Joint Stock Company (JSC) in Georgia
JSC · Formation from $135
Last verified: June 13, 2026
Corporate Tax
15.0%
State Tax
0.0%
Formation Cost
$135
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
- Large enterprises planning to raise capital through public or private share issuance.
- Companies intending to list on the Georgian Stock Exchange or international exchanges.
- Financial institutions, insurance companies, and investment funds (often required by law to be JSCs).
- Businesses with complex ownership structures requiring multiple classes of shares and a Supervisory Board.
Who Should Avoid This?
Scenarios where another structure may be better
- Solo founders, freelancers, and digital nomads looking for a simple corporate structure.
- Small to medium-sized enterprises (SMEs) that do not need to issue shares to the public.
- Bootstrapped startups that cannot meet the 100,000 GEL minimum capital requirement.
Advantages
- +100% foreign ownership allowed with no local director or shareholder requirement.
- +Favorable tax regime (Estonian model) where retained and reinvested earnings are subject to 0% corporate tax.
- +Ability to issue different classes of shares (ordinary, preferred) to attract institutional investors and raise capital.
- +Fast and fully digital state registration process, often completed within 1-2 business days.
- +Access to special tax incentives like Free Industrial Zones (FIZ) and Virtual Zone Person (VZP) status for eligible companies.
Disadvantages
- -High minimum capital requirement of 100,000 GEL (approx. $37,000 USD) compared to an LLC which has no minimum.
- -More complex corporate governance structure requiring a Supervisory Board and General Meeting of Shareholders.
- -Mandatory annual financial audits for most JSCs, significantly increasing ongoing compliance costs.
- -Opening a corporate bank account for non-resident founders has become increasingly difficult due to strict AML/KYC rules.
Formation Steps
Draft the company Charter (Articles of Association) detailing share classes, voting rights, and capital structure.
Secure a registered legal address in Georgia (virtual office is permitted).
Notarize and apostille the founders' passports and Power of Attorney if registering remotely.
Submit the registration application and pay the state filing fee (100-200 GEL) at the National Agency of Public Registry (NAPR).
Deposit at least 25% of the minimum issued capital (25,000 GEL) into a temporary bank account.
Register the newly formed JSC with the Revenue Service of Georgia to obtain a Tax Identification Number (TIN).
Open a corporate multi-currency bank account and transfer the initial share capital.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee (NAPR) | One-time | $37 |
| Legal & professional formation fees | One-time | $1,200 |
| Registered office / Virtual address | Annual | $200 |
| Notarization & Apostille fees | One-time | $150 |
| Mandatory annual audit (estimated) | Annual | $1,500 |
| First year total | $3,087 | |
| Annual ongoing | $1,700 | |
Real-World Examples
Typical use cases for this entity type
- Bank of Georgia Group PLC: A major financial institution operating as a JSC to comply with banking regulations and facilitate public trading.
- Silknet JSC: One of Georgia's leading telecommunications companies, utilizing the JSC structure to manage large-scale infrastructure investments and institutional shareholders.
- A foreign renewable energy consortium establishing a Georgian JSC to attract institutional funding and issue preferred shares for a major hydroelectric project.
Common Mistakes
Pitfalls to avoid during setup and operations
- Choosing a JSC when an LLC (which has no minimum capital) would perfectly suit the business needs.
- Failing to deposit the required 25% of the minimum capital (25,000 GEL) within the statutory timeframe.
- Underestimating the ongoing compliance and audit costs associated with running a JSC.
- Assuming remote bank account opening will be easy without establishing local economic substance.
- Neglecting to properly structure the Charter regarding share classes and dividend distribution rules.
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
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 |
|---|---|---|---|
| 🇬🇪 Joint Stock Company (JSC)(JSC) | 15.0% | $135 | $0 |
FAQ
What is the minimum capital required for a JSC in Georgia?
Under the new Law on Entrepreneurs, a Joint Stock Company must have a minimum issued capital of 100,000 GEL (approx. $37,000 USD), with at least 25% paid up at incorporation.
Do I need to travel to Georgia to form a JSC?
No, you can register the company entirely remotely using a notarized and apostilled Power of Attorney.
How does the corporate tax system work in Georgia?
Georgia uses the Estonian tax model. Corporate income tax (15%) is only paid when profits are distributed as dividends. Retained and reinvested earnings are 100% tax-free.
Can a foreigner own 100% of a Georgian JSC?
Yes, there are no restrictions on foreign ownership. A foreigner can own 100% of the shares and act as the sole director.
Is an annual audit mandatory for a JSC?
Yes, most JSCs fall under categories that require mandatory annual financial audits by certified independent auditors.
How long does it take to register a JSC?
The state registration at NAPR takes 1-2 business days. However, drafting the complex charter and preparing apostilled documents may take a few weeks.
Are there any special tax zones in Georgia?
Yes, Georgia offers Free Industrial Zones (FIZ) and Virtual Zone Person (VZP) status, which provide significant tax exemptions for export-oriented and IT companies.
Is it easy to open a corporate bank account as a non-resident?
While legally possible, it has become challenging due to strict AML/KYC compliance. Banks require strong proof of economic substance and local ties in Georgia.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Georgia uses the Estonian tax model, meaning corporate income tax is only levied at 15% when profits are distributed as dividends or deemed distributions. Retained and reinvested earnings are entirely exempt from corporate tax.
Personal Income Tax (Top rate: 20.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 20.0% |
Georgia applies a flat 20% personal income tax rate. Residents are taxed on their worldwide income, though foreign-source income is generally exempt for individuals under the territorial tax principle.
Capital Gains Tax
20.0%
Capital gains for individuals are taxed at the standard 20% rate, with exemptions for residential property held for over two years. Corporate capital gains are taxed at 15% only upon distribution.
VAT / GST
18.0%
Registration Threshold: GEL100,000
Non-resident companies providing digital services to Georgian consumers must register and pay 18% VAT.
Withholding Tax
A standard 5% withholding tax applies to dividends, interest, and royalties paid to non-residents. Payments to offshore or blacklisted jurisdictions are subject to a punitive 15% rate.
Payroll & Social Security
Georgia has a mandatory pension contribution system where the employer, employee, and the government each contribute 2% of the gross salary.
Other Taxes
Property Tax
Property tax is levied at up to 1% of the market value of real estate, depending on the owner's income and the property type.
Import Duties
Import duties in Georgia are generally levied at rates of 0%, 5%, or 12%, depending on the classification of the imported goods.
Incentives & Support
Free Industrial Zone (FIZ)
Special economic zones offering comprehensive tax exemptions for export-oriented businesses.
0% Corporate Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.
Eligibility: Companies registered within a designated FIZ (e.g., Tbilisi, Poti, Kutaisi) producing goods or services for export.
International Company Status (ICS)
Tax incentives for IT and shipping companies operating globally from Georgia.
Reduced Corporate Tax (5%), Dividend Tax (0%), and Personal Income Tax for employees (5%).
Eligibility: IT and maritime companies with at least 2 years of experience in the sector.
Virtual Zone Person (VZP)
Tax benefits for IT companies exporting software and digital services.
0% Corporate Income Tax and 0% VAT on export revenues.
Eligibility: IT companies creating software products in Georgia and exporting them abroad.
Formation Requirements
Minimum Capital
GEL 100,000
Under the new Law on Entrepreneurs, the minimum issued capital for a Joint Stock Company (JSC) must be at least 100,000 GEL.
Local Director
Not Required
Foreigners can own 100% of the shares and act as the sole director. No local residency is required.
Registered Office
Required
Virtual office allowed. $50 - $300 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
A notarized and apostilled Power of Attorney is required if the founders are not physically present in Georgia to sign the incorporation documents.
Timeline
Standard: 1-2 business days days
Expedited: Same day (1 business day) days ($75)
Required Documents
- 1Passport copy of founders and directorsApostille needed
- 2Charter (Articles of Association)
- 3Consent of the appointed DirectorApostille needed
- 4Application for Registration
- 5Power of Attorney (if registering remotely)Apostille needed
Compliance & Reporting
Annual Filings
Annual Financial Statements (SARAS)
Penalty: Fines ranging from 500 to 5,000 GEL depending on the company category, and potential suspension of the company.
Annual Property Tax Return
Penalty: Late filing penalties and interest charges on the unpaid tax amount.
Audit Requirement
Required
Mandatory for Public Interest Entities (PIEs) and Category 1 & 2 entities based on revenue, assets, and employee count.
Accounting Standard
IFRS (Full IFRS for PIEs/Category 1; IFRS for SMEs for Category 2/3)
Tax Return Deadline
Corporate Income Tax (upon distribution) and VAT are filed monthly by the 15th of the following month.
VAT Filing Frequency
Monthly
Data Protection
Governed by the Law of Georgia on Personal Data Protection, which aligns closely with GDPR principles.
Banking & Payments
Bank of Georgia
One of the largest banks in Georgia, offering excellent digital banking and multi-currency accounts. Remote opening is possible via Power of Attorney but requires strong economic substance.
TBC Bank
A leading Georgian bank known for its robust corporate banking services. Strict KYC/AML compliance for non-residents.
Payoneer
Remote-friendlyWidely used by Georgian IT companies and freelancers to receive international payments in USD and EUR.
Wise
Remote-friendlyPopular alternative for multi-currency accounts, though availability for Georgian corporate entities may depend on the specific business activity.
Payment Gateways
Unipay, TBC Pay, Payze, 2Checkout, PayPal
Currency
GEL
Multi-Currency: Supported
Account Opening
Opening a corporate bank account in Georgia is straightforward for local residents but has become increasingly difficult for non-residents due to strict AML/KYC regulations. While remote opening via Power of Attorney is legally possible, banks now require strong proof of economic substance and local ties to approve the account.
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 a signatory to the Paris Convention and TRIPS. Intellectual property rights are protected under the National Intellectual Property Center (Sakpatenti), offering standard protections for trademarks, patents, and copyrights.
Double Tax Treaties
58 countries
Notable treaties: Germany, United Kingdom, China, United Arab Emirates, Turkey
Visa & Residency Options
Investment Residence Permit
Requires a $300,000 investment in real estate or business. Grants a 5-year residence permit that can lead to permanent residency.
Short-Term Residence Permit (Real Estate)
Available to foreigners who purchase real estate (excluding agricultural land) worth at least $150,000 (increased from $100,000 in March 2026). Grants a 1-year renewable permit.
IT Residence Permit
Introduced in late 2025, this is a 3-year residence permit specifically for IT professionals, IT entrepreneurs, and executives of international IT companies operating in Georgia.
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Changelog
Data updates and changes on this page
Verified 2026 minimum capital requirements (100,000 GEL) and state filing fees for Georgian JSCs.
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