March, 2014. Mariam Asanishvili, lawyer at Mgaloblishvili Kipiani Dzidziguri
- What does it take to start a business in Georgia?
Starting a business in Georgia requires 1 procedure, takes 1 or 2 days and does not require paid-in minimum capital. The registration of a company in Georgia is based on fast, inexpensive and simple procedures. That is the reason why Georgia stands at 8 in the ranking of 189 economies on the ease of starting a business.
- Can a foreign national be a director/ managing director of a company in Georgia?
Yes, in fact Georgian law does not contain any restraints with regard to the nationality of the person that is entitled to participate in the corporate governance of a company.
- What are the minimum charter capital requirements to set up a company in Georgia?
For the purpose of registration, the law does not require a document verifying the amount or existence of the charter capital. Therefore, it is at the discretion of the founding partners to determine the amount of charter capital.
- What is the minimum number of company directors, if any?
Georgian law does not contain any limitations on this. So there can be as many directors as decided by founders of a company.
- What is the registration procedure for a company in Georgia?
To register a legal entity, you need to address to Public Service Hall. To complete a registration you need to submit following 4 main documents: 1. Application (which will be filled by the front office operator in place); 2.A copy of your ID card; 3. Duly certified charter signed by each partner; it is essential company seal is not required anymore; 4. A receipt of payment of state duty, payment may be done on spot – thus, you do not even need to visit a bank to pay a registration fee.
- What is the registration fee and timeframe?
Time to complete a registration is one day, in this case the state fee amounts 100 GEL (for a expedited registration the fee is 200 GEL and registration is complete in the same day when documents are submitted). Upon registration a company obtains an identification number.
- What is the procedure of tax registration for a company?
A company is not required to complete a separate tax registration. Pursuant to the Georgian legislation, the initial registration at Public Service Hall includes both the State and the Tax registration and is carried out simultaneously.