Business abroad: How to open a company in Georgia. Where is it more profitable to do business: in Russia or in Georgia? Is it difficult for a Russian to open a business in Georgia?

Every year Georgia becomes more attractive for entrepreneurial activity. According to the World Bank's Doing Business survey, the country is in the top 20 in terms of ease of doing business. When compiling the rating, factors such as taxation, starting a business, lending, international trade, and protecting the rights of investors are taken into account.

Is it difficult for a Russian to open a business in Georgia?

Many of the Russians to do business. They note that doing business there is much easier than in the Russian Federation. The Georgian law “On Entrepreneurs” approves the same rules for starting and running a business for both citizens of the country and foreigners.

Doing business in this state, you need to be prepared for the fact that things will move much more slowly than the business plan suggested. This is due to the measured rhythm of the country and the slowness of the locals. So being half an hour late is normal. And repairmen or builders will hand over the work many times later than the agreed time.

If an entrepreneur does not know the Georgian language, at the registration stage he needs a person who can translate the content of the documents and establish communication with the employees of the registration authorities. The name of the company in the documents is entered exclusively in Georgian, and on the signs you can additionally use the Latin alphabet. If within one working day after the application is submitted, a written warning about errors or other shortcomings in the design is not received, then the enterprise becomes officially registered.

The opinions of Russians on the question of where it is better to do business, in Georgia or in Russia, differ. There is almost no competition in Georgia, but the low solvency of the population has a negative impact. Due to the transparency of the business, the payment of taxes and the open calculation of salaries, the income from the business will be significantly lower than from the same activity in the Russian Federation. However, the absence of corruption and encroachment on business provides a more peaceful and stable existence.

Most Georgians speak Russian. Although knowledge of the Georgian language is not required, it will help the entrepreneur earn respect and trust.

How to open a company in Georgia

State. registration can be done simultaneously with the tax registration at the National Public Registry Agency under the Ministry of Justice. Registration takes only one day. The same amount will be spent on opening a bank account.

Main forms of registration:

• Individual entrepreneur
• Limited Liability Company
• Joint-stock company
• Limited partnership - limited liability partnership
• Joint and several liability company - partnership with unlimited liability
• cooperative
• Company branch

They differ in the degree of responsibility of the founders and the rights of the owners. An entrepreneur has the right to choose any form for registering a company in Georgia. Such as LLC and IP are in demand, other forms are suitable for large companies. It is important to remember that in accordance with a number of international agreements, an individual entrepreneur is liable to creditors for the obligations of the company with all his property, regardless of its location.

For an individual entrepreneur, a passport, a receipt for payment of state duty and a questionnaire are sufficient. If there is no own property in which the activity will be carried out, a certified rental or lease agreement is required. Commercial organizations are also required to provide a certified company charter signed by all founders and partners. It will be available in the public domain, as well as all other information about the participants and activities of any enterprise registered on the territory of Georgia. You can pay the fees and fill out all the paperwork right there at the House of Justice, and its employees can certify the registration documents.

There are activities for which you need to obtain a license or permission from the state. A complete list of them can be found in the Law "On Licenses and Permits".

Registering an individual entrepreneur will cost 20 GEL (approximately $ 8), and a commercial organization - 100 GEL.

It is possible to receive documents on the day of application - it will cost about 2 times more. In Russia, such opportunities are associated with corruption, while in Georgia, additional money goes to the budget.

What taxes to pay

If the annual income of an individual entrepreneur is not more than 30 thousand lari, he is exempt from taxes. With an annual income of up to 100 tons of lari, the income tax will be 5%, and the Georgian government plans to reduce it to 1%. Representatives of small businesses from the sphere of trade, financial companies, individual entrepreneurs with employees and licensed activities are not exempt from taxes.

The standard VAT rate for legal entities is 18%. The same for all legal entities. persons taxes: income - 20% and income tax - 15%. Since last year, the country has a provision on the basis of which jur. individuals are exempt from income tax when investing money in business development.

In Georgia, preferential taxation regimes are applied for foreigners:

• "Free warehouse enterprise" - for international carriers
• "Free Industrial Zone" - for the export of Georgian goods to the European Union
• For international financial companies

The taxpayer must register for VAT if the turnover is more than 100 thousand lari or if he produces excisable goods. To obtain the status of an electronic payer, you must submit a separate application to the Revenue Service, which controls taxes.

Every business has a cash register. All transactions are controlled by the tax authorities online.

Things to do

Thinking about what kind of business to open in Georgia, it is worth analyzing the pros and cons of both already promoted areas and free niches.

The following areas of business are currently in demand:

• Industry
• Commerce
• Service sector
• Tourism

There are already many competitors in these areas. To break into the lead and gain a foothold, a businessman should pay attention to the quality of service, develop a competent marketing plan and use more modern technologies.

Export is of great importance for the Georgian economy. Main export commodities: wine, mineral water, citrus fruits, nuts, scrap metal, ore, transport.

Such sectors of the economy as agriculture and energy are still free and attractive due to the lack of competition.

Good prospects are associated with Georgian real estate, because in recent years, prices for it have increased significantly, and the trend continues.

Georgia has a relatively cheap labor force on the one hand, and a lack of qualified personnel on the other. As a result of the ethnic war of the 1990s, the Georgian economy suffered, and universities for a long time could not produce specialists that would meet the modern needs of the market. There are catastrophically few experienced brand managers, IT specialists, skyscraper engineers. When choosing a niche, this should be borne in mind so that the lack of competent non-standard specialists does not become an unexpected problem.

Due to the ease of registration and low tax rates, Georgia is a comfortable place to do business. And employees of the tax authorities and representatives of professional associations, who are ready to provide advice, will allow you to get used to the system and do everything correctly, which is very important when we are just starting a business.

REGISTRATION OF A COMPANY IN GEORGIA

× On May 13, 2015, the State Duma of the Russian Federation adopted in the first reading Draft Law No. 754388-6 “On Voluntary Declaration of Property and Bank Accounts (Deposits) by Individuals”, which has already been named the “Law on Capital Amnesty”. The draft law contains norms for voluntary declaration of property and accounts (deposits) in banks. The appearance of this draft law is connected with the Address of the President of the Russian Federation to the Federal Assembly and paragraph 12 of the List of instructions for the implementation of the President's Address to the Federal Assembly, according to which a one-time exemption of Russian persons from tax and criminal liability should be granted on the condition foreign jurisdictions without paying the corresponding taxes on income received from sources in the Russian Federation”. However, despite the imminent adoption of the bill in the first reading, this document is the subject of discussion by the relevant committees of the State Duma and gives rise to a number of complaints and legal issues. On the whole, they agree that the draft law needs some revision before the second reading. In particular, the Legal Department draws attention to the fact that the relations regulated by Article 6 of the draft law and described in its other articles, from a legal point of view, are another attempt to introduce into domestic legislation such an institution of property management as trust (trust), which is typical for states Anglo-Saxon system of law (England, USA, Hong Kong, Cyprus and other "offshore" jurisdictions). This institution has little in common with the Russian institution of trust management of property, which appeared after the unsuccessful experience of introducing a trust into domestic law in the early 90s of the last century. In its conclusion, the Committee recalls that “the parties to these relations are not called “nominal owner” and “actual owner”, but the founder, trustee, beneficiary, protector (sometimes). The legal status of the property owner is not established by the adjectives “nominal”, “actual”. In general, attempts to introduce such a legal structure of the Anglo-Saxon system into domestic law related to the continental system of law break down on the fundamentally different approach of the two systems to the right of ownership, in particular, on the “duality” of the right of ownership of property, which is unacceptable from the point of view of the continental systems. By the way, it should be noted that the institution of the trust itself was formed under the influence not of common law, but of the so-called equity law, based on centuries-old English jurisprudence and the precedent of some of the decisions made. Another important point, which, in turn, draws the attention of the State Duma Committee on the Financial Market, is that “Article 4 of the draft law specifies a guarantee that persons who voluntarily declared property will not be held criminally and administratively liable. However, the bill does not clearly define the range of criminal acts and offenses for which the declarant will be released from liability. In the opinion of the Committee, in order to prevent cases of arbitrary interpretation by the law enforcer of the grounds for bringing the declarant (or his release) from criminal or administrative and administrative responsibility. It should be noted that the Civic Chamber of the Russian Federation and the responsible State Duma Committee on Budget and Taxes share a similar opinion. Such a list is likely to appear by the second reading. Given the close interaction of legislators with representatives of the FATF Group, it can be assumed that the provisions of the law will not apply to offenses related to fraudulent activities. It should be noted that the draft law already contains special provisions stating that it does not in any way affect, limit or provide for any exceptions in relation to the obligations of the Russian Federation provided for by the international treaties of the Russian Federation, including obligations in the field of combating money laundering and the financing of terrorism. This is an important point, since for non-compliance with such provisions, Russia risks being blacklisted by the FATF, which it already managed to visit in 2000. Also, the draft law does not clearly define the circle of persons entitled to act as declarants. The State Duma Committee on the Financial Market draws attention to the fact that “reading part 1 of article 3 of the draft law gives a certain idea that both the nominal and the actual owner of the property can act as a declarant. A number of other provisions of the draft law provide only indirect participation of the nominal owner in the declaration, often only with the simultaneous participation of the actual owner in the declaration procedure. Thus, in the opinion of the Committee, it is necessary, as part of the preparation of the draft law for the second reading, “to work out in detail the features of the procedure for declaring property and the participation of the parties in it, as well as the issues of concluding and observing an agreement on the transfer of property, since such aspects as the conclusion of an agreement and the subsequent transfer of property without a counter provision, the loss of guarantees by both parties in the event of dishonest actions of one of the parties create leverage and prerequisites for abuse of the right, including for illegal actions against owners using the institution of actual and nominal owners. Such a development of events is very likely, given that the structure of trust property (trust) that existed in the 1990s was often used for dubious operations of removing state property from ownership. In addition, according to the State Duma Committee on the financial market, the draft law contains provisions related to the mechanism for obtaining guarantees, which will clearly not contribute to the voluntary declaration of property from offshore. The provisions of Article 7, which condition the granting of guarantees on the fact of repatriation of offshore property, are ambiguous. The Committee points out that “Articles 4 and 7 of the draft define that only repatriation and declaration of property (together) allow obtaining guarantees under the program, but on condition that no criminal case has been opened against the declarant as of the date of submission of the declaration or against property subject to declaration is not subject to a tax audit. As a result, filing a declaration without repatriating property from an offshore is actually meaningless, since before filing a declaration it is necessary to repatriate property. At the same time, in the period between the repatriation of property and the filing of the declaration, the declarant is not provided with any temporary guarantees that, for example, an inspection will not be immediately started in relation to the declarant or his repatriated property, which, in turn, levels out all the guarantees provided for in Article 4. In view of the foregoing, it should be noted that despite the support from the involved Committees of the State Duma and the adoption in the first reading, this bill still leaves more questions than it answers how the state intends to “amnesty” the offshore capital of its citizens.

× The projected global increase in investment in alternative assets is expected to provide the Channel Islands - Guernsey, Jersey and Alderney - with significant preferences in the very near future. The corresponding forecast regarding the increase in the volume of alternative investments was given as part of the PwC report “Alternative Asset Management in 2020: Fast Forward to Center Stage” (Alternative Asset Management in 2020: a breakthrough to the leaders). According to the report, investment in alternative investments could double to $15.3 trillion by 2020 if the strong returns from capital markets continue to thrive on the back of supportive monetary policy and stable GDP growth in the region. By 2020, PwC predicts a fundamental increase in alternative investments from public and private pension funds. Thus, by 2020, the corresponding global assets of pension funds will reach 56.6 trillion US dollars, and alternative assets in their composition will play a much wider role. PwC expects alternative investment fund managers to continue to look into niches traditionally occupied by banks, i.e. to borrowing, securitization and financing. Others will start entering into partnership agreements with banks and major institutional investors, providing the latter with integrated expertise in managing new asset classes and building differentiated products.

× 12/01/2009 Legal Changes - Singapore, Jersey Singapore The Minister of Manpower, pursuant to the authority granted by section 7(8) of the Central Provident Fund Act, has issued the following Notice: Central Provident Fund Act (Amendment of First Schedule ) Notification 2009 This Notice announces minor technical amendments to the text of the First Schedule of the Central Guarantee Fund Law. Document type - Notice Document number - S 581/2009 Date of issue - November 10, 2009 Effective date - December 1, 2009 Authority that adopted the document - Minister of Labor pursuant to the authority granted by section 13(1) of the Accounting Standards Act, has issued the following Order: Accounting Standards Act (Amendment of Schedule) Order 2009 Minor technical amendments are made by this Order to the text of the Appendix to the Accounting Standards Act. Type of document - Notice Document number - S 587/2009 Date of adoption - November 25, 2009 Effective date - December 1, 2009 Authority that adopted the document - Secretary of the Treasury Publication of the document - Singapore Law Watch Jersey granted by Section 2(1) of the Taxation (Implementation) (Jersey) Law 2004 and paragraph 1.8.5 of the Strategic Plan 2006-2011 (Strategic Plan 2006 to 2011), approved by the States on June 27, 2006, issued the following Regulation: Taxation (Exchange of Information with Third Countries) (Amendment No. 4) (Jersey) Regulations 2009 Taxation (Exchange of Information with Third Countries) (Jersey) Regulations 2008). Document type - Bylaw Document number - R&O.118/2009 Date of adoption - November 18, 2009 Effective date - November 18, 2009 Issuing authority - Jersey States Printed publication of the document - Jersey Legal Information Board *** Jersey States pursuant to the powers conferred by Section 36(2) of the Proceeds of Crime (Jersey) Law 1999 (Proceeds of Crime (Jersey) Law 1999), issued the following Ordinance: Proceeds of Crime (Amendment of Schedule 2) (No. 2) (Jersey) Regulations 2009 This Regulation technically amends the text of Part A of Schedule 2 to the Proceeds of Crime (Jersey) Act 1999. Document type - Bylaw Document number - R&O.119/2009 Date of adoption - November 18, 2009 Effective date - November 25, 2009 Issuing authority - Jersey States Printed publication of the document - Jersey Legal Information Board *** Jersey States pursuant to the powers conferred by Sections 11(4) and 44(2) of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, issued the following Order : Proceeds of Crime (Supervisory Bodies) (Amendment of Law) (No. 2) (Jersey) Regulations 2009 This Regulation technically amends the text of the Annex to the Proceeds of Crime (Supervisory Bodies) (Jersey) Act 2008 . Document type - Bylaw Document number - R&O.120/2009 Date of adoption - November 18, 2009 Effective date - November 25, 2009 Adopting authority - Jersey States Printed publication of the document - Jersey Legal Information Board

× According to a statement from the Danish Ministry of Finance, the Danish tax authorities adopted a number of fundamental, successfully implemented measures last year to combat tax fraud. According to the ministry, the damage from fraudulent activities - according to the estimates of the tax authorities - amounted to about 40 million euros, while 160 such cases are still being investigated: the predicted damage from them is approximately similar to the figure mentioned. The Danish Cabinet of Ministers, as part of its ongoing efforts to combat tax evasion, has planned the implementation of a number of new measures. These measures include plans to impose a fee of 150% of the total amount of violations from next year on repeated violations, as well as blocking profits if an individual fails to provide tax inspectors with details regarding the receipt of profits from abroad.

× After the third reading in the State Duma, the bill “On Amendments to the Tax Code of the Russian Federation in order to increase the responsibility of tax agents for non-compliance with the requirements of legislation on taxes and fees” was submitted to the Federation Council for consideration. The draft federal law was developed in accordance with the order of the Government of the Russian Federation dated January 29, 2014 No. ISh-P13-586. Deputy Minister of Finance of the Russian Federation Sergey Dmitrievich Shatalov has been appointed as the official representative of the Government of the Russian Federation during the consideration of this bill by the chambers of the Federal Assembly of the Russian Federation. The authors of the draft law in the accompanying note indicate that at present the problem of untimely and incomplete withholding and transfer of taxes by tax agents to the budget system of the Russian Federation has become significantly aggravated, as a result of which the budgets of the constituent entities of the Russian Federation suffer significant losses, which does not allow solving the socio-economic problems of the Russian Federation and subjects of the Russian Federation. Thus, in 2013 alone, the tax authorities conducted more than 20,000 on-site tax audits of tax agents and found more than 15,000 violations of the deadlines for transferring personal income tax by tax agents. As a result of the inspections, more than 30 billion rubles of personal income tax was assessed. The purpose of the bill is to "improve tax administration and increase the responsibility of tax agents for non-compliance with the requirements of legislation on taxes and fees." To solve the problems described, the authors of the bill propose the following measures: Establishing the duty of tax agents to quarterly submit to the tax authority the calculation of the amounts of personal income tax calculated and withheld by the tax agent. The current lack of information from the tax authorities on the amounts of personal income tax calculated and withheld by the tax agent does not contribute to its full collection. The submission by tax agents of calculations of the amounts of personal income tax calculated and withheld by the tax agent will allow the tax authorities to promptly conduct cameral tax audits of the correctness of the calculation and withholding of personal income tax by tax agents and, in case of violations, bring them to justice. Introduction of responsibility of tax agents in the form of a fine in the amount of 1,000 rubles for failure to submit (late submission) to the tax authority the calculation of the amounts of personal income tax calculated and withheld by the tax agent. Suspension of operations of a tax agent on his bank accounts and transfers of his electronic funds in case of failure to submit the calculation of the amounts of personal income tax calculated and withheld by the tax agent to the tax authority within 10 days after the deadline for submitting such calculation. Establishing responsibility for the submission by tax agents to the tax authority of unreliable calculations of the amounts of personal income tax calculated and withheld by the tax agent and (or) information on the income of individuals in the expired tax period and the amounts of taxes calculated, withheld and transferred to the budget system of the Russian Federation, necessary for tax control, in the form of a fine in the amount of 500 rubles for each submitted document containing false information. In addition, the draft law specifies the terms for calculating, withholding and transferring tax amounts to the budget system of the Russian Federation. As a measure aimed at supporting bona fide tax agents, as well as in order to implement paragraph 1.9 of the action plan (“road map”) “Improving tax administration”, approved on November 14, 2013 by the Supervisory Board of the Agency for Strategic Initiatives, it is also proposed to establish a single transfer deadline to the budgetary system of the Russian Federation by a tax agent-employer of the amounts of personal income tax withheld by him in relation to payments of social benefits and vacation pay to his employees - no later than the last day of the month in which such payments were made. The preparation of the calculation of the amounts of personal income tax calculated and withheld by the tax agent does not require any additional accounting from the tax agent, since it is entirely formed from the data of tax accounting registers and can be done automatically. Thus, the proposed measures to introduce a new obligation for tax agents to quarterly submit the calculation of the amounts of personal income tax calculated and withheld by the tax agent, and the establishment of a single deadline for the transfer to the budget system of the Russian Federation by tax agents of the amounts of tax withheld in relation to payments to their employees of social allowances and vacation pay are generally balanced and should not lead to a deterioration in the rating of the Russian Federation. According to the authors of the bill, the implementation of the proposed measures will increase the efficiency of tax administration and their collection, as well as significantly increase the amount of income tax on personal income to the budgets of the constituent entities of the Russian Federation and local budgets. The State Duma Committee on Budget and Taxes, on the whole, supports the position of the authors of the bill. Based on the results of consideration of the draft federal law, the Committee notes the following. At the same time, the lack of up-to-date information from the tax authorities on accrued income, calculated and withheld tax amounts hinders the timely identification of unscrupulous tax agents. In order to strengthen tax control in relation to tax agents, the draft law proposes to establish the obligation to quarterly submit calculations of the amounts of personal income tax calculated and withheld by the tax agent. The Committee also notes that the amount of the fine proposed by the draft law for the submission by tax agents to the tax authorities of inaccurate information about the income of individuals in the expired tax period and the amounts of taxes calculated, withheld and transferred to the budget system of the Russian Federation (500 rubles for each document submitted containing inaccurate information) does not correspond to the amount of the fine established by the current version of paragraph 1 of Article 126 of the Code for failure to submit the documents and (or) other information provided for by the Code by the tax agent within the prescribed period (200 rubles for each document not submitted). The information obtained will allow the tax authorities to increase the efficiency of tax control, promptly conduct in-house tax audits of the correctness of the calculation and withholding of personal income tax by tax agents, which will lead to an increase in the collection of this tax. Simultaneously with the measure described above, the draft law proposes changes aimed at supporting conscientious tax agents by reducing their labor costs for the transfer of the amounts of withheld personal income tax to the budget system of the Russian Federation in relation to the payment of temporary disability benefits to their employees and vacation pay. In particular, it is proposed to establish a single deadline for the transfer to the budget system of the Russian Federation by the tax agent-employer of the amounts of personal income tax withheld by him in respect of these payments - no later than the last day of the month in which such payments were made. Considering that the measures proposed by the draft law should help to improve the completeness and timeliness of withholding and transferring taxes to the budget system of the Russian Federation, the Committee recommended that the State Duma adopt it in the first reading.

× The Government of Jersey has announced the start of public consultations regarding the regulation of virtual currencies such as Bitcoin. The government intends to create a business-friendly work environment that supports innovation, creates jobs, and accelerates the growth of the financial services sector and the development of digital infrastructure. According to the government, virtual currency systems can be fundamental components in the process of building a modern digital economy, and the introduction of an appropriate proportionate regulatory regime in this area will increase its credibility and direct it along an innovative development path. The published consultation paper highlights the most significant money laundering and terrorist financing risks associated with virtual currencies and the instruments most suitable for their regulation as an object of discussion. Methods successfully used by other jurisdictions are also taken into account.

× 11/17/2009 Legal Changes - United Kingdom United Kingdom Minister for Enterprise and Regulatory Reform under powers granted by sections 54(1)(c), 56(1)(a), 1193(1)(c), 1195 (1)(a) and 1292(1) of the Companies Act 2006 and sections 54(1)(c) and 56(1)(a) and 1292(1) of the Companies Act of 2006 in respect of limited partnerships under provisions 8 and 81 of the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009 (S.I. 2009/1804), issued the following Regulations : The Company, Limited Liability Partnership and Business Names (Public Authorities) Regulations 2009 Under sections 54(1)(c) and 1193(1)(c) of the Companies Act 2006, a person is required to obtain permission from the Minister of Business and regulatory reforms in order to register the name I am a company or business in the United Kingdom under a name that characterizes the company or business as connected with a public authority. Column (1) of the Appendix to this Ordinance sets out the public authorities designated for the above purposes by the Minister for Business and Regulatory Reform. Document Type - Ordinance Document Number - 2009 No. 2982 Date of Adoption - November 10, 2009 Effective Date - November 10, 2009 Authority that adopted the document - Minister for Enterprise and Regulatory Reforms Print publication that published the document - Office of Public Sector Information * ** The Minister for Enterprise and Regulatory Reform, pursuant to the authority granted by sections 15 and 17 of the Limited Liability Partnerships Act 2000, issued the following Regulations: Limited Liability Partnerships (Amendment) (No. 2) Regulations 2009 This Ordinance amends the general rules for the application of section 54 of the Companies Act 2006 to limited partnerships. The above section of the Law was previously applied to limited partnerships through provision 8 of the Limited Partnerships (Implementation of the Companies Act 2006) Ordinance 2009, placing restrictions on the registered names of limited partnerships that indicate the association of such partnerships with public authorities. Section 9 of the Government of Wales Act 2006 (Consequential Modifications, Transitional Provisions and Saving) Order 2009 (S.I. 2009/2958) amended section 54(1)(a) of the Companies Act 2006 in relation to companies to reflect references to the Welsh National Assembly. This Resolution expands the scope of the above amendments to limited partnerships. Type of Document - Ordinance Document Number - 2009 No. 2995 Date of Adoption - November 11, 2009 Effective Date - December 14, 2009 Authority that adopted the document - Minister for Business and Regulatory Reform Print publication that published the document - Office of Public Sector Information * ** The Treasury, pursuant to the authority granted by section 263(1) and (3) of the Banking Act of 2009 (Banking Act 2009), has issued the following Order: Banking Act 2009 (Commencement No. 4) Order 2009 a number of different provisions of the Banking Act 2009. Thus, Section 3 establishes that Part 6 of the Act (sections 207 to 227) comes into force on November 23, 2009. Part 6 of the Act abolishes existing provisions regarding the authorization of the issuance of banknotes in Scotland and Northern Ireland, and also replaces provisions for banks holding permission to issue banknotes. Section 4 establishes that the remaining provisions of Part 5 of the Act (interbank payment system) will come into force on 31 December 2009 Part 5 of the Act contains provisions for a new regulatory regime for the Bank of England to oversee an interbank payment system designated by the Treasury as recognized under section 184(1) of the System Act. Document type - Order Document number - 2009 No. 3000 (C. 129) Date of adoption - November 11, 2009 Effective date - November 11, 2009 Authority that adopted the document - Treasury Publication that published the document - Office of Public Sector Information ** * The Treasury, pursuant to the authority granted by sections 41(1) and 42 of the Finance Act 2008, has issued the following Regulations: Offshore Funds (Tax) Regulations 2009 Sections 41 and 42 of the Finance Act 2008 ( c. 9), (as amended and supplemented by the provisions of Part 1 of Schedule 22 to the Law on the State Budget of 2009 (c. 10), contain provisions regarding the tax treatment of participants in offshore funds. Section 41(1) of the State Budget Act 2008 provides that the Treasury, by means of ordinances, may establish provisions regarding the treatment of members of an offshore fund for the purposes of enacting various income tax provisions. Section 42(3) of the said Act provides that the previous regulations relating to offshore funds (Chapter 5 of Part 17 of the Income and Corporation Taxes Act of 1988 (c. 1)) may be repealed. The regulation contains provisions corresponding to all of the above: Type of document - Decree Document number - 2009 No. 3001 Date of adoption - November 12, 2009 Date of entry into force - December 1, 2009 Authority that adopted the document - Treasury Printed edition that published the document - Office of Public Sector Information *** HM Revenue and Customs, under authority granted by section 129(4) and (5) of the Public Accounts Act 2008, issued the following Order: Finance Act 2008, Section 128 and Part 2 of Schedule 43 ( Appointed Day, Transitional Provision and Savings) Order 2009 This Order establishes November 23, 2009 as the entry date for captivity under Section 128 and Part 2 of Schedule 43 to the Public Budget Act 2008. Type of document - Order Document number - 2009 No. 3024 (C. 131) Date of adoption - November 9, 2009 Effective date - November 9, 2009 Authority that adopted the document - HM Revenue and Customs Office of Public Sector Information *** The Financial Services Authority (FSA) announced changes made to some of the FSA Handbook's guidance tools (October 2009 review): Handbook Notice, 94 Among other things, changes were made to the Handbook through the following tools (Appendix "A" to the Notice): expanding the meaning of the term "EEA authorized payment institution" (FOS 2009/5, FSA 2009/57); prolonging the so-called. "Basel I capital floors" for the period from 2009 (FSA 2009/58); excluding certain types of investment firms from the high credit risk regime from 2011 (FSA 2009/59); modernizing the requirements for the basic equity capital of insurers in order to comply with the latest changes in a number of requirements of European directives and introduce technical amendments to the procedure for determining equity capital and premium reserves (FSA 2009/60); adjusting equity requirements and rules on professional liability insurance for investment firms (FSA 2009/62). Type of document - Notice Document number - 94 Date of adoption - 5 November 2009 Effective date - 6 November 2009 Authority that adopted the document - Financial Services Authority Press that published the document - UK FSA official website

× Custodial custody and monitoring of government debt securities under the client service was initiated by the Central Registry Agency in accordance with the decision of the Capital Markets Board of the Republic of Turkey. Previously, the process of storage and supervision of government securities was entrusted to the Central Bank of the country, which in fact was the central depository of debt instruments issued by the Republic. Under the current system, each of the members - intermediary institutions from among banks and brokerage firms - had their own separate account; however, despite the system introduced by the agency, clients' assets were kept in an account with different pools without the possibility of their further segregation (for example, in the structure of sub-accounts) at the investor-client level. Further segregation of client funds was reflected in the respective member's books. The new system provides greater comfort to investors in the event of insolvency of participating banks or brokerage firms. Debt securities are segregated from the assets of intermediary institutions, thus they can no longer be included in the assets of bankrupt institutions, thus preventing the problems that investors have faced in the past.

× Over the past few years, the word “microfinance” has been heard more and more often. In the West, more and more large international banks are participating in microfinance programs. The point of microfinance is to provide unsecured loans to small companies, individual entrepreneurs, or even just individuals who cannot provide standard collateral such as collateral. Moreover, in microfinance, the collateral may not be of much value to lenders because the cost of foreclosing and selling such collateral may exceed the value of the loan itself. The absence of collateral, however, increases the cost of financing, as the lender bears the risk of non-payment and difficulty in obtaining payment in the absence of collateral. Very often, microfinance interest can be several times higher than the interest paid for conventional lending. Microfinance is provided for up to one year and very often for less than 90 days. Interest periods are also set to be shorter - for example, one week. Products that may be offered under microcredit include: loans; saving; insurance. Microfinance initially appeared in developing countries where access to banks is limited and a small amount can help you start your own business, but at the moment it is also being successfully implemented in developed countries. This, for example, has a positive effect on the development of small businesses in Europe. Bank involvement in microfinance International banks are rarely involved directly in microfinance. It is not the legislation that prevents this, since the legislation does not prohibit banks from providing small loans. However, there are several practical reasons why large banks are not directly involved in microfinance: banks, when providing financing, want to be sure that the borrower will be able to return the funds provided to him. There is no such certainty when granting a loan to a small company or individual entrepreneur, which can disappear at any moment; For many types of financing, banks require collateral. The absence of collateral often results in banks having to build up more reserves than in secured transactions. In addition, the collateral serves as a guarantee for banks that the funds will be returned. In the absence of collateral, banks do not provide financing; many clients with small loans create a large organizational burden for the bank. Not every bank can bear such expenses for servicing a large number of small loans, despite the fact that the income from this business is insignificant; the establishment of special favorable conditions for microfinance (lack of collateral, etc.) can be regarded as discrimination against other persons - the bank's clients. All of the above are reasons why large banks are not directly involved in microfinance. However, they often participate in such programs through some local organization that also provides microfinance. Organizations providing microfinance In different countries, organizations providing microfinance exist in different organizational and legal forms. These can be: credit unions, commercial banks, non-governmental organizations, leasing companies, state banks, associations, self-organizing groups, suppliers, traders, etc. Given the growing role of microfinance organizations, the problems of such an organization can lead to serious social upheavals for the territory covered by the activities of microfinance organizations. Different countries regulate microfinance organizations in different ways: (a) Some countries have self-regulation of microfinance organizations This does not mean that microfinance organizations exist on their own. They usually approve internal control rules, corporate governance and information disclosure rules. However, government regulation is not introduced, as usually micro-agencies do not entail potential systemic risk, so attempts to regulate and monitor the market will not be justified in terms of its cost. In such cases, reporting may also exist, but reporting is not for prudential oversight but for statistical purposes. (b)  in other countries, only large microfinance institutions are regulated, whose activities can have a negative impact on the entire market. Selective regulation of microfinance organizations is used, among other things, in order to reduce the burden of maintaining an additional state apparatus on taxpayers. (c) total government regulation of all microfinance organizations. In such a case, all organizations operating in the field of microfinance are regulated. Regulatory Issues Arising from Microfinance Due to the specific nature of microfinance - that is, e. issuance of many small loans without collateral - when providing microfinance, attention is paid to various important issues related to microfinance: responsible management, clear action goals, accountability for failure to achieve the set goals; developing a standard accounting system for a microfinance organization to be transparent and simple; effective internal control; development of an effective mechanism for the protection of depositors; development of an effective information system, financial and operational standards; the correct choice of the legal form of organizations that provide funding; taxation of microfinance organizations and taxation of its clients, as well as taxation of investments of foreign funds and other agreements in such microfinance organizations; body and procedure for regulating microfinance organizations.

× British Chancellor of the Exchequer George Osborne has unveiled the details of the budget for the next five years, which includes an unexpected reduction in the corporate tax rate, the removal of the status of "resident without domicile" and an increase in the taxable ceiling for income and inheritance taxes. Today, with a corporate tax rate of 20%, the UK ranks first among the Group of Twenty (G20) countries as the country with the lowest tax rate. However, according to Osborne, the government will move forward with plans to cut the tax rate to 19% in April 2017 and 18% in 2020. In addition, as part of the work to simplify the taxation of dividends, the corresponding tax credit will be replaced by a new tax-free quota of £5,000 ($7,693) for dividend income for all taxpayers without exception. Dividend tax rates will be set at 7.5%, 32.5% and 38.1%. Also, the government plans to abandon the tax status of "resident without domicile", ie. in practice, any resident of Great Britain for any 15 years out of the previous twenty will be obliged to pay the full amount of taxes levied on the territory of the country on all world, i.e. received outside the country, income. This measure is due to be implemented in April 2017, and the profit for the treasury from its introduction is estimated at 1.5 billion pounds by 2020.

× 03.11.2009 Changes in legislation - Republic of Cyprus, United Kingdom, Guernsey Republic of Cyprus Securities and Exchange Commission (CySEC) based on the powers granted by section 144 of the Law on the provision of investment services, the implementation of investment activities, the functioning of regulated markets and other related matters 2007 issued the following Directive: Directive DI144-2007-04(C) Regarding charges and annual fees payable to the Commission , increase the previously established amount paid by the applicant company when submitting an application for issuing a permit for the right to carry out the activities of a Cypriot investment company, from two (2) to three (3) thousand Euros (? 3,000). Document Type - Directive Document Number - DI144-2007-04(C) Effective Date - October 30, 2009 Issuing Authority - Securities and Exchange Commission Publication of Document - Official Gazette United Kingdom Financial Services Authority ( FSA) announced changes made to some of the tools of the FSA Handbook (Review No. 2 September 2009): Handbook Notice, 93 Among other things, changes were made to the Handbook through two tools that together establish new liquidity rules for foreign banks, building cooperatives and investment firms and UK-based branches of foreign banks, including new, adjusted requirements to implement the new liquidity regime for the above firms established by the Financial Services Authority (FSA 2009/55 and FSA 2009/56 tools). Type of document - Notice Document number - 93 Date of issue - 30 September 2009 Effective date - 5 October 2009 Authority that issued the document - Financial Services Authority Publication of the document - UK FSA website *** HM Revenue and customs duties under the authority granted by section 393B(3)(d) and (4A) of the Income Tax (Income and Pensions) Act of 2003, issued the following Ordinance: Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) (Amendment) Regulations 2009 This Regulation amends the text of the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007 to exclude specified non-monetary benefits, provided to retirees and current employees under the Pension Benefit Scheme Employer-funded care from taxation of the above employer-funded benefits under section 394 of the Income Tax (Income and Pensions) Act 2003. In addition, this Ordinance includes in the text of the 2007 Ordinance an exception for screening and medical preventive examinations. Thus, the exemption applies if the screening and preventive checks meet the requirements for the exemption from tax liability under section 320B of the Income Tax (Income and Pensions) Act of 2003, as well as if certain payments are made before the onset of retirement age. Type of document - Decree Document number - 2009 No. 2886 Date of adoption - October 28, 2009 Effective date - December 1, 2009 Authority that adopted the document - Her Majesty's Office of Revenue and Customs Printed publication that published the document - Office of Public Sector Information *** Treasury under powers conferred by sections 7(8) and (9), 11(1), (5) and (6), 12(3) and (4), 65(1) and (7) and 67 of the Tax Credits Act of 2002 (Tax Credits Act 2002), and HM Revenue and Customs under the authority granted by sections 4(1)(b), 65(2) and (7) and 67 of the above of the Act, Issued the following Regulations: Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2009 This Regulation amends the text of the Working Tax Credit (Entitlement and Maximum Rate) Regulations of 2002 (Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002), P Tax Credits (Definition and Calculation of Income) Regulations 2002 and Tax Credits (Claims and Notifications) Regulations 2002) . Document type - Decree Document number - 2009 No. 2887 Date of adoption - October 28, 2009 Date of entry into force - November 21, 2009 Authority that adopted the document - HM Treasury / Office of Tax and Customs Printed edition that published the document - Office of Public Sector Information *** The Treasury pursuant to the authority granted by section 318D(2) of the Income Tax (Earnings and Pensions) Act of 2003 and following the relevant provisions of the Ordinances issued on pursuant to section 12 of the Tax Credits Act of 2002, in respect of granting a tax credit to a child custodian, issued the following Regulation: Income Tax (Qualifying Child Care) (No. 2) Regulations 2009 This Ordinance amends section 318C of the Income Tax (Income and Pensions) Act 2003 to include provisions regarding the interpretation of the term "qualifying child care" for the purposes of section 318A of the Act. Type of document - Decree Document number - 2009 No. 2888 Date of adoption - October 28, 2009 Date of entry into force - November 21, 2009 Authority that adopted the document - Treasury Printed edition that published the document - Office of Public Sector Information tax and customs duties under the authority granted by section 182(1)(a) of the Public Budget Act of 2002 (Finance Act 1993), section 229(1)(a) of the Public Budget Act of 1994 (Finance Act 1994) and paragraph 3(14) Schedule 11 to the Finance Act 2007, issued the following Regulations: Lloyd's Underwriters (Tax) (Amendment) Regulations 2009 This Regulation amends Lloyd's Underwriters (Tax) Regulations 2005 year (Lloyd's Underwriters (Tax) Regulations 2005 (S.I. 2005/3338)) for the purpose of applying the provisions of paragraph 2 of Schedule 11 to the Public Budget Law of 2007 to the general agents of the Lloyd's syndicates. Thus, Paragraph 2 of Schedule 11 to the above Law gives the right to an employee of the Revenue and Customs Administration to require a general insurance company to provide a report regarding the amount of technical reserves reflected in the accounts of this company. This Regulation amends paragraph 2 of the above Schedule for the purpose of applying it to the technical reserves of Lloyd's syndicates. Type of document - Decree Document number - 2009 No. 2889 Date of adoption - October 28, 2009 Date of entry into force - December 1, 2009 Authority that adopted the document - HM Revenue and Customs Printed edition that published the document - Office of Public Sector Infirmation Guernsey The Department of Treasury and Funds, pursuant to the authority granted by section 62A(4) of the Income Tax (Guernsey) Law, 1975, has issued the following Ordinance: The Income Tax (Deemed Distributions) (Exemptions) Regulations 2009 This Regulation contains provisions regarding the exemption from taxation of hidden dividends established under Chapter VIIIA of the Income Tax (Guernsey) Act 1975. The above exception applies to companies intending to distribute at least 65% of trading profits. Type of document - Decree Document number - 2009 No. 50 Date of adoption - October 6, 2009 Effective date - November 25, 2009 Authority that adopted the document - Treasury and Cash Department Printed publication that published the document - Guernsey Legal Resources *** The Treasury and Funds Department, pursuant to the powers conferred by sections 127, 144, 535 and 538 of the Companies (Guernsey) Law, 2008 (Companies (Guernsey) Law, 2008), has issued the following Ordinance: The Companies (Inspection and Copying of Documents) (Fees) Regulations, 2009 This Regulation, for the purposes of the Companies (Guernsey) Act 2008, provides for the fees payable by a person who checks a company's share register and by a person requesting a copy of that register. Document Type - Decree Document Number - 2009 No. 54 Date of Adoption - October 6, 2009 Effective - December 1, 2009 Authority that adopted the document - Department of Treasury and Cash

× Mississippi Gov. Hayley Barbour published an op-ed calling on French entrepreneurs to move their businesses to his state's jurisdiction. "My message to job-creating companies looking to get out of the French tax regime: Mississippi welcomes you," the governor wrote on the state's foreign policy website. “If you think that the French tax everything that moves, then you are not far from the truth,” the Republican added in his article. This is not the first news of its kind. In France, the memory of Prime Minister David Cameron's proposal to the national banks, put forward in January of this year, is still fresh. "The door is open and we can welcome French banks, businesses and other financial market players to the UK," the British politician said at the time.

× Since November 2014, the European Commission has been working on the creation of the Capital Markets Union. The Union of Capital Markets should contribute to the creation of a single stock market in the 28 countries of the European Union. Within the framework of the Capital Markets Union, it is expected: closer cooperation in the market between large and small companies; providing more opportunities in the stock market; strengthening cross-border cooperation and capital flow; improving access to finance for commercial companies, especially for small companies. Consultations In order to determine the concrete measures to be taken in connection with the establishment of the European Stock Market Union, the European Commission has initiated consultations with the authorities and the public. In the advisory proposal, the European Commission noted that European business still relies heavily on banks for financing and, to a lesser extent, on the stock market; This dependence of the European economy on bank lending, especially to small businesses, makes them exposed to additional risks during financial crises, when lending levels plummet. new investments are needed for all companies, including small enterprises, and infrastructure projects; it is necessary to attract more investments to the European Union from other countries of the world; In the United States, the level of foreign investment is about twice as high as in Europe. make the financial system more stable by opening up more funding opportunities. As part of the creation of the European Union for the stock market, it is planned to: prepare proposals to stimulate securitization and release bank balance sheets for lending; Securitization can help transfer risks and increase the ability of banks to provide new financing. It is planned to introduce simple, transparent and standardized securitization instruments to the market. revise the Prospectus Directive to make it easier for firms, especially small firms, to obtain investment and access foreign investors; The aim is to achieve such a status that small enterprises can receive financing as easily as large companies, so that the cost of accessing such financing is not high, and the amount of administrative barriers is minimal. In particular, in order to carry out the placement of securities, the company must prepare a detailed document - a prospectus, which reflects information about the companies, conditions and risks for investments. At present, preparing a prospectus for small and medium-sized enterprises is a cumbersome task. In this regard, the European Commission will revise the existing regulation on prospectuses in order to simplify some of its parts, facilitate the procedure for accepting a prospectus, exempt the company from the approval of the prospectus in some cases. make credit information about small businesses more accessible to make it easier for investors to invest; Access to finance during a crisis for small businesses becomes even tougher than for large companies. Usually information about small businesses is limited and can only be found in banks. Therefore, when small businesses want to access a wider range of investors, they do not always succeed. Increasing the availability of credit information, developing a minimum set of information that is provided for assessment and reporting, and standardizing such information can help develop financial instruments for refinancing small businesses. It is also planned to work on a credit scoring system, which could be used to assess the creditworthiness of small enterprises. Currently in Europe, 75% of companies run by their own owners do not have a credit score. introduce a European regime for private placements to make direct investment in small businesses more attractive; One form of financing is private placements, where companies offer securities to individuals or a small number of investors outside of public markets. Private placements may be more cost effective for smaller companies. Problems here arise in the lack of insolvency laws, standardized processes and documentation, and information on the creditworthiness of issuers. to support new European long-term investment funds through which investments in infrastructure and other long-term projects are possible. For these purposes, long-term investment funds (so-called ELTIFs) will start operating in the European Union, which are designed to make long-term investments and finance the economy. The European Stock Market Union is expected to help create more jobs; will attract new investments and develop the economy; expand the range of retail investment; will promote greater European integration, eliminate interstate barriers; create an effective level of consumer and investor protection. As part of the creation of the European Union for the stock market, it is planned to adopt legislative measures in such areas as the stock market, insolvency, corporate law, taxation, and non-legislative market methods aimed at increasing the efficiency of the market. For example, the development of standard forms and rules, increasing competitiveness in the market, facilitating access to the market, confirming the principle of free movement of capital.

× Apparently, the PRC's plans for a 5% increase in tax revenue this year are not destined to come true, according to the statement of officials from the Ministry of Finance of the state. According to a government report, tax revenues to the budget for the first five months of this year amounted to 402 billion US dollars, which is only 2% more than in the same period in 2014. The current situation determines the continuing slowdown in the growth of the Chinese economy. In addition, recent government decisions aimed at reducing the tax burden on businesses (primarily small businesses) have made their contribution. Despite the above, the PRC government intends to continue reforming the country's tax system. In the near future, further relaxations in the taxation of economic activities, improvement of customs policy, as well as a new round of tax policy reform in the resource and mineral extraction industry are expected. Moreover, the Chinese authorities are considering changes to property tax and personal income tax.

× 10/20/2009 Legal Changes - United States of America, United Kingdom United States of America The Securities and Exchange Commission (SEC) has submitted the following Proposed rules: Rules Requiring Internet Availability Of Proxy Materials Through this document, the Securities and Exchange Commission and exchanges proposes amendments to federal regulations issued under the Securities Exchange Act of 1934 (Securities Exchange Act of 1934) in order to improve the procedure for providing shareholders of the company with relevant materials before the general meeting (proxy materials). In particular, the Commission proposes to revise the existing rules in order to provide additional "flexibility" regarding the format of the notification of the availability of materials sent to shareholders regarding the upcoming general meeting via the Internet (Notice of Internet Availability of Proxy Materials). In addition, the Commission proposes the inclusion of a new rule giving issuers the right, as well as requiring shareholders to include explanatory information regarding the process of receiving, reviewing the materials distributed and further voting. Document Type - Regulations Document Number - 33-9073 Date of Adoption - October 14, 2009 Effective Date - Under Review Authority that adopted the document - Securities and Exchange Commission Printed publication that published the document - US SEC official website *** Commission The SEC has proposed the following Proposed rules: Extension of Filing Accommodation for Static Pool Information in Filings with Respect to Asset-backed Securities The Securities and Exchange Commission (SEC) proposes amendments through this document to rule 312 of the S-T Regulation, which provides a temporary exception to the filing of a report on asset-backed securities, in order to grant the right to publish information on a static pool (static pool), previously published in prospectuses issue, on the Web site, subject to certain conditions. Under rule 312, such information must be included in the prospectus contained in the registration document for asset-backed securities. This rule applies to asset-backed securities reports filed on or after December 31, 2009. Thus, the Commission is proposing an adjustment to the above rule to extend the specified period by one year: under the proposed extension, rule 312 would apply to reports of asset-backed securities filed on or after December 31, 2010. Doc Type - Regulations Doc Number - 33-9074 Adopted Date - October 19, 2009 Effective Date - Pending Adopting Authority - Securities and Exchange Commission community and local government issues, pursuant to the powers conferred by sections 74(2), (4) and (6), 178(1) of the Commonhold and Leasehold Reform Act of 2002 (Commonhold and Leasehold Reform Act 2002), issued the following Regulations: RTM Companies (Model Articles) (England) Regulations 2009 Subject to Chapter 1 of Part 2 of the Public and Leasing Property Reform Act 2002, a company referred to in that Chapter as an RTM company, can ensure the acquisition and use of rights in relation to the management of the premises. Section 73(2) of the said Act contains provisions establishing that a company is a company with the right to manage designated premises if it is a private company limited by guarantee, and its articles of association clarify that the purpose , or one of the goals of the company is to acquire and use the right to manage the above premises. This Ordinance, whose provisions shall apply exclusively in the territory of England, establishes the form and content of the articles of association of "RTM" companies. In addition, this Regulation abolishes the RTM Companies (Memorandum and Articles of Association) (England) Regulations 2003. Subject to the provisions of this RTM Bylaw, companies incorporated prior to November 9, 2009 may continue to operate within their charters until September 30, 2010. Alternatively, such companies may harmonize their charters in accordance with the provisions of this Bylaw. Type of document - Ordinance Document number - 2009 No. 2767 Date of adoption - October 13, 2009 Effective date - November 9, 2009 Authority that adopted the document - Minister of Communities and Local Government Publication that published the document - Office of Public Sector Information

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Set of company documents

The standard package of corporate documents includes:

• Certificate of registration (extract from the state register)
• Company charter
• Meeting minutes
• License

The documents will be prepared bound in Georgian-English with the certification of a local notary. Apostille certification is paid separately if necessary.

Order lead times

The deadline for completing an order for registering a new company and opening a bank account is 3 weeks.

Rated service

Given the fact that the register of directors and shareholders is publicly available, we recommend using a nominee service. The cost of services of a nominee director is $790 per year. This amount includes all standard documents, for example, a general power of attorney for the account manager for a period of 1 year, an agreement with a nominee director. The cost of services of a nominee shareholder is $490 per year.

The company must conduct business only with foreign counterparties. If a company does not hire employees and does not pay salaries, then there is no obligation to keep records and declare income.

Opening a bank account

Opening a bank account is carried out in the Bank of Georgia remotely and almost simultaneously with the registration of the company on the basis of a power of attorney prepared by the director of the company. Further, the nominee director issues a full-fledged general power of attorney for the representative of the client or beneficiary to manage the bank account.

Confidentiality

There is no register of beneficiaries in Georgia, that is, information about the real owner of the company is confidential. However, data on directors and shareholders (surname, name or designation) are available in the public register.

General information about jurisdiction

Georgia- a state in the western part of Transcaucasia on the eastern coast of the Black Sea.

total area

Capital

Population

The population is 3.73 million people.

Official language

Georgian.

Currency unit

Georgian lari (GEL).

State structure

Unitary state with a mixed form of government.

Economy

The leading industries of Georgia are: food, light and chemical industries, mechanical engineering, ferrous metallurgy, non-ferrous metallurgy.

Ease of registration and low tax rates are the realities of entrepreneurship in this country

Georgia is climbing steadily in international rankings reflecting the ease of doing business. In the European Doing Business 2017, it entered the top 20 for the first time, overtaking Italy, Spain, Greece and other countries. Comfortable conditions have been created for those who decide to move to Georgia and become an entrepreneur there. Step-by-step instructions on what package of documents, how much money and time it will take to open a business in this country.

What you need to know at the start

Georgia has a law “On Entrepreneurs”, according to which all the rules for starting and running a business are the same for foreigners and citizens of Georgia. Companies are registered with the National Public Registry Agency under the Ministry of Justice of Georgia, where data and documents about them are kept in public access, including the charter. This means that each person can easily obtain information about the activities and participants of a particular company.

The state and tax registration of the company takes place in the Houses of Justice at the same time - according to the principle of one window. Only registration of VAT and obtaining the status of an electronic payer require a separate application to the Revenue Service, which controls taxes in Georgia.

Some activities require state permission or licenses. First of all, these are areas related to the health and safety of a person, the country and the environment (health, construction, communications, energy, gambling, etc.). A complete list of such areas is contained in the Law "On Licenses and Permits". A foreign businessman can request permission for licensed areas of business on a par with a Georgian one.

There are no requirements for the minimum amount of authorized capital for organizations in the law; moreover, an entrepreneur may not even report this information to the state. Banks are the only exception. Any person can become the head of the company, regardless of his citizenship.

Which form of registration to choose

This choice depends only on the desire of the businessman. “In Georgia, the forms of individual entrepreneur and LLC are most often chosen. Other types are used, as a rule, by large companies, - analyzes an expert in corporate law Tariel Chochishvili. “The key differences between legal entities are in the rights of owners and the responsibility of the founders.”

Basic forms of registration:

individual entrepreneur;

limited liability company;

joint-stock company;

joint liability company (partnership with unlimited liability);

limited partnership (limited liability partnership);

cooperative;

company branch.

Individual entrepreneur is not a legal entity. At the same time, he is personally liable to creditors for any obligations arising in connection with his business activities.

“To become an individual entrepreneur, you need to register in Georgia,” notes Oleg Zobov, an entrepreneur, owner of a travel company in Georgia. “And if you have not purchased your housing here, you will have to ask for help with the registration of Georgian citizens.”

“According to a number of international agreements (including those in the post-Soviet space, including Russia), a foreigner is liable with all his property available to creditors, regardless of the country in which this property is located,” explains Tariel Chochishvili.

Limited Liability Company is the most popular form of business. The liability of founders to creditors is limited only by the property of the company, and to each other - by shares in the total capital. A company can be established in Georgia by any individual or legal entity, and its capital is divided into shares only once, without the right to issue new ones.

Joint-stock company- a legal entity, the authorized capital of which is divided into shares. Shareholders can issue different types of shares and increase the capital of the company by issuing additional shares. The liability of a joint stock company is limited to the value of assets, and shareholders are not liable for the company's obligations to third parties.

Solidary Responsibility Society- a company in which several partners carry out permanent and independent business activities on behalf of the company. The founders are personally responsible for the obligations of the company. Partners can only be individuals.

Limited company brings together several partners to operate under a common brand name. The Company has two types of partners: limited partners (limited partners), whose liability to creditors is only to pay the guarantee amount, and full partners (complementaries), whose liability is not limited. Dividends may be distributed among the limited partners.

cooperative is created with the aim of developing a common business and increasing the profits of its participants. First of all, this form of business is aimed at achieving the interests of all participants, and making a profit fades into the background. The cooperative is a legal entity. The liability of cooperative members to creditors is limited to their own property.

Company branch- a subdivision of a business entity that is not a separate legal entity. The responsibility of the founder cannot be limited to the assets of the branch itself: he is liable for all obligations of the branch.

How to file your business

“Opening a business will take no more than 30 minutes,” says Georgian entrepreneur Solomon Mamuchishvili. “To do this, you need to come to the House of Justice, fill out documents together with consultants and pay all fees on the spot.”

If an entrepreneur does not speak Georgian, the presence of a “translator” is obligatory for him, that is, a person who will help to familiarize himself with the documents and correctly understand the employees of the registration services.

The future individual entrepreneur needs to have an identity document, a questionnaire that can be filled out on the spot, and a receipt for payment of the state duty. If the businessman does not own the real estate in which he is to conduct his business, then the consent of the owner or a drawn up and certified agreement on the use of the specified object (lease, hire, etc.) will be required.

The cost of registering an individual entrepreneur in Georgia is 20 lari (about $ 8) when registering in one working day and 50 lari ($ 21) in case of issuing documents on the day of application

For commercial organizations, more documents will be required:

application (filled in by the operator accepting the documents);

a copy of the identity card;

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

receipt for payment of state duty.

If these papers are submitted by a representative of the founders, he must have an identity card and documents confirming his authority. Registration documentation can be certified by a notary or an employee of the House of Justice.

The name of the company is written only in Georgian, but this will not affect the possibility of using the Latin alphabet on signs along with the Georgian version.

The cost of registering a company is 100 lari (approximately $42) in case of registration of a package of documents in one working day and 200 lari (approximately $83) in case of urgent registration.

Taxation

Since January 1, 2017, a provision has come into force in Georgia, according to which law firms may not pay income tax if they send funds for business development.

For legal entities, the standard rate for value added tax is 18% (for electricity, shipping, tour operators, a zero VAT rate is applied). Income tax - 15%, income tax - 20%.

An individual entrepreneur can take advantage of a preferential tax regime: if his income does not exceed 30 thousand lari (about 12.5 thousand dollars) per year, then he is exempt from taxes. This rule does not apply to trade, the work of financial companies (for example, currency exchange offices), licensed activities and individual entrepreneurs with employees. If a businessman earns up to 100 thousand lari (about 42 thousand dollars) a year, then he will have to pay 5% income tax.

There are three preferential taxation regimes in Georgia.

"Free industrial zones" for the export of Georgian goods to the EU market.

"Free warehouse enterprise" for international shipping companies.

For an international financial company, which is exempt from income tax and tax on income from securities.

How to close a business

“We need to submit documents for closing the company to the House of Justice, and if it has no debts to creditors, then there will be no problems. The Revenue Service will conduct a tax audit, which can take up to three months. Based on the results of the check, the registration of the company is canceled in the register,” explains Tariel Chochishvili.

You can cancel the registration of an individual entrepreneur within one working day. The liquidation process of a legal entity must be completed no later than four months in case the company has no debts.

Instead of a resume

Sometimes a person is separated from his own business only by the lack of information on how to properly organize his business. In Georgia, it is easy to get help and support from the professional community. There are state and private programs to support small and medium-sized businesses, co-finance business projects.

How to independently register a company in Georgia?

At the beginning of 2019, Georgia ranks 6th in the Doing Business ranking. One of the main factors that influenced this is the simplicity and ease of registering a company.

The Law of Georgia “On Entrepreneurs” equally applies to both citizens of Georgia and non-residents, and the “one-stop shop” principle operates in the state bodies of Georgia, which allows you to get all the necessary permits from one place. Therefore, if you do not take into account obtaining licenses for activities and opening a corporate account, the process of registering a company for non-residents in Georgia takes only one day. In this article you will find comprehensive information that will help you plan a visit to Georgia and self-registration of a turnkey company.

Necessary documents for self-registration of a company in Georgia

Before you think about traveling to a country with a unique nature, you have to prepare the necessary documents for registration. In Georgia, the organizational and legal forms of an enterprise will not reveal anything new to residents of post-Soviet countries:

• Individual entrepreneur
• Joint-stock company.
• Limited Liability Company.
• Cooperative.
• Joint responsibility society.
• Limited society.
• Company branch.

Depending on the legal form and the person of the founder (physical or legal), you will need to prepare a different package of documents. Documents must be provided in Georgian, and they can be submitted by persons directly interested in the procedure or their representative.

The founder of the company is an individual

The founder of the company is a legal entity

• Certificate of registration of a legal entity or an extract from the trade register.
• Company charter.
• Valid international passports of directors, shareholders, authorized representatives.

To register as an individual entrepreneur, you will need to provide:

• A real estate lease agreement or other document of ownership certified by a notary (in case the place of Georgian registration differs from that indicated in the passport).

To register a legal entity of permitted legal forms, a company will need to provide:

• A completed application from the operator in the territorial office of the House of Justice (filled in by the operator).
• A copy of an international passport.
• Notarized charter of the company, signed by all founders.
• A receipt confirming the payment of the registration fee (can be paid on the spot).
• A notarized document of representation and a copy of an international passport (if the process is carried out by a representative of the registrant).

There are no requirements for the uniqueness of the company name in the country, but it must be provided in the Georgian language or in the Latin alphabet, including components of the Georgian alphabet. You can register a company of any permitted legal form both at the time of submission of documents, and within 1 working day. The state duty in each case will be of a different value:

	DAY TO DAY	WITHIN 1 WORKING DAY
INDIVIDUAL ENTREPRENEUR	19USD	8 USD
OTHER LEGAL FORM	76USD	38 USD

Visit to Georgia for self-registration of a company

After preparing the documents, the non-resident is waiting for the second step of registering a company - a personal appeal to the territorial branch of the House of Justice of Georgia. It can be reached by air, rail and road. The fastest way is by air. The flight time to the capital of Georgia - Tbilisi will be:

• From Kyiv - 2.5 hours (ticket price - from 150 USD).
• From Moscow - 2.5-3 hours (ticket price - 200-260 USD).
• From Minsk - 3 hours (ticket price - from 220 USD).
• From Baku - 1 hour (ticket price - from 160 USD).
• From Astana - 3.5 hours (ticket price - from 315 USD).
• From Chisinau (with transfers) - from 6 hours (ticket price - from 370 USD).

Arriving in the capital of Georgia, you will find the territorial office of the House of Justice at : right bank of the Kura, st. Quay, 2. The Tbilisi branch of the House of Justice can be reached from Tbilisi International Airport by taxi (the driver can request from "non-local" from 19 to 60 USD). Another option is to rent a car (you can order it to the airport in advance). The branch is open from 09:00 to 18:00. Here you will pass the state and tax registration of your company.

P.S. Regarding car rental in Georgia, this is a great reason to drive around the mountain slopes of the Caucasus Mountains while all the documents are under consideration. For example, renting a Lexus LX 470 or Mitsubishi Pajero IO SUV will cost you about $30 per day.

Obtaining a permit/license to conduct commercial activities after registering a company in Georgia

Some types of business activities in Georgia are subject to a license or permit. You can check out the full list here: To obtain them, you must prepare the following package of documents:

• For an individual entrepreneur - extracts from the state register.
• For a legal entity - extracts from the state register and notarized copies of constituent documents.
• For an individual - a copy of identification documents established by law.

They will need to be submitted to the appropriate government department. Processing time will be 20-30 business days. The amount of the state duty depends on the specific type of activity.

Independent opening of a corporate account for a registered company in Georgia

After registering a company in the House of Justice and obtaining licenses, the owner of a company in Georgia will have to complete the final stage - to open a corporate account. To prepare a Georgian company for financial activity, you need to personally contact the branch of the selected bank in Tbilisi:

• : st. Gagarina, d.29A.
• st. Marianishvili, d.7.
• Terabank: Ave. Tsamebuli, D.3.
• BasisBank: st. Chavchavadze, D.39A.
• Liberty Bank: Ave. Chavchavadze, D.74.

On average, banks open an account within 2-3 business days. To open a corporate account, all documents and licenses are accompanied by the following notarized package of documents (in Georgian and English):

• A completed, printed application form signed by each shareholder, director, beneficiary.
• Copies of international passports of each shareholder, director, beneficiary.
• Extract from the state register.
• Memorandum and articles of association of the company.
• Name, legal address, registration number of the company.
• Sample signatures of shareholders, directors, beneficiaries.

The total cost of self-registration of a company in Georgia is from 1900 EUR

Summing up, in order to register a company in Georgia yourself, taking into account the opening of a corporate account, you will have to:

1. Collect the necessary list of documents.
2. Translate all documents into Georgian and English, notarize.
3. Personally visit the territorial divisions of the House of Justice in Georgia.
4. Submit all documents and obtain an extract from the state register.
5. Apply to the administrative authority for a license or permit (if necessary).
6. Contact the bank with the necessary list of documents for opening a corporate account.

If you decide to go through the registration process yourself, be prepared to give it about 4 days. In addition to corporate moments, the main expenses for flights and state fees, it is worth considering the budget for hotel accommodation and meals. The cost of a daily stay in a three-star hotel on the outskirts of the city averages from 40 USD, in the center - from 60 USD. will cost an average of 23 USD.

It turns out that for self-registration of a company in Georgia, you will need at least 4 days and a travel budget of about 1900 EUR (excluding the cost of translation of documents, notary services and opening a corporate account).

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