Relocating a business to another country can be a strategic move for growth, cost savings, and tax optimization. Company formation in Georgia is increasingly appealing to entrepreneurs and established businesses looking for new opportunities, thanks to the country’s business-friendly environment, low taxes, and strategic location between Europe and Asia. Whether you are relocating a startup or an established company, understanding the legal, financial, and logistical aspects is crucial to a smooth transition.
In this guide, we will explore the step-by-step process of relocating a company to Georgia, the benefits of making the move, and potential challenges. With the support of B2B Hub, businesses can streamline the relocation process, ensuring compliance with local laws while optimizing operational efficiency.
Why Relocate to Georgia?
Relocating your business to Georgia offers several key benefits:
Attractive Tax Environment
Georgia follows an Estonian corporate tax model, meaning corporate income tax (CIT) is applied only when profits are distributed. Reinvested profits are tax-free, encouraging companies to grow without immediate tax burdens.
CIT rate: 15% on distributed profits.
0% VAT on exports and certain goods traded within Free Industrial Zones (FIZs).
Double taxation treaties: Georgia has treaties with over 55 countries, reducing cross-border tax liabilities.
With B2B Hub’s tax planning services, companies can benefit from these incentives while ensuring full compliance with local tax laws.
Simplified Company Formation and Registration
The process of company formation in Georgia is straightforward, with low administrative barriers and minimal registration fees. Most companies can be incorporated within 1-2 business days. Georgia also allows online registration for certain entities, further simplifying the process.
B2B Hub provides full support for setting up a new company, handling licensing, and ensuring all documentation meets legal standards.
Low Operational Costs
Georgia offers affordable labor, office space, and utilities compared to many European and neighboring countries. Additionally, the absence of heavy social security contributions lowers operational expenses for employers.
Relocating to Georgia allows companies to reduce costs while maintaining high productivity. B2B Hub helps businesses manage payroll and other financial operations efficiently.
How to Relocate Your Company to Georgia
Assess the Legal Requirements
Before relocating, it’s essential to evaluate whether your current business structure fits Georgia’s legal framework. Most companies choose to re-register as Limited Liability Companies (LLC), the most common and flexible business form in the country.
Verify whether your industry requires special licenses.
Check for compliance with Georgian labor and tax laws.
B2B Hub offers consultation services to ensure your company’s legal structure aligns with Georgian regulations.
Register Your Company
The first step of company formation in Georgia involves registering the business with the National Agency of Public Registry. The process typically requires:
Company name approval.
Submission of founding documents, such as the charter.
Identification of shareholders and directors.
B2B Hub assists companies throughout the registration process, ensuring that all paperwork is completed correctly and on time.
Open a Corporate Bank Account
Once the company is registered, it’s necessary to open a corporate bank account in Georgia. Many banks in Georgia offer services in English, making it easier for foreign entrepreneurs to manage their accounts.
B2B Hub has partnerships with leading Georgian banks and can assist companies in choosing the best banking solution for their needs.
Tax and Compliance Considerations
Corporate Tax and VAT
Georgia’s tax system offers several advantages to relocated companies. However, understanding local tax obligations is essential to avoid penalties.
CIT: Applied only to distributed profits at 15%.
VAT registration: Required for companies with an annual turnover exceeding 100,000 GEL.
With B2B Hub’s tax advisory services, businesses can stay compliant and take full advantage of Georgia’s favorable tax environment.
Employment Regulations and Payroll Management
When relocating your company, you must comply with Georgian labor laws, including contracts, working hours, and pension contributions.
Pension contributions: 2% from employers and employees.
Employment contracts: Required by law for all employees.
B2B Hub offers payroll management services, ensuring accurate calculation of salaries, contributions, and taxes.
Challenges of Relocating a Business to Georgia
Market Size Limitations
Georgia’s domestic market is relatively small, which may limit growth opportunities for companies that rely on local demand. However, its strategic location provides access to neighboring markets in Europe, Central Asia, and the Middle East.
B2B Hub helps companies develop strategies for expanding into international markets from their Georgian base.
Language Barriers
While English is commonly spoken in business settings, the primary languages are Georgian and Russian. Businesses may encounter communication challenges with local authorities and partners.
B2B Hub provides translation and bilingual support, ensuring smooth interactions with local stakeholders.
Special Economic Zones and Incentives
Free Industrial Zones (FIZs)
Companies relocating to Georgia can benefit from Free Industrial Zones, where they enjoy:
0% CIT on activities within the zone.
Customs and VAT exemptions on exported goods.
These zones are ideal for manufacturing and export-oriented businesses. B2B Hub helps companies evaluate and select the right FIZ for their operations.
a Virtual Zone Status for IT Companies
Georgia offers a virtual zone status for IT companies, granting:
0% CIT on income from software exports.
Exemption from VAT on IT-related services.
Tech companies can leverage this incentive through company formation in Georgia and benefit from lower operational costs. B2B Hub provides guidance on virtual zone applications and compliance.
Relocating your company to Georgia presents numerous opportunities, from a favorable tax environment to low operational costs and strategic market access. The process of company formation in Georgia is straightforward, but businesses must navigate legal, financial, and cultural challenges to succeed.
With the expert guidance of B2B Hub, companies can handle every aspect of the relocation process—from registration and banking to payroll management and tax compliance. Georgia’s Free Industrial Zones, virtual zone incentives, and double taxation treaties offer additional opportunities for growth and expansion.
By partnering with B2B Hub, businesses can make a smooth transition to Georgia, ensuring they meet all legal requirements while optimizing their operations. Relocating to Georgia is not just about changing locations—it’s about unlocking new potential for growth, efficiency, and international reach.
B2B Hub offers comprehensive company formation and corporate services in any jurisdiction of your choice. For inquiries, please contact us at +44 086 097 2345, visit our website at b2bhub.ltd, or send us an email at reg@b2bhub.ltd.
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