Georgia is known to be one of the best places for a business set up as it offers a slew of benefits to all entrepreneurs. The perfect type of company that one can start in the country is an LLC. A Limited Liability Company is a legal entity that incorporates at least one founder member and around fifty shareholders. For a business setup in Georgia, the Government has set aside two SEZ or, Special Economic Zones that feature several additional tax advantages. So, as you decide on the genre of the company you want to form in Georgia, there are a few things you must keep in mind.
Steps to form a business setup in Georgia
The steps to set up a company in Georgia is simple if you follow them sincerely and in proper order.
- First, you need to select the nature of your business.
- Next, decide on the name of the company and prepare the statutory documents.
- Get the documents notarized by the public notary in Georgia.
- Register the name at the National Public Registry of Georgia.
- Following which, you will have to register at the Entrepreneurial Register as well, to receive your identification number.
- Once you have completed the above steps, you will receive a certificate of state.
- You can then proceed to open a corporate bank account at a local bank to start functioning legally.
What are the most important documents for a business setup?
As an entrepreneur looking towards setting up an LLC in Georgia, as you visit the Entrepreneurial Register, you would have to furnish a list of vital documents. Some of them are:
- A document that states the value and contributions of every member of the company.
- A legal declaration that authorizes the legal entity (the company charter.)
- An application bearing the name and legal entity of the company. It must incorporate the identities of the board members and the amount of share capital.
- If set up as an LLC, the business setup in Georgia application must include the business plan, address, date of commencement, and details of the founder.
How can a foreigner set up a company in Georgia?
The best part about Georgia is that the country, over the years, has made strong ties with other jurisdictions. It provides a business-friendly environment, the lowest tax rates in the entire EU, an open market economy, and a near absence of red tape. In addition to all this, foreigners can set up a company in Georgia without even being physically present in the country. A power of attorney is the only thing needed.
The country, however, solely asks for a business visa from the foreign entrepreneur along with the documents during registration. Furthermore, to receive a business permit for more than a year, the foreigner has to show that the minimum investment amount would be around 3,00,000 GEL.
A round-up of the perks of setting up a company in Georgia
Once your company is set up, you would receive all the benefits that Georgia provides. Some of them include:
- 18% standard VAT
- 0% VAT on exports, imports, electricity, and international shipping
- 15% corporate income tax
- 0% excise tax
- 5% dividend tax
Conclusion: If all this confuses you, don’t worry. KauKapital is a premier financial consultant based in the country that will be able to help you with all details regarding a business setup in Georgia.