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How to register a business in Georgia: a guide for employers

Grow your team in Georgia

Georgia: A rising hub for business and investment in the Caucasus

Strategically located at the crossroads of Europe and Asia, with a business-friendly environment, simplified registration processes, low taxes, and growing economic sectors, Georgia appeals to investors and entrepreneurs alike.

This article will walk you through the process, costs, and advantages of setting up a business here. We’ll also explore alternative options, such as working with an Employer of Record (EOR), for simpler, swifter market entry.

The business benefits of registering your company in Georgia

Georgia is recognized as a highly business-friendly destination, thanks to streamlined regulations, low taxes, and a government supportive of entrepreneurship. Initiatives like the Tbilisi Startup Bureau, for example, are transforming the capital into a thriving startup hub, attracting investors, entrepreneurs, and digital nomads from around the globe.

Here are some key benefits of setting up a business in Georgia:

  1. Business-friendly regulations
  • You can complete company registration within a day, with minimal documentation.
  • 100% foreign ownership is allowed across all sectors.
  • There are no currency controls or restrictions on profit repatriation.
  1. Favorable tax system

Since 2008, Georgia has kept corporate taxes simple with a flat 15% rate. In 2017, the country became even more business-friendly by exempting non-distributed profits from taxation, encouraging reinvestment and growth. (Note: Financial institutions like banks and credit unions face a separate 20% tax introduced in 2023.)

  1. Strategic location and trade agreements

Georgia’s strategic location at the crossroads of Europe and Asia makes it an ideal hub for international trade. Key advantages include:

  • Free trade agreements (FTA) with the EU, China, Turkey, and CIS countries
  • Access to the Black Sea ports and major trade routes
  • A well-developed digital and banking infrastructure
  1. Free industrial zones
    Businesses operating in Georgia’s Free Industrial Zones (e.g., Poti, Kutaisi, Tbilisi) benefit from tax exemptions on VAT, corporate income tax, and import/export duties.
  2. Streamlined setup
    Georgia’s straightforward registration means low fees and minimal paperwork.

These benefits make Georgia’s business appeal clear. However, when expanding here, companies must decide whether to register a legal entity or explore alternative market entry solutions like an EOR.

Standard business setup vs. EOR in Georgia

When considering market entry, businesses typically have two options: registering a company or using an EOR.

Aspect

Standard registration

EOR solution

Purpose

Sets up a legal entity for full business operations in Georgia.

Hire employees in Georgia without a local entity.

Control

Complete control over operations and decisions.

Less control over HR processes, as the EOR manages employment aspects

Cost

Higher setup costs (registration fees, legal fees) and ongoing administrative expenses

Lower upfront costs, typically a per-employee fee

Compliance

Direct responsibility for legal and tax compliance

Labor law compliance is handled by EOR

Setup time

It can take several weeks or months to complete registration

Faster setup, often within days or weeks

Scalability

It can be more complex to scale up or down quickly

EOR manages HR aspects for easier scaling


While both standard company registration and EOR solutions offer distinct advantages, the latter suits those prioritizing operational agility, streamlined processes, and minimized administrative burden.

Why choose an EOR for business registration in Georgia

Using an EOR in Georgia delivers advantages beyond simple market entry. An Employer of Record (EOR) hires and manages local employees for you, reducing the risk of non-compliance with employment laws and the administrative burdens of setup and payroll.

  • Streamlined setup: Skip setting up a local entity and start hiring within days.
  • Compliance with local labor laws: Georgia’s employment laws include specific requirements around employment contracts, probation periods, working hours, and termination policies. An EOR ensures full compliance, protecting you from potential disputes or penalties.
  • Payroll and tax handling: Georgia has specific VAT thresholds, tax exemptions for undistributed profits, and unique payroll reporting needs. An EOR manages these intricacies, ensuring timely payroll processing and accurate compliance.
  • Scalable team management: Quickly adjust your workforce in response to Georgia’s dynamic market conditions. An EOR allows easy scaling of your local team without being tied down by rigid employment structures.
  • Risk mitigation: Safeguard your operations from Georgia-specific employment risks. Your EOR partner handles compliance with Georgian labor and tax regulations, reducing your financial and legal liabilities.

While an EOR simplifies your initial entry into Georgia, registering a local company might still be essential depending on your long-term business strategy. It may be necessary if your business imports or exports goods, directly holds real estate, or requires industry-specific licenses.

Let’s explore how to register your company in Georgia step by step.

Registering your Georgia business: A how-to guide

Registering a company in Georgia is a straightforward process that you can complete within one business day at the Public Service Hall.

Georgia offers several types of legal entities, including:

  • Individual entrepreneur: Ideal for small business owners and freelancers.
  • Limited liability company (LLC): The most common business structure, offering limited liability protection and simple management.
  • Joint stock company (JSC): Suitable for larger enterprises looking to issue shares.
  • Branch or representative office: Allows foreign companies to operate in Georgia without establishing a separate legal entity.

Both the LLC and JSC offer flexible corporate structures and do not have minimum or maximum share capital requirements. An LLC can have between one and 50 shareholders, with no requirement for local partners. It can be fully owned and managed by foreign citizens.

Step 2: Register a unique business name

Your company name must be unique and comply with Georgia’s naming regulations. You can check name availability through the National Agency of Public Registry (NAPR).

Step 3: Submit registration documents

To register your company, you must submit the following documents depending on the type of entity you’re registering. Documents may include:

  • Passport copies: Each applicant must provide a copy of their passport. You should provide notarized Georgian translations if it’s hard to pronounce your name in Georgian.
  • Shareholder decision/minutes: This document details shareholder company decisions regarding the creation of the subsidiary and the appointment of directors.
  • Articles of Association of the shareholder company: This document should outline who has the authority to decide to establish a subsidiary in Georgia, appoint directors, etc.
  • Consent from property owner for legal address: A written consent from the property owner allowing you to use their property as the company’s legal address. This consent must be notarized or signed on-site at the Public Service Hall.
  • Translation confirmation: A signature from an independent translator confirming that the Georgian and English versions of each document match. The translator doesn’t need to be a professional but mustn’t have any personal stake in the company.
  • Power of attorney (PoA): A document authorizing someone to represent the company during registration.
  • Payment receipt: A receipt showing the registration fee payment. Pay this fee in cash at the bank in the Public Service Hall or by card at the registration desk.

You might need to apostille, notarize, or legalize documents unless the documents originated in a country that is part of the Hague Apostille Convention.

Step 4: Open a corporate bank account

Once registered, you must open a corporate bank account with a Georgian financial institution. This is necessary for conducting business transactions and tax compliance.

Step 5: Obtain a tax identification number (TIN)

All companies must register with the Revenue Service of Georgia to obtain a Tax Identification Number (TIN) for tax compliance.

Step 6: Apply for business licenses (if applicable)

Certain industries, such as finance, healthcare, and energy, require specific business licenses. Check with the relevant regulatory authorities for licensing requirements.

Step 7: Start operations

Once your company is registered and compliant with tax and legal regulations, you can commence business operations in Georgia.

While registering your company offers greater control, it also increases your responsibility, adding to administrative tasks and consulting fees. If you’re looking for a simpler, faster option, consider using an EOR like Multiplier to save both time and money.

The real cost of registering a business in Georgia 

Understanding how to register your business in Georgia is just the beginning; it’s equally important to grasp the financial commitments involved.

Below is an approximate cost structure:

Registration costs

  1. State filing fee: The cost for filing the Articles of Incorporation with the National Agency of Public Registry in Georgia is approximately GEL 100. This fee is essential for officially registering your business entity. Expedited processing costs GEL 200. 
  2. Legal fees: Hiring a lawyer to assist with the registration process can range from a few hundred to several thousand GELs, depending on the complexity of your business needs. Hourly rates for lawyers in Georgia can range from GEL 300 to GEL 600 per hour.
  3. Notary fees: Notary services in Georgia typically cost around GEL 10 per document.
  4. Taxes: Various taxes may apply, including corporate income tax, value-added tax (VAT), and property tax. The specific amounts depend on your business activities and revenue. For example, the corporate income tax rate in Georgia is 15%.

Additional costs

In addition to the above, you should also consider variable costs such as accounting and bookkeeping services, office space, and other operational expenses, which will depend on your specific business needs and choices. It’s essential to factor these into your overall budget.

Weigh the costs: standard business registration vs. EOR

Now that you understand the costs associated with registering a business in Georgia, let’s compare these expenses to those of using an EOR. This comparison will help you determine which option is more affordable for your business needs and growth plans in Georgia.

Cost category

Standard registration

EOR

Initial setup

State filing: GEL 100; expedited: GEL 200

None, as the EOR already has an established entity

Notary fees

Typically, GEL 10 per document 

Included in EOR services

Accounting and legal fees

Accounting services: varies; payroll management: varies; legal: can vary from a few hundred to several thousand GEL

Managed by EOR

Hidden costs

Potential administrative overhead and unforeseen fees

Predictable costs with minimal administrative burden

Note: For the most precise and up-to-date details, especially regarding tax regulations and legal fees, you will need to consult with local authorities. You can also talk to our team at Multiplier for the latest costs and comparisons with our trusted EOR services.

Launch Georgia operations effortlessly with Multiplier

Avoid the headaches of navigating unfamiliar Georgian labor laws, managing ongoing payroll accurately, and staying compliant with evolving tax regulations with Multiplier. You can expect transparent costs, smooth operations, and a budget that stays on track.

Companies of all sizes trust our EOR partnership for a hassle-free expansion into Georgia and beyond.

Here is why:

  • Local hiring expertise: Create compliant contracts in minutes.
  • Payroll made simple: Our compliant, automated payroll handles multi-country taxes, benefits, and compensation.
  • Integrated HR: We bring everything together—from onboarding to tracking expenses in real time—in one user-friendly dashboard. You get clear visibility, and your team enjoys a smooth experience.
  • Compliance assurance: We understand and adhere to Georgian labor laws and tax regulations, shielding you from expensive penalties.
  • Attractive benefits packages: We offer competitive, locally relevant benefits to help you attract and retain top Georgian talent while minimizing compliance risks.
  • Reliable support: We provide 24/7 expert guidance and do the heavy lifting so you can make confident decisions about your Georgia operations.

Ready to see how easy expanding to Georgia can be? Book a demo with us today. Let’s unlock your growth potential together.

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