Who is a beneficiary in Georgia, what opportunities are available to Georgian beneficiaries, business for foreign entrepreneurs in Georgia.
Every foreign entrepreneur in Georgia needs to understand the concept of a beneficiary. Find out who a beneficiary is, what are the differences and features of beneficiary owners in Georgia. Follow the link now and become the owner of a successful business in Georgia!
Beneficiary in Georgia⬇️
Anyone can become a beneficiary in Georgia, including foreign citizens. However, for companies whose owners are non-residents of the country, it is more difficult to open a corporate account in a Georgian bank.
In this article, we will talk about who is meant by a beneficiary and what every business owner in Georgia should understand.
General concept of a beneficiary
If a person receives a portion of the profits from legal entities, they are considered a beneficiary. If another company obtains such a benefit, then the beneficiary owner becomes its owner.
Thus, a beneficiary is someone who controls income and expenses and profits from a company.
Such a person or group of people chooses a manager (CEO) who will take on the responsibility for managing the business. In the future, they will make decisions about the company's operations independently. Beneficiaries can remove the manager from their position at any time.
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Georgian differences in the concept of a beneficiary
In Georgia, the concept of a beneficiary differs from the standard concept in that a beneficiary cannot make decisions about the company's operations if they are not an employee.
At the same time, employees are required to provide information about the beneficiaries to the registry and ensure their storage for five years. Anyone can view the registry online and study various beneficiaries.
Beneficiary Possibilities in Georgia
For legal entities in Georgia, the beneficiary of the company is a natural person who:
- owns the legal entity,
- controls the legal entity through their ownership of shares,
- makes managerial decisions,
- is a shareholder by presentation,
- controls the company's funds..
If the beneficiary is a non-resident of Georgia, the bank will check them before opening a corporate account. Many entrepreneurs are often rejected at this stage.
Foreign entrepreneurs who are recognized as beneficiaries in Georgia need to study agreements on the avoidance of double taxation. Some countries allow their citizens to avoid paying taxes in both countries.
Mandatory Information on Beneficiaries in Georgia
As mentioned above, all Georgian companies are required to provide information about their beneficiaries to the Public Registry. The data that must be provided and stored includes:
- Full name and name of the organization,
- Residency,
- Date of company establishment,
- Passport information,
- Registration, actual place of residence, and company address,
- Tax identification number.
Catalog Madloba wishes you to become the owner of a successful business in Georgia! Study other articles on tax and benefits for foreign entrepreneurs in Georgia on our website.
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