How to start a business in Georgia from the UK

Strategically located on the crossroads between Europe and Asia, UK entrepreneurs looking to start a business in Georgia can benefit from ease of access to major markets, business friendly government policies and even financial support. Think Georgia is the next stop for your UK business? This guide to what is needed to start a business in Georgia is for you.

We’ll walk through the basics of setting up a company in Georgia, and also touch on Wise Business as the perfect way to manage your business finances, across 40+ currencies with mid-market exchange rates, low fees¹, and flexible services.

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Doing business in Georgia

Georgia offers a skilled workforce, with good levels of English spoken, a strategic location on the edge of Europe with links into Asia, and a government which is looking to reduce friction for foreign investors and entrepreneurs.

Invest in Georgia² - the national agency set up to promote foreign direct investment in Georgia - focuses on sectors including professional services, hospitality, real estate, advanced manufacturing and renewable energy. There are even tax breaks for some industries and support for setting up a business in Georgia which can come with cash back and low price financing if you need it.

Georgian company register

As well as government agencies like Invest in Georgia, there are many private companies which exist to support foreigners with company registration in Georgia. Using an agent may cost more, but it can make the process hassle free, eliminating language barriers and helping you navigate the process - and letting you get on with business faster.

With or without the help of a local agent, the first thing you’ll need to do is register a business name in Georgia on the Georgia company register. You’ll be able to pick from different business entity types, as you would in the UK, to find the one that fits your specific needs.

Here’s a look at the most popular types of business entities one can choose to start a business in Georgia³:

• Individual Entrepreneur (IE)
• Micro Business Status
• IE with Small Business Status
• LLC
• Solidary Responsibility Company (SRC)
• Limited Partnership
• Joint Stock Company (JSC, Corporation)

Let’s work through the most common business types in more detail, one by one.

Individual Entrepreneur (IE)

Registering as an IE in Georgia is similar to being a sole proprietor in the UK. You’ll be able to conduct business in your own name, but your personal and business activities are considered as one in the same from a tax perspective. That means your liabilities for your business are unlimited.

Micro Business Status

If you’re just starting out in Georgia, a micro business status might be an attractive option as it is likely to limit your tax liability. This status is only available for businesses with a turnover that falls below a state-set threshold, so better suited to small companies, startups and similar entity types. Your Georgian agent can guide you if you’re thinking of this business entity type, so you know what your options might be.

IE with Small Business Status

As it sounds, the IE with small business status is a combination of the 2 entity types above. This is a good choice for solopreneurs as it limits your tax liabilities as long as your turnover remains under the government thresholds.

LLC

A limited liability company (LLC) limits the liability of the shareholders to the assets invested. In Georgia there are no minimum or maximum share capital requirements, which makes this a very accessible and attractive business entity type. It’s also the most common business type in Georgia. Shares in an LLC are transferable, so this business can be sold or passed on freely.

Solidary Responsibility Company (SRC)

An SRC functions like an LLC but has only one shareholder. That means that all the duties in terms of reporting, control and tax fall on the single shareholder - but as with an LLC, the liability of the individual is limited to the invested assets.

Limited Partnership

A limited partnership is made up of 2 or more people or entities which work together. There is at least one general partner who is required to take on full liability for the business, but other partners can have their liability limited to their share capital, according to the partnership agreement.

Joint Stock Company (JSC, Corporation)

A JSC consists of shareholders who may have ordinary or preferred shares. Liability is limited in this entity type, and the voting rights of the shareholder are dictated by the type of shares held. If a JSC is publicly floated there must be a supervisory board in place.

How to start a business in Georgia - Step-by-step

To register a business in Georgia you’ll usually go through an agent who can help you with language challenges, and advise you on the process to follow. There are many different private businesses and legal firms which have been created to support foreigners looking to invest in Georgia, and which can help you every step of the way.

The process to register your business in Georgia may vary a little depending on the entity type that suits your specific needs - but the basic steps are usually:

1. Collect the required documents based on your entity type - bearing in mind that translation or notarisation may be needed
2. Documents will be signed, legalised or certified by apostille depending on the type - your agent or lawyer will help with this
3. Your application and supporting documents are made to the public registry⁴ - the business can be registered on the same day for an extra fee

The documents needed can include:

• An application to be added to the public registry of Georgian businesses
• Your business charter, covering all important detail about the owners and shareholders
• Consent from the authorised representative if you have one
• Proof of business address
• Power of attorney to allow your agent to support the foundation of your business in Georgia

Don’t forget, you’ll also need to have an easy way to manage your money in GEL once you have a Georgian business. We’ll look a little later at how Wise Business can help, allowing you to hold and exchange GEL, GBP and 40+ other currencies all in the same place.

Setting up a business in Georgia - FAQs

Let’s walk through a few more important questions about starting a business in Georgia.

How much does it cost to register a company in Georgia?

The state registration fees to register a company in Georgia are 100 GEL, or 200 GEL if you require a same day service. However, bear in mind that in most cases there will be additional costs to consider such as agency or legal fees, translation and so on. Be sure to consider all the potential costs for extra services before you start the process to set an accurate budget.

Is Georgia a good country in which to start a business?

Georgia is a strategically located country between Asia and Europe, and actively promotes itself as a great place to do business. As a result, it’s a good choice for many - plus you can score a FDI grant that could reduce your costs by 15% when setting up a company in Georgia, or in some sectors like IT service provision, you may qualify for reduced personal taxes.

Can a foreigner start a business in Georgia?

Yes. Georgia welcomes overseas investors, and offers a suite of support services to help you start a business in Georgia. If you’re a foreigner applying to have a business added to the public registry in Georgia it’s worth knowing that you’re likely to have a couple of extra steps in terms of the paperwork. Assuming you’re using documents to support your application which originate from outside of Georgia, you’ll need to have them certified with an apostille or legalisation - build in time for this process when you plan.

Manage your Georgian Company's finances with Wise Business

Wise Business offers powerful international accounts for UK entrepreneurs looking to hold and exchange GEL alongside GBP, EUR, USD and 40+ other currencies, with the mid-market exchange rate and low fees¹.

You can open a Wise Business account online or in the Wise app - and you’ll get ways to hold and exchange dozens of major currencies, instant access to local account details for receiving GBP, EUR and more, as well as linked debit and expense cards, multi-user access, batch payments, and cloud accounting integrations. There are no ongoing fees to pay and no minimum balance requirement, making Wise Business a perfect partner, no matter what type of company you’re setting up in Georgia.

Check out how one business is making the most of Wise Business in this Open Collective case study.

Ready to learn more about how to open a Wise business account in the UK? Here’s a quick overview:

1. Download the Wise app or head to the Wise desktop site
2. Tap Register and follow the prompts to apply for a business account
3. Add your personal and contact information
4. Upload the documents needed which are detailed online and in this Wise Business bank account requirements guide
5. Pay the one time fee to register your account and get a linked payment card if you need one
6. Once your account is verified you can start transacting - your account will be live in the Wise app, your physical card will be posted to you, and you can get a digital card right away for mobile spending

Georgia is certainly open for business - and an attractive place to set up a company from the UK, with a great location, business friendly policies and lots of local help when you need it. Use his guide to start you off, and remember to check out Wise Business as a smart way to manage your money once your company is up and running.

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Sources used for this article:

Sources last checked Apr 8, 2024