in other European languages, including Spanish, German, and French.
The bank defines its main purpose as provision of top-quality offshore solutions adapted for customers’ requirements, which may help them to achieve success.
The main bank services by BOSLIL
At BOSLIL, Georgian companies may obtain the following bank services:
- open a multicurrency account that supports 15 world currencies. Besides, all transfers are performed by the bank through the system SWIFT within 24 hours;
- place money on deposit for a term: 30, 60, 90, 190, 270 or 365 days, and what is important for a non-resident – the accrued interest are not subject to taxation. The minimum contribution is 25 000 USD or equivalent in other currency;
- safe and reliable online banking, using which a customer obtains 24/7 access to his accounts from anywhere in the world;
- credit cards Visa and MasterCard with limit in USD upon security of warranty deposit exceeding credit limit for 125%;
- debit payment cards of Gold class;
- credit on real estate, including on securities;
- services of asset management;
- bank services for trusts and funds;
- services of management of mutual investment funds.
How to register a company in Georgia and open a corporate account in the bank BOSLIL remotely
The procedure of obtaining an effective instrument for business on a global level with the help of Offshore Pro Group is very simple, even despite a big distance between two countries: Georgia and Saint Lucia.
Conditionally, this procedure can be divided into stages:
- Customer contacts us at: email@example.com.
- Our employee contacts a customer to discuss and agree upon the general terms of cooperation.
- Customer pays for our services – starting from от 6 950 EUR. A transfer can be made by any convenient means: WesternUnion, WebMoney, PayPal, or a bank transfer.
- Upon receiving payment, we immediately start to prepare documents for registration of a company in Georgia and opening a corporate account in the bank BOSLIL.
To execute constitutive documents for a Georgian company and open a corporate account, we need to have:
- notarized copy of international passport;
- documents certifying residence: utility bills, rental agreements, purchase and sale agreements for real estate. Documents must be translated into English and notarized.
It should be noted that the date of issuance of documents certifying the address of residence must not exceed 3 months.
If you want to obtain a Georgian company with a corporate account in the most known bank of the East Caribbean — Bank of Saint Lucia International Limited (BOSLIL), feel free to contact us right now: firstname.lastname@example.org.
A combined benefits of two countries allows you obtaining the access to services of asset management, fund management, investments, as well as other high-quality services, and optimizing taxation without wasting time on travel.
Tags: #Registration of company in Georgia