🇬🇪Land border with Türkiye · visa-freeNo tax on undistributed profit
Setting up an LLC in Georgia — registration in 1 business day, tax down to 0% depending on status
Georgia's real advantage is not a low rate but the system itself: as long as profit stays in the company, no corporate tax arises. On top of that comes a status layer — companies exporting software can go down to 0% with Virtual Zone, and small businesses to 1% on turnover. Registration is completed in one business day and there is no capital requirement. On the other hand, for a non-resident shareholder the bank account is the slowest step of the process.
Formation package from 1.150 $Notary and translation included · see the price breakdown ↓✓No capital requirement
✓No tax while profit stays in the company
✓Visa-free entry for Turkish citizens
Company type
LLC
Profit tax
15% on distribution
Undistributed profit
0%
Registration
1 business day
Formation
By power of attorney
Free · 5 questions · 1 minute
Is Georgia the right country for you?
Answer five questions and see how well the undistributed-profit model and the 1% small business status fit your plan. If it is not a fit, we also tell you which country is a better match.
Question 1 / 5
Where are most of your customers?
Georgia is outside the EU; invoicing EU corporate customers is less advantageous than with an EU company.
No contact details needed
Your result will appear here
%Which tax model suits you?Which of the 0%, 15% or 1% options fits your profit plan and structure.
✓What is easy and hard for youNot a generic list; only the advantages and watch-outs that apply to your profile.
→Next stepA quote if it fits, otherwise which country is a better match.
Georgia company formation price
Know what you will pay before you start. The formation package is a one-off fee; the registered address is a legal requirement, and you add other services as you need them.
Formation package · one-off
LLC company formation
1.150 $
✓LLC company formation
✓Trade register and tax registration
✓Bylaws and application file
✓Tax and pension authority registrations
✓Local notary and translation services
✓Company type and tax model consulting
1-year legal addressLegal requirement0 $
Starting total1.150 $
Notary, sworn translation and local formation costs are included in the package.
Frequently added services
Optional · add during formation or later
12-month accountingRecommendedMonthly records and tax returns1.500 $yearly
Bank account opening supportRecommendedLocal bank documentation and appointment process500 $one-off
%1 tax model compliance processS-Corp status preliminary assessment350 $one-off
Tax election preliminary assessmentAnalysis by company and income structure400 $one-off
Trademark preliminary searchPreliminary trademark searches for Georgia are conducted by qualified trademark attorneys and lawyers.100 $one-off
From the second yearRegistered address + 12 months of accounting. The formation fee is not charged again.2.250 $ / year
What sets Georgia apart
The tax rate is not fixed — it depends on status
Georgia's tax system works in two layers. The first layer is the Estonian model: corporate tax arises not when profit is earned but when it is distributed. The second layer is special statuses — if your activity qualifies, the rate can drop from 15% to 1% or 0%. These statuses are not granted automatically; they involve an application, approval and conditions for keeping them. Choosing the right status is the most decisive step in the Georgia decision.
Standard regime15%
Taxation on distribution
Corporate tax arises when profit is distributed. As long as profit stays in the company, there is no tax burden.
Condition: None; the default regime for all LLCs.
Virtual Zone0%
IT service export exemption
Profit from information technology services produced and sold abroad is exempt from corporate tax.
Condition: IT activity, services sold outside Georgia, application and administrative approval.
Small business1%
Tax on turnover
Tax is calculated on turnover rather than profit. Within the set turnover limit, the rate is 1%.
Condition: Individual entrepreneur registration, turnover limit and compliance with activity restrictions.
International company5%
Reduced corporate tax
In certain sectors, companies with a genuine presence in Georgia are granted a reduced rate.
Condition: Sector eligibility, local employment and expenditure requirements, experience requirement.
Points often missed when planning a status
✓Statuses are rights you maintain, not rights you earn once; if the conditions are not met they can be revoked and tax becomes due retroactively.
✓Small business status is granted to individual entrepreneur registrations, not to legal entities; it should not be confused with an LLC.
✓The Virtual Zone exemption covers only IT services sold abroad; local sales and non-IT income are outside its scope.
✓Even if a status lowers corporate tax, the withholding tax on profit distribution and the reporting obligation in Türkiye remain.
We work out together which status suits you based on your activity, where your customers are and your expected turnover; we handle the application and keep track of the conditions for keeping it.Ask about status eligibility
LLC, JSC or sole trader — which one?
Almost all foreign investors set up an LLC. Individual entrepreneurship stands as a separate route because it is the prerequisite for small business status.
LLC (შპს)Most popular
Limited liability company. The standard choice for foreign investors; it can be set up with a single shareholder and can apply for Virtual Zone status.
✓You can be the sole shareholder and sole director
✓No minimum capital requirement
✓Liability limited to capital
✓Eligible for Virtual Zone and FIZ statuses
Individual entrepreneurRequired for 1% status
Sole trader registration. Because small business status is granted only to this structure, it is the route for anyone who wants the 1% turnover regime.
▪Can apply for small business status
▪Liability is personal, not limited
▪The rate rises if the turnover limit is exceeded
▪Bringing in investors and transferring shares is difficult
JSCLarge scale
Joint stock company. Suited to large-scale structures planning share transfers, investment rounds and corporate partnerships.
▪Ownership through a share structure
▪Management and audit obligations
▪High formation and reporting costs
▪Unnecessary for small businesses
Georgia or another country? Comparison table
The four countries we compare Georgia with most often. Click a column header to go to that country's page.
Scroll the table sideways →
🇬🇪GeorgiaLLC🇪🇪EstoniaOÜ🇧🇬BulgariaEOOD🇭🇺HungaryKft🇬🇧United KingdomLtd
Corporate tax
15% · on distribution
0% if not distributed
10%
9%
19–25%
Can a status lower it?
Yes · 0% – 1%
No
No
No
No
Minimum capital
None
€2,500
≈ €1
HUF 3,000,000
None
Formation time
1 business day
1–5 business days
3–7 business days
5 business days
Same day
EU membership
No
Yes
Yes
Yes
No
Stripe / PayPal
No Stripe
Moderate
Moderate
Moderate
Easy
Best-fit profile
IT exports, growing profit
Keeping profit in the company
Taking profit out, EU access
Invoicing into the EU
Fast start, global sales
Georgia or Estonia?
The logic is similar: in both, no tax arises while profit stays in the company. The difference lies in statuses and banking — Georgia has a 0% status for IT, while Estonia is in the EU but banking is harder.
Georgia or Bulgaria?
If you will take profit out straight away, Bulgaria's 10% + 5% combination is more predictable. If you will grow profit and export IT services, Georgia's status layer comes out ahead.
Why not the EU?
Georgia is outside the EU: you cannot get an EU VAT number, and your EU customers treat you as a third-country supplier. If intra-EU B2B sales dominate, Hungary or Bulgaria is a better match.
Formation process: registration in 1 business day
Registration at the House of Justice really is done in a day. What sets the timeline is the document preparation beforehand and the bank and status applications afterwards.
StageWhat happensDuration
Day 0–2Structure, name and status decisionThe name is checked, the activity code and shareholding structure are set, and the tax status to apply for is decided from the start.1–2 days1–2 days
Day 2–6Document preparationPassport and address details are collected; for remote formation a power of attorney is drawn up at a notary, apostilled and translated into Georgian.2–4 days2–4 days
Day 6–7House of Justice registrationThe application is filed with the National Agency of Public Registry; the company is registered and a tax identification number is issued.1 business day1 business day
Day 7–10Tax registration and addressRegistration with the Revenue Service is completed, the registered address is set up and, if needed, VAT registration is opened.2–3 days2–3 days
Week 2–5Bank accountThe corporate account application is handled; for a non-resident shareholder a compliance review takes place and the director is often required at the branch.1–4 weeks1–4 weeks
Week 2–6Status application and accountingThe Virtual Zone, small business or international company status application is filed; a local accounting agreement is signed and the monthly filing calendar is set up.2–4 weeks2–4 weeks
Documents needed
Passport
For all shareholders and the director; a legible colour scan is enough.
Address details
Residential address and contact details; in some cases a document may be requested.
Power of attorney + apostille
For remote formation, drawn up at a notary, apostilled and translated into Georgian.
Name and activity
2–3 alternative company names, the line of business and the target status.
Tax and annual obligations
The standard rates are shown below; if your status application is approved, the corporate tax line changes. Filing is monthly and continues regardless of status.
ItemRate / thresholdNote
Corporate tax15%Arises when profit is distributed, not when it is earned (Estonian model).
Undistributed profitTax-freeNo corporate tax burden arises while profit stays in the company.
Dividend withholding tax5%Applied at the time of profit distribution; independent of status.
VAT (standard)18%Registration is mandatory once the set turnover threshold is exceeded; voluntary registration is possible below it.
Virtual Zone0%Exemption for profit from IT service exports; subject to application and approval.
Small business1%Granted to individual entrepreneur registrations; calculated on turnover, the rate rises if the limit is exceeded.
Minimum capitalNoneThere is no statutory minimum capital; a company can be set up with a nominal amount.
The cost of taking profit out
As long as profit stays in the company, no corporate tax arises. On distribution, under the standard regime, 15% corporate tax and 5% dividend withholding tax apply. For companies that reinvest, this means cash can be kept in the company for years.
Don't overlook the Türkiye side
Individuals fully tax-liable in Türkiye must declare profit distributions they receive from a foreign company. Controlled foreign corporation rules are especially relevant for companies set up in countries with a low tax burden.
Read the detailed guide →Who is Georgia right for?
A summary of what we discuss in the first half hour of a consultation.
The right choice
✓Companies exporting software and digital services that may qualify for Virtual Zone.
✓Businesses that want to keep profit in the company rather than distribute it, and reinvest.
✓Small teams that want to start quickly with low formation and running costs.
✓Businesses that rely on land logistics with Türkiye or frequent travel and value visa-free access.
Look at another country
✕E-commerce models that depend on Stripe and card payments — Georgia is not supported by Stripe.
✕Businesses focused on intra-EU B2B sales — an EU VAT number and reverse charge setup are not possible.
✕Structures that will take profit out immediately and regularly — Bulgaria's 10% + 5% combination is more predictable.
✕Paper structures set up expecting zero tax while the business is actually run in Türkiye.
Frequently asked questions about company formation in Georgia
Six topics: formation, tax statuses, banking, accounting, residence and the Türkiye side. Choose a topic or search directly.
27 questions
Yes. There is no citizenship or residence requirement for setting up a company in Georgia; foreign individuals and legal entities can be the sole shareholder and director. Turkish citizens can also enter visa-free, which makes the physical steps of the process easy.
Registration at the National Agency of Public Registry (House of Justice) is usually completed in 1 business day if the documents are ready; same-day processing is also possible with the expedited service. A realistic overall timeline is 3–5 business days including document preparation and tax registration, and 2–5 weeks including the bank account.
No. There is no statutory minimum capital for an LLC; the company can be set up with a nominal capital. There is no amount to block, no capital commitment to track and no payment schedule to worry about. This is one of the clearest differences from Hungary (HUF 3,000,000) and Estonia (€2,500).
Yes. Formation is completed remotely with a notarised and apostilled power of attorney given to a representative in Georgia. When opening a bank account, banks often require the director to be present at the branch; as the flight from Türkiye is short, this step is not a major obstacle in practice.
You need the passports of the shareholders and the director, address details, alternative company names, the line of business and the shareholding structure. For remote formation, a notarised and apostilled power of attorney and Georgian translations of the documents are added. Registering an address in Georgia is mandatory.
Liquidation takes a few months, depending on closing the tax relationship. The main things that drag it out are missing period filings, an unclosed VAT registration and unsubmitted status maintenance reports. That is why we also discuss the exit scenario at the formation stage.
Under the standard regime, corporate tax arises not when profit is earned but when it is distributed; the rate is 15%. This is similar to the Estonian model: if you leave profit in the company and reinvest it, you pay no corporate tax for that period. On distribution, a 5% dividend withholding tax also applies.
Virtual Zone Person status is granted to companies operating in information technology that sell their services outside Georgia. Once approved, profit from this activity is exempt from corporate tax; 5% withholding tax applies to profit distributions. The status is not automatic; it requires an application and administrative approval.
Small business status is granted to individual entrepreneur (sole trader) registrations, not to legal entities. Once approved, tax is calculated on turnover rather than profit, and a 1% rate applies within the set turnover limit. If the limit is exceeded, the rate rises and the status can be lost, so tracking turnover is part of the process.
International company status gives a reduced corporate tax rate to companies operating in certain sectors (especially information technology and maritime) that have a genuine presence in Georgia. In return, the status comes with local employment, expenditure and experience requirements; it is a heavier structure than Virtual Zone.
Companies operating in the free industrial zones in Tbilisi, Kutaisi and Poti receive significant tax advantages. However, these zones are designed for businesses doing physical production, warehousing and re-export; for a company that only sells services they usually create unnecessary costs.
The company remains registered and continues operating under the standard regime. Rejection usually stems from the activity description not fitting the status scope or from insufficient documents. That is why we assess status eligibility before formation and set up the activity code and contract structure accordingly.
Yes. Statuses are rights you maintain, not rights you earn once: you must document that the activity continues within the scope of the status, that income comes from the intended source and that the conditions are still met. If the conditions are not met, the status can be revoked and tax may become due retroactively.
This is the slowest and least predictable step of the process. For companies with non-resident shareholders, banks carry out a detailed compliance review; the activity description, proof of customers and source of funds are examined. Banks often require the director to be present at the branch and may reject the application without giving a reason.
The rejection is recorded and makes a second application to the same institution harder. That is why we prepare the activity file, proof of customers and expected transaction volume documentation before applying, and choose the institution based on your profile; if rejected, we direct you to an alternative institution or an electronic money institution.
Georgia is not among the countries Stripe supports directly; so for e-commerce companies planning card payments, Georgia alone may not be enough. Alternative payment providers and local solutions can be used, but for a Stripe-dependent business model the United Kingdom or the USA is a better fit.
The country's currency is the lari (GEL). Holding multiple currencies in corporate accounts is common; dollar and euro accounts can be opened as standard. As there are no currency controls, there are no administrative obstacles to collections and transfers.
The standard VAT rate is 18%. VAT registration becomes mandatory once the set annual turnover threshold is exceeded; voluntary registration is possible below the threshold. For services provided abroad, place-of-supply rules apply, so the invoicing setup must be right from the start.
Filing is monthly: the corporate tax return (if there is a distribution), the VAT return and, if there are employees, withholding tax reports are filed every month. Financial statements are prepared at year end. The filing obligation continues even without activity; assuming “no activity, no filing” is the most expensive mistake.
No. Returns are filed in Georgian through the Revenue Service's electronic system; working with an accountant who keeps records under local legislation is effectively mandatory. You send the documents, the local accountant does the bookkeeping and filings, and we handle coordination and reporting in Turkish.
A standard LLC has no employee requirement; the company can operate without hiring staff. However, some special statuses, such as international company status, include local employment and expenditure requirements. This is the difference from Romania's micro-company regime, where the employee requirement is tied to the regime itself.
Turkish citizens can enter Georgia visa-free and are entitled to long stays. This makes things much easier both during formation and for physical steps such as the bank appointment; the land border with Türkiye also simplifies logistics.
Owning a company does not automatically grant residence rights. Those who want to live in Georgia must apply separately under the appropriate residence category; the application assesses criteria such as the company's actual activity, turnover and investment amount.
No, it is not required to set up a company. However, if you plan to actually live in Georgia, personal tax residence is a separate matter and should be assessed together with your tax liability in Türkiye. Structures set up without documenting the residence claim can cause problems in both countries.
The owner or director can run operations remotely while living in Türkiye. However, if the company's place of effective management is in Türkiye, or its employees and office are in Türkiye, there is a risk that the company will also be treated as a taxpayer in Türkiye. This should be assessed before the structure is set up.
When an individual fully tax-liable in Türkiye receives a profit distribution from a foreign company, they must declare it in Türkiye. In addition, controlled foreign corporation rules are especially relevant for companies set up in countries with a low tax burden. The double taxation agreement between Türkiye and Georgia is taken into account in this assessment.
A low or zero effective tax burden increases the likelihood that controlled foreign corporation rules apply. This does not make Georgia the wrong choice; it simply means the setup on the Türkiye side must be done right from the start. We set up the distribution plan, filing calendar and document trail within this framework.
Georgia or another country — let's decide together
Tell us about your business, where your customers are, and what you'll do with the profit — we'll tell you, for free, which country and structure fits. It's a screening conversation, not a sales pitch.
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