#

Starting a Business in

Georgia

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Georgia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Georgia to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Register the company with the Entrepreneurial Register and obtain an identification number and certificate of state and tax registration

    Agency: NAPR

    Statutorily, the registration process of the LLC shall commence once the applicant submits the following documents:
    (a) Application for Registration and
    (b) Document evidencing payment of a registration fee. The application must be signed by all founding partners of the company. The information contained in the application may be included in the charter of the company or partners' agreement (in this case no separate application shall be required). The application (or charter/partners agreement) need to be executed before a public notary. In addition, though not specifically required by law, in accordance with the registration instruction, the applicant must submit a document confirming lawful occupation of the premises to be used as a legal address of the company (lease agreement) and the written consent of the appointed director (manager) to serve on this position. A signature sample may also be accepted instead of the said consent.

    Submission of application for registration may be carried out by one of the founding partners of the Company (in which case the documents must be certified by notary preliminarily), the appointed director or by a person appointed by the partner (or partners) by virtue of a duly issued and certified power of attorney. In such cases as well, all documents to be submitted to the registration agency must be certified by notary preliminarily (i.e. execution of the documents in the registration agency itself is not an option).

    According to the amendment on registration of a company NAPR requires companies to provide e-mail and alternative address, which differs from company's legal address, in order to simplify formal contact with the company (e.g.: for Revenue Service, administrative agencies, Courts, creditors, etc.). This regulation is mandatory upon initial registration of a company, as well as for registration of changes in constituent documents.

    Georgian legislation provides for a possibility to open a bank account while registering the company at NAPR.
    1 day GEL 100 (regular registration) or GEL 200 (expedited registration) + GEL 1 (bank charges)
    2

    Open a bank account and pay registration fees

    Agency: Commercial Bank

    Since January 2011, NAPR offers the option to open a bank account with a selected group of banks. It currently locates 3 major bank branches in the same building offering the customers the convenience to open a bank account at the time of company registration.
    1 day no charge
    3

    Registration for VAT

    Agency: Revenue Service under Ministry of Finance of Georgia

    According to Article 157 of the Tax Code of Georgia, “A person/entity, which carries out an economic activity and the total amount of VAT taxable transactions carried out in any continuous period up to 12 calendar months exceeds GEL 100 000”, shall apply for a VAT registration to Revenue Service under Ministry of Finance of Georgia. A company can also perform voluntary registration.
    In both cases, the company representative makes an application with the request to register the company as a VAT taxpayer. The application is made at the Revenue Service territorial service center. The applicant is considered as a VAT taxpayer from the moment of a such request. VAT taxpayer number in Georgia is the same as the Identification Number of the company, which is obtained while registering the company with the NAPR.
    1 day no charge