How to Set Up an Entity in Georgia

Georgia has become an increasingly attractive destination for international businesses thanks to its business-friendly regulatory framework, low taxes, and strategic location at the crossroads of Europe and Asia. The country consistently ranks highly in global ease-of-doing-business and economic freedom indexes, and it offers foreign investors liberal ownership rules and fast company registration.

Setting up an entity in Georgia is generally straightforward and highly digitalized, with most companies able to incorporate within days rather than weeks. The main challenges tend to relate to understanding local tax regimes, ongoing compliance obligations, and navigating Georgian-language documentation when working with banks or authorities. In return, businesses gain full operational autonomy, the ability to hire locally, and direct control over revenues in a low-tax environment.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Georgia?

Opening an entity in Georgia means registering a legal presence with the state that allows a business to operate, enter into contracts, open bank accounts, and hire employees locally. Registration is handled centrally through the country’s public registry, and companies may choose between forming a local legal entity, opening a branch, or registering a representative office. Once registered, the entity gains full legal capacity under Georgian law.

Entity overview in Georgia

Here is a summary of the key features of company formation in Georgia:

Step-by-step guide: How to open an entity in Georgia

Step 1: Choose the right structure

Most foreign businesses choose a Limited Liability Company (LLC), as it offers limited liability, no minimum capital, and flexible ownership. Joint Stock Companies are typically used for larger enterprises or those planning to list shares, while branches are suitable for companies that want a local presence without forming a separate legal entity.

Step 2: Verify business name availability

Business names must be unique and compliant with Georgian naming rules. Name availability can be checked through the official registry portal operated by the Public Registry or Entrepreneurs Registry. Certain terms, such as “bank” or “insurance,” require additional approvals from relevant regulators.

Step 3: Prepare incorporation documents

The following documents are typically required for incorporation. Templates and guidance are provided by the public registry:

• Application for company registration
• Articles of Association (charter)
• Identification documents for shareholders and directors
• Power of attorney (if using a representative)

Standard forms and guidance are available via the National Agency of Public Registry’s official resources.

Step 4: Register with the National Agency of Public Registry

Applications can be submitted electronically or in person at a public service hall. Upon successful registration, the company receives an official registration extract, which serves as proof of incorporation and includes the company's identification number.

Step 5: Register for tax and social security

After incorporation, the company must register with the Revenue Service of Georgia for tax purposes. This includes corporate income tax registration, VAT registration if applicable, and employer registration for payroll withholding and reporting.

Georgia does not operate a separate social security system funded by employer contributions. Instead, employers are responsible for withholding personal income tax from employee salaries and reporting employment income through the Revenue Service’s electronic filing system.

In addition, employers must register employees with the Pension Fund of Georgia for the mandatory funded pension scheme. Under this system, 2% of gross salary is contributed by the employer, 2% by the employee, and 2% by the state, with contributions reported and paid monthly.

Step 6: Open a corporate bank account

A local corporate bank account is required to operate and pay employees. Banks apply strict KYC and AML checks, often requiring in-person verification, company documents, and information on ultimate beneficial owners. Timelines can range from a few days to several weeks, depending on the bank.

Step 7: Set up payroll and employment compliance

To hire employees, the company must implement compliant employment contracts, register employees with the tax authorities, and set up payroll reporting. Employers are responsible for withholding personal income tax and ensuring compliance with Georgian labor and data protection laws.

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Post-registration obligations

After incorporation, companies in Georgia must stay compliant with local governance, tax, and employment laws. Typical requirements include:

• Tax and financial reporting: File corporate income tax on distributed profits and VAT returns (if registered) according to the schedule set by the Revenue Service of Georgia, typically monthly for VAT and annually for profit distributions, under Georgian accounting standards aligned with IFRS.
• Corporate registers: Maintain up-to-date records of directors, shareholders, and beneficial owners and report any changes to the National Agency of Public Registry within the legally required timeframe.
• Compliance tracking: Monitor all tax, licensing, and corporate filing deadlines through a compliance calendar or service provider to avoid late penalties.
• Licenses and renewals: Renew any sector-specific business licenses or permits with the relevant ministry or regulator based on their renewal cycles.
• Recordkeeping: Retain accounting, payroll, HR, and transaction records for at least 6 years, as required by Georgian tax law, ensuring they are accessible for audits or inspections.
• Employment law compliance: Adhere to labor, benefits, social security, and data-protection regulations, including maintaining compliant employment contracts and payroll reporting as required by the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia.

Taxes and financial considerations

Key financial obligations for companies in Georgia include:

• Corporate income tax: 15% on distributed profits, payable when dividends or other profit distributions occur
• VAT/GST: 18%, with mandatory registration once taxable turnover exceeds the statutory threshold
• Payroll/social contributions: Personal income tax withheld by employers; no separate employer social security tax. Employers must also contribute 2% of gross salary to the mandatory pension scheme, with an additional 2% withheld from employees and a state contribution of up to 2%, all subject to mandatory monthly reporting.
• Accounting standards: IFRS or IFRS for SMEs, depending on company size and classification

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Georgia?
Typically 1–3 business days. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
No minimum capital is required for a Limited Liability Company.

Can foreign companies own 100 % of an entity in Georgia?
Yes. Georgia allows full foreign ownership with no local shareholder requirements.

Do I need a local director or representative?
No local director or residency requirement applies, although a local representative may simplify banking and administration.

How much does it cost to register an entity?
Government fees typically range from GEL 100 to 300 (≈ USD 37–110), excluding notary and professional service costs. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Georgia?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.