How does the law "On Entrepreneurs" work in Georgia?
There is a law "On Entrepreneurs" in Georgia, according to which all the rules for starting and running a business apply equally to both Georgian citizens and foreign citizens.
Are permits or licenses required for certain activities?
Some types of activities require state permits or licenses. A full list of such activities can be found in the Law on Licenses and Permits. These are the fields related to human health and safety, the country and the environment: health care, construction, communications, energy, gambling and others.
What is the most popular legal form in Georgia?
As for the choice of the legal form for a company, the most popular in Georgia is individual entrepreneurship or LLC (Limited Liability Company). Other available forms: SLC - solidary liability company/unlimited partnership, KC- Komandite Company, JSC - joint stock company, cooperative, branch company.
What is needed to start a business in Georgia ?
It is necessary to come to the House of Justice to start a business in Georgia and, together with consultants, fill out the documents and pay all state fees on the spot.
What documents are required for registration?

For registration, a future individual entrepreneur must have the following with:

  • a document proving the identity;

  • Questionnaire (can be filled out on the spot);

  • A receipt for payment of the state duty;

  • A charter in Georgian and Russian/English languages;

  • A consent of the owner or an agreement drawn up and certified on the use of the object (rental contract, lease), at the address of which the business is registered (if the place of registration is not owned by the applicant).

 

How much does registration cost ?
The cost of registration of IE is 20 GEL (about $7) for 1 working day. In case of urgent registration and issuing of documents on the day of application the cost of registration is 50 GEL i.e. $17.
What documents are required to register a foreign commercial organization?

The following documents are needed for the registration of the foreign commercial organization:

  • application (to be filled out by the operator who receives the documents);

  • copy of an ID card;

  • An agreement/charter signed by all partners/founders and duly certified;

  • A receipt for payment of the state duty;

  • If the documents are submitted by a representative of the founders, he/she must have the documents proving his/her authority and ID card. 

Who can certify documents and how much does registration cost?
Registration documents can be certified by a notary or an employee of the House of Justice. The cost of registration is 100 GEL ($33 USD) for one working day and 200 GEL ($66 USD) in case of urgent registration and issuance of documents on the day of application.
What happens after submitting documents?
Once an applicant submits documents for opening a company to the House of Justice, all information about the company, in particular the registration status and scans of documents, appear at the link provided. All documents are publicly available.
What should an applicant do after receiving company documents?
After receiving the company documents at the House of Justice, the applicant must register on the website of the Georgia Revenue Service and wait for an e-mail inviting him to come to the office of the Revenue Service to confirm the e-signature.
What is the corporate tax rate in Georgia ?
corporate tax - 15%, however, since January 1, 2017 there is a provision in Georgia, according to which legal companies may not pay tax on profits if they divert funds for business development, thus, the tax is not paid on profits, but only on dividends (5%);
What is the Value Added tax rate ?
Value Added Tax - 18% (standard rate);
What is the Citizen’s income tax rate?
Citizens' income tax - 20%;
How much is Import tax ?
Import tax (customs duty) - 0%/5%/12% (rate depends on the type of goods);
How much is Excise tax ?
Excise - differentiated depending on the type of goods and services
What are the advantages of an individual entrepreneur?
An individual entrepreneur can benefit from a preferential tax regime. If its income per year does not exceed 30 thousand GEL ($ 12.5 thousand dollars), it is exempt from taxes. This rule does not apply to trade, operation of financial companies (such as currency exchange offices), licensed activities and individual entrepreneurs with employees. If a businessman has earned up to 100 thousand GEL (about 42 thousand dollars), he will have to pay 5% tax on income.
What is the principle of registering companies in Georgia ?
State and tax registration of a company is performed at the House of Justice on a "one-stop" basis. VAT registration and e-payer status require a separate application to the Revenue Service, responsible for the tax system of Georgia.
What banks are in Georgia?

List of commercial banks operating in Georgia (according to the National Bank of Georgia):

TBC

Bank Bank of Georgia

Liberty Bank

  Basisbank

VTB Bank

Cartu Bank

ProCredit Bank

Silk Road Bank

Ziraat Bank

Georgia Isbank Georgia

TeraBank

Halyk Bank Georgia

PASHA Bank

Georgia Finca Bank

Georgia Credo Bank

What documents are required to open a company's current account in a bank of Georgia?

Banks in Georgia work with foreign currency payments. It is possible to open an account for free. For opening an account for a company in a Georgian bank you need:


1) To choose the bank the service terms of which are the most acceptable to you. Most banks in Georgia have similar versions of their websites, some have English and Russian versions.

2) You can open an account at the bank by visiting the branch in person or by giving a power of attorney to your representative.

3) The list of documents required to open a bank account in Georgia:

  • Passport and notarized passport copies (beneficiaries and signatories on the account);

  • Extract from the Registry (Certificate of Good Standing);

  • Notarized copies of the foundation documents (certificate of foundation, memorandum of association, articles of association, appointments of directors, power of attorney, trust declarations);

  • A brief description of the business, turnover, partners.

How is e-commerce developing in Georgia?
Georgia is developing a law on e-commerce, curated by the Ministry of Economy and Sustainable Development of Georgia.
Is online shopping common in Georgia ?
Online shopping is very common in the country. Preferred payment methods are credit/debit cards, electronic payment systems.
What e-commerce platforms are popular in Georgia ?

Popular e-commerce platforms in Georgia: tbconline.ge, extra.ge, vendoo.ge, moitane.ge project networks My.ge (www.MyAuto.ge, www.MyMarket.ge, www.MyHome.ge, www.MyParts.ge, www.MySports.ge, MyJobs.ge).


 

Are any commercial and social platforms in Georgia?

In May 2018, Georgian Post launched an e-commerce platform https://maleo.ge/ , that allows you to buy and sell products through an app both in Georgia and abroad. At the same time, Georgian Post serves as the delivery service. Thanks to the platform, local businesses are able to export their products. Thus, the platform contains both commercial and social components.


Can startups from other countries participate in startup support programs?
Startups from other countries can register a legal entity and participate in startup support programs organized by the Georgia Innovation and Technology Agency (GITA - www.gita.gov.ge). Information about the programs can be found at www.grants.gov.ge . Grant competitions are held twice a year. The Georgian government has also announced plans to open a Business Advisory Board in order to mobilize resources for the program.
What other startup support programs are there in Georgia?

The program 500Startups (https://ecosystems.500.co/500georgia), the world's leading startup driver in partnership with Bank of Georgia, is also launched in Georgia. The program accepts regional applications, conducts the acceleration process, and provides access to funding. The winners get the opportunity to continue their acceleration in Silicon Valley.


What recruiting agencies are in Georgia ?

www.FindIT.ge – the leading IT personnel recruiting agency in Georgia.


Брейн Сорс Интернешнл – The representative office of an international recruitment agency, provides services for the search for top managers and IT specialists. 


HR Partners – a company providing recruitment services in Georgia in the following areas: sales and marketing, accounting and finance, administration, logistics, management, production.


HR outsourcing – a company that provides HR services in Georgia and offers a special package of services for startups.


Job Gear – a company that provides search and recruitment services for businesses.


Insource - consulting and recruiting company. It helps businesses find top managers, middle rank managers, and specialists from various fields.


Adelante - a company that provides recruitment services for businesses.


One Point - Personnel outsourcing company, provides recruitment services in banking, IT, HR, finance, advertising business, communications and other areas.


Jara HR – a company that provides HR consulting and recruitment services in Georgia.


MyJobs.ge – is a site for searching for specialists in Georgia in a number of professions. You can browse the resume database here, as well as add your job openings.


HR.ge – is for searching for specialists in Georgia in a number of areas. The site has a database of resumes and job openings in a number of areas, including IT, marketing, etc. 


newjob.ge – the site allows you to post your job.


What platforms for accelerating startups are there in Georgia?

Spark Business Accelerator in Tbilisi. It offers startups co-working services, the opportunity to get individual advice from experts in finance, marketing, and business analysis. It supports entrepreneurs working in such fields as information technologies, innovative business ideas in various fields, energy-efficient technologies and innovations, tourism, education, medicine, sports and health care, traditional crafts. The accelerator was created thanks to the initiative of Tbilisi City Hall together with the Georgian Employers' Association within the framework of the EU initiative "Mayors for Economic Growth" (M4EG). The address of the Accelerator  is Tsotne Dadiani str 164, Tbilisi, Georgia.

FasterCapital in Georgia is a branch of an international online incubator and accelerator. FasterCapital has three startups from Georgia under acceleration.

Acceleration Program 500 Startups in Georgia, launched in 2020 with the support of the World Bank, the Georgian Agency for Innovation and Technology, and Bank of Georgia. The program will last 16 months, with about 30 tech startups at an early stage of development.

UG Startup Factory accelerator. Acceleratoris implementing its sixth acceleration program (applications are accepted until the end of September 2020). The duration of the program is 2 months, during which the participating projects will be able to test and test a hypothesis, form a team, select a business model, create an MVP, prepare for negotiations with investors and present their product to the audience. Program participants will have an opportunity to raise funding for their startup through the Startup Fund organized by Future Laboratory and the University of Georgia.


What Co-working spaces are in Georgia?

Name - Regus

Address - Liberty Square, 2 Leonidze Street, "Tabidze 1" Business Center, 4th Floor, Tbilisi, 0105

Web-address - https://www.regus.ru/coworking-space/georgia/tbilisi/tbilisi-freedom-square 

Overview -

Working hours -

The rent price of a fixed workplace - from $6 / 1 hour

Price of a workplace in Open Space - / Rent a personal office space - / Availability of rooms for meetings - yes

 

Name - Regus

Address - BCV, 71 Vazha-Pshavela Ave., Block 2, Level 2, Tbilisi, 0186

WEB-address - https://www.regus.ru/coworking-space/georgia/tbilisi/tbilisi-vazha-pshavela 

Overview -

Working Hours -

Price of rent of a fixed working place - from $4 / 1 hour

Price of a workplace in Open Space - /

Personal office space rental - /

Availability of meeting rooms – yes

 

Name - Impact Hub Tbilisi

Address - Fabrika, 8 Egnate Ninoshvili Str 0102, Tbilisi, Georgia +995 577 425 611

WEB-address - https://tbilisi.impacthub.net/ 

Overview - http://www.dariko.net/ru/freelancers-spots-of-tbilisi/ 

Working Hours -

Rental price of a fixed workplace - from /

Open Space workspace rental price - / Personal office space rental - / Availability of meeting rooms - yes

 

Name - m2collective

Address - Kartozia str. 10, Tbilisi. Tel: 2 444 111, (577) 04 00 11

WEB-address - http://www.m2collective.ge/ 

Overview -

Working hours -

Rental price of a fixed workplace - from /.

Price of a workplace in Open Space - / Personal Office Space Rental - / Meeting Rooms Availability -

 

Name: Technopark Georgia (based on GITA)

Address: Ocrocana, 7 Inovatsia Street, Tbilisi. Tel.200 44 82

WEB-address - https://www.gita.gov.ge/ 

Overview -

Working hours -

Rental price of a fixed workplace - from /

Open Space workspace price - / Personal office space rental - / Meeting room availability -

 

More co-working spaces can be found here.

 


 

 

What are the ways to attract investment in Georgia?

There are several ways to attract investment in a startup in Georgia:


  1. Grant programs of the Government of Georgia and international organizations for startups.

  • Startup Georgia program. It was launched in June 2016 and since then has helped hundreds of business ideas come to fruition. The program is initiated by the Ministry of Economy and Sustainable Development of Georgia, the Georgian Innovation and Technology Agency (GITA), and the Georgia Partnership Fund (a state investment fund aimed at attracting investment to the country). The program allocates grants for start-ups (one project may qualify for a grant ranging from GEL 15,000 to 100,000, or, from $4,640 to $30,960).


  • USAID Georgia Growth Program (USAID Zrda). This program provides grants for innovative business ideas in Georgian villages near the border with the self-declared republics of South Ossetia and Abkhazia.

    • GENIE project initiated by the World Bank. 


  1. Financing of startups in Georgia by banks:


  • Startuper program from TBC Bank. The program provides startups with financial and non-financial services such as loans, rentals, education, meetings, workshops. The goal of the project is to form a developed startup ecosystem in Georgia. The program has several package offerings for startup financing, e.g., for startups in catering, agriculture, tourism, etc.

  • Bank of Georgia Female Start Upper. A program for women entrepreneurs, launched in December 2016. To take part in this project, a company must be registered as a legal entity and managed by a female director or partner.

  • Innovfin by ProCredit Bank. It is implemented in cooperation with the European Investment Bank Group.

  1. Business Angels (Business Angel Network of Georgia) and venture funds.



  • The Georgian Venture Capital Association, GVCA) – an organization aiming to develop and consolidate the venture capital and private equity sectors in Georgia by creating a favorable investment climate, legislative framework, encouraging an entrepreneurial culture, and supporting startups.


What possibility of using blockchain technology is in Georgia?

Georgia shows interest in the introduction of blockchain and cryptocurrencies at the state level.

Since February 2017, blockchain has been used in Georgia to sell property rights and register the purchase of land. Examples of improvements achieved by blockchain in this area include:

  • Transparency in obtaining title to land and real estate has increased;

  • The time needed to complete a transaction has been reduced (notary services are no longer necessary);

  • Possibilities of tampering with title documents have been minimized.


In 2019, the country passed a law to regulate cryptocurrencies, which establishes the following:

  • bitcoin in Georgia is not considered a payment instrument, but a digital asset, transactions with which take place in electronic form;

  • Both individuals and legal entities are exempt from paying value added tax (VAT) when selling cryptocurrency, while, unlike legal entities, individuals are also exempt from paying income tax when exchanging cryptocurrencies for national or foreign currency.


In 2018 and 2019, Tbilisi hosted the thematic conference "Digital Heat" on bitcoin, blockchain, and mining. Blockchain-based smart contract solutions are being developed to simplify the business process.


In 2019, Charles Hoskinson, one of the co-founders of Ethereum and head of the IOHK blockchain project, visited Georgia, where he met with Prime Minister Mamuka Bakhtadze. As a result of the meeting, several memorandums of understanding were signed with the Georgian authorities, as well as with Tbilisi University. It was agreed that IOHK, will develop a blockchain system to issue digital passports for Georgia. The system can use Cardano blockchain, and also involves the creation of a separate token to encourage network participants to verify and validate identity when creating a digital ID.


The Georgian government plans to introduce blockchain technology into the fiscal system. This will ensure the transparency of the system and make it safe from corruption. In addition, blockchain in Georgia's fiscal system will make doing business easier - settlements will be transparent (all transactions will be displayed in real time), and amounts will be debited quickly and in an organized manner.