Limited Partnership in Georgia
LP · Formation from $38
Last verified: June 13, 2026
Corporate Tax
15.0%
State Tax
0.0%
Formation Cost
$38
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
- Project financing ventures where passive investors provide capital and one party manages the operations.
- Real estate investment groups pooling funds for property development in Georgia.
- Family offices or joint ventures wanting a clear legal distinction between managing partners and silent investors.
- Foreign entrepreneurs seeking to leverage Georgia's 0% reinvested profit tax while raising capital from third parties.
Who Should Avoid This?
Scenarios where another structure may be better
- Solo founders or standard digital nomads (a Georgian LLC or Individual Entrepreneur status is much better suited).
- High-growth tech startups planning to raise venture capital (investors strongly prefer LLCs or Joint Stock Companies).
- Founders who want limited liability for all managing members (general partners in an LP have unlimited liability).
Advantages
- +0% corporate tax on reinvested profits (Estonian model).
- +Fast and straightforward registration process (1-2 business days).
- +Allows passive investors (limited partners) to limit their liability to their capital contribution.
- +No minimum share capital requirement.
- +Can be registered 100% remotely via Power of Attorney.
- +Favorable double taxation treaty network (58+ countries).
Disadvantages
- -General partners bear unlimited personal liability for the partnership's debts.
- -Limited partners are legally prohibited from participating in the daily management of the business.
- -Less commonly used and understood than the standard Georgian LLC, which may complicate some B2B transactions.
- -Opening a corporate bank account for a partnership with foreign partners can trigger enhanced KYC/AML scrutiny.
Formation Steps
Draft and notarize a Power of Attorney (PoA) in your home country if registering remotely.
Apostille or legalize the PoA and passport copies of all partners.
Draft the Partnership Agreement (Charter) defining general and limited partners, capital contributions, and profit distribution.
Secure a legal registered address in Georgia (often provided by a local agency or virtual office).
Submit the application and translated documents to the National Agency of Public Registry (NAPR) in Georgia.
Pay the state registration fee (standard or expedited processing).
Receive the electronic Certificate of Registration and extract from the registry.
Register the partnership with the Revenue Service of Georgia to obtain a tax identification number and access the tax portal.
Apply for a corporate bank account at a Georgian bank (e.g., Bank of Georgia, TBC) or a digital fintech platform.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee | One-time | $38 |
| Registered legal address (Virtual Office) | Annual | $200 |
| Document translation and notary fees | One-time | $150 |
| Professional agency / legal fees | One-time | $500 |
| Accounting and tax compliance | Annual | $1,200 |
| First year total | $2,088 | |
| Annual ongoing | $1,400 | |
Real-World Examples
Typical use cases for this entity type
- A European real estate developer acts as the general partner to manage a new hotel project in Batumi, while several foreign investors act as limited partners, providing capital with limited risk.
- An international trading firm sets up a Georgian LP to operate in a Free Industrial Zone (FIZ), utilizing passive capital from silent partners to fund inventory purchases.
- A joint venture between a local Georgian logistics expert (general partner) and a foreign investment fund (limited partner) to build a regional distribution hub.
Common Mistakes
Pitfalls to avoid during setup and operations
- Assuming limited partners can help manage the business (doing so can strip them of their limited liability protection).
- Failing to properly apostille or legalize the Power of Attorney and passport copies, causing registration delays.
- Not clearly defining the profit distribution and exit terms in the Partnership Agreement.
- Expecting remote bank account opening to be as fast as company registration (banks require extensive KYC for partnerships).
- Registering an LP when a standard LLC would have provided limited liability for all members with less complexity.
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
Branch Office
- Tax
- 15.0%
- Formation
- $75
Joint Liability Company
- Tax
- 15.0%
- Formation
- $40
Cooperative
- Tax
- 15.0%
- Formation
- $37
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇬🇪 Limited Partnership(LP) | 15.0% | $38 | $0 |
FAQ
What is the difference between a general and limited partner in Georgia?
A general partner manages the business and has unlimited personal liability. A limited partner only contributes capital, has limited liability, and cannot manage the business.
Do I need to visit Georgia to form a Limited Partnership?
No, you can form the LP entirely remotely by issuing a notarized and apostilled Power of Attorney to a local representative.
How are profits taxed in a Georgian LP?
Georgia uses the Estonian tax model. Profits retained and reinvested in the business are taxed at 0%. A 15% corporate tax is only applied when profits are distributed to partners.
Is there a minimum capital requirement for a Georgian LP?
No, Georgia does not impose any statutory minimum capital requirement for forming a Limited Partnership.
Can a foreign company be a partner in a Georgian LP?
Yes, both foreign individuals and foreign corporate entities can act as general or limited partners.
How long does it take to register the partnership?
Once all properly apostilled documents are received in Georgia, the actual registration at the Public Registry takes 1 to 2 business days.
Do I need a local Georgian director?
No, there is no requirement for a local resident director. Foreign general partners can manage the LP directly.
Is it easy to open a bank account for a Georgian LP?
While registration is fast, Georgian banks have strict KYC rules. Opening an account usually requires the general partner to visit the bank in person, though some agencies can assist remotely.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Georgia uses an Estonian-style corporate tax model where retained and reinvested earnings are subject to 0% tax. The 15% corporate income tax is only triggered upon the distribution of profits (dividends) or deemed distributions (e.g., non-business expenses).
Personal Income Tax (Top rate: 20.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 20.0% |
Georgia applies a flat personal income tax rate of 20% on worldwide income for residents, and on Georgian-sourced income for non-residents. A special 1% turnover tax regime is available for registered Small Businesses with an annual turnover of up to 500,000 GEL.
Capital Gains Tax
20.0%
For individuals, capital gains are generally taxed at the flat 20% personal income tax rate, with exemptions for residential property held for over 2 years. For companies, capital gains are taxed at 15% only upon distribution under the Estonian model.
VAT / GST
18.0%
Registration Threshold: GEL100,000
Non-resident providers of digital services to Georgian consumers (B2C) must register and charge 18% VAT. B2B services are generally subject to the reverse charge mechanism.
Withholding Tax
A standard 5% withholding tax applies to dividends, interest, and royalties paid to non-residents, which may be reduced under Georgia's extensive network of double tax treaties. Payments to jurisdictions deemed 'tax havens' are subject to a 15% withholding tax.
Payroll & Social Security
Georgia's mandatory pension scheme requires a 2% contribution from the employer, 2% from the employee, and an additional 1-2% from the government. This applies to Georgian citizens and permanent residents.
Other Taxes
Property Tax
An annual property tax of up to 1% applies to the average net book value of fixed assets and investment properties owned by enterprises.
Import Duty
Import duties in Georgia are levied at rates of 0%, 5%, or 12% depending on the type of goods imported, with many goods being exempt.
Incentives & Support
Virtual Zone Person (VZP)
Tax exemption for IT companies exporting software and services outside of Georgia.
0% Corporate Income Tax and 0% VAT on export revenues.
Eligibility: Must be an IT company providing services exclusively to foreign clients.
International Company Status (ICS)
Special tax regime for IT and shipping companies with substantial substance in Georgia.
Reduced Corporate Tax (5%), Personal Income Tax (5%), and 0% dividend tax.
Eligibility: Must operate in IT or shipping sectors and have at least 2 years of relevant experience, with local employees.
Free Industrial Zone (FIZ)
Designated zones for manufacturing, trading, and export-oriented businesses.
0% Corporate Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.
Eligibility: Must register within a designated FIZ (e.g., Tbilisi, Poti, Kutaisi) and primarily export goods.
Formation Requirements
Minimum Capital
No requirement
Georgia does not require any minimum capital to form a Limited Partnership.
Local Director
Not Required
Foreign citizens can act as general partners and manage the LP without needing a local resident director.
Registered Office
Required
Virtual office allowed. $100 - $300 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
Must be notarized and apostilled (or legalized) in the founder's home country if forming the company remotely.
Timeline
Standard: 1-2 business days days
Expedited: Same day days ($158)
Required Documents
- 1Passport copy of partnersApostille needed
- 2Power of Attorney (if remote)Apostille needed
- 3Partnership Agreement / Charter
- 4Consent of the property owner for legal address
- 5Application form for the Public Registry
Compliance & Reporting
Annual Filings
Annual Financial Statements (SARAS)
Penalty: Fines starting from 500 GEL depending on the entity size, and potential suspension of operations.
Annual 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 (e.g., revenues > 10 million GEL or assets > 10 million GEL).
Accounting Standard
IFRS for SMEs or National Simplified Standards (based on entity size)
Tax Return Deadline
15th of each month for Corporate Income Tax (distributed profits) and Payroll taxes.
VAT Filing Frequency
Monthly (by the 15th of the following month)
Data Protection
Regulated by the Law of Georgia on Personal Data Protection, which imposes GDPR-like requirements on data processing and cross-border transfers.
Banking & Payments
Bank of Georgia
One of the largest banks in Georgia, offering excellent digital banking and multi-currency accounts. An in-person visit is usually required for corporate accounts.
TBC Bank
A leading commercial bank with strong corporate services and modern mobile banking. Requires physical presence for account opening.
Liberty Bank
A major local bank with a wide branch network, suitable for local operations and standard business banking.
Paysera
Remote-friendlyA European fintech with a licensed branch in Georgia, offering remote-friendly multi-currency accounts and SEPA transfers.
Payment Gateways
PayPal, 2Checkout, Payze, Unipay
Currency
GEL
Multi-Currency: Supported
Account Opening
Opening a business bank account in Georgia is relatively straightforward for non-residents, though compliance (KYC/AML) has tightened in recent years. Major banks like Bank of Georgia and TBC Bank generally require an in-person visit by the founder, but remote opening via Power of Attorney is possible with some institutions.
Practical Information
Timezone
UTC+4
Business Language
Georgian, English, Russian
Legal System
Civil law
Ease of Doing Business
#7
IP Protection
Intellectual property is protected by the National Intellectual Property Center of Georgia (Sakpatenti). Georgia is a member of WIPO and a signatory to the Paris Convention and Madrid Protocol.
Double Tax Treaties
58 countries
Notable treaties: United Kingdom, Germany, Turkey, China, United Arab Emirates
Visa & Residency Options
1-Year Visa-Free Entry
Citizens of over 95 countries can enter, live, and work in Georgia visa-free for up to 365 days, making it highly attractive for digital nomads and founders.
Investment Residence Permit
Available to foreigners who invest at least $300,000 USD in the Georgian economy, granting a 5-year residence permit.
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Changelog
Data updates and changes on this page
Verified 2026 formation costs, tax rates, and remote registration procedures for Georgia Limited Partnerships.
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