Lorded by the Black Sea and the mountains between Europe and Asia, Georgia, a country that fascinates its visits. It can be small, but sacrifices something for everyone, from coasts and caves to snowy peaks and wine vineyards. In fact, it is believed that Georgia is the birthplace of wine and its kitchen is loved worldwide.
Its capital city, Tbilisi, is vibrant and a melting pot of modern innovation mixed with traditional charm. This, together with the hospitality and affordability of its residents of life, has the attention of entrepreneurs and digital nomads equally.
With its undeniable attractiveness, Georgia is quickly becoming an ideal place for companies. Here is everything you need to know about starting one in this jewel in Eastern Europe.
Why start a business in Georgia?
According to the ease of the World Bank to do the business index, Georgia occupies the sixth place and has always maintained a first place in this regard. There are a couple of reasons for this and to explain why so many entrepreneurs and investors are choosing Georgia for commercial activities.
Quick registration process: A company can be recorded in Georgia in just one day. This is very favorable compared to other countries where I could take a week or even months.
No minimal capital request: Some regions will require a minimum capital deposit to start a business, and the amount will vary according to the structure of your business. This is not the case in Georgia, which is ideal for businessmen with liquidity problems.
Foreigners are welcome: Foreign entrepreneurs can possess and direct their businesses freely without the need for a local partner.
Good location: Georgia is located between Europe and Asia, allowing companies to trade within these markets.
High growth potential industries
One of the first things with which an entrepreneur is in charge is to decide in which industry to start a business. The usual business location will play a role in this and some sectors in Georgia have many exciting opportunities to explore.
Tourism: This is one of Georgia’s largest industries thanks to its impressive landscapes and coastal resorts that tourists come to see every year.
Agriculture: Georgia has a fixed amount or fertile land for new companies, as well as in wine production.
Logistics and transport: Due to the country’s position, Georgia has become an important link between Europe and Asia for transport companies.
Technology: Tbilisi is a growing center for new information technology companies as their technological scene grows.
Navigate the GEORGY FISCAL SYSTEM
Georgia has an incredible favorable fiscal system, another tie card for foreign investors and businessmen. The 15% corporate tax rate is not applicable for the company’s profits that are reinvested since they are tax free.
The Value Added Tax rate (VAT) is 18%, but only if its annual turnover excess 100,000 gel.
To promote new companies, the state of small businesses in the country allows entrepreneurs to pay only 1% in their annual turnover if it is less than 500,000 gel.
There are also some free industrial areas with some cities in Georgia where the tax is exempt.
Visa and residence requirements for foreign entrepreneurs
In general, Georgia Visa policies are quite relaxed and foreigners have some options to choose from. Residents of more than 90 countries, including the United Kingdom and the EU, can remain in Georgia for up to one year without visa.
For those who wish to start a business or open a bank account, you can do with Neding to request any additional permit.
To stay longer in the country or get residence, these are the available options:
Short -term residence permit: Applicable if a business begins in Georgia or is already used there.
Permanent residence: It can be available after living in the country for 10 years.
Investment Residence: You can qualify for the fastest residence if you can invest more than $ 300000 USD in the country.
Business Residence: Available if a sufficient test of an active and profitable business can be shown.
How to start a business in Georgia
The process of configuring a business in Georgia is fast and very simple. If it is your desired location for your start, here is a step -by -step guide on how to start.
Select a legal structure
The first step is to choose your commercial entity. Most foreigners opt for an individual entrepreneurs structure that is easy to establish with low taxes and is ideal for freelancers or small businesses.
Another option is a limited liability company that adapts to larger companies where personal responsibility is limited.
Record the business
To register your company, you can visit any public service room of your choice in one of the cities. You must bring your passport and a suggested company name and can complete an English form such as paying a small registration rate of approximately 100 gel.
The company takes a business day to register successful.
Open a business bank account
Once you have received the identification number of your company, you can open a corporate bank account with your registration and passport certificate. This also generally takes approximately one business day to process.
Register for taxes
This can be done with the Georgia Income Service, where you will be given access to the country’s online fiscal system. If applicable, you can also request the status of the small business to pay only the 1% tax on its billing.
Should you start a business in Georgia?
Georgia is one of the easiest countries to start a business, especially for foreign entrepreneurs. In fact, with adequate support and planning, your business could be in operation in just a few days.
Its affordability also makes it an excellent option for starting founders who have a tight budget. That, with its cozy business environment, you can prepare the stage for a great success.
Good luck!
