Georgia is a country located at the crossroads of Western Asia and Eastern Europe. The population is 3.8 million and the capital and largest city is Tbilisi. Georgia is a unitary semi-presidential republic in which the government is elected through a representative democracy.
The Law of Georgia on Entrepreneurs, passed in 1994, is Georgia’s governing factor on start-ups. It has been amended several times since inception making corporate governance more efficient. Georgia’s legislative and regulatory framework allows the registration of a: Joint Stock Company, Limited Liability Company, General Partnership, Cooperative, Branch Office, and Limited Partnership. A Sole Proprietorship must also register but is not considered a legal entity and registration is not required for a joint venture. A registered agent prepares all the required application forms and legal documentation signed by the shareholders and directors. Once the entity is legally registered, the Registered Agent keeps the complete set of original documents.
The standard Value Added Tax (VAT) rate in Georgia is 18%. Exports, tourism facilities, international transport and transfers of gold to the National Bank of Georgia have a 0% VAT. Corporate tax in Georgia is set at 15% and for Georgian companies, the tax on dividends and interests is 5% for local and foreign entities as well as individuals.