Standard LLC Tax Burden
- Corporate income tax — 15%.
- Dividend tax — 5%.
- Personal income tax (per employee) — 20%.
- VAT — 18%.
- Property tax — 1%.
- Pension contribution (for Georgian citizens or permanent residents) — 2% from the company and 2% from the employee's salary (or the company may take full responsibility for 4%).
Estonian Taxation Model
The key advantage of a Georgian LLC: corporate income tax applies only when profits are distributed as dividends. If profits remain in the company for further development, no profit tax is due. Upon dividend distribution, the company pays 15% corporate tax plus 5% dividend tax.
This model suits startups and companies reinvesting their profits.
What is taxed under the Estonian model
The 15% profit tax does not arise only when dividends are paid. Article 97 of the Tax Code names four objects of taxation:
- distributed profit
- expenses and other payments not related to economic activity
- gratuitous supply of goods, services or funds
- representation expenses above the set limit
So founders' personal expenses paid from the company account are also subject to profit tax.
What you need to register an LLC
Under the Law of Georgia on Entrepreneurs, registration requires the company's instrument of incorporation and the consent of each person with management and representative powers (Article 9). The instrument of incorporation is drawn up in writing and signed by all founding partners, and the signatures are notarised (Article 4).
The instrument of incorporation states (Article 5):
- the company's brand name, which must be in Georgian
- the legal address, meaning an actual address in Georgia
- the details of each partner
- the director's details and term of office
- for an LLC, the partners' shares
The founding agreement and a legal address are included in all our packages.
Government fees for LLC registration
Registration is carried out by the National Agency of Public Registry:
| Service | Term | State fee |
|---|---|---|
| LLC registration | 1 working day | GEL 200 |
| LLC registration | on the day of filing | GEL 400 |
| Registry extract in English | together with registration | GEL 26 added to the fee |
Government fees are included in all our packages. Fee source: NAPR fees and terms.
How registration works
- We prepare the founding agreement for your structure: one or several founders, share split, director.
- The founders' signatures are notarised. For remote registration, documents are signed under a power of attorney, and translation and notarisation are included in the package.
- We file the documents at the Public Service Hall.
- The Agency registers the company and issues a registry extract.
- We set up the taxpayer portal on the Revenue Service website.
- If the package includes an account, we help open a corporate account with a Georgian bank.
What to do in the first months after registration is covered in our article on the next steps after LLC registration, and the difference between an LLC and an IE in our guide to business structures in Georgia.
Service Packages
In-person: 1 shareholder, without bank account
- Preparation of the founders' agreement.
- Accompanying to the House of Justice of the Ministry of Justice of Georgia.
- Payment of all governmental fees.
- Permanent legal address.
- Extract from the registry in English.
- Filling in the IRS taxpayers portal.
In-person: 1 shareholder, with bank account
Everything in the above package, plus:
- Assistance with opening a corporate bank account.
In-person: 2 or more shareholders, without bank account
- Preparation of the founders' agreement.
- Accompanying to the House of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Extract from the registry in English.
- Filling in the IRS taxpayers portal.
In-person: 2 or more shareholders, with bank account
Everything in the above package, plus:
- Assistance with opening a corporate bank account.
Remote: 1 shareholder, without bank account
- Providing all templates of powers of attorney.
- Translation and notarization of your documents.
- Preparation of the founders' agreement.
- Submission of the incorporation application to the House of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Extract from the registry in English.
- Filling in the IRS taxpayers portal.
Remote: 1 shareholder, with bank account
Everything in the above package, plus:
- Assistance with opening a corporate bank account.
Remote: 2 or more shareholders, without bank account
- Providing all templates of powers of attorney.
- Translation and notarization of your documents.
- Preparation of the founders' agreement.
- Submission of the incorporation application to the House of Justice.
- Payment of all governmental fees.
- Permanent legal address.
- Extract from the registry in English.
- Filling in the IRS taxpayers portal.
Remote: 2 or more shareholders, with bank account
Everything in the above package, plus:
- Assistance with opening a corporate bank account.
FAQ
What taxes does a Georgian LLC pay?
Corporate income tax 15%, dividend tax 5%, personal income tax per employee 20%, VAT 18%, property tax 1%. Pension contributions (2%+2%) apply only to employees who are Georgian citizens or hold permanent residency.
What is the Estonian taxation model?
Corporate income tax arises only upon profit distribution as dividends: 15% corporate tax plus 5% dividend tax. If profits remain in the company, no tax is due. This model is ideal for companies that reinvest profits into development.
How long does LLC registration take?
With shareholders physically present in Georgia — 2 business days. This period covers only registration with the National Agency of the Public Registry.
Is startup capital required?
Under Georgian law, initial capital is not mandatory — it is a voluntary contribution by the founders.
Are there restrictions for non-residents when opening a corporate bank account?
Since early 2021, Georgian banks require confirmation of the company's operational presence in the country under the BEPS agreement. Before submitting a bank application, it is advisable to prepare an office lease agreement, draft contracts with counterparties, and draft employment contracts with staff.
What tax incentives are available for IT businesses?
Two preferential regimes are available for Georgian LLCs in IT:
- Virtual Zone status — exemption from 15% corporate income tax and 18% VAT, provided the product is distributed outside Georgia and the company has a representative office and employees in Georgia.
- International Company status — corporate tax 5%, personal income tax per employee 5%, dividends 0%, property tax exempt (except land, if used for permitted activities only). The founder holding 50% or more must be a non-resident company with at least 2 years of experience in the permitted activity.
Details: Virtual Zone · International Company
Can I register an LLC remotely?
Yes, by power of attorney. Our specialists will register your company as soon as documents are received.
How much does LLC registration cost in government fees?
The National Agency of Public Registry charges GEL 200 for registration within 1 working day and GEL 400 for registration on the day of filing. An English-language extract adds GEL 26. Government fees are already included in our packages.
Do the founders' signatures need to be notarised?
Yes. Under Article 4 of the Law on Entrepreneurs, the company's instrument of incorporation is signed by all founding partners and the signatures are notarised. For remote registration, documents are signed under a power of attorney.
What language must the company name be in?
Under Article 16 of the Law on Entrepreneurs, an entrepreneur's brand name must be in Georgian. The name is stated in the instrument of incorporation and entered in the registry.
Are company expenses unrelated to the business taxed?
Yes. Under the Estonian model, the 15% profit tax applies not only to dividends but also to expenses not related to economic activity, gratuitous transfers of goods and money, and representation expenses above the limit (Article 97 of the Tax Code).