Georgia LLC follows the proven Estonian style taxation system where undistributed, reinvested profit is not taxed.
Upon distribution, the corporate tax is 15% and 5% withholding if distributed to a natural shareholder (not a holding company).
Georgia LLC can have a virtual zone election for software companies where the creation process takes place in Georgia, benefiting from 0% corporate tax and 0% VAT with only 5% dividend tax on a personal level.
Quick Facts
Corporate Tax Rate
15%
Local Director Required
No
Initial Setup Cost
From GEL 1500 (one off)
Audit Required
No
Complexity
Simple
Legal Information
Legal Information
Entity Type
Limited Liability Company (LLC)
Company Form
Limited Liability Company (LLC)
Liability
Shareholders' liability is limited to their contribution to the company’s capital. Personal assets are protected unless there is fraud or misconduct.
Share Capital
No minimum share capital requirement. It can be as low as 1 GEL.
Company Name Rules
Must be unique and not similar to existing names. Must Include LLC and no words like Bank, Insurance etc.
Types of Shares Allowed
Ordinary shares only. No preferred shares.
Bearer Shares Allowed
No, bearer shares are not permitted.
Foreign Ownership Rules
100% foreign ownership is allowed.
Redomiciliation
Not Allowed
Shareholders
Minimum: 1 shareholder (natural or legal person).
Directors
Minimum: 1 director (natural or legal person).
Secretary
Registered Address
Every LLC must have a registered address in Georgia.
Incorporation Timeline
Name Reservation
1 business daySubmit the proposed company name to the National Agency of Public Registry (NAPR) for approval.
Preparation of Documents
1-2 business daysDraft the Articles of Association and other incorporation documents. Gather required identification and legal documents.
Submission to Public Registry
1 business dayFile incorporation documents with the National Agency of Public Registry (NAPR).
Certificate of Incorporation Issued
1 business dayIf documents are in order, NAPR issues the Certificate of Incorporation within 1 business day.
Tax Identification Number (TIN) Registration
Same day as incorporationTIN is automatically assigned upon incorporation; no separate application required.
VAT Registration (If Required)
2-5 business daysIf annual turnover exceeds GEL 100,000 or if the company opts for VAT, registration is required with the Revenue Service of Georgia.
Bank Account Opening
3-10 business daysOpen a corporate bank account. Electronic Money Institutions (EMIs) take 3-5 days, while traditional banks may take up to 10 days.
Compliance & Operational Setup
OngoingRegister employees (if applicable), appoint accountants, and ensure compliance with tax and reporting obligations.
Georgia Corporate Taxation
Corporate Income Tax: 15%
Effective Tax Rate: 15%
Exemptions:
Profit is not taxed until it is distributed. Certain exemptions apply for Free Industrial Zones (FIZ).
Dividends received are considered ordinary income.
Capital gains are considered ordinary corporate income in Georgia.
Dividends paid to non-residents are subject to a 5% withholding tax unless a tax treaty provides a lower rate.
If the company, paying the royalties is a resident of Georgia, and you are a resident of Georgia, then a tax of 20% is withheld from the royalty amount. If the company paying the royalties is a resident of Georgia, and you are a non-resident of Georgia, then a tax of 5% is withheld from the royalty amount.
Special Regimes
Anti-Avoidance Rules
Georgia does not have Controlled Foreign Corporation (CFC) rules.
Follows OECD guidelines, with documentation and Advance Pricing Agreements (APAs) available.