Setting Up a Business in Georgia: Legal Forms and Procedures
Georgian legislation offers foreign investors a simple, fast, and non-discriminatory framework for establishing a commercial entity. Here is what you need to know in 2026.
Available Legal Forms
The 2021 Entrepreneurs Act defines five types of entities authorised to carry out commercial activities:
1. LLC (Limited Liability Company): By far the most common form, and the one chosen by the majority of foreign investors. Its advantages: it can be founded by a single partner (natural or legal person), no minimum capital is required, and its incorporation generally takes just one business day. Partners' liability is limited to their contributions. Major decisions are made at partners' meetings; day-to-day management is entrusted to one or more directors. There are no nationality restrictions for partners or managers.
2. JSC (Joint Stock Company): Used primarily to raise funds on financial markets or for banks and insurance companies (which can only be incorporated in this form). More complex structure (mandatory supervisory board above 100 shareholders or if listed), but incorporation formalities remain fast (one day).
3. Cooperative: Rarely used by foreign investors, but of interest in the agricultural and food processing sectors.
4. Joint Liability Company: Partners are jointly and unlimitedly liable for company debts. Suited to small family structures.
5. Limited Partnership: A hybrid structure; general partners have unlimited liability, while limited partners are restricted to their contribution.
Foreign Investors: Same Rights as Nationals
Georgian law guarantees equal treatment between national and foreign investors. Any form of company can be incorporated by foreign natural or legal persons without restriction, subject to the usual formalities (apostille or legalisation of foreign documents, in accordance with the 1964 Hague Convention).
One notable restriction: the acquisition of agricultural land by foreigners may be subject to informal restrictions.
Branches and Representative Offices
A foreign investor may also opt for a branch or representative office, which do not constitute separate legal entities; the parent company remains fully liable for its commitments. In practice, a branch carries out real commercial activities, while a representative office is limited to promotion and supervision functions.
Special Tax Regimes
Several statuses provide substantial tax exemptions and advantages:
• Free Industrial Zone (FIZ): full exemption from corporate tax, domestic VAT, property tax, and withholding tax on dividends and interest.
• Special Trade Company: CIT exemption on re-export and distribution activities from customs warehouses.
• Special Trade Zone: tenant income tax at only 3%.
• International Company: CIT rate of 5% and salary taxation at 5% (for IT and maritime service activities).
• Tourism Enterprise: specific exemptions related to hotel construction and management.
• Virtual Zone: IT companies that create software and export it outside Georgia are exempt from CIT on profits derived from such exports.
Registration Procedure
Registration is carried out at the Registry of Entrepreneurial and Non-Entrepreneurial Entities within the Public Registry of the Ministry of Justice (available at Public Service Halls across the country). Registration simultaneously covers commercial incorporation and tax registration — a single procedure suffices.
Information to be provided: company name, legal address (and alternative address), email address, identity of directors and partners, director's powers. No minimum capital is required, but the articles of association (charter) must set out governance rules.
Timeline: generally 1 business day.
Health and Safety Obligations
The Occupational Health and Safety Act (2019) requires companies whose activities are classified as dangerous or at risk to register in the Economic Activities Register and take out accident insurance for their employees.