Being an entrepreneur, one of the first things that come in mind is the perfect place to start a business. Especially when you are thinking of an offshore company, it becomes all the more difficult to find a country that provides all the facilities you are looking for. The best country should have the required infrastructure and favorable business policies to help you make the best out of your business.
In the search for such a country, Georgia, currently, stands top of the list. The country features state-of-the-art infrastructure along with special economic zones (SEZ) that have added tax benefits for businesses. However, there are a few things you must know before you set up a company in Georgia.
Set up a company in Georgia – make use of its facilities
Just like any other country, even in Georgia, you need to know which type of business would be the most suitable so that you achieve a fresh outlook on your own company. Some of them are:
- Current trends: As a convenient business destination, the country has several areas to base your business. Having said so, knowing which type of company will give you the maximum profits in a short time is very important. Companies based on information technology (IT), tourism, logistics, and restaurants have the potential to flourish the largest in Georgia.
- Business structure: Due to the business-friendly laws for a business set up in Georgia, the country allows up to 9 structures. An LLC (limited liability company), LLP (limited liability partnership), joint-stock company (JSC), international trading company, and sole proprietorship are a few structures as the most suitable model.
- Cost Estimation: Since Georgia is known to be the best place for investments, the cost of setting up a company is extremely affordable. The amount associated with the entire procedure is very less, as compared to other offshore destinations. Calculate the cost concerning the overall capital, maintenance, variables, and rent prices. The registration fee required to set up a company in Georgia ranges up to GEL 100. The entrepreneurial register and the company identification number are free of cost. A corporate bank account can be set up in a matter of a few hours, and you will be good to go.
What are the rules, laws, and taxes?
The open market economy makes business setup in Georgia a very smooth process. Check with the public notary with all your company documents to ensure legal operation. The Government of Georgia has imposed some tax provisions for all the companies that are to be set up in the land. They are:
- 15% corporate income tax.
- 18% standard VAT.
- No excise tax.
- No tax on export, electrical power, tour operator services, and international shipping activities.
- 5% dividend tax.
Georgia also provides two special economic zones for the ease of a company set up, which you must keep in mind. One is the free zone intended for all companies, and the other is the virtual zone solely for the IT firms. Both these zones grant additional tax benefits to companies. A few extra benefits include the exemption from VAT and income taxes. Along with these characteristics, the land also offers experienced labor with no minimum wage restraint.
Conclusion: The good part doesn’t end here. The best thing about business setup in Georgia is that you can give the Power of Attorney to a consultant and allow them to complete the entire process on your behalf. Kaukapital, a premier financial consultant, will be able to help you through the procedure.