Why Choose an LLC in Georgia?

• No minimum capital required – Start your business without unnecessary financial constraints.

• Full foreign ownership – One or more foreign owners/directors can fully own an LLC.

• No residency requirement – Owners and directors do not need to be residents of Georgia.

• Flexible workforce – Hire both Georgian and foreign employees.

• Limited liability – Your personal assets are protected in case of bankruptcy or lawsuits.

• No annual renewal fees – Enjoy long-term business stability with minimal bureaucracy.

Tax Advantages for LLCs in Georgia

✅ 15% Corporate Income Tax (CIT) – Only applicable when profits are distributed.

✅ 5% Dividend Tax – Simple and low taxation on profit distribution.

✅ 0% CIT & Dividend Tax – When profits are reinvested or distributed to another Georgian entity.

✅ Personal Income Tax (PIT): 20% – However, if you are the sole worker in your company and take dividends, you only pay CIT (15%) and Dividend Tax (5%), avoiding PIT.

✅ VAT (18%) – Registration required only if annual taxable turnover exceeds 100,000 GEL / ≈36000 USD. Voluntary VAT registration is possible for tax refunds.

✅ Deferred Taxation – Profits remain untaxed until distributed to individuals or foreign entities.

Special Benefits for IT Companies: The Virtual Zone

If your LLC operates in the IT sector, you may qualify for Virtual Zone Status, which offers:

✅ 0% VAT

✅ 0% Corporate Tax

✅ 5% Dividend Withholding Tax

Requirements for LLC Formation in Georgia

To register your LLC, you need to visit the Public Service Hall (PSH) and submit the following documents:

✔ Defined business activity (stated in the Company Charter)

✔ Passports of all owners and directors

✔ Bilingual Company Charter (Georgian-English)

✔ Legal address in Georgia (We can provide one if needed)

✔ Georgian phone number

✔ Email address

No time to visit Georgia? We can register your LLC remotely! With a Power of Attorney (PoA), we handle all procedures on your behalf, including registration with the Revenue Service. All documents will be delivered to you via DHL, UPS, or FedEx.

Business Bank Account Opening for Your LLC

Once your LLC is registered, we assist in opening your corporate bank account. Our service goes beyond a simple bank introduction:

• Assistance in filling out Business Plan forms correctly.

• Guidance on preparing business details and commercial justification for banks.

• Compliance with Know Your Customer (KYC) requirements for smooth approval.

Remote Business Bank Account Opening: Your presence in Georgia is not required. With a PoA, we complete the process on your behalf, ensuring seamless account setup and express delivery of banking documents.

Paying Yourself from Your LLC

As a business owner, you have multiple ways to withdraw funds:

• Salary: Pay yourself like an employee (20% withholding tax; 4% pension contributions for Georgian residents).

• Dividends: Withdraw profits at a total tax of ~20% (15% CIT + 5% Dividend Tax).

• Capital Reduction: LLCs can reduce capital and withdraw funds tax-free.

• Loans: You can loan money to your LLC and repay yourself with interest (10% income tax applies).

Tax Filing and Payment Deadlines

• Corporate and Personal Income Tax – Declarations due by the 15th of each month.

• VAT Declarations – Monthly reporting required if VAT registered.

• Tax Payments – Must be made via a Georgian bank account.

Since declarations are in Georgian, we recommend using a professional accountant for compliance.

What Expenses Can Be Deducted?

Operational Expenses

• Business operations, marketing, and indirect costs are deductible under Article 105 of the Tax Code.

Capital Assets

• Equipment such as computers, printers, and vehicles can be depreciated over time (typically 20% per year for five years).

• Real estate depreciation is generally 5% per year.

• VAT on assets can be refunded if both parties are VAT-registered.

Other Business Expenses

• Business entertainment, events, travel, accommodation, and gifts can be expensed if linked to company activities.

Start Your LLC in Georgia with Our Expert Support

Our comprehensive service ensures a smooth and hassle-free company setup. From registration to banking, taxation, and compliance, we guide you every step of the way.

Ready to start your business in Georgia? Book a consultation with one of our experts today!

Contact us – we’ll be happy to assist you!