Myths about business in Georgia, peculiarities of doing business for foreign entrepreneurs in Georgia
Learn all about the peculiarities of doing business in Georgia and dispel all the myths! Follow the link right now to understand all the nuances of Georgian legislation for foreign entrepreneurs. We will tell you why Georgia is not an offshore company, and what areas of activity are relevant
Find out all the myths about business in Georgia⬇️
Every entrepreneur has to understand the specifics of doing business, especially if it is a business in another country. When studying information about legislation, taxes, and benefits to foreign entrepreneurs, unreliable sources often come across.
What myths are known about business in Georgia, we will analyze in this article.
Offshore companies and Georgia
We used to think of every foreign country as an offshore, but this is not the case. Georgia does not belong to offshore countries, despite the free industrial zones.
Entrepreneurs working in such zones pay income tax and income tax. At the same time, the presence of residency among the company's employees is taken into account, and the amount of tax depends on it.
Such enterprises are exempt from other taxes, but not all companies can become a member of the free industrial zone. To get tax benefits in Georgia provided for PPE, you need to renew your license every year. The list of suitable activities is also very limited.
It is difficult for non-resident owners of Georgia to issue a corporate bank account, and no company has the right to work without it.
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IT business in Georgia
Preferential tax rates are provided for companies working in the IT sector in Georgia, but they are not exempt from all taxes. In addition, in order to receive the appropriate benefits, you need to have a presence in the country.
Presence in Georgia, or substance, means confirmed expenses for the organization of the company's work. These include bills for renting office space, salaries of employees from among local residents, expenses for economic activities.
If the type of activity for which tax benefits are provided is consistent and there is a presence in the country, IT companies are exempt only from value added tax and income tax. Entrepreneurs are obliged to pay all other types of tax fees in accordance with the legislation.
Accessibility of the local market for any business in Georgia
The low purchasing power of the Georgian population comes as a surprise to foreign entrepreneurs. If you study the market in advance, it will become clear why this is happening.
The small population of the country, high unemployment, the level of poverty of the population must be taken into account when choosing a niche in which you plan to do business in Georgia.
It is better to choose niches suitable for international trade. Georgia has a convenient geographical location, thanks to which the transportation of goods does not cause difficulties.
Business licenses in Georgia
Foreign entrepreneurs in Georgia are attracted by the absence of the need to acquire licenses for all types of activities. Nevertheless, several areas imply the mandatory obtaining of a license to conduct business.
These areas include:
- healthcare;
- financial transactions;
- construction of buildings;
- provision of communication services;
- energy projects;
- gambling.
When choosing Georgia to run your own business, be prepared for the requirements of the legislation. If we take into account the peculiarities of entrepreneurial activity in Georgia, then it is easy to open your own business and become the owner of a successful business in Georgia!
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