Setting up a business in a foreign land can be a tricky affair given the lack of knowledge about its business environment, infrastructure, policy matters, governance, and other variables. Thus, before deciding on setting up a company in some offshore destination, it is better to engage a consultant or agency with ears to the ground. In recent years, Georgia has got traction from overseas businesses as well as global agencies for becoming one of the favourite investment destinations. In fact, going for a company set up in Georgia can be a win-win proposition for your business. Let us take you through a series of steps to set the ball rolling for your business.
Steps to set up a business in Georgia
Type of business: Each type of business has its challenges and benefits. Selecting one would ultimately depend on your interest, expertise and goals. The moot point is that the area of business should be of interest to you, for if the going gets tough as far as the run of your business is concerned, you should be able to stay motivated. This can increase the odds of your business to stay competitive and achieve ROI.
Thorough planning: Starting any business should involve thorough planning and critically analyzing its various aspects. The planning can begin with a brainstorming session with the stakeholders. The session should generate answers for the following queries.
- What are your products/services and how can they help the customers? How would your products or services fare in the competition?
- Who are your target customers and what are the means to garner their attention?
- Who would you need to fill the positions and how will you engage them to achieve success?
- What will be the initial cost of investment and how many sales or hirings would make your business break even? What will be the source of funding?
Register your company: You can land up as a Georgian business entity (LLC, Corporation etc) and derive benefits such as high credibility and protecting yourself from personal liability should your business faces legal hurdles. If you happen to be a startup then starting as an LLC can be a good idea thanks to its low tax structure.
Why is registering your company important?
If your company is not registered as a business entity, you can be dragged into litigation should something go awry. For example, as an owner, you shall be held liable for various sins of omission and commission leading your business to accumulate debts and liabilities. Furthermore, an unregistered business needs you to file a DBA or ‘Doing Business As’ wherein you need to conduct your business under an assumed name rather than your real name.
Obtain an EIN: This is a federal Tax ID that identifies your business to file tax returns. Its importance is borne out of the fact that you cannot open a business account of recruit people for your business without having the same.
Permits and licenses: To set up a business in Georgia, you would need a few permits and licenses to comply with the federal, state and local laws. However, should you open your company in one of the free zones, then these requirements would not be necessary.
Georgia is a country that is conducive to business thanks to the many favourable parameters – strategic location, a free market economy, robust infrastructure, and the absence of red tape etc. Any business set up in Georgia would require you to follow a simplified procedure and when you are done with it, it will only be a matter of time before you are greeted with success.