Georgia · Guide
Georgia sells itself in four lines: no minimum capital, one owner is enough, registration in a day or two, and tax on profit only when you pay it out. All four are broadly true.
None of them answers the question a founder should ask first. What does a Georgian company give you that you would not get from where you already are? For some founders the answer is a lot. For others it is a second set of filings for no gain.
This page answers that question, flags what changed in 2026, and says plainly who should look elsewhere.
The short answer, by profile
Georgia is a holding-light, service-friendly jurisdiction. It rewards a founder who sells services across borders and keeps profit in the business. It gives much less to one who needs a European passport for the company, a deep banking network, or a frictionless right to move there.
| Your situation | Verdict | Why |
|---|---|---|
| Software, design or consulting founder selling abroad | Strong case | Low entry cost, profit taxed only on distribution, special regimes for some export services |
| Founder relocating to Tbilisi or Batumi with a remote business | Good case, with homework | The company is easy; living and working there now runs through the 2026 permit rules |
| Freelancer earning under a modest turnover | Probably not a company | The small business regime that draws people to Georgia is for individual entrepreneurs, not companies |
| E-commerce seller targeting EU customers | Weak case | A Georgian company is outside the EU single market for VAT and consumer rules |
| Fintech, crypto, gaming or any licensed activity | Case by case | Licensing and bank appetite decide, not the company law |
| Holding or invoicing vehicle with no Georgian activity | Wrong answer | Banks and treaty partners look for substance you will not have |
The rest of the page takes each line in turn. If you are weighing the company against the individual entrepreneur route, read the company types guide next.
What a Georgian company actually gives you
Strip out the marketing and three advantages remain. Each is real, and each has a condition attached.
- A cheap, fast legal person. One shareholder and one director, both of whom can be foreigners, and no capital to pay in. The registration steps and their clocks are in how to register a company in Georgia.
- Tax deferred until you take profit out. Georgia taxes company profit when it is distributed, not when it is earned. A business that reinvests pays nothing at company level in the meantime.
- A base for a life in the Caucasus. For founders who want to live in Tbilisi or Batumi, a local company organises invoicing, a bank account in lari and a track record with the tax office.
The first advantage is shared by many jurisdictions. The second is the one that changes the arithmetic. The third is the one most affected by the 2026 rules on work.
What it does not give you is market access. A Georgian company does not sell into the European Union as a European company, does not carry an EU VAT number, and does not make a founder resident anywhere by itself.
The tax model, in one paragraph
Georgia adopted a distribution-based profit tax in 2017, modelled on Estonia. Profit kept in the company is not taxed. When it is paid out as a dividend, or treated as paid out, the company pays 15%. A dividend to an individual or a foreign company then carries a further 5% withholding.
That is all this page needs to say about rates. The base, the deemed distributions and the special regimes are covered in the corporate tax guide, and what reaches you abroad is in the guide for non-residents.
- 1Profit earnedNo profit tax while it stays in the company
- 2Profit reinvestedStill no profit tax
- 3Dividend paid15% profit tax at company level
- 4Dividend received5% withholding, before any treaty relief
The trap is not the rate. Payments that look like a distribution are taxed as one: a loan to the owner that is never repaid, an expense with no business purpose, a management fee paid to a related company abroad. Those are where Georgian audits find money.
3 questions
Which jurisdiction fits you?Answer three questions and get the three jurisdictions that match your situation.
What changed in 2026: working there is no longer automatic
For a decade, Georgia was the place where a foreign founder could arrive, register a company and simply start working. That ended on 1 March 2026.
Since that date, most foreign nationals who work for a Georgian employer need a permit-based right to work. The rules reported by Georgia Today with JUST Advisors are these:
- The right to work is tied to one employer and applied for after the employment contract is signed.
- Review takes up to 30 calendar days.
- Residence status or a D1 visa is part of the file, unless an exception applies.
- Those already working on 1 March 2026 must regularise by 1 January 2027.
- Fines are GEL 2,000 for the employer and GEL 2,000 for the employee per case, higher on repeat.
- Amendments of July 2026 add a quota check for employers hiring more than five foreigners a year, or above 5% of the workforce.
- 1 Mar 2026Permit-based right to work starts
- 15 Apr 2026Law No 1509 widens the exemptions
- Jul 2026Quota rules for larger foreign hiring
- 1 Jan 2027Deadline for workers registered before March
Then the exemptions widened. Law No 1509 of 15 April 2026 took several situations out of the regime: fully remote work for a Georgian employer, services to foreign clients for their business abroad, and management of larger companies. Directors of small companies, where every new company starts, stay inside it.
What this means for a founder. Owning a Georgian company from abroad is unaffected. Living in Tbilisi while serving foreign clients is exempt. Moving there to run your own new Georgian company is now a step to plan, not a formality. The detail is in the non-resident guide.
The context since 2024
A founder deciding in 2026 should know the political backdrop, without overreading it.
- May 2024: the foreign influence law. Parliament passed a law requiring organisations with more than 20% foreign funding to register. On the day, London-listed shares of TBC Bank, Bank of Georgia and Georgia Capital fell more than 20%.
- The European Union path is stalled. Brussels said the law would halt accession, and the government announced in November 2024 that it would not seek to open accession talks before 2028.
- Country risk is rated higher. Coface points to deep political polarisation, foreign exchange reserves of about three months of imports, and external debt near 75% of GDP.
- The economy kept growing. Geostat puts real growth at 7.5% in 2025, after 9.7% in 2024.
| What the context changes | What it does not change |
|---|---|
| How some foreign banks and partners read a Georgian counterparty | Company law, registration speed and the tax model |
| The odds of Georgia joining the EU single market soon | The trade agreement already in force with the EU |
| The weight of political risk in a long-term relocation plan | Day-to-day company administration |
The practical consequence is narrow. Registration is unaffected. Banking and counterparty checks are where a founder may feel it, and the business bank account guide deals with that.
Company or individual entrepreneur: the first decision
Most "1% tax" headlines about Georgia are about the wrong vehicle. The 1% rate belongs to the small business status of an individual entrepreneur, a registered person rather than a company. Formation agencies that lead with it usually admit, further down the page, that a standard limited liability company does not pay 1%.
| Individual entrepreneur with small business status | Limited liability company | |
|---|---|---|
| What it is | You, registered for business | A separate legal person |
| Liability | Personal | Limited to the company |
| Headline tax | 1% of turnover, within a ceiling and for eligible activities | 15% on distributed profit |
| Partners and investors | Not possible | Several shareholders possible |
| Best for | A solo service provider within the ceiling | A business with partners, staff, or profit to reinvest |
Which one fits, and why some activities are excluded from the 1% rate, is the subject of the company types guide. The point here is simpler: if what draws you to Georgia is the 1%, you may not need a company at all.
Where the case breaks down
The promotional pages leave out a predictable list. These are the frictions founders report most.
- Banks. Opening an account is where most remote plans stall. Banks ask about the business model, the source of funds, counterparties and jurisdictions, and some ask for an in-person visit.
- Substance. A company with no staff, no office and no Georgian activity is easy to register and hard to defend before a foreign tax authority or a treaty claim.
- Deemed distributions. The distribution model punishes informal habits: personal expenses, owner loans and related-party fees.
- Work and residence. Since March 2026, living and working there runs through permits.
- Regulated activities. Payments, crypto, gaming and investment services need licences, and bank appetite for them is limited.
- Currency. Revenue in lari carries exchange risk, and the banking system is heavily dollarised.
Georgia against the usual alternatives
Founders who look at Georgia usually also look at the United Arab Emirates, Armenia or an EU state such as Estonia. They solve different problems.
| Question | Georgia | Typical alternative |
|---|---|---|
| Entry cost and speed | Very low, days | Higher in the Emirates, comparable in Estonia |
| Profit tax model | 15% on distribution | Estonia uses the same model; the Emirates tax profit above a threshold |
| EU market access | Outside the single market | Estonia is inside it |
| Living there | Permits since March 2026 | Each has its own residence route |
| Banking for non-residents | Possible, with scrutiny | Varies widely, often harder in the EU |
This table is orientation, not a study of the other jurisdictions. Check each line for the country you are comparing.
Who Georgia is wrong for
- A seller who needs to be inside the European Union. A Georgian company does not carry an EU VAT number or EU consumer status.
- A holding or invoicing shell with no Georgian activity. It will struggle at the bank and invite questions at home.
- A founder expecting a company to deliver residence and the right to work. Since March 2026 that is a separate process for anyone running a small Georgian company from Georgia.
- A licensed business without a licensing plan. The company is the easy part.
- A founder whose home country has strict controlled foreign company rules and no plan to meet them. Georgian deferral can be undone at home.
Who it suits
- A remote services business selling to clients outside Georgia and reinvesting profit.
- A founder relocating to Georgia who will plan the right to work alongside the company.
- A small team that wants a low-cost legal person with limited liability and room for partners.
- An IT or export services company that can meet the conditions of a special regime, examined in the corporate tax guide.
The bottom line
A Georgian company is a cheap, fast, low-friction legal person with a tax model that rewards reinvestment. It is not a passport to the EU, not a residence permit, and not a bank account by default.
Settle three questions before registering.
- Vehicle: do you need a company, or would an individual entrepreneur do?
- Bank: can you show a bank a real business, with clients and a source of funds?
- Presence: will you live there, and have you planned the right to work?
If the answers hold, the rest is registration and budget. corpsec handles the registration with the National Agency of Public Registry, the charter and the registered office. See what the Georgia formation service covers, or continue with what it costs to set up a company in Georgia.
Frequently asked questions
Is Georgia a good place to set up a company in 2026?
It is a good place for a service business that sells abroad and reinvests profit, and for founders who plan to live there and will handle the work permit. It is a weak choice for EU-facing sellers and for holding companies with no Georgian activity.
Can a foreigner own 100% of a Georgian company?
Yes. A limited liability company can have a single shareholder and a single director, and both can be foreign. Some activities need a licence, and agricultural land has its own ownership rules.
Is the 1% tax available to a Georgian company?
Not to a standard limited liability company. The 1% rate comes with the small business status of an individual entrepreneur, within a turnover ceiling and for eligible activities. The company types guide explains the difference.
How is company profit taxed in Georgia?
Profit is taxed at 15% when it is distributed or treated as distributed, not when it is earned. A dividend then carries 5% withholding. The details and the special regimes are in the corporate tax guide.
Does owning a Georgian company let me live and work in Georgia?
Not by itself. Since 1 March 2026 foreigners working in Georgia need a right to work, with exemptions since April 2026 for remote work, services to foreign clients and managers of larger companies. Owning a company from abroad is unaffected.
Has the political situation changed the rules for companies?
No. Company law, registration and the tax model are unchanged. The 2024 foreign influence law and the stalled EU accession path mainly affect how some banks and partners assess risk.
Can I open a Georgian company remotely?
Registration can usually be done through a representative with a power of attorney. The bank account is the step most likely to need extra documents or a visit, as set out in the business bank account guide.
Is Georgia better than the UAE for a new company?
They answer different needs. Georgia is cheaper and simpler to enter and defers tax until distribution. The Emirates offer a larger regional market and established free zones at a higher cost. Compare the full running cost, not the headline tax rate.
Sources
- National Statistics Office of Georgia (Geostat), Gross Domestic Product of Georgia in 2025, released 20 March 2026: real growth of 7.5% in 2025 after 9.7% in 2024, nominal GDP of GEL 104,598.1 million
- Georgia Today with JUST Advisors, Doing Business in Georgia in 2026, 8 October 2026: the permit-based right to work for foreign nationals since 1 March 2026, the transition to 1 January 2027 and the GEL 2,000 fines
- Bloomberg, 21 May 2024: shares of TBC Bank, Bank of Georgia and Georgia Capital fall more than 20% as the foreign influence law passes, and the EU warns the accession process will halt
- Coface, Georgia country risk file: elevated political risk, foreign exchange reserves of about 2.6 to 3 months of imports, gross external debt near 75% of GDP
Official, read on 26 October 2026: the Geostat release of 20 March 2026 for growth in 2024 and 2025. Secondary and to reconfirm against the law itself before acting: the permit-based right to work in force since 1 March 2026, its transition date and its fines, reported by Georgia Today with JUST Advisors; the 15% tax on distributed profit and the 5% dividend withholding, reported by the same source and by formation agencies, and covered with their legal references in the corporate tax guide. Context, not law: the market reaction to the 2024 foreign influence law (Bloomberg) and the country risk reading (Coface). The dates of the trade agreements with the European Union (applied since 2014) and China (in force on 1 January 2018) are given from general knowledge and were not reopened at the source on the day of writing. The number of nationalities admitted for a one-year stay without a visa differs from 94 to 102 across secondary sources and is not given here. This is not legal or tax advice.