Practical Establishment in Georgia: Key Steps to Success

Convinced by Georgia's potential and ready to take action? Here is a step-by-step guide to a successful establishment.

Step 1: Choose the Right Legal Status

Depending on your activity, the size of your structure, and your objectives, several options are available:

• LLC: the choice of virtually all new establishments. Fast, low-cost, flexible.

• JSC: if you plan to raise funds or list on a stock exchange.

• Branch: if you prefer not to create a separate legal entity and your headquarters assumes full liability.

• Virtual Zone / International Company / FIZ: if your activity falls within IT, maritime services, or an industrial free zone, these statuses offer considerable tax advantages.

Step 2: Register

Visit (in person or via a representative with a power of attorney) one of the Public Service Halls of the Ministry of Justice. Prepare:

• The company's articles of association (in Georgian or with a certified translation)

• Proof of identity for each partner and director

• Documents relating to foreign partners (apostilled or legalised)

• A Georgian legal address

Timeline: 1 business day. Cost: a few hundred GEL.

Step 3: Open a Bank Account

The 17 Georgian commercial banks offer services to businesses. TBC Bank and Bank of Georgia dominate the market. Accounts can be opened in GEL and foreign currencies (USD, EUR in particular). Visa, Mastercard, Cirrus, and Maestro cards are widely accepted at ATMs.

Step 4: Tax and VAT Registration

Tax registration is included in the incorporation procedure. VAT registration occurs once the threshold of 100,000 GEL in turnover is reached (or upon voluntary request from the outset). The procedure takes less than 2 business days.

Step 5: Recruit and Manage Payroll

Labour legislation is flexible. No national statutory minimum wage, no employer social security contributions in the European sense (only 2% pension contribution). Source withholding of income tax at 20% is carried out by the employer.

Step 6: Comply with Filing Obligations

• VAT returns: monthly, before the 15th of the following month

• CIT returns (new model): monthly, before the 15th of the following month

• Property tax returns: annual, before 1 April

• Source withholdings on salaries: monthly, before the 15th of the following month

Practical Tips

• The language of business is Georgian, but English is widely used in international business circles. Few native French speakers, hence the importance of the CCIFG as a support network.

• Tbilisi is the business capital; Batumi (Adjara) and Kutaisi also have active economic zones.

• Georgian time zone is UTC+4 (no daylight saving time), i.e. 2 hours ahead of France in winter, 3 hours in summer.

• Georgia uses the metric system and the Celsius scale.

• Telecom infrastructure is high quality: high-speed internet access, 4G available everywhere, electricity at 220V with standard European plugs.

The Role of the CCIFG

The French Chamber of Commerce and Industry in Georgia (CCIFG) is your first point of contact for any establishment question. It offers:

• Guidance services and introductions to reliable local service providers (lawyers, accountants, recruiters, notaries)

• B2B networking events with the Georgian and international business community

• Access to first-hand economic and regulatory information

• Support in your institutional procedures (public contacts, institutional partners)