Branch Office in Georgia
Branch · Formation from $75
Last verified: June 13, 2026
Corporate Tax
15.0%
State Tax
0.0%
Formation Cost
$75
Annual Fee
$0
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Foreign corporations wanting a direct presence in Georgia without creating a new subsidiary.
- Companies planning to operate in Georgia's Free Industrial Zones (FIZ) for export-oriented tax benefits.
- International firms executing specific, long-term government or private contracts in Georgia.
- Businesses that want to consolidate their global financial reporting under a single corporate entity.
Who Should Avoid This?
Scenarios where another structure may be better
- Founders who want to isolate their parent company from local liabilities and legal risks.
- Small startups or solo entrepreneurs (a Georgian LLC or Individual Entrepreneur is much better suited).
- Companies that cannot easily apostille or legalize their home country corporate documents.
Advantages
- +No minimum share capital required to establish a branch office.
- +Georgia's Estonian tax model means the 15% corporate tax applies only when profits are distributed.
- +100% foreign ownership is allowed with no requirement for a local partner.
- +Access to Georgia's Free Industrial Zones (FIZ) for 0% corporate and VAT taxes on export-oriented activities.
- +Fast registration process, typically completed within 1-2 business days once documents are submitted.
- +Allows the parent company to directly manage operations without forming a separate legal entity.
Disadvantages
- -The parent company bears full legal and financial liability for the branch's debts and obligations.
- -Requires appointing a local legal representative or resident director in Georgia.
- -Opening a traditional corporate bank account usually requires an in-person visit or a notarized Power of Attorney.
- -Parent company documents must be translated, notarized, and apostilled, increasing initial setup complexity and costs.
Formation Steps
Prepare and apostille the parent company's corporate documents (Articles of Association, Extract from Commercial Register).
Draft a formal resolution from the parent company's board of directors to open a branch in Georgia.
Issue a notarized and apostilled Power of Attorney if the registration will be handled remotely by an agency.
Translate all foreign corporate documents into Georgian and have them notarized locally in Georgia.
Secure a registered legal address in Georgia (a virtual office is acceptable for this purpose).
Submit the application and all translated documents to the National Agency of Public Registry (NAPR).
Register with the Revenue Service to obtain a tax identification number and apply for VAT registration if applicable.
Open a corporate bank account with a Georgian bank or an international multi-currency fintech platform.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee (NAPR) | One-time | $75 |
| Document translation & notarization | One-time | $150 |
| Registered office address | Annual | $200 |
| Local representative / Agency fee | One-time | $300 |
| First year total | $725 | |
| Annual ongoing | $200 | |
Real-World Examples
Typical use cases for this entity type
- An international engineering firm opens a branch in Tbilisi to manage a multi-year infrastructure project while keeping revenues tied to the parent company.
- A European logistics company establishes a branch in the Poti Free Industrial Zone to benefit from 0% corporate and VAT taxes on its regional transit operations.
- A foreign IT outsourcing agency sets up a branch to hire Georgian developers, utilizing the local talent pool without incorporating a separate subsidiary.
Common Mistakes
Pitfalls to avoid during setup and operations
- Assuming the branch is a separate legal entity and failing to protect the parent company from local liabilities.
- Delaying the translation and apostille process of parent company documents, which stalls registration.
- Failing to track the 100,000 GEL turnover threshold for mandatory VAT registration.
- Not appointing a reliable local representative, leading to compliance and banking delays.
- Misunderstanding the Estonian tax model and paying corporate tax on reinvested profits unnecessarily.
Other entity types
Other formation options in Georgia
Limited Liability Company (LLC)
- Tax
- 15.0%
- Formation
- $37
Individual Entrepreneur
- Tax
- 1.0%
- Formation
- $10
Virtual Zone Company
- Tax
- 0.0%
- Formation
- $40
LLC (International Company)
- Tax
- 5.0%
- Formation
- $74
Joint Stock Company (JSC)
- Tax
- 15.0%
- Formation
- $135
Joint Liability Company
- Tax
- 15.0%
- Formation
- $40
Limited Partnership
- Tax
- 15.0%
- Formation
- $38
Cooperative
- Tax
- 15.0%
- Formation
- $37
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇬🇪 Branch Office(Branch) | 15.0% | $75 | $0 |
FAQ
Is a branch office a separate legal entity in Georgia?
No, a branch is an extension of the parent company. The parent company remains fully liable for all debts and obligations incurred by the branch.
What is the corporate tax rate for a branch in Georgia?
Georgia uses the Estonian tax model. Retained and reinvested profits are tax-free. A 15% corporate tax applies only when profits are distributed to the parent company.
Do I need to visit Georgia to open a branch office?
No, you can register the branch entirely remotely by issuing a notarized and apostilled Power of Attorney to a local representative or agency.
Is a local director required for a Georgian branch?
You must appoint a legal representative who resides in Georgia to manage the branch and handle local compliance.
What is the minimum capital requirement?
There is no minimum share capital required to register a branch office in Georgia.
How long does it take to register a branch?
Once all apostilled and translated documents are submitted to the registry, the process typically takes 1 to 2 business days.
Does a branch need to register for VAT?
Yes, VAT registration (at the standard rate of 18%) is mandatory if the branch's taxable turnover exceeds 100,000 GEL in any continuous 12-month period.
Can a branch office hire local employees?
Yes, a branch can hire both local and foreign employees. It must comply with Georgian labor laws and contribute 2% to the mandatory pension scheme for eligible employees.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Georgia applies the Estonian corporate tax model. Retained and reinvested profits are exempt from corporate income tax, and a flat 15% tax is only levied when profits are distributed as dividends or deemed distributed.
Personal Income Tax (Top rate: 20.0%)
| From | To | Rate |
|---|---|---|
| $0 | $999,999,999 | 20.0% |
Georgia levies a flat 20% personal income tax on employment and other general income. The country operates on a territorial tax system, meaning foreign-sourced income of individuals is generally exempt from taxation.
Capital Gains Tax
15.0%
Capital gains for corporate entities are treated as ordinary income and are subject to the standard 15% corporate tax rate only upon distribution. Individuals may face a 5% or 20% rate depending on the asset type.
VAT / GST
18.0%
Registration Threshold: USD37,000
Non-resident providers of digital services to Georgian consumers must register and charge 18% VAT. Reverse charge mechanisms apply for B2B transactions.
Withholding Tax
Georgia has a broad network of over 50 double taxation treaties that can reduce withholding tax rates on dividends, interest, and royalties, often down to 0%.
Payroll & Social Security
Georgia does not levy traditional social security taxes. However, there is a mandatory pension contribution system where the employer, employee, and the state each contribute 2% of the gross salary.
Other Taxes
Property Tax
An annual property tax of up to 1% is levied on the average net book value of fixed assets and investment properties owned by enterprises.
Import Duties
Import duties are levied at rates of 0%, 5%, or 12% depending on the type of goods imported into Georgia.
Incentives & Support
Free Industrial Zone (FIZ) Exemption
Branches registered in a Free Industrial Zone are exempt from corporate income tax, VAT, and property tax on export-oriented activities.
0% Corporate Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.
Eligibility: Must register the branch within a designated FIZ (e.g., Poti, Kutaisi, Tbilisi) and obtain a FIZ license.
Formation Requirements
Minimum Capital
No requirement
There is no minimum capital requirement to register a branch office in Georgia.
Local Director
Required
A branch office must appoint a legal representative who resides in Georgia. A foreign national can fulfill this role if they live in the country.
Registered Office
Required
Virtual office allowed. $150 - $300 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
Must be notarized and apostilled (or legalized) in the parent company's home country.
Timeline
Standard: 1-2 business days days
Expedited: Same day days ($150)
Required Documents
- 1Decision of the parent company to open a branchApostille needed
- 2Articles of Association of the parent companyApostille needed
- 3Extract from the commercial register (parent company)Apostille needed
- 4Power of Attorney for the branch representativeApostille needed
- 5Passport copy of the branch director/representative
Compliance & Reporting
Annual Filings
Annual Financial Statements (SARAS)
Penalty: Fines ranging from 500 to 5,000 GEL depending on the entity size category.
Property Tax Return
Penalty: Late filing penalties and interest on the unpaid tax amount.
Audit Requirement
Not Required
Mandatory only for Category 1 and 2 entities (large and medium-sized) under SARAS rules.
Accounting Standard
IFRS / IFRS for SMEs
Tax Return Deadline
Monthly by the 15th of the following month (for distributed profits).
VAT Filing Frequency
Monthly (by the 15th of the following month)
Data Protection
Must comply with the Law of Georgia on Personal Data Protection. Data processing requires a legal basis and data subjects' consent.
Banking & Payments
Bank of Georgia
One of the largest traditional banks in Georgia. Requires an in-person visit or a notarized Power of Attorney to open a corporate account.
TBC Bank
Leading Georgian bank with excellent digital banking features. Account opening generally requires physical presence or a representative with PoA.
Payoneer
Remote-friendlyPopular fintech alternative for Georgian entities to receive international B2B payments in multiple currencies remotely.
Paysera
Remote-friendlyLicensed in Georgia, offering remote-friendly multi-currency accounts and seamless SEPA transfers for European clients.
Payment Gateways
PayPal, Checkout.com, Unipay, TBC Pay, Paymentwall
Currency
GEL
Multi-Currency: Supported
Account Opening
Opening a traditional bank account in Georgia usually requires an in-person visit or a notarized and apostilled Power of Attorney. However, the process is fast once documents are submitted, and multi-currency accounts are standard. Remote founders often use fintechs like Payoneer or Paysera for easier access.
Practical Information
Timezone
UTC+4
Business Language
Georgian (English and Russian widely used)
Legal System
Civil law
Ease of Doing Business
#7
IP Protection
Intellectual property is protected by Sakpatenti (National Intellectual Property Center). Georgia is a member of WIPO and a signatory to the Paris Convention and Madrid Protocol.
Double Tax Treaties
58 countries
Notable treaties: Germany, France, United Kingdom, United Arab Emirates, China, Netherlands
Visa & Residency Options
Real Estate Residence Permit
Requires a minimum real estate investment of $150,000 (increased from $100,000 as of March 1, 2026). Grants a 1-year renewable residence permit.
Investor Residence Permit
Requires a $300,000 investment in real estate or a Georgian business. Grants a 5-year residence permit, which can lead to permanent residency.
IT Residence Permit
Introduced in late 2025, this 3-year permit is available for tech professionals with at least two years of experience and an annual income exceeding $25,000.
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Changelog
Data updates and changes on this page
Verified 2026 corporate tax rates, VAT thresholds, and branch office registration fees for Georgia.
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