Limited Liability Company (LLC) in Georgia
LLC · Formation from $37
Last verified: June 13, 2026
Corporate Tax
15.0%
State Tax
0.0%
Formation Cost
$37
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
- IT companies, software developers, and tech startups exporting services globally.
- Digital nomads and freelancers looking for a low-tax base (1% Small Business Status for individuals, or LLC for larger operations).
- E-commerce and trading companies operating internationally that can leverage Free Industrial Zones.
- Founders seeking the 'Estonian tax model' (0% tax on reinvested profits) outside the European Union.
Who Should Avoid This?
Scenarios where another structure may be better
- Founders who strictly require native Stripe or PayPal integration for their business model.
- Businesses targeting local Georgian consumers, which are subject to standard 18% VAT and local competition.
- Those looking for a completely anonymous offshore shell company, as Georgia maintains public corporate registries.
Advantages
- +0% corporate tax on reinvested profits (Estonian tax model).
- +Fast and affordable formation ($110 state fee, 1-2 days processing time).
- +100% foreign ownership allowed with no local director or resident partner requirement.
- +Special tax zones (Virtual Zone, International Company Status) offering 0-5% tax rates for IT and export companies.
- +No minimum share capital requirement (can be formed with 0 GEL).
- +Territorial tax system for individuals and a 1% micro-business tax option for solo founders.
Disadvantages
- -Remote banking can be challenging; major local banks (TBC, Bank of Georgia) strongly prefer in-person visits.
- -Georgian language is required for official documents, necessitating certified translations.
- -Stricter compliance and tax enforcement starting in 2026 for foreign-owned entities.
- -Not a traditional zero-tax offshore haven; requires proper accounting and monthly tax filings for VAT and payroll.
- -PayPal does not support receiving funds for Georgian businesses (only sending).
Formation Steps
Choose a unique company name and verify its availability in the Georgian Public Registry.
Draft the bilingual Articles of Organization and the Director's Consent form.
Obtain a legal registered address in Georgia (a virtual office is acceptable).
Notarize and apostille passport copies and a Power of Attorney if forming the company remotely.
Submit the application to the Public Service Hall (or via the eCorp portal) and pay the $110 state filing fee.
Receive the Extract from the Entrepreneurial Register (Certificate of Incorporation) and your 9-digit Tax ID.
Open a corporate bank account (in-person at TBC/Bank of Georgia or remotely via Payoneer/Wise).
Register on the Revenue Service portal (RS.ge) and apply for special tax statuses (e.g., Virtual Zone) if applicable.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee | One-time | $110 |
| Remote formation service (PoA, translation, filing) | One-time | $400 |
| Registered agent / Legal address | Annual | $150 |
| Annual state registration fee | Annual | $60 |
| First year total | $720 | |
| Annual ongoing | $210 | |
Real-World Examples
Typical use cases for this entity type
- A European software development agency sets up a Georgia LLC, obtains Virtual Zone Status, and pays 0% corporate tax on its global client revenue.
- A digital nomad registers as an Individual Entrepreneur in Georgia to pay 1% tax, but later upgrades to an LLC to hire employees and scale globally.
- An international trading firm uses a Free Industrial Zone (FIZ) LLC in Georgia to import and export goods without paying VAT or customs duties.
Common Mistakes
Pitfalls to avoid during setup and operations
- Assuming the 1% Small Business tax applies to LLCs (it only applies to Individual Entrepreneurs).
- Failing to file the $60 Annual Registration between January 1 and April 1, leading to administrative dissolution.
- Trying to open a local bank account remotely without a strong business case or proper Power of Attorney.
- Neglecting monthly tax declarations on the RS.ge portal even if the company's revenue is zero.
- Distributing profits as 'loans' or 'business expenses' to avoid the 15% dividend tax, which triggers deemed distribution penalties.
Other entity types
Other formation options in Georgia
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
Limited Partnership
- Tax
- 15.0%
- Formation
- $38
Cooperative
- Tax
- 15.0%
- Formation
- $37
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇬🇪 Limited Liability Company (LLC)(LLC) | 15.0% | $37 | $0 |
FAQ
Can a foreigner own 100% of a Georgia LLC?
Yes, foreigners can own 100% of the shares and act as the sole director. There is no requirement for a local partner or resident director.
Do I need to visit Georgia to open the LLC?
No, you can form the LLC entirely remotely using a notarized and apostilled Power of Attorney. However, opening a local bank account is much easier if you visit in person.
What is the corporate tax rate in Georgia?
Georgia uses the Estonian tax model. The corporate tax rate is 0% on retained and reinvested profits. A 15% tax is only applied when profits are distributed as dividends.
How much does it cost to maintain the LLC annually?
The mandatory state annual registration fee is $60, due between January 1 and April 1. You will also need to pay for your registered address and accounting services.
Does Georgia require annual financial audits?
No, small and medium-sized companies (Category 3 and 4) are exempt from mandatory financial audits, though annual financial statements must still be filed.
Can I use Stripe with a Georgia LLC?
Stripe is not natively supported for companies registered in Georgia. Founders typically use alternatives like 2Checkout, Payoneer, or local bank e-commerce gateways.
What is the Virtual Zone Status?
It is a special tax regime for IT companies that develop software in Georgia and export it. It grants a 0% corporate income tax and 0% VAT on foreign revenue.
Is there a minimum share capital requirement?
No, there is no minimum capital requirement to form an LLC in Georgia. You can legally register the company with 0 GEL.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Georgia operates under the Estonian tax model, meaning retained and reinvested profits are subject to 0% corporate income tax. The 15% rate is only triggered upon the distribution of profits (dividends) or deemed distributions such as non-business expenses.
Personal Income Tax (Top rate: 20.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 20.0% |
Georgia applies a flat 20% personal income tax. However, it operates a territorial tax system where foreign-sourced income is generally exempt for tax residents. Small businesses with up to 500,000 GEL turnover can qualify for a 1% flat turnover tax.
Capital Gains Tax
15.0%
Corporate capital gains are not taxed upon realization; they are only taxed at 15% when distributed as dividends. For individuals, capital gains are generally taxed at 20%, with a reduced 5% rate for real estate and exemptions for assets held over 2 years.
VAT / GST
18.0%
Registration Threshold: GEL100,000
Non-resident companies providing digital services to Georgian consumers (B2C) must register and charge 18% VAT. B2B transactions are generally handled via the reverse charge mechanism.
Withholding Tax
Georgia has over 55 double taxation treaties in force, which can reduce withholding tax rates on dividends, interest, and royalties to as low as 0% depending on the jurisdiction. Payments to offshore havens face a 15% rate.
Payroll & Social Security
Georgia mandates a pension contribution scheme where the employer contributes 2% of the gross salary, the employee contributes 2%, and the state adds an additional contribution. Personal income tax of 20% is also withheld by the employer.
Other Taxes
Property Tax
Local property tax ranges from 0.05% to 1% of the market value of real estate, depending on the family's annual worldwide income.
Import Duties
Import taxes are levied at rates of 0%, 5%, or 12% depending on the type of goods imported into Georgia.
Incentives & Support
Virtual Zone Person (VZP)
A special tax status for IT companies that produce software in Georgia and export it abroad.
0% Corporate Income Tax and 0% VAT on export revenue. Only a 5% dividend tax applies upon distribution.
Eligibility: Must develop IT products/software within Georgia and generate revenue exclusively from foreign clients.
International Company Status (ICS)
A preferential tax regime designed for IT and maritime companies with substantial local presence.
5% Corporate Income Tax, 5% Personal Income Tax for employees, and 0% Dividend Tax.
Eligibility: Must have at least 2 years of experience in the sector and maintain real economic substance (employees, office) in Georgia.
Free Industrial Zone (FIZ)
Designated economic zones (e.g., Tbilisi, Poti, Kutaisi) offering tax exemptions for export-oriented manufacturing, trading, and services.
0% Corporate Income Tax, 0% VAT, 0% Property Tax, and 0% Import/Export duties.
Eligibility: Must register the LLC within a FIZ and conduct business activities outside of regular Georgian territory.
Formation Requirements
Minimum Capital
No requirement
There is no minimum capital requirement to form an LLC in Georgia. You can register a company with 0 GEL.
Local Director
Not Required
Foreigners can own 100% of the company and act as the sole director. No local resident director or partner is required.
Registered Office
Required
Virtual office allowed. $100 - $300 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
A notarized and apostilled Power of Attorney is mandatory if you are forming the company remotely without visiting Georgia.
Timeline
Standard: 1-2 business days days
Expedited: Same day days ($80)
Required Documents
- 1Passport copy of shareholders and directorsApostille needed
- 2Power of Attorney (if registering remotely)Apostille needed
- 3Articles of Incorporation / Charter
- 4Consent of the Director
- 5Consent of the property owner for legal address
Compliance & Reporting
Annual Filings
Annual Financial Statements (SARAS)
Penalty: Fines ranging from 500 to 5,000 GEL depending on the company's size category, and potential suspension.
Annual Property Tax Return
Penalty: Daily interest accrues on unpaid amounts, plus automatic administrative fines.
Audit Requirement
Not Required
Category 3 and 4 companies (assets < 10M GEL, revenue < 20M GEL, < 50 employees) are exempt from mandatory financial audits.
Accounting Standard
IFRS or IFRS for SMEs
Tax Return Deadline
Monthly by the 15th of the following month for Corporate Income Tax (on distributed profits), VAT, and Payroll taxes.
VAT Filing Frequency
Monthly
Data Protection
Georgia's Law on Personal Data Protection aligns closely with GDPR, requiring explicit consent for data processing, strict cross-border transfer rules, and appointing a Data Protection Officer in certain cases.
Banking & Payments
Bank of Georgia
One of the largest traditional banks in Georgia. Offers excellent digital banking, multi-currency accounts, and local e-commerce acquiring. In-person visit highly recommended.
TBC Bank
A leading Georgian bank known for its strong business banking features, API integrations, and modern mobile app. Requires an in-person visit for smooth account opening.
Payoneer
Remote-friendlyWidely used by Georgian IT companies and freelancers to receive USD/EUR payments from international clients. Fully remote setup.
Wise Business
Remote-friendlyGreat for multi-currency holding and international transfers. Georgian LLCs can open accounts, though availability of local GEL details may vary.
Payment Gateways
2Checkout, Payoneer, Unipay, TBC Pay, Bank of Georgia E-commerce
Currency
GEL
Multi-Currency: Supported
Account Opening
Opening a corporate bank account in person is extremely fast, often taking just 1-2 days at major banks like TBC or Bank of Georgia. Remote opening via Power of Attorney is possible but faces stricter KYC/AML compliance checks and may take several weeks.
Practical Information
Timezone
GET (UTC+4)
Business Language
Georgian, English, Russian
Legal System
Civil law
Ease of Doing Business
#7
IP Protection
Georgia is a member of WIPO and a signatory to the Paris and Berne Conventions. The National Intellectual Property Center (Sakpatenti) handles trademarks and patents with a streamlined digital registration process.
Double Tax Treaties
58 countries
Notable treaties: United Kingdom, Germany, France, United Arab Emirates, Turkey, Estonia
Visa & Residency Options
1-Year Visa-Free Regime
Citizens of over 95 countries can enter, live, and work in Georgia visa-free for up to 365 days. You can register a business and operate legally without a formal residence permit.
Entrepreneur / Work Residence Permit
Available to foreign business owners. Requires the company to have an annual turnover of at least 50,000 GEL per foreign employee or director to qualify.
Investment Residence Permit
Granted to foreigners who invest at least $300,000 USD in the Georgian economy (e.g., real estate or business). It provides a 5-year residency, leading to permanent residency.
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Changelog
Data updates and changes on this page
Verified 2026 state filing fees ($110) and annual registration fees ($60). Updated tax compliance details and remote banking procedures.
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