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 state fee for standard registration is GEL 100; expedited registration (within 1 hour) costs GEL 200. The standard processing time is 1 business day.
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 is exempt from profit tax on income that falls within its statutory non-commercial activities. If the NGO conducts commercial activity, that income is taxed at the standard 15% rate. Accreditation with the Revenue Service provides broader tax benefits.
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.