An NGO may engage in commercial activity provided that any resulting income is directed toward the statutory non-commercial purposes of the organisation. Profits may not be distributed among founders or members. Registration takes place at the House of Justice of the Ministry of Justice of Georgia, following the same general procedure as for commercial entities.
After registration, an NGO is required to maintain accounting records and file annual financial reports. Organisations that meet the statutory criteria may apply for income tax exemption status through accreditation with the Revenue Service of Georgia. Donors making contributions to accredited NGOs may be able to deduct those amounts when calculating their own tax base.
Required Documents
- Charter (articles of association or foundation deed)
- Minutes of the founding meeting
- Information about founders (passport details for individuals; registry extract for legal entities)
- Details of the governing body (board, director)
- Registration application
Foreign founders that are legal entities may need an apostilled registry extract from their country of incorporation with a certified translation.
Timeline and Fees
The National Agency of Public Registry charges GEL 200 to register a non-commercial legal entity within 1 working day and GEL 400 for registration on the day of filing. A registry extract in English adds GEL 26 to the fee.
What an NGO pays profit tax on
For an organisation carrying out economic activities, profit tax applies not to all profit but to specific objects (Article 97 of the Tax Code):
- expenses and other payments not connected with economic activity or with the organisation's objectives, including charity or the objectives of a grant agreement
- gratuitous supply of goods, services or funds not related to the organisation's objectives
- entertainment expenses above the set limit
So spending that directly serves the statutory objectives does not add to the tax, while spending outside them is taxed.
Charitable organisation status
Charitable organisation status is set out in Article 32 of the Tax Code:
- it is granted to an organisation established for charitable activity, registered in the prescribed manner and with at least one year of charitable activity
- ancillary economic activity that serves the main purposes does not change the charitable character
- the application comes with a copy of the charter, the registration certificate, an activity report for the last year and last year's financial documents certified by an independent auditor
- the Head of the Revenue Service decides in agreement with the Minister of Finance within one month, and if no decision is made in time the status is deemed granted
- the status is granted permanently, but every year before 1 April the organisation files a report on its last year's activity with the tax authority
Charitable status can only be obtained after a year of charitable activity, so the NGO is registered first and the status follows later.
Frequently Asked Questions
What is the difference between an association and a foundation in Georgia?
An association has members — individuals or legal entities — who govern it through a general meeting. A foundation is established by one or more founders transferring assets to it; it has no membership. A foundation is managed by a supervisory board or another body specified in its charter.
Can a foreigner found an NGO in Georgia?
Yes. Foreign individuals and legal entities may be founders of an NGO in Georgia without any restriction on ownership share.
Does an NGO pay taxes in Georgia?
An NGO's profit tax applies not to income but to specific objects: expenses not connected with economic activity or with the organisation's objectives, gratuitous transfers unrelated to its objectives, and entertainment expenses above the limit (Article 97 of the Tax Code). If the NGO carries out economic activity, the property and activity directly related to it are treated as those of an enterprise (Article 30). A separate regime applies to organisations with charitable status (Article 32).
Is an NGO required to file reports?
Yes. All registered NGOs must maintain accounting records and submit annual financial reports. NGOs that receive grant funding from certain sources are also required to disclose information about those grants.
Can an NGO be registered remotely?
Yes, registration can be completed through a representative acting under a notarised power of attorney. The founders do not need to be present in Georgia.
How much does NGO 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. A registry extract in English adds GEL 26.
When can an NGO obtain charitable status?
No earlier than after a year of charitable activity. Under Article 32 of the Tax Code, the status requires registration in the prescribed manner, charitable objectives and at least one year of experience. The application comes with an activity report and financial documents certified by an auditor.
How long does the charitable status application take?
The Head of the Revenue Service decides within one month. If no decision is made in that time, the status is deemed granted. The status is permanent, but every year before 1 April the organisation files an activity report.