Consulting on the Tax Code for those who wish to open a company in Georgia

It is reasonable to establish company in Georgia by many reasons. This small Caucasian country enters the TOP-10 list of countries by simplicity of making business and favorable conditions for making business lucrative. It is especially profitable to register legal entities-exporters in Georgia. Nevertheless, it will be problematic to start business here on your own; you will have to understand the local legislation and the Georgian mentality. Despite the absence of communication problems (Georgians fully understand and speak Russian language), it is hard to register a company in Georgia independently, just as to organize its qualitative bookkeeping support.

To successfully organize business in the territory of this country, much time has to be spent on study of legislation and the applicable procedures. Still, when you address consultants of the company Offshore Pro Group, you may overcome obstacles and in just short period of time arrange an effective and profitable business.

Benefits of making business in Georgia

Georgia is a very picturesque and interesting country with an ancient history and funny traditions. It’s not for nothing that Georgia claims a status of a wine-making ancestor and homeland of wine. Meanwhile, Georgia attracts not only tourists who came here for vacation, but also business people from around the world. This is due to a number of reasons:

• high position of Georgia in the rating of simplicity of making business 2020 – 7 place among 190 countries of the world is a clear signal for investors to consider this jurisdiction as one of the places where it is profitable to open a company and start business activity;
• clear and loyal system of taxation that is considered one of the best in the world. In Georgia, everything is automatized and red-tape is brought to minimum, which allows saving time of businessmen on submission of reports, payment of taxes and other mandatory payments. Besides, international specialists highly ranked the system of VAT recovery, owing to which companies do not have to wait for months for compensation of taxes and have to withdraw their money from turnover. Taxes are returned to accounts within a few days;
• loyal taxation of small entities (yearly revenue up to 500 000 lari) – these only pay a turnover tax in amount of 1%;
• special tax regime for IT companies allowing optimization of taxes;
• available free trade zones (FTZ) where companies-exporters are exempted from taxes. Moreover, FTZ provide all the conditions for establishing an effective “turn-key” business;
• Georgian government concluded agreements on free trade with countries of Europe, CIS, China, Hong Kong, and Turkey, due to which Georgian manufacturers having a certificate if origin may supply goods there in avoidance of customs duties;
• non-residents from many countries may stay in the territory of Georgia during 1 year without execution of a visa;
• convenient geographic location at the crossroads of trade ways between Europe and Asia. Many foreign manufacturers use the transport potential of Georgia to deliver products abroad. China also vies Georgia as its strategic partner in realization of the project “New Silk Way”.
• Georgia does not participate in the system of automatic exchange of financial data (CRS);
• low cost of bank services, as for legal entities, so as natural persons.

By summarizing the abovementioned, the Georgian jurisdiction allows non-residents significantly optimize taxes, at the same time keeping 100% confidentiality of business. If added with a low cost of bank services, available cheap workforce and open global markets, then reasonability of making business in Georgia increases manyfold.

Businessmen from Russia should be also interested in the Georgian jurisdiction. The geographic proximity and the concluded agreements on free trade with many countries makes it reasonable for Russians to open a company in Georgia, to further promote partner relations with European and American companies without worrying of sanctions.

Learn about increasing speed and effectiveness of payments using a personal account in TBC Bank for non-residents.

Consultation on taxes from leading specialists

By addressing us for a consultation you obtain the maximum complete answer to all issues related to making business in Georgia. A single-matter expert, who is well acquainted with the Georgian legislation, will advise on how to organize business better and what is necessary, i.e.:

• will select an organizational-legal form that will better suit your business;
• will make a list of services necessary for successful business in Georgia;
• will advise on what documents are necessary for registration of a company and will help to prepare them.

After consultation with our specialist you will obtain a detailed step-by-step scheme for making business in Georgia, will obtain information on required documents, peculiarities of their preparation, and other data necessary for prompt registration of a company.

Selecting a company for optimization of taxes

The available tax benefits in FTZ and absence of Georgia among countries-participants of CRS makes the local jurisdiction similar to a classic offshore. The difference is that the jurisdiction is absent in the black lists of international organizations.

In Georgia the following forms of business organization exist: LLC, JSC, sole proprietor, cooperative, limited partnership, partnership with solidary responsibility. Any of these may be used to make business under the following tax regimes:

• Free trade zone – there are four zones in Georgia: Tbilisi, Kutaisi-Hualing, Kutaisi and Poti;
• Person of a virtual zone for IT companies.

When making business in FTZ or a virtual zone, a company may significantly optimize its taxation. Nevertheless, it should be kept in mind that these regimes will suit not all the legal entities.

Services for successful making of business

The company Offshore Pro Group provides a full range of services regarding opening and supporting companies and entities in Georgia. Upon approval of an economic subject and checking a company name for similarity and accordance to the Georgian legislation, our specialists will select a package of instruments necessary for successful operation depending on a company type:

• IT company with a status of a virtual zone person– corporate and personal account in one of the leading banks of Georgia, bookkeeping support, apostilizing of documents and provision of a legal address;
• company in FTZ– minimum regime of taxation for exporters, assisted bookkeeping reports, a legal address, a bank account and a license corresponding to type of activity;
• standard companyin the territory of Georgia – loyal system of taxation, bookkeeping support, corporate and personal account, and a legal address.

Upon selection of services, you will obtain a coherent image of business in Georgia. It should be noted that opening a company here presumes actual operation; otherwise, sanctions may be applied by banks (termination of service and blocking of accounts of legal entities).

Preparation of set of documents

On this stage, our specialists agree with you the text of constitutive documents, as well as documents for opening accounts and power of attorney (if necessary). All documents are prepared with consideration of the applicable legislation of Georgia, to avoid further problems during making of business.

Constitutive documents are prepared in two languages; Georgian is the mandatory one.

Upon completion of this stage, you obtain a full set of documents adequate for registration of a company in Georgia and opening an account in the leading bank of Georgia.

A special fair offer for non-residents — personal account in Bank of Georgia remotely.

After you address us at Offshore Pro Group with questions regarding tax legislation of Georgia and its impact on making business, we provide you with a  detailed professional consultation and:

• scheme for organization of business under the optimum tax regime;
• maximum complete list of services necessary for successful operation;
• step-by-step instruction for prompt registration of a company;
• lawfully executed documents.

To obtain professional assistance and answers to any questions regarding the Tax Code of Georgia, please contact us at: [email protected]. Our specialist will get to you soon to discuss the terms of cooperation.