Company registration in Georgia is a relatively simple process, although the same cannot be said about its management and maintenance.
In Georgia, the majority of applicants are interested in registering an LLC (Limited Liability Company), since an LLC is considered one of the safest options for start-up entrepreneurs. This is because, within an LLC, a person is not personally liable for the company’s obligations; liability is limited to the scope of the company’s authority and assets.
LLC Registration – Stages
In Georgia, LLC registration is possible both through the National Agency of Public Registry and Public Service Hall, depending on the applicant’s preference. The registration process is distinguished by its simplicity and speed — usually completed within 1–2 working days, which makes Georgia one of the most favorable countries for starting a business. According to the World Bank’s “Doing Business” ranking, Georgia consistently maintains high positions in terms of ease of starting a business.
The cost of LLC registration depends on the timeframe of the service: registration within one working day costs 200 GEL, while same-day registration costs 400 GEL. In addition, there is a fee of 7 GEL for notarization/authentication of signatures on the registration documents. If translation of documents or obtaining an English-language extract is required, an additional fee of 26 GEL applies. In cases of expedited service, registration may be completed within one working day, although this involves increased fees.
Joint Stock Company
In Georgia, registration of a Joint Stock Company (JSC) is carried out through the National Agency of Public Registry, and the process is relatively fast. A Joint Stock Company is a legal entity whose capital is divided into shares, while shareholders are liable only within the value of the property contributed by them.
For registration, the founders’ resolution or foundation agreement, the company charter, information regarding the appointment of the director, and a legal address are required. If the founder is a foreign citizen, notarized translations of the relevant documents into Georgian are necessary.
During the registration process of a JSC, it is mandatory to determine the company name and verify that the same or a substantially similar name has not already been registered. Company registration may be completed through the Public Service Hall or electronically. Standard registration is generally completed within one working day.
After registration, the company is assigned an identification code and may open a bank account, commence business activities, and, if necessary, register as a VAT payer.
The management structure of a Joint Stock Company generally includes the general meeting of shareholders, a director, and, where necessary, a supervisory board. Under Georgian legislation, a JSC may issue shares and attract investments. In certain cases, public offering of securities is subject to the regulations of the National Bank of Georgia.
Individual Entrepreneur
Individual entrepreneurship in Georgia is a simple form of business where a natural person registers as an entrepreneur and operates under their own name. Registration is carried out through the Public Registry, and the process is straightforward. An individual entrepreneur does not have the status of a legal entity, therefore they are personally liable for business obligations with their own property.
This form is popular among small businesses and freelancers because administration is simple and costs are low.
Taxation is based on the standard income tax system, while under the small business status it is possible to apply a reduced 1% tax on turnover.
Conclusion
According to available data in Georgia, LLCs and JSCs are the most commonly registered forms of companies due to their flexibility and practical advantages. Explaining these legal forms is important because it helps individuals and start-up entrepreneurs make appropriate decisions when establishing a business and use this information when necessary.
A Limited Liability Company (LLC) is a legal entity in which partners are liable for the company’s obligations only within the limits of their respective shares. In Georgia, LLCs are especially popular for small and medium-sized businesses because their management is relatively simple and the registration procedure is less complex.
A Joint Stock Company (JSC) is a legal entity whose capital is divided into shares. Shareholders are liable only within the value of the shares owned by them. A JSC is more commonly used for large-scale businesses and attracting investments, as the company is able to issue shares and raise capital on a broader scale.If necessary, Nomos Georgia is ready to provide you with all the necessary consultation and legal assistance to ensure the successful registration of your business.
