LLC (International Company) in Georgia
LLC · Formation from $74
Last verified: June 13, 2026
Corporate Tax
5.0%
State Tax
0.0%
Formation Cost
$74
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
- Mid-to-large IT service providers and software development agencies looking to offshore their teams.
- Tech startups with existing funding that want to optimize payroll and corporate taxes.
- Maritime and logistics companies managing international shipping operations.
- Profitable SaaS companies planning to distribute dividends to foreign shareholders.
Who Should Avoid This?
Scenarios where another structure may be better
- Solopreneurs and freelance developers (Virtual Zone or Small Business Status is better).
- E-commerce businesses and dropshippers (not eligible for IC status).
- Founders who cannot prove 2 years of prior experience in the IT or maritime sectors.
Advantages
- +5% Corporate Tax on distributed profits (0% if reinvested).
- +5% Personal Income Tax for employees (vs standard 20%).
- +0% Dividend Tax for foreign shareholders.
- +0% Property Tax on assets used for permitted activities.
- +Remote company formation and bank account opening via Power of Attorney.
- +Access to a growing tech hub with low operational costs.
Disadvantages
- -Strict eligibility: Requires at least 2 years of verifiable experience in IT or maritime sectors.
- -Economic substance requirement: Must have real operations, local employees, and an office in Georgia.
- -Complex application process requiring approval from the Ministry of Finance.
- -Not suitable for freelancers or solopreneurs without a team or substantial revenue.
- -Stricter banking compliance for non-resident founders compared to standard LLCs.
Formation Steps
Draft and notarize a Power of Attorney (PoA) if forming the company remotely.
Register the standard LLC with the National Agency of Public Registry (NAPR) in Georgia.
Obtain a legal registered address and open a corporate bank account (e.g., Bank of Georgia or TBC).
Register the LLC with the Revenue Service of Georgia to obtain a Tax ID.
Establish local economic substance by leasing an office and hiring local or relocated employees.
Prepare and submit the International Company Status application to the Ministry of Finance.
Await the official decree granting the status and update payroll/tax configurations to the 5% rates.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee (LLC Registration) | One-time | $110 |
| Registered Agent & Legal Address | Annual | $200 |
| Legal & Advisory for IC Status Application | One-time | $2,000 |
| Corporate Bank Account Opening (Remote via PoA) | One-time | $500 |
| Annual Registration Fee | Annual | $60 |
| Accounting & Tax Compliance | Annual | $1,800 |
| Physical Office Lease (Minimum for substance) | Annual | $3,600 |
| First year total | $8,270 | |
| Annual ongoing | $5,660 | |
Real-World Examples
Typical use cases for this entity type
- A UK-based software development agency sets up a subsidiary in Tbilisi, relocating 10 developers. They pay 5% payroll tax and 5% corporate tax on profits distributed back to the UK parent.
- A maritime logistics firm manages its Black Sea operations from Georgia, benefiting from 0% property tax on its equipment and 0% dividend tax.
- A funded European SaaS startup establishes its R&D center in Georgia, hiring local tech talent and utilizing the 5% flat tax regime to extend its runway.
Common Mistakes
Pitfalls to avoid during setup and operations
- Applying for IC status without establishing genuine local economic substance (e.g., no real office or employees).
- Confusing International Company Status with Virtual Zone Status and applying for the wrong one.
- Failing to provide adequate proof of the mandatory 2 years of industry experience.
- Assuming the 5% corporate tax applies to all income (it only applies to permitted IT/maritime activities).
- Missing the monthly tax filing deadlines, which can lead to penalties and loss of status.
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
Joint Stock Company (JSC)
- Tax
- 15.0%
- Formation
- $135
Branch Office
- Tax
- 15.0%
- Formation
- $75
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 |
|---|---|---|---|
| 🇬🇪 LLC (International Company)(LLC) | 5.0% | $74 | $0 |
FAQ
What is the difference between Virtual Zone and International Company status?
Virtual Zone offers 0% corporate tax but has a 20% dividend tax and 20% payroll tax. International Company status offers 5% corporate tax, 0% dividend tax, and 5% payroll tax, but requires physical economic substance in Georgia.
Do I need to live in Georgia to get this status?
No, 100% foreign ownership is allowed and you do not need to be a resident. However, the company itself must have local substance, such as an office and employees in Georgia.
What counts as '2 years of experience'?
The founder, the parent company, or the Georgian entity itself must prove at least 2 years of prior experience in the permitted IT or maritime activities before applying.
Can I hire foreign employees under the 5% tax rate?
Yes, foreign employees working for the Georgian International Company also benefit from the reduced 5% personal income tax rate.
How long does it take to get the International Company status?
While standard LLC formation takes 1-3 days, the International Company status approval by the Ministry of Finance typically takes 1 to 3 months.
Are there minimum capital requirements?
No, Georgia does not require any minimum paid-in capital to register an LLC.
What are the ongoing compliance requirements?
You must file monthly tax returns for payroll and VAT, and submit annual financial statements to the Service for Accounting, Reporting and Auditing Supervision (SARAS).
Can I use a virtual office for the substance requirement?
No. While a virtual office is sufficient for standard LLC registration, International Company status requires a physical office lease to prove economic substance.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Under the Estonian tax model, the reduced 5% corporate tax applies only when profits are distributed as dividends. Retained and reinvested earnings are subject to a 0% tax rate.
Personal Income Tax (Top rate: 5.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 5.0% |
Employees of an International Company benefit from a significantly reduced flat personal income tax rate of 5%, compared to the standard 20% rate in Georgia.
Capital Gains Tax
5.0%
Capital gains are treated as ordinary corporate income. Under the Estonian tax model, they are only taxed at the 5% rate if the gains are distributed to shareholders.
VAT / GST
18.0%
Registration Threshold: GEL100,000
Non-resident companies providing digital services to Georgian consumers (B2C) must register and charge 18% VAT.
Withholding Tax
Dividends distributed by an International Company are fully exempt from withholding tax (0%). Standard 5% rates apply to interest and royalties unless reduced by a double taxation treaty.
Payroll & Social Security
Mandatory pension contributions (2% employer, 2% employee) apply only to Georgian citizens and permanent residents. Foreign employees without permanent residency are exempt.
Other Taxes
Property Tax
International Companies are exempt from property tax (normally up to 1%) on assets used for their permitted activities, excluding land.
Import Tax / Customs Duty
Customs duties range from 0% to 12% depending on the type of imported goods, though many tech and maritime assets may qualify for exemptions.
Incentives & Support
International Company Status
A special tax regime designed for IT and maritime companies, offering significantly reduced tax rates to encourage foreign investment and local substance.
5% Corporate Income Tax, 5% Personal Income Tax for employees, 0% Dividend Tax, and exemption from Property Tax.
Eligibility: Must be a Georgian enterprise with at least 2 years of experience in permitted IT or maritime activities (or a subsidiary of such a foreign company), and maintain economic substance in Georgia.
Free Industrial Zone (FIZ)
Designated zones in Georgia offering tax exemptions for companies engaged in manufacturing, trading, and export activities.
0% Corporate Income Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.
Eligibility: Must register within a Free Industrial Zone and conduct permitted activities. Services provided to Georgian residents are generally restricted.
Formation Requirements
Minimum Capital
No requirement
Georgia does not require any minimum share capital to register an LLC. You can legally register with zero paid-in capital.
Local Director
Not Required
100% foreign ownership and foreign directors are permitted. No local resident director is required.
Registered Office
Required
Virtual office allowed. $100 - $300 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
A notarized and apostilled (or legalized) Power of Attorney is required if the founder is not physically present in Georgia.
Timeline
Standard: 1-3 business days days
Expedited: Same day days ($40)
Required Documents
- 1Passport copy of the founder(s) and director(s)
- 2Power of Attorney (if forming remotely)Apostille needed
- 3Articles of Association / Charter
- 4Consent of the Director to act
- 5Proof of Registered Address (Consent of property owner)
Compliance & Reporting
Annual Filings
Annual Financial Statements (SARAS)
Penalty: Fines ranging from 500 to 10,000 GEL depending on the enterprise category, and public listing as a non-compliant entity.
Annual Corporate Tax Return
Penalty: Late filing fine of 5% of the tax per month (capped at 30%), plus 0.05% daily interest on unpaid tax.
Audit Requirement
Not Required
Mandatory for Category 1 & 2 entities (e.g., revenue > 20 million GEL, assets > 10 million GEL, or > 50 employees) and Public Interest Entities.
Accounting Standard
IFRS for SMEs (or full IFRS for large entities, simplified standards for micro/small entities)
Tax Return Deadline
Monthly by the 15th of the following month for Corporate Income Tax (on distributed profits), Personal Income Tax, and VAT.
VAT Filing Frequency
Monthly
Data Protection
Must comply with the Law of Georgia on Personal Data Protection (updated in 2024), which aligns closely with European GDPR principles, requiring consent for data processing and cross-border transfers.
Banking & Payments
Bank of Georgia
Remote-friendlyThe largest bank in Georgia, offering excellent corporate banking, multi-currency accounts, and remote opening via Power of Attorney.
TBC Bank
Remote-friendlyA leading tech-friendly bank with robust digital services, e-commerce gateways, and remote account opening options.
Paysera Georgia
Remote-friendlyA fully licensed digital bank in Georgia offering fast SEPA transfers, multi-currency accounts, and remote onboarding.
Payoneer
Remote-friendlyWidely used by Georgian IT and international companies to receive USD and EUR payments globally.
Payment Gateways
2Checkout, Paymentwall, UniPAY, TBC E-commerce
Currency
GEL
Multi-Currency: Supported
Account Opening
Opening a business bank account in Georgia is relatively straightforward and can often be done remotely via a Power of Attorney. Traditional banks like Bank of Georgia and TBC Bank are highly recommended, though compliance checks have become stricter for non-resident founders.
Practical Information
Timezone
UTC+4
Business Language
Georgian, English
Legal System
Civil law
Ease of Doing Business
#7
IP Protection
Georgia is a member of WIPO and party to the Paris Convention and Madrid Protocol. The National Intellectual Property Center (Sakpatenti) handles registrations, offering standard protections aligned with European norms.
Double Tax Treaties
58 countries
Notable treaties: United Kingdom, Germany, United Arab Emirates, Turkey, Singapore
Visa & Residency Options
Real Estate Investor Visa
Requires a minimum real estate investment of $150,000 (increased from $100,000 in March 2026) for a 1-year renewable temporary residence permit.
Investor Residence Permit
Requires a $300,000 investment in the Georgian economy (business or real estate) for a 5-year permit, leading to permanent residency.
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Changelog
Data updates and changes on this page
Verified 2026 tax rates, state filing fees ($110), and annual registration fees ($60) for Georgia International Company LLCs.
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