Open a company in Georgia and a corporate account with the Global Bank of Commerce LTD in Antigua and Barbuda remotely from 6,950 EUR
Georgia is a small country known for its hospitality, delicious and original cuisine, most beautiful landscapes. However, here people do not only relax and gain strength admiring the beauty of nature. Many foreigners are yet unaware of the financial benefits of Georgian jurisdiction.
Yet here they created quite good conditions for doing business on an international scale. The possibility of reducing the tax burden together with a high level of business confidentiality equates Georgia with a classic offshore. We would like to remind you that Georgia is not a member to the system of the financial information automated exchange (CRS) which means that no one will know about the money movement in a bank account, except for the Georgian bank. This data will not be transferred to the tax department of the country of this foreigner’s residence.
And in Georgia they have no difficult-to-do requirements for non-residents who wish to open a company here. Local legislation does not limit the minimum amount of capital of a company to-be, and it will be possible to establish a legal entity even on the day of application. The cost of getting your company registered on the same day with the House of Justice is just 200 lari. But it should be taken into account that businessmen who want to establish a business in Georgia should better seek assistance from professionals. Since all papers as well as applications with the state institutions are to be filled in Georgian, and it is still impossible to open a company without confirming its legal address. You can resolve all those issues with the Offshore Pro Group professionals. We will also assist you in establishing efficient operations, including accounting support, in the Georgian jurisdiction.
Our company’s employees have all the necessary knowledge and experience without which your independent arrangements will take much more time and financial resources. In addition to registering a company in Georgia we recommend you to open a corporate bank account with the Global Bank of Commerce LTD in Antigua and Barbuda (Caribbean). This financial institution is the most famous and respected bank in the region. It provides the fullest possible range of banking and investment services. It will assist you in optimizing your cash flows, as well as in improving the privacy of your international business.
Georgia as an alternative to the classic offshore
Attractiveness of the Georgian jurisdiction for doing business is evidenced by the fact that Georgia is in 6th position in the latest published “Doing Business” rating. The Georgian government has made every effort to create a favorable environment for foreign investors. Let’s look at the possibilities of increasing the efficiency of your business by opening a company in Georgia.
Tax optimization with the help of Free Industrial Zones (FIZ)
The Georgian government has created 5 special zones in the country:
- Tbilisi zone is in the capital of Georgia;
- Kutaisi-Hualing was opened in the grounds of the former car factory;
- Kutaisi is next to the previous FIZ;
- Poti is located near the seaport;
- Kulevi is not yet fully functioning.
Companies established by both residents and non-residents in the FIZs are granted a remission of taxation except for 4% of the contribution to the Pension Fund. An opportunity of significantly saving on mandatory payments while carrying out export-oriented operation is quite an attractive option for most businessmen. Apart from tax incentives, there are several more benefits of getting your company registered in the Georgian FIZs:
- free industrial zones have all the necessary conditions for doing business. Availability of warehouses, office spaces, land plots, utilities, Internet, security, customs checkpoints, asphalt-paved access, parking lots for trucks, and railways able to receive small (Poti) and large (Kutaisi) trains;
- no VAT in the FIZs, thanks to which all goods and services here are 18% cheaper;
- availability of cheap labor. The average monthly income in Georgia does not exceed USD 400;
- no currency control, so that settlements can be made in different currencies without restrictions;
- Georgia has entered into free trade agreements with all European countries, the CIS states, Turkey, China and Hong Kong, which allows local producers to supply their products to the markets of these countries with no duties imposed. And, by the way, the FIZ administrations facilitate the receipt of the “Made in Georgia” certificates by manufacturers;
- convenient location of FIZs near the transport hubs makes it possible to save significantly on transportation and logistics. All Free Zones are located near international highways, seaports, international airports, railways;
- enterprises of FIZs do not pay income tax on wages. This obligation lies directly with their employees, as well as filling out tax returns.
Let’s sum it up. If you register an exporting firm in Georgia, you as businessman will get an opportunity to save on:
- logistics and transport services;
- banking and accounting services;
- utility bills.
But it should be taken into account that not everyone benefits from doing business in FIZs. The Free Zones administrators’ mandatory requirement is an annual fee payment which is not rational for small-sized legal entities. It is economically expedient for them to establish a standard Georgian company.
Taxation of standard Georgian companies
The Georgian tax system is one of the most favorably disposed in the world. The number and amounts of mandatory payments were reduced in the country after the tax reform. And in 2017, the “Estonian” taxation model was officially introduced in Georgia. Its essence is that companies that reinvest their profit into developing their business, do not pay tax on it.
Today, in the country, legal entities pay:
- corporate income tax of 15%;
- VAT of 18%;
- dividend tax of 5%;
- property tax of up to 1%;
- excise and customs duties depend on the product type.
The state promotes development of small-sized businesses. For example, enterprises that fall into the small-sized business category (annual revenue of less than 500,000 lari) pay a tax of 1% on turnover. And companies that are VAT payers get this tax reimbursed automatically within a few days, so they do not need to look for additional working capital to cover the cash gap that occurs if you wait a few months for a refund.
Taxation of IT companies in Georgia
Georgia is pro-actively engaged in the IT sector development. Since 2011, in order to invite foreign specialists to the country all companies engaged in IT were able to get a certificate of a “Virtual Entity.” Those having this certificate will be granted a remission of taxation except for the dividend tax (5%) and contributions to the Pension Fund (4% of wages). The sale of company’s products abroad is a prerequisite for preferential taxation. Revenues received from Georgian residents are taxed on standard terms.
In addition to the low tax burden, it is worth to open an IT company in Georgia for the following reasons:
- no currency control;
- low bank costs. For example, a SOLO premium package with the Bank of Georgia costs USD 100 a year;
- remote service systems in banks.
Georgian jurisdiction is popular among foreign freelancers. The cost of living (food, clothing) is quite low, so many come here for a while to stay, admire nature, working on their projects remotely.
Learn about the advantages and of how to open a private account with the Bank of Georgia for a foreigner without visiting Georgia. Email to [email protected].
Strengths of Georgian jurisdiction
In addition to tax incentives, Georgia also plans to interest foreigners with the following:
- Simple and easy company registration. You can establish a company in Georgia within 1 or 2 days. The procedure is carried out in the “Single Window” mode at the Houses of Justice. Georgian law does not impose special requirements on foreigners. The only reasons why non-residents will need the assistance of specialists are that all documents in Georgia are filled out in Georgian, and no company will be registered without confirmation of its legal address;
- No limits on the share capital size;
- Convenient geographical position. The country is located between Europe and Asia, it is a sea gate for the Caspian region countries. Georgia is also China’s partner in the New Silk Road project;
- Georgia borders on Russia, Azerbaijan, Armenia, Turkey, and has a maritime border with Ukraine and EU countries (Romania, Bulgaria). Most Georgians understand and speak Russian, and English is popular among young people. So there will be no miscommunication;
- Georgia is not involved in sanctions against Russia which can be of use for its citizens. It is rational for Russians to open a company in Georgia for this will allow them to avoid sanctions and continue trading with Europe and the USA;
- Georgia does not exchange financial information with other countries.
The country has created attractive conditions for export-oriented companies, IT companies, legal entities engaged in transportation and production. Georgia has favorable legislation, the rights of investors are guaranteed by the state, there are no problems with the property rights registration, almost no bureaucracy.
To ensure better interaction with foreign counterparties, Georgian companies are encouraged to open a corporate account with the Global Bank of Commerce Ltd located in Antigua and Barbuda.
The Global Bank of Commerce Ltd has been operating in the Caribbean banking market for more than 30 years. Its customers have access to a huge number of both standard and non-standard banking products.
The bank is a member of the Caribbean Banking Association, a member of SWIFT, and has a correspondent relations with the majority of banks in North America and Europe.
The following advantages of the Global Bank of Commerce Ltd made it popular among its customers:
- high interest rates on fixed-term deposits;
- multi-currency accounts in USD, EUR, GBP and CAD;
- strong correspondent relations with many banks around the world;
- online banking system and its very own processing center.
The bank is also ready to develop and provide financial services taking into account the individual features and wishes of each client.
Services of the Global Bank of Commerce
Georgian companies can benefit from the following services of the bank:
- operating (current) account with a minimum balance of USD 5,000. Monthly service fee is USD 10;
- savings account with a minimum deposition of USD 5,000, interest payments are quarterly, monthly service fee is USD 10. If the balance goes down below USD 2,500 the client will pay the fine of USD 25;
- Gold Bond deposit certificate with interest paid annually or once in every six months. The minimum certificate price is USD 25,000. It should be noted that income tax is not withheld from the interest;
- organization of trusts, foundations, commercial corporations, as well as other corporate and trust services;
- private banking and asset management, as the bank is in existing partnership agreements with the world’s leading asset management companies. The Global Bank of Commerce Ltd provides discretionary investment management services, investment advice, international trust services and real estate transactions facilitation;
- secured USD loans;
- issuing payment cards and servicing payment card transactions;
- Internet banking based on the GlobexSecure platform with which a Georgian company gets round-the-clock access to their accounts, but only if the Internet is available.
Payment transfer rates for Georgian companies with the Global Bank of Commerce Ltd:
- internal payments – USD 3;
- standing order – USD 5;
- direct account debiting – USD 20;
- bank checks collection – USD 2 per check;
- issuing a certificate – USD 25;
- emails – USD 5 per month.
How to register a Georgian company and open a corporate account with the Global Bank of Commerce LTD in Antigua and Barbuda remotely
You can get a company registered in Georgia with an account in the jurisdiction of Antigua and Barbuda without wasting your time and without travelling anywhere if you contact the Offshore Pro Group. We will assist you in registering a company in Georgia remotely. Here is the list of what will be necessary for a potential investor:
- Please email us to [email protected].
- You can discuss the terms of cooperation with our employee.
- Pay for our services in any convenient way against the invoice.
- Make a power of attorney with our lawyer for opening a Georgian company.
- Get the power of attorney notarized and send it to us together with the other papers;
- Having received your power of attorney and having drawn up the incorporating documents for your company, we will immediately register your Georgian company.
- After receiving the company extract from the register we will contact the Global Bank of Commerce Ltd to open a corporate account.
- Having completed all the procedures, we will send you the incorporating documents of your Georgian company, your service contract with the Global Bank of Commerce Ltd, passwords and access keys (if available) to the address specified by the client.
The list of documents necessary for opening an account and registering a Georgian company:
- notarized copies of travel passports of the company’s founders and directors;
- confirmation of the address of residence (notarized utility bills no older than 3 months, necessarily translated into English);
- bank certificate on cooperation for more than 1 year or two professional references;
- incorporating documents for the Georgian company.
It should be noted that service at the Global Bank of Commerce Ltd is only in English and Spanish.
If you decided to get a Georgian company with an account with the most prestigious bank in the Caribbean, the Global Bank of Commerce Ltd, please contact us by email: [email protected]. We will provide you with an efficient financial instrument for doing international business.