Open a Restaurant in Georgia: Wondering how to start a restaurant business in Georgia? If you want to open a restaurant in one of Georgia’s cities, you’ll need to complete a few important steps, including open a company in Georgia, obtaining all the necessary licenses, and registering for taxes.
Our team of consultants in Georgia can assist with advice on how to register a restaurant in a given Georgian region or city and can provide legal representation regarding the incorporation procedure, as well as on the business permits and other types of documents that are necessary for this type of business activity.
Step 1: Create a Business Idea
Before jumping into things like registration and marketing, it is important to come up with a good business idea. Consider your interests, skills, and abilities when you create your idea. This will ensure that you are well-prepared and dedicated to the business and its success.
Step 2: Form the Business
After you’ve planned and considered the logistics of the business, it is time to legally form the business. This includes registering the restaurant business in Georgia. Many businesses will choose to register as either an LLC or a corporation.
Limited Liability Company LLC’s are easier to set up. LLC is formed by a maximum of 50 shareholders and the capital is divided into shares. The advantage of a Georgian LLC is given by the fact that the investors will be liable for the company’s debts only to the amount of the shares they own in the company. The shares are freely transferable and the members of the company are not allowed to withdraw. Other characteristics of the LLC are the following:
It is the most common type of business registered in Georgia, preferred by both foreign and local businessmen;
The LLC can be set up by natural persons, but legal entities are also allowed to register this business form;
The share capital of the LLC is divided into shares and the investors can’t issue additional shares;
The registration of this business form can last approximately 2-3 days.
Step 3: Register for Taxes
It is also important to register your business for taxes. If you plan on hiring any employees, you will also need accountant service. The average salary of a Georgian employee – employees working in this industry are paid approximately $300/month.
Step 4: Set Up an Accounting Process
Accounting allows you to easily track the success of your business. It can also make it easier to file your yearly taxes. You can utilize online accounting software to keep track of your accounting processes.
Step 5: Create Business Banking and Credit Accounts
It is a good idea to have a separate bank account and credit card account for the business. Not only does this improve the business’s credibility, but it also protects the business’s corporate structure.
Step 5: Opening a Bank Account in Georgia
For your business, you need a bank account, because of the Georgian tax system and all the regulation for business needs the bank account. There are several types of companies in Georgia and the requirements banks have when trying to open a corporate bank account will largely depend on the particularities of the company. An account needs to be opened for a joint stock company, a limited liability company, general partnership, limited partnership or branch in Georgia.
Step 6: Obtain Any Necessary Permits and Licenses
All food operators in Georgia, including restaurants, have to comply with the provisions of the Food/Feed Safety, Veterinary and Plant Protection Code. Article 13 of the Code stipulates that business operators related to the production or processing of food products have to be registered with the local authorities in accordance with the applicable legislation.
This is a compulsory requirement for such businesses as, without the registration, the business is not entitled to carry any operations in this country. More importantly, those who want to start the procedure of company registration in Georgia for a catering unit of any type have to know that they must also ensure food safety procedures.
According to Article 17 of the same Code, businesses set up as food operators need to follow such procedures in accordance with the principles of the Hazard Analysis and Critical Control Points (HACCP) system. Our team of specialists in company formation in Georgia can offer further information on any other rule of law applicable to a local restaurant.
Step 7: Establish a Web Presence
Having an established web presence is important in today’s digital times. Websites also are a point of communication for potential customers. Additional methods of establishing a web presence include:
- Creating social media accounts.
- Creating review sites.
- Creating a local Google page.
Following these recommended steps can lead you in the right direction of starting a restaurant business in Georgia.
For complete information about the required permits for opening restaurants in Georgia, please contact our lawyers. If you want to open a company in Georgia, we can also help you submit any documents and contact the relevant authorities if the language is a barrier for business.