How To Successfully Relocate Your Business To Georgia
- Mary Giunashvili
- Mar 7
- 9 min read
Table of Content
Why is Georgia so Attractive for Investors?
Imagine a location where your business can flourish with minimal red tape, low taxes, and a strategic geographical position connecting Europe and Asia. Welcome to Georgia – a rapidly growing destination for business owners seeking a tax-friendly environment and streamlined procedures for Georgia business formation. In this guide, we will walk you through the key steps in relocating your business to Georgia, focusing on Georgia visa requirements, tax residency in Georgia, and the many advantages of Georgia business tax policies.
Whether you're looking to establish an LLC, take advantage of tax-free Georgia zones, or tap into the benefits of a Georgia corporate tax system, relocating to Georgia could be the business move that opens up new opportunities.
Why Choose Georgia for Business Relocation?
Georgia offers a range of benefits that make it an attractive choice for relocating a business, especially for those seeking to lower operational costs and enjoy a simplified tax structure.
Business-Friendly Tax Environment
One of the most significant advantages of investing in Georgia is its tax residency Georgia benefits.
Georgia has one of the lowest Georgia corporate tax rates in the region, which is set at just 15%.
Small enterprises operating in Georgia benefit from a highly competitive tax environment since they are entitled to a 1% maximum tax rate for small and micro-businesses. The single tax rate in Georgia simplifies the tax system and reduces regulatory complexity for business owners who want to concentrate their efforts on expanding their operations.
Moreover, specific tax-free zones in Georgia provide businesses operating within them with further tax exemptions. The government has introduced these incentives to lure investors by creating untaxed areas that help companies grow through reduced taxes compared to many other nations.
Strategic Location and Economic Growth
Georgia's geography perfectly places it between Europe and Asia, making it an essential trading center linking the two continents’ countries. Its strategic midpoint allows companies to reach markets both in Europe and Asia, making it a perfect center for businesses seeking regional expansion. Through its double tax treaties, Georgia defends its developing economy by offering international business owners proactive taxation standards that eliminate duplicate tax liabilities and make the country highly attractive to global investors.
What Does Business Relocation Mean?
Relocating your business refers to moving your company's operations, assets, and employees to different locations. Depending on the company's goals, business relocation can be complete or partial. A full relocation involves moving all functions, including headquarters, while a partial relocation involves establishing a branch or representative office in Georgia without moving your primary office.
For online businesses, relocation to Georgia can often be simplified. Instead of having to move physically to the country, you can establish tax residency in Georgia by meeting certain criteria. Digital entrepreneurs who establish their operations in Georgia can benefit from Georgia business tax policies, like a low Georgian corporate tax, through this system without needing to relocate their business base.
Steps to Relocate Your Business to Georgia
The business relocation process in Georgia has become simple due to the country's innovative systems for business formation, visa applications, and tax registration. Follow this step-by-step guide to begin your business relocation process:
1. Georgia Business Formation
Starting the company relocation process requires forming a Georgia-based business. The country of Georgia provides different business entity options for companies to select from
LLC (Limited Liability Company): This is a perfect business structure for small to medium-sized companies. It offers flexibility and protects owners from financial loss through limited liability.
Joint Stock Company (JSC): Serves companies requiring capital expansion through share distribution.
Representative Office: Small foreign companies that intend to research the Georgian market should consider establishing a Representative Office for market study purposes without directly engaging in commercial activities.
Your business setup requires registration at the National Agency of Public Registry. When launching your business, you must provide the essential documents, including business name reservation, articles of incorporation, and shareholder identification. The rapid business startup process in Georgia establishes the country as an efficient choice for business registration.
Complying with local tax regulations requires you to obtain a Georgian tax ID. This number is needed to verify payment details and benefits access, as well as for basic taxation requirements and legal obligations.
2. Visa and Residency Requirements
After your business is established, you should pursue the appropriate Georgia visa allocation process. Your choice of visa to enter the country depends on your current standing, either as a business owner or resident.
Georgia e-visa: Short-term entrepreneurs should get their Georgia e-visa through an online application process. The Georgia e-visa provides people who want to study business prospects in the country before deciding on long-term commitments with a practical entry solution. Applications for Georgia e-visa online include an essential documentation requirement alongside an affordable cost structure.
Georgia investment visa: Business investors who contribute specified capital to the Georgian economy will receive an investment visa. This visa provides permanent residency benefits, after which you can apply for citizenship status.
Business visas and work permits: To extend your residence and employment opportunities in Georgia, you need to acquire business visas and work permits. The documents required to obtain a visa depend on your business characteristics and the number of employees you wish to hire.
Cost of a Georgia visa - Visa costs in Georgia vary between $20 and $100 according to visa classification. Applicants can locate their visa application forms on the Georgian government website. Check Georgia visa fee information beforehand since you need to understand every expense related to the application process.
3. Tax Residency and Business Taxes in Georgia
To establish tax residency in Georgia, a person needs to show an annual stay of 183 days or a significant economic investment in the country. People who establish their tax residency in Georgia will access low Georgia business tax rates and advantageous business tax arrangements.
Georgia has a single tax rate in Georgia, making it easier for businesses to comply with their tax obligations. For foreign investors, Georgia also has Georgia double tax treaties that ensure income isn't taxed twice, providing peace of mind for businesses involved in international trade.
Business Licenses and Permits in Georgia
Establishing proper business licenses and permits is among the crucial steps for business setup. A business owner in Georgia can operate unless legislation specifies prohibition or requires unique authorization. Under Georgian legislation, there exist two distinct types of permits that businesses need:
License to Exercise an Activity: Certain activities demand a License to Exercise an Activity that enables you to establish private security services or work in fields including healthcare construction and energy. Getting this type of license requires fulfilling mandatory criteria.
License to Use: This license type is necessary when using national resources such as natural resources. Permits of this type are typically awarded through an open tender process and can be transferred to others under specific conditions.
In addition to these licenses, Georgia also offers businesses the opportunity to apply for special statuses that grant further tax benefits and exemptions.
Special Business Statuses and Tax Benefits in Georgia
Georgia provides a range of special statuses for businesses, allowing you to benefit from favorable tax regimes. These include:
Virtual Zone Entity Status
Any organization that develops software works in IT or serves international clients can become a Virtual Zone Entity. Companies that receive the Virtual Zone Entity status become VAT and corporate income tax exempt yet must pay only 5% personal income tax on dividend distributions.
Businesses in the tech sector should consider this status because it creates maximum tax advantages. To qualify, businesses must submit an application to the Ministry of Finance of Georgia.
Free Industrial Zone (FIZ) Status
Georgia's Free Industrial Zones (FIZ) are designed for businesses that wish to produce goods or provide services in specific areas with minimal tax burdens. These zones are located in key cities like Poti, Kutaisi, and Tbilisi, giving companies that meet particular criteria tax and customs exemptions. Some key benefits of operating within a FIZ include:
Exemption from Georgia's corporate taxes, except for personal income tax (20% on employee wages).
Customs exemptions for goods imported into the zone.
FIZ entities are open for businesses involved in production and processing, except for sectors such as weapons manufacturing, nuclear substances, and narcotics. To benefit from FIZ status, you must apply to the relevant zone organizers and pay an annual fee.
There are currently five Free Industrial Zones in Georgia, located in:
Poti Free Industrial Zone (seaport area)
Hualing Kutaisi Free Industrial Zone
Kutaisi Free Industrial Zone
Tbilisi Free Zone
Tbilisi Industrial Park Free Industrial Zone
Tax Residency and Business Taxes in Georgia
Establishing tax residency in Georgia is essential for benefiting from Georgia's tax policies. To become a tax resident, you must spend at least 183 days in the country annually. Once you achieve tax residency, you can access the Georgia business tax benefits.
Benefits of Investing in Georgia
Georgia's favorable tax environment is one of the many reasons why investing in Georgia is a wise decision for business owners. Some key benefits include:
Low Georgia corporate tax: The 15% level of Georgia corporate tax stands as one of the lowest rates in the region, providing substantial financial benefits to companies.
Tax-free Georgia zones: Certain business sectors located in Georgia qualify for tax-free Georgia status, thus providing an attractive location for IT businesses, tourism, and manufacturing industries.
Flexible business structures: The Georgian business system provides multiple business organizational types from which entrepreneurs can select their perfect fit, including LLCs, JSCs, and representative offices.
Strategic Location and Growing Economy
Georgia's strategic geographic position between Europe and Asia creates outstanding opportunities to reach world markets. Georgia maintains an economically open status as a stable regional nation, which attracts businesses interested in international growth.
Georgia's main industries are tourism development, real estate, agricultural production, and information technology services. Entrepreneurs will find numerous business possibilities in Georgia's rapidly developing economic sectors, which include the major industries mentioned above.
How to Take Advantage of Georgia's Business-Friendly Environment
You should consider consulting with a Georgia tax attorney to make the most of Georgia's tax system. They can guide structuring your business to optimize your tax benefits, including registration for Georgia withholding tax registration, if applicable.
Furthermore, leveraging local financial institutions such as the bank of Georgia and Liberty Bank of Georgia will simplify your financial operations, from opening a business account to managing multi-currency transactions.
Final Steps: Relocate and Thrive
Once you have completed the steps for Georgia business formation and obtained your Georgia visa, you can begin focusing on growing your business. Take full advantage of Georgia's Georgia corporate tax benefits and continue to expand within the country's favorable business climate.
Are You Ready to Invest in Georgia?
Do you intend to move your business operations to Georgia? Georgia is the ideal business growth destination because it offers tax residence and low corporate tax rates in addition to its strategic location. Contact our team now for a free consultation to gain expertise regarding the Georgia visa application process and business establishment as you leverage the country's business-friendly infrastructure.
Investing in Georgia can lead to long-term growth and success, whether you are a small business owner or a large corporation. Start your business journey today with Gegidze to leverage various opportunities available in this fast-developing country.
Frequently Asked Questions (FAQ)
What are the main advantages of relocating my business to Georgia?
Business relocation to Georgia comes with three essential advantages: low corporate tax rates (15%), access to tax-free zones, and straightforward business setup processes. Georgia's geographic position makes it a prime spot between Europe and Asia, which creates outstanding commercial possibilities for businesses. Moreover, its single tax rate in Georgia simplifies compliance, and special statuses like Virtual Zone Entity and Free Industrial Zone (FIZ) offer additional tax advantages for specific industries such as IT and manufacturing.