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GeGeorgia Subsidiary.






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Georgian lari (₾) (GEL)

When you’re ready to work in Georgia, you’ll have to take on many tasks before you can officially start operating. The most important is establishing a subsidiary. Once you set up a Georgia subsidiary, you’ll be ready to establish payroll, hire employees, and provide benefits. Unfortunately, many companies will need weeks, months, or even a year to incorporate in Georgia.

Luckily, there’s an easier way to expand thanks to G-P. We’ll use our subsidiaries around the world to help you start working in as little as a day or two. Our team will handle all tasks, such as recruiting, hiring, compensation, benefits, and more. You won’t need to worry about Georgia subsidiary laws either, as we’ll act as the Employer of Record on your behalf.

How to Set Up a Georgia Subsidiary

The process of setting up a Georgia subsidiary depends on several factors, such as location and the type of entity chosen. The Georgia subsidiary laws you have to follow will depend on where you’re located, as different cities or regions can have their own regulations. It’s best to research these law variations before incorporating, or work with a consultant, lawyer, or accountant who knows the applicable laws.

Another factor that will impact the Georgia subsidiary setup process is your company’s structure. Georgia offers several different types of subsidiary structures, such as a limited liability company (LLC), joint stock company, international trading company, international financial company, free zone company, branch office, and representative office. Every entity has its own laws, so you’ll need to find the structure that best fits your goals and has the most favorable laws.

The most popular Georgia subsidiary is the LLC. It will give you the most freedom to operate in Georgia and also protect your parent company from all of the LLC’s decisions. The steps to establish an LLC include:

  • Registering the company through the LEPL National Agency of the Public Registry
  • Submitting all documents to the Public Registry to make them publicly available
  • Receiving a charter, also known as Articles of Association or Bylaws, with the company’s identification data and rules
  • Maintaining a stamp to deal with banks, tax authorities, and civil counteragents
  • Notarizing and legalizing all documents executed in other countries besides Georgia

Georgia Subsidiary Laws

The Georgia subsidiary laws that apply to LLCs are generally seen as more favorable than those of other entities. However, you’ll still need to follow each one to stay compliant. You’ll require one shareholder and one director, who can both be foreigners that live outside of Georgia. You’ll also need share capital to incorporate, but the laws do not stipulate how much.

As an LLC, you must submit financial statements to the tax authority each year, but you do not have to undergo an audit. Georgia does have multiple tax schemes that provide tax exemptions for all foreign-sourced income.

Benefits of Setting Up a Georgia Subsidiary

Although the Georgia subsidiary setup process is lengthy, companies will benefit from establishing an LLC. You’ll start legally operating in Georgia and establishing new, lucrative business relationships. The LLC will also keep your parent company and subsidiary somewhat separate. You won’t need to worry about your decisions impacting the parent company, and the subsidiary can operate somewhat independently.

G-P provides additional benefits as a global PEO. Instead of having to go through the Georgia subsidiary setup process for months, you can work immediately using our existing infrastructure. We have an entire team of global compliance experts ready to help you expand without any worries about Georgia’s subsidiary laws.

Other Important Considerations

When you start considering an expansion to Georgia, you should also consider everything you need. Start by thinking about how much money you’ll need and the time required to incorporate. Calculate how much you need in start-up capital and continued costs by working with your finance department. You should also work with others in your office or department to delegate tasks and ensure a smooth expansion.

Let G-P Help With Your Expansion

G-P has the expertise you need to expand quickly and easily. Reach out to us today to learn more about Georgia subsidiary outsourcing and how we can help you in the process.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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