Company Formation in Georgia

Yes — but three questions then decide, in a fixed order. First, the place of management: if the company is in fact run from Germany (§ 10 AO) or Austria (§ 27 BAO), it is subject to unlimited corporate income tax there, and the registered seat in Tbilisi changes nothing. Second, control and low taxation under §§ 7 and 8 para. 5 AStG — the normal case for Georgian structures, because retained profits under the Estonian model carry zero per cent and therefore fall below the 15 per cent line. Third, the active-income catalogue in § 8 para. 1 AStG. For trade and manufacturing with own staff on the ground the structure regularly holds; for a one-person service still delivered from Germany it does not.

Not by the route usually cited. The substance defence in § 8 para. 2 AStG is restricted by § 8 para. 3 AStG to companies with their seat or place of management in the EU or EEA — Georgia is neither. For a Georgian company only the active-income catalogue in § 8 para. 1 AStG counts. Staff nevertheless remain indispensable, but they operate at three other points: the place of management, the active-income test for trade and services (the service must not be performed by the domestic shareholder), and arm’s length transfer pricing under § 1 AStG. In Austria the position is more favourable: § 10a KStG captures only controlling corporations, not individuals, and carries no geographic restriction on the substance exception.

No. You can hold 100% of the shares as a foreigner and be the director at the same time. There is no minimum ownership requirement for Georgian nationals.

After receipt of your notarised power of attorney: 7 business days to a registered company, another 3–7 business days to an active bank account. Overall, plan for 2–3 weeks from engagement until your company can issue invoices.

Passport, police clearance certificate (apostilled), proof of address and a notarised power of attorney for our representation. We coordinate the Georgian translations here on site — you only send us the originals + apostille, always by express courier.

For the formation itself: no. For the bank account opening either — it runs on the same notarised power of attorney as the formation, optionally via an online notary instead of an in-person appointment with your notary. We open the account on your behalf in Tbilisi.

Yes. A Georgian LLC is recognised as a legal entity in the EU and most other jurisdictions. Georgia has double tax treaties with Germany, Austria, Switzerland, the UK and 60+ other countries — we discuss how the credit works for your specific country of residence in the consultation.

Yes. A Georgian LLC can establish a German GmbH, an Austrian GmbH or another EU company as a subsidiary at any time. Many of our clients use Georgia as a holding location with operating subsidiaries in the EU.

An LLC is liquidated in 6–8 weeks. There are no penalty payments or minimum terms. We manage the process including the final tax settlement.

Not from Small Business Status — and the widespread error has a traceable source. Annex No. 4 to Government Resolution No. 415 is a closed list of seven items and names neither trade nor financial services, financial intermediation, investment management or brokerage. "Trade" ("ვაჭრობა") sits in Annex No. 2 — the list for MICRO business with the GEL 30,000 ceiling, where it was added in 2011. Anyone reading that trading is "prohibited under the 1% regime" is reading a correct statement about the wrong regime. The long list circulating in English with headings such as "financial intermediation" or "investment management" is not the text of the Resolution.

Consultancy. Item 4 of Annex No. 4 excludes medical, architectural, advocacy or notarial, audit and consultancy activity — expressly including tax consultants. That captures consulting of every discipline and with it the most common self-description of location-independent professionals. The line runs where execution becomes recommendation: someone who writes software is not on the list; someone who advises clients on which software to adopt is. What governs is the activity actually carried on, not the contract label — and withdrawal takes effect under Art. 89 of the Tax Code from the beginning of the current calendar year. That is why the delimitation belongs before registration.