--- canonical: "https://euincnow.com/company-formation-georgia" dateModified: "2026-10-11" --- # Company Formation in Georgia: Types, Taxes and Costs Forming a company in Georgia takes about 1 to 2 business days to register a limited liability company (LLC) at the National Agency of Public Registry, and it can be done fully remotely through a notarised power of attorney. There is no minimum share capital, 100% foreign ownership is allowed, and the bank account (the slower step) usually follows within one to three weeks. The distributed-profit framework generally defers tax on retained business profit, with 15% on distributions and other taxable payments under Article 97. Separate preferential regimes, including the 1% small-business regime for eligible individual entrepreneurs and Virtual Zone treatment for qualifying activities, have their own conditions. Standard VAT is 18%. ## Georgia at a glance - Georgia is outside the European Union. Its companies follow the jurisdiction's own incorporation rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. ### Company types in Georgia - LLC (Limited Liability Company) By far the most popular form for founders and foreign investors: no minimum capital, a single founder allowed, 100% foreign ownership, taxed under the Estonian model. It is also the base for Virtual Zone and International Company status. - Individual Entrepreneur with Small Business Status A sole-trader registration that can pay a flat 1% tax on turnover up to 500,000 GEL per year, popular with freelancers (but it cannot hold Virtual Zone status). * Company formation in Georgia: key facts (last reviewed July 2026) - Corporate tax Georgia uses the Estonian model: 0% on retained and reinvested profit, with 15% generally triggered by distributed profit. Article 97 also covers payments unrelated to economic activity, gratuitous supplies or transfers, and representation expenses above the permitted limit, subject to the statutory exceptions. Dividends can also carry 5% withholding. Preferential statuses for an LLC include the Virtual Zone (0% on IT and software exports) and International Company status (5%). Individual Entrepreneurs with Small Business Status instead pay 1% on turnover up to 500,000 GEL. - VAT rate Standard VAT is 18%, with registration mandatory above 100,000 GEL of turnover. Exports are zero-rated and Virtual Zone IT exports are exempt. - Dividends & payroll taxes Dividends can carry 5% withholding in addition to the company-level tax on distributed profit. Company profit tax can also arise on other taxable payments under Article 97. Employment income is taxed at a flat 20% with a small pension contribution instead of classic social security, and small-business regimes can tax personal turnover at just 1%. - Minimum share capital No minimum share capital for an LLC (commonly formed with 1 GEL), with a single 100%-foreign founder permitted. Individual Entrepreneurs also need no capital. - Setup time Registering the LLC at the National Agency of Public Registry usually completes in about 1 business day. The slower step is the corporate bank account, which commonly takes 1 to 3 weeks. - Remote setup Yes. An LLC can be registered fully remotely by granting a notarised power of attorney to a local representative. Banking is the harder remote step: TBC is the most digital-friendly, but some banks want an in-person interview, so a short visit is often advised. - Director / residency No residency or citizenship requirement for directors or shareholders; 100% foreign ownership is allowed and one person can be sole owner and director. A local registered address is required. - Banking options Main banks are Bank of Georgia and TBC Bank (plus Credo and Liberty), with multi-currency accounts. There is no legal barrier to non-resident accounts, but KYC has tightened; accounts are typically operational within 1 to 3 weeks. * Georgia is not an EU member. It was granted EU candidate status in December 2023, but accession talks were suspended in late 2024, so the process is currently frozen. This is the Caucasus country (capital Tbilisi, currency the lari), one of the most popular low-tax, remote-friendly bases for founders, freelancers and IT firms, thanks to the Estonian-model tax, the 1% small-business regime and the 0% Virtual Zone for IT exports. ## How to register a company in Georgia - Step by step, this is how a Georgia formation actually runs: 1. **Prepare the charter.** A simple LLC charter and founder resolution; Georgian plus certified translation where documents are foreign. 2. **Sign locally or by power of attorney.** Remote founders grant a notarised, apostilled power of attorney to a local representative. 3. **Register at the Public Service Hall.** The NAPR tariff lists GEL 200 for LLC registration within one working day or GEL 400 on the day the application is filed. Document preparation and any banking checks are separate. 4. **Tax registration.** The company is registered with the Revenue Service automatically; consider Virtual Zone (IT) or International Company status where eligible. 5. **Banking.** Bank of Georgia and TBC open multi-currency accounts; non-resident KYC is straightforward by regional standards. ## What company formation in Georgia costs - LLC registration costs GEL 200 for one-working-day service or GEL 400 for same-day service, with no minimum capital. Power-of-attorney and translation costs add EUR 100 to 300 for remote founders. Accounting typically runs EUR 100 to 250 a month depending on activity. ## Who can form a company in Georgia - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Georgia. The director and residency information above identifies the main formation conditions to review. - Georgia fits location-independent founders and IT businesses that want fast, cheap setup, retained-profit taxation at 0% and light banking friction outside the EU. It is not an EU or EEA company, so it earns no single-market rights and no EU Inc positioning; treat it as a pragmatic non-EU base. ## After registration: what Georgia expects each year - Under the distributed-profit framework, retained business profit is generally not taxed immediately, but profit tax can arise on distributions and other Article 97 taxable payments, including non-business costs, gratuitous transfers and excess representation expenses. Dividends can also carry 5% withholding. Monthly declarations cover relevant profit-tax events, payroll and VAT (18%, registration above GEL 100,000 turnover). Financial-statement filing obligations scale with company size category. ## Georgia and the 28th Regime (EU Inc) - EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. Georgia is outside the EU, so forming a company there does not make it an EU company or guarantee access to the proposed regime. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. ### Topics checked - These dates apply to the named topics. Other figures and indicative service prices have separate review needs. * **LLC ordinary and same-day registration fees** Checked 11 October 2026. [Source 1][1] * **Distributed-profit tax and other Article 97 taxable payments** Checked 11 October 2026. [Source 1][2] ### Reference links - [taxsummaries.pwc.com][3] - [ibccs.tax][4] - [napr.gov.ge][1] - [matsne.gov.ge][2] ## Frequently asked questions ### Can a foreigner open a company in Georgia? - No residency or citizenship requirement for directors or shareholders; 100% foreign ownership is allowed and one person can be sole owner and director. A local registered address is required. ### How long does company formation in Georgia take? - Registering the LLC at the National Agency of Public Registry usually completes in about 1 business day. The slower step is the corporate bank account, which commonly takes 1 to 3 weeks. ### What corporate tax does a company in Georgia pay? - The headline summary is 0% retained / 15% distributed, with standard VAT of 18%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in Georgia remotely? - Yes. An LLC can be registered fully remotely by granting a notarised power of attorney to a local representative. Banking is the harder remote step: TBC is the most digital-friendly, but some banks want an in-person interview, so a short visit is often advised. ## Source URLs [1]: https://napr.gov.ge/en/page/fees-and-terms [2]: https://www.matsne.gov.ge/en/document/view/1043717?publication=175 [3]: https://taxsummaries.pwc.com/georgia/corporate/taxes-on-corporate-income [4]: https://ibccs.tax/blog/georgia-corporate-tax/