Starting a business
In general, the following documents are required:
- Application
- Company charter
- Signature sample of the director
- For limited liability companies and joint stock companies, document certifying the appointment of directors and members of the supervisory council
- Receipt for payment of registration fees.
After submission of all documents, the Tax Inspection must register the business structure within three working days. Individual entrepreneurs must be registered within one working day.
Following institutions should be contacted to register a business:
- Notary
- Bank (twice: for payment of fees and for opening a bank account)
- Tax Department
Licenses and Permits
There are three general documents to be presented to obtain a license:
- Application
- Extract from Entrepreneurs Registry
- Receipt for payment of license fee
Other documents may be required depending on the type of license.
There are three general documents to be presented to obtain a permit:
- Application
- Extract from Entrepreneurs Registry
- Receipt for payment of license fee
Other documents may be required depending on the type of license.
There are no limitations on opening branches and affiliate companies of foreign institutions in Georgia. Licensing terms and conditions are the same as those for Georgian residents.
Registering Immovable Property
The following documents are required to register immovable property:
- Application for registration
- Agreement on the transfer of rights in immovable property
- Certificate on non-encumbrance
- Receipt for payment of the registration fee
- Copy of the Identity card of the property owner
- Cadastral drawing
Immovable property is registered with the National Agency of Public Registry, which is subordinated to the ministry of Justice of Georgia.
Property registration takes 1, 3, 5 or 10 business days, depending on the turnaround period requested and paid for. The registration fee does not depend on the venue of the property.
It is fixed amount and depends on turnaround period requested. Fees range from GEL 150 for one-day service to GEL 7 for 10-day service.
International arbitration can be used to resolve disputes over property located in Georgia.
Tax System
6 types of taxes exist in Georgia:
- Personal Income Tax is 25%
- Corporate Income Tax is 15%
- VAT is 18%
- Excise Taxes very, depending on the product
- Property Tax rates very, depending on the type of property
- Customs Duties fall into 3 brackets: 0%, 5%, and 12%. 90% of goods are in the 0% category
Foreign Investments
The low on “Investment Activities and Guarantees” secures equal treatment and rights to Georgian and foreign investors, except for ownership of agricultural land. Foreign legal and physical persons are allowed to purchase land in Georgia, except agricultural land.
Foreign may invest is any sectors open for private investment.
There is a securities exchange with a well-developed institutional structure and legal framework. Trading volumes are low but rising.
Georgia has no restrictions on capital repatriation. Dividends are subject to a 10% withholding tax.
Legal Status of Foreigners
Citizens of the following countries shall not be required to obtain visas for the period of up to 90 days:
- Member states of the European Union
- The United States of America
- Canada
- Japan
- The Swiss Confederation
- Lichtenstein
- Norway
- The State of Israel
- The Holy See
Permit of temporary residence in Georgia shall be issued for no more then 6 years to a foreigner intending to stay in Georgia for a period longer then 90 days, who:
- carries out work activity in Georgia in compliance with the requirements of the Georgia laws, as well as to a self-employed person
- arrived in Georgia for medical treatment or for educational purposes
- is invited by respective governmental structure as highly-qualified specialist or art worker, or if his/her invitation is linked to state interests
- is guardian or a curator of a citizen of Georgia
- is under guardianship or curatorship of a citizen of Georgia
- is a spouse, patent, child, foster parent, foster child, sister, brother, grandfather or grandmother of a citizen of Georgia or a foreigner holding a permit of residence in Georgia.
Permit of permanent residence in Georgia may be issued to:
- a foreigner having lived in Georgia legally within the last 6 years. This period shall not include a period of stay in Georgia for medical treatment or educational purposes and a period of employment at diplomatic missions and representations of equal status
- a spouse, patent, child, foster parent, foster child, sister, brother, grandfather or grandmother of a citizen of Georgia
- highly qualified scientific experts and technicians, sportsmen and art worker, whose arrival in Georgia is consistent with the interests of Georgia.
Registration of Foreigners
A foreigner who holds a permit of residence in Georgia shall be obliged to undergo registration at a respective service of the Ministry of Justice of Georgia according to his/her place of residence within one month after his/her entry to Georgia, and in case he/she is on the territory of Georgia – after obtaining a residence permit.
The Ministry of Justice shall issue a respective certificate to a foreigner obtaining a permit of residence.
Foreigners living in Georgia shall be subject to taxation in the same manner as citizens of Georgia and stateless persons having the right of permanent residence in Georgia.
