| LLC | Exempt LLC | JSC | Free Zone Company | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|
| Local Name | Limited Liability Company | Special Trade Company | Joint Stock Company | Free industrial zone company | Branch | Representative office |
| Company Setup Time | 5 days | 10 days | 10 days | 15 days | 15 days | 15 days |
| Bank Account Opening | 10 days | 10 days | 10 days | 10 days | 10 days | 10 days |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | No | No |
| Limited Liability | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Georgia Limited Liability Company (LLC)
- Registering an LLC requires one shareholder and one director, both can be foreigners. There is also no minimum share capital required
- Corporate entities are subject to corporate tax on their earnings at a 15% rate. In addition, companies must send to the tax authority an annual financial statement. Foreigners can use available tax schemes to legally reduce the corporate income tax liability.
Georgia Joint Stock Company (JSC)
- The main difference among JSCs and LLCs regards to the shares. The JSC can issue common as well as preference shares. Without the approval of the other shareholders the holder can transfer shares freely.
- The Georgian JSC can be used for complex projects involving substantial investment. They can also be used on the Georgian Stock Exchange for IPO initiatives.
Georgia Exempt LLC (International Trading Company)
- International clients can register their company as a special trading company to benefit from tax exemption from all trade with foreign customers. The products can not come from or be sold to local clients.
- A Georgian company must secure warehousing space to secure special trade status. Companies are eligible only if their Georgian income is not greater than US$ 420,000, or 5% of the overall custom value of goods traded with clients abroad. Special trading companies have great tax efficiency for international trading.
Georgia Free Zone Company (industrial free zone company)
- In Georgia, foreigners can establish their company in one of its free trade zones, which offers tax exemption from corporate tax, VAT as well as property tax.
- Free zone companies must appoint one director and one shareholder of any nationality, who can be either an individual or a legal entity. The company must also appoint a Georgian legal representative. The capital amount required for free zone registration for this type of company vary as per the assessment of the free zone authority.
- Georgia offers a cost-efficient solution and amazing tax incentives for these companies. These companies are very suitable for investors who want to start a logistics or manufacturing export-oriented business.
Georgia Branch Office
- The activities of the branch are limited by the scope defined by the parent company. This entity must appoint a Georgian resident representative.
Georgia Representative Office
- A representative office is not allowed to carry out any direct revenue generating activities or sign any contracts.
- This entity is permitted to promote the parent company and carry out market research and liaison activities.