Home » Business entities in Georgia

Business entities in Georgia

by ads.georgialegalservice
Business entities in Georgia 2021

Business entities in Georgia: Since 2010, Company formation in Georgia consultants assisted foreign investors interested in business setup in Georgia. The country has indeed recently become an attractive jurisdiction for the registration of trading entities, as it imposes few restrictions for foreign investments, has an attractive tax regime and flexible corporate bank account opening procedures for foreigners. Multiple tax regimes also exist for an international trading company, international financial companies and manufacturing companies selling their products overseas.

The Georgian limited liability Company (LLC)

Registration of a limited liability company in Georgia only requires the appointment of one shareholder and one director, who can be foreigners living outside of the country. However, the legislation does not contain any specific requirements with regards to the minimum amount to be paid up;

Best uses for a Georgia limited liability company: LLC is the most common form chosen for incorporating companies in Georgia. Limited liability companies can be used for most types of activities. Foreigners should also avail of tax schemes available to legally reduce the corporate income tax liability of their business.

The Georgia joint stock company (JSC) 

The main deference between Georgia joint stock companies and limited liability companies relates to the shares: a JSC can issue both common and preference shares and their holder can freely sell their shares without consent from the other shareholders;

Best uses for a Georgia joint stock company: Georgian JSCs are recommended for complex projects involving substantial investments.

The Georgia free zone company (industrial free zone company)

Foreign investors can form a 100% wholly-owned company in one of Georgia’s free trade zones, which offer tax advantages, including 1) full exemption from corporate income tax and VAT, 2) dividend, import/export tax, and 3) exemption from property tax;

Best uses for a Georgia international financial company: Georgian international financial companies are attractive for the provision of offshore financial services to worldwide customers.

The Georgia branch office

The Georgian branch office business activities are limited to the scope of operations defined by the parent company. Such an entity must also appoint a branch representative residing in Georgia in order to oversee the branch’s operations in Georgia.

The branch office is a preferred structure by entrepreneurs who wish to expand an already existing business. The advantages of a branch office, include ease of registration, and effective control the parent company has over the Georgia entity.

Best uses for a Georgia branch office are suitable for foreign banks that wish to conduct activities in the country and for the purposes of profit consolidation.

The Georgia representative office

Companies who are interested in exploring the Georgian market, but do not want to 1) incorporate a company or 2) conduct any profit-generating activities in Georgia should consider a representative office.

Best uses for a Georgia representative office are recommended for investors that wish to promote and explore the Georgian market, without carrying any commercial activity in the country.

Rate this post

You may also like