Introduction

Why Georgia is the Ideal Destination for Entrepreneurs?

Successful entrepreneurs are always looking for ways to maximize efficiency and optimize operations. However, traditional business environments often impose limitations that hinder growth. Choosing the right jurisdiction can make a significant difference, especially when it comes to taxation, regulatory ease, and access to a thriving market.

For the past five years, Georgia has consistently ranked among the world’s top destinations for business. It is recognized as the leading investment-friendly country in its region, offering a seamless process for company registration and banking access for non-residents.

This guide explores 12 key advantages of establishing a business in Georgia.

Top Advantages of Starting a Business in Georgia

1. Seamless Company Registration & Hassle-Free Operations

Registering a business in Georgia is remarkably straightforward, whether done remotely or in person. Foreign nationals enjoy the same registration process as locals, with no restrictions on ownership or management.

Company registration typically takes just two to three days and follows three simple steps:

Public Service Hall – Official business registration
Revenue Service – Tax registration
Bank – Opening a corporate account

Once your company is established, you are not required to stay in Georgia. You can appoint a director to manage operations while maintaining full legal and financial benefits.

2. Georgia Leads the 2023 Open Budget Index

Thanks to well-planned and successfully implemented public finance reforms, Georgia continues to lead in fiscal transparency. According to the 2023 Open Budget Index, Georgia ranks 1st out of 125 countries in Budget Transparency.

Additionally, the country ranks 5th worldwide in Budget Oversight, demonstrating its strong commitment to financial governance and public accountability.

Budget Transparency: 87/100
Budget Oversight: 83/100
Public Participation: 44/100

These rankings reflect the government’s commitment to financial transparency, effective taxation policies, and efficient resource management, ensuring a stable business environment for investors.

3. Business-Friendly Tax System & Exclusive Incentives

Georgia offers one of the most attractive tax systems globally, following the Estonian tax model, where corporate income tax is only due on distributed profits.

Key Tax Rates in Georgia:

Value-Added Tax (VAT): 18%
Corporate Tax (CIT): 15% (only on distributed profits)
Dividend Tax: 5%
Personal Income Tax (PIT): 20%
Import Tax: 0%, 5%, or 12%
Property Tax: Up to 1%
Withholding Tax: 10%–15%

4. Exceptional Benefits for Freelancers & Small Businesses

Georgia is an excellent destination for freelancers and independent entrepreneurs, thanks to its simplified taxation system:

Micro-Businesses (annual turnover under 30,000 GEL / ~10,000 USD) enjoy a 0% tax rate.
Small Businesses (annual revenue between 30,000 and 500,000 GEL / ~180,000 USD) pay only 1% tax on turnover.

5. Exclusive Tax Incentives for IT Companies

The Georgian government actively supports the IT sector by offering Virtual Zone Entity status to eligible businesses. Benefits include:

0% VAT
0% corporate income tax
Only 5% dividend tax

Since 2021, new regulations require IT businesses to establish a physical presence in Georgia (e.g., office space, local employees) to maintain Virtual Zone status.

6. No Minimum Capital Requirement & Full Foreign Ownership

Georgia imposes no minimum capital requirement for company formation. Foreign entrepreneurs can own and manage 100% of their company, ensuring full operational flexibility.

Additionally, all businesses are registered in the Georgian Public Registry, providing transparency and legal credibility.

7. Streamlined Banking for Foreign Entrepreneurs

Georgian banks are among the most advanced in Eastern and Central Europe, offering top-tier online banking solutions.

Key Banking Benefits:

Multi-currency accounts & flexible deposits
Asset management, brokerage, insurance, and leasing services
Efficient online banking & mobile access

Non-residents can open a corporate bank account remotely, provided they meet the necessary business presence requirements.

8. Residency Through Investment & Business Ownership

Foreign investors can obtain residency in Georgia through real estate acquisition or business establishment:

Investing 100,000+ USD in real estate grants a 1-year investment residency permit.
Entrepreneurs with a 50,000 GEL / ~18,000 USD annual turnover can apply for 1-year business residency.
Other residency pathways are available, including long-term options.

9. Fully Digital Tax & Accounting System

Georgia operates an efficient, electronic tax filing system that follows international accounting standards.

All transactions must be documented
Monthly tax declarations are required
System available in English & Georgian

This digital approach ensures compliance, efficiency, and ease of reporting for businesses of all sizes.

10. Global Financial Integration & Payment Systems

Georgian banks offer seamless access to international payment networks, including SWIFT.

Rapid business account setup
Efficient local and international transactions
24/7 banking access via mobile and web platforms

11. Strategic Location: Your Gateway to Eurasia

Georgia is positioned at the crossroads of Europe and Asia, providing unrestricted access to global markets with:

Strong maritime trade routes
Well-developed transport and logistics infrastructure
Low operational costs compared to Western Europe

This makes Georgia a highly competitive jurisdiction for international business operations.

12. Double Taxation Agreements with 57 Countries : Maximizing Tax Efficiency

Georgia has signed double taxation agreements with 57 countries, allowing businesses to legally reduce tax liabilities when conducting cross-border operations.

If a treaty exists between Georgia and your home country, you can optimize your tax strategy while ensuring full compliance with international regulations.

The Business Destination of the Future

Georgia stands out as one of the most pro-business countries worldwide, continuously implementing strategic reforms and investment incentives to attract entrepreneurs and investors.

For business owners seeking a low-tax, high-transparency environment, Georgia offers unparalleled opportunities for success and growth.

Ready to establish your company in Georgia? Contact us today and take advantage of the best business-friendly jurisdiction in Eurasia.