Georgia is upcoming economy same is growing fast at the same time it is attracting investment in terms of FDI from foreign companies. The rapid changes that have taken place in the country’s political and economic environment. With these significant changes, Georgia has become the leader in the region in undertaking transition towards democracy, transparency and an open market. Georgia’s economy is considered to be one the fastest growing economies in the whole of Eastern Europe with the agricultural sector (employs about 53% of the workforce), real estate and hospital and tourism as the leading contributors to the growth of its economy.
Georgia economy is full of rich natural resources in a sense same does have a stock of manganese and copper. Other industries which are the major contributor to its GDP includes aircraft manufacturing, bottled water, wine production, chemicals, electric motors, electric welding equipment, fuel re-export, equipment (automobiles, trucks, tractors), machine tools, machinery for food packing, tower cranes, machinery for food packing, steel, shoes, textiles, and wood products. Georgia’s majorly exporting its product to Turkey, United States, Azerbaijan, Ukraine, and Armenia. Its exports product includes wine, mineral water, ores, vehicles, fruits, and nuts.
It is no longer an extensive affair to set up a company in Georgia because of the country’s business-friendly laws. Once you have registered your company in Georgia, things become easy, as the country has pro-business legislation. In nutshell, business set up in Georgia is not really a tedious job.
Procedure to register the Company in Georgia:
Companies are registered in Georgia by the National Agency of Public Registry. It takes almost a day at the maximum to set up a company in Georgia. A corporate bank account for a business set up in Georgia, on the other hand, takes less than 10 minutes.
The entire procedure and requirement for a business set up in Georgia are as follows:
- Pay the very reasonable registration fee i.e. 100 GEL and get the form. The registration fee can be paid at the Registry or any Georgian bank.
- Fill up the forms and submit them to the Public Registry office along with the filled form, a copy of your company’s charter and document that proves that you’ve submitted the registration fee.
- You also need to provide proof of the legal occupancy of the place where you’ve given your company’s main address.
Additional documents may be asked by the respective authority in special cases. But normally the above-mentioned document is sufficient for the company’s setup.
Advantages of having a Business Set up in Georgia:
There are numerous advantages if you set up a company in Georgia. These advantages make Georgia the best place for starting a business. Some of the advantages one can drive by a business set up in Georgia are:
With respect to taxation rates in Georgia, there is no employer tax applicable and no tax would be applicable if company reinvests. Only 20% tax applies in case the Company/ Individual withdraws the money;
An owner needs to have a minimum capital to start-up the joint stock company (JSC), but there is no need for a minimum capital in case of a Limited Liability Capital (LLC) company;
The registration procedure is not lengthy and the owner can get the registration done in one day;
- Opening a Corporate bank account is also a very easy and less time taking process. Thanks to the well-developed banking system in Georgia, the owner can also remotely open a bank account.
Special Note: – In Kaukapital we understand the owner’s time value; the new company can be opened without moving to Georgia just with the help of a Power of attorney.