Deciding on which countries to expand your business to can be a complex and difficult decision. As an aspiring entrepreneur, you might have heard of the lucrative business environment of Georgia and might be wondering about the benefits of new business registration Georgia. In this article, Tetra Consultants will offer insights into the 4 key advantages of new business registration Georgia so that you may better understand this business phenomenon and make a more informed decision about whether you should register company in Georgia.
1. Ease of business registration and operations
As an entrepreneur looking to register small business in Georgia, the ease of setting up your company to begin with is one of the most critical factors commonly considered. In this regard, based on recent statistics provided by the World Bank, Georgia was ranked 7th in the world for the “ease of doing business”. In fact, compared to other countries in the European region and Central Asian region, Georgia is one of, if not the best location for starting up and conducting business. Furthermore, in research conducted by the International Budget Partnership (IBP), Georgia was even ranked as the fifth best out of 117 countries with respect to how friendly and supportive governmental policies and budgets were towards new businesses.
The ease of business registration and operations is further demonstrated through its relatively lax regulations surrounding the opening of new businesses by foreign investors or entrepreneurs. For instance, a non-resident of Georgia is permitted to register any company with legal activity remotely, without even having to show up in person. In fact, any legal regulations regarding timing or other restrictions imposed on foreign investors are exactly the same as those imposed on regular citizens of Georgia. Furthermore, the founder, director of the company, and the head are allowed to be a foreign citizen from any other country.
This process of remote registration can be completed in merely 2 to 3 days simply by submitting all necessary documents in advance and registering with the house of justice, tax office and bank. Once this registration is complete, one is not required to remain within the country, with the option of designating any management of the company and its operations to a manager being available as well. Hence, the process of business registration and operations is incredibly comfortable, convenient and efficient, especially for international businessmen and foreign companies.
2. Economic Benefits
Georgia is home to a model of taxation known as the “Estonian model” of tax assessment. The key characteristic of this system is that there is an obligation to pay income taxes only when your business is distributing its profits earned. Apart from this, Georgia also offers several business benefit programmes which immensely empower firms. For example, the Enterprise Zone Employment Act implemented in 1997 ensured that for any new, start-up business registered within the Georgia Enterprise Zones, it will be benefited through a reduction of various forms of taxation ordinarily imposed. For example, this business is not required to pay local property taxes, as well as receive tax cuts for occupation taxes, building inspection fees, regulatory fees and many other potential fees or financial impositions.
Another benefit programme in Georgia is the system of tax credits provided to a variety of businesses. For instance, a Job Tax Credit boosts the expansion of new businesses via job creation, offering savings of $1750 per job as part of yearly tax savings accrued. The Mega Project Tax Credit ensures that upon new business registration Georgia, significant amounts of credit will be offered if you employ a minimum of 1800 new workers or invest a minimum of 450 million in the country. Another form of tax credit includes the Work Opportunity Tax Credit administered by Georgia’s Department of Labor, with $1200 to $9600 of credit per worker granted to firms willing to employ certain individuals facing structural employment barriers.
3. Quality corporate banking services
For any entrepreneur looking to register small business in Georgia, setting up a corporate bank account is vital to engage in business transactions and monitor capital levels. In this aspect, banks within Georgia consistently offer one of, if not the best online banking services across countries in the Central and Eastern European region. This is because its banks ensure complete confidentiality and security for account owners by opting not to transfer the financial information of non-resident to the tax authorities of their respective countries. In fact, Georgian banks also provide the option of keeping free funds on deposits as well as a variety of financial services like asset management, brokerage, insurance and leasing to aid businesses in financial planning.
This is especially impactful for new businesses considering setting up in Georgia as it means that management can easily access the necessary tools and support for corporate banking such as online banking, obtaining business cards etc. in a swift and reliable fashion. Similar to the aforementioned process of business registration, foreign investors can choose to set up a corporate bank account remotely and quickly as well.
4. Residence permit for international investors
Given the significant number of foreign investors looking to attain a residence permit within the country, with some even hoping to obtain direct citizenship, legal amendments were made regarding the “the legal status of foreigners and stateless persons” in 2019. After the new legislation was passed, the requirement for attaining a 1 year investment resident permit is that one must be the owner of real estate with a minimum value of $100,000. Alternative methods of getting a residence permit include the registration of an individual entrepreneur. Upon meeting the minimum requirement for the annual turnover ($50,000), one has the right to obtain a 1 year residence permit as well.
Hence, these legal amendments most certainly increased the accessibility of investment resident permits and residence permits for foreign investors, ensuring that the process of new business registration Georgia remains as efficient as possible.
Navigating the country of Georgia’s complex business climate might be a challenging process – a hassle to say the least. However, with the key business and corporate benefits outlined above, it is easy to see why many businesses would choose to set up in Georgia. As such, Tetra Consultants hopes that this article has provided you a much better understanding about the 4 main advantages of new business registration Georgia so that you can truly decide on whether you should register small business in Georgia yourself.
So, what are you waiting for? Contact us to find out more about the process of starting a business in Georgia, and our dedicated and experienced team will respond within the next 24 hours. Tetra Consultants will not only empower you by helping to navigate the different regulations of Georgia, but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges.