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DOING BUSINESS IN GEORGIA / GEORGIA BUSINESS GUIDE

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DOING BUSINESS IN GEORGIA / GEORGIA BUSINESS GUIDE

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Postby Georgia Info » Wed May 09, 2007 3:46 am

DOING BUSINESS IN GEORGIA

STARTING A BUSINESS


STANDARDIZED COMPANY
Legal Form: Limited Liability Company
Minimum Capital Requirement: 200
City: Tbilisi

Registration Requirements:

Procedure 1. Notarise the founders' documents, signature samples and the incorporation documents


Time to complete: 4 days, depending on complexity of drafting and availability of notary

Cost to complete: about GEL 70, for notarising charter + GEL 2.4 per signature for notarising other documents

Comment: The following documents will need to be prepared and notarised if the founder is a natural person:
- Minutes of the founders' meeting;
- Charter (5 copies);
- Signature sample of the director to be presented to the registering district court and the bank, where the company intends to open its corporate account;
- Power of Attorney (unless the founder undertakes the registration personally);
- Application to the tax agency.

The costs for notarisation of the charter are based on the amount of the charter capital. Costs for notarisation of all other documents will be contingent upon the number of authenticated signatures. The notary fee payable for authentication of a signature amounts to GEL 2.40 (VAT inclusive).

Procedure 2. Open a temporary bank account, deposit equity capital and obtain certificate from the bank

Time to complete: 1 day

Cost to complete: GEL 0 - 20

Procedure 3. Pay the registration fee

Time to complete: 1 day

Cost to complete: see below

Procedure 4. Complete company registration at the Entrepreneurial Register

Time to complete: 3 days

Cost to complete: GEL 160

Comment: The following documents need to be filed: application signed by the founders; five copies of charters; minutes of the foundation meeting; director's sample of signature; document confirming the legal address of the company; documents confirming payment of 50% of the equity capital; a document confirming payment of the registration fee; in the case of non-cash contributions, a document confirming the contribution's evaluation.

The court tax body publishes the data on the newly registered company in the official newspaper. The courtadministration is obligated to register the LLC within 5 3 business calendar days after the date of filing.

On June 24, 2005 the Georgian Law on Changes and Amendments to the Georgian Law on Entrepreneurs was adopted. According to the Article 2, Paragraph 1 of the denoted law provisions regarding the registration of enterprise are effective from September 1, 2005. According to the Article 4.5. of the new version of the relevant law, the unified Entrepreneurial Register is kept by the Tax Department at the Ministry of Finance of Georgia.

The rules for keeping the Entrepreneurial Register, as well as the Tax Bodies entitled for registration were defined by the Resolution No. 127 of the Government of Georgia, dated August 10, 2005, which came into force upon its publication excluding Paragraphs 1 and 2 effective from September 1, 2005

According to the above-mentioned Resolution, the registration of enterprises is carried out by the Tax Inspections at the Tax Department of the Ministry of Finance of Georgia as follows:

- Tbilisi Tax Inspection;
- Batumi Tax Inspection;
- Rustavi Tax Inspection;
- Kutaisi Tax Inspection;
- Poti Tax Inspection;
- Gori Tax Inspection;
- Telavi Tax Inspection;
- Akhaltsikhe Tax Inspection;
- Abkhazia Tax Inspection.

Pursuant to the Article 2, Paragraph 8 of the denoted Resolution the database of the data entered into the forms of the Entrepreneurial Register will be created at the Tax Department, based on which an extract from the Entrepreneurial Register shall be issued.

Procedure 5. Obtain a tax number from the district Tax Administration

Time to complete: 3 Days

Cost to complete: no charge

Comment: According to the new Tax Code, tax authorities are obligated to conduct registration and issue respective certificates within 5 days following the date of filing of the documents.

The documents which need to be filed for the purposes of registration with district tax inspection include:

(i) tax administration resolution of registration of the LLC;
(ii) registered charter of the LLC;
(iii) document, evidencing legal address of the LLC (lease agreement or landlord consent letter, as filed with the tax administration);
(iv) copy of director's ID card/passport;
(v) document, evidencing payment of the Charter Capital (at least 50%).

By virtue of the new Tax Code, the threshold for VAT mandatory registration remains at GEL 100,000. Mandatory registration requirement further applies to companies, which produce and/or import excise goods. Eligibility requirements for voluntary VAT registration have been abolished. Requirement for voluntary registration is only that the company conducts VAT taxable operations, notwithstanding their value.

Procedure 6. Make an official seal

Time to complete: 3 days

Cost to complete: GEL 30

Comment: In accordance with the amendments to the Law on Entrepreneurs (effective June 1, 2001), company stamps are no longer required, and state institutions have been explicitly prohibited from requiring a company to present a stamp for any purpose. Information regarding this change in the law has not been widely disseminated and many companies and lawyers still complied with the old requirements.

Procedure 7. Open a corporate account in the Bank

Time to complete: 1 day

Cost to complete: no charge

Comment: For such purposes, documents include:
(i) tax administration resolution on registration of the company;
(ii) charter of the company;
(iii) tax registration certificate; and
(iv) director's signature sample must be presented to the bank. The bank immediately transforms the temporary account (opened prior to registration) into a permanent account.

FORMS OF BUSINESS ORGANISATION

1. Limited liability company
2. Joint stock company
3. Individual enterprise
4. Limited partnership
5. Joint liability company
6. Co-operative
7. Branch
8. Representative office

Foreign investors may operate in Georgia through a participation in a foreign-owned local corporate entity or open a branch or representative office in Georgia.

Georgia is the most improved business environment in the world in 2006, according to the World Bank.

TAXATION

Corporate tax
Tax on enterprises: 20%

Taxation is imposed at the national level. Residents are taxed on their worldwide income with a credit for foreign tax. For Georgian enterprises, gross income includes all income, regardless of its source or place of payment, except for income specifically exempt under the Tax Code. Most Georgian-source income of non-residents is taxed. A 10% withholding tax applies to repatriated profits of foreign companies.

Individual tax
12%

Resident individuals pay tax on worldwide income; non-residents pay tax only on Georgian-source income. An individual is resident if physically present in the territory of Georgia for more than 183 days in any continuous 12-month period ending in the tax (calendar) year. Tax at a fixed rate of 12% applies to employment income.

Capital gains
Taxed as income

Capital gains are generally taxed as income.

Indirect tax
Standard rate: 18%

Value-added tax (VAT) is charged on the value of supplies of taxable goods and services made in Georgia, including imports of goods. VAT applies to most transactions at a rate of 18%. Certain supplies are zero-rated, including the export of goods, international transportation services, etc. Under the Host Government Agreement, the supply of goods, works and services to and by contractors in connection with the Baku-Tbilisi-Ceyhan pipeline project are taxable at 0% VAT. The Tax Code provides for a number of exempt transactions, namely financial and insurance services, import of machinery, means of transport, spare parts and materials needed for the oil and gas industry.

Tax administration and compliance
Tax year: Calendar year

Enterprises must make four equal advance payments of corporate income tax during the calendar year. All enterprises must submit their annual corporate income tax returns to the tax authorities before March 31st of the year following the relevant tax year. For individuals, personal income tax is withheld at source by the employer. The tax return must be submitted to the tax authorities on a monthly basis before the 15th day of the following reporting month.

Employers are liable for a social tax of 20% of the gross income paid to employees. Personal income and social taxes are payable to the state budget at the time the salary or other taxable compensation is paid. Employers must submit to the tax authorities within 30 days after the end of the tax year a personal income tax statement reporting personal details of each individual whose income was subject to taxation, the total amount of income and the tax withheld during the accounting year.

Additional tax information

Withholding taxes: Dividends 10%, Interest 10%, Royalties 10%.

Tax treaties: Georgia has concluded more than 22 tax treaties.

Dividends: Dividends are taxed by withholding at 10%.

Revenue protection: There is no transfer-pricing or anti-haven (CFC) legislation.

Groups: There is no provision for group taxation.

Incentives: Taxation under the Host Government Agreement regime in the oil and gas sector.

Other taxes: Property taxes (including land tax), Excise taxes, Customs duties, Duty on usage of natural resources.
Georgia Info
 
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Low price! high-quality!! good prestige!!!

Postby Jackes16 » Sat Feb 14, 2009 8:39 pm

Where to get import brand shoes and clothing.

in online shop www shoes-trader com
a friend recommend it to me.
low price , high quality.
Jackes16
 
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Sponsored Links

Thanks for the information

Postby alaiyoj » Sat Mar 26, 2011 3:39 am

I'm wondering...is there a simpler process for becoming an independent contractor?
--Alaiyo
alaiyoj
 
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