Why Founders Consider Georgia
Georgia attracts founders with a simple registration procedure, no minimum capital requirement for an LLC, and a tax model where profit tax arises on distribution. For some businesses this works well; for others it creates friction with banks and counterparties. Both scenarios deserve review.
The Procedure
An LLC is registered at the House of Justice or through an authorised bank: charter, incorporation decision, registered address, and director and shareholder details. Timelines are usually short and there is no capital requirement. Foreign ownership is permitted; foreign documents must be translated and certified.
Tax
The headline profit tax rate is 15%, but under the Estonian-style model tax is paid on distribution, while reinvested profit is not taxed. VAT is 18% above the registration threshold. A small business regime allows a 1% turnover rate where the turnover limit and activity conditions are met. Separate regimes exist for international companies and virtual zone entities, but each requires proof of genuine activity.
Banking
Opening an account is the most sensitive stage. Georgian banks review the ownership chain, activity and counterparties, and apply particular scrutiny — including secondary sanctions exposure — to clients with Russian or adjacent history. No local activity and no local staff reduce the chances. Bank practice changes and should be checked at the time of application.
After Registration
- Tax registration and electronic filing.
- Monthly VAT and payroll tax returns where there are transactions and staff.
- Accounting under local rules; audit for certain categories.
- Maintaining the registered address and contact with the director.
When Georgia Is Not the Best Option
If the business needs meaningful EUR and USD payment flows, a jurisdiction counterparties readily recognise, or access to a large domestic market, Georgia often loses to Türkiye and the UAE. We cost both options before registration rather than after. Verify rates and requirements at the date of the decision.