Banks will most likely not open your business accounts.. I had fights for over 1 year in Georgia when I were living there (apartment contract, office contract, more than 3 local emplyees) and still had issues because I were not Georgian resident. Without considering the poor georgian support to international payment gateways.
In my opinion 1000 times better to go with a setup in Dubai.. will save you mental health and time.
Hi thanks for your input
-UBO does not live in Georgia (non tax resident)
This article was posted 2 years ago by a blogger, which sounds like same story with you. So in the end after fighting, did you manage to open company account with them, having local staff with you?
Well, in the last year they made things extremely difficult. Now it’s close to impossible to set up as a foreigner. The first thing that happened, free zone companies had an extremely hard time setting up bank accounts. You couldn’t bank with these companies anywhere. They weren’t even accepted...
offshorecitizen.net
If you’re not a Georgian resident you will have a very hard time opening a
bank account for a company.
The new rule they introduced was that you need to have operations in Georgia, which many people didn’t mind.
Setting up an office and hiring locals aren’t expensive at all, so this wasn’t an issue.
But then they got even tougher, and even if you had a local company that was operating in Georgia, but you are not a Georgian resident and you didn’t have a Georgian resident director you wouldn’t be able to bank with ease.
-UBO lives there as Georgia tax resident, then either
+register for Individual Entrepreneur (Sole Proprietor, Solopreneur) with Small Business Status (to get 1% total turnover tax) OR
+set up a Virtual Zone (if main business is software development and delivery, to get 0% CIT & 5% dividend tax).
Out of the two, I think for choosing the Individual Entrepreneur (practically sole trader and not really a LLC/business entity) is much easier option to do: easier paperwork and less hassle with banking, and you can save a lot of taxable money. Just have a cheap US LLC with business account with
Mercury/Wise or US street bank (if UBO can travel to US), then send to your personal bank account (either at your home country or a
EMI), then from that offshore personal account wire money to your Georgian personal account .Georgian bank is quite easy with personal account in that aspect, as long as you don't swift wire frequently and only wire from a personal account of your name. Just keep the wired amount small to cover living cost & expense, which reduces the amount liable to be taxed with 1%. Your main money is in US LLC bank account. Georgia does not know or really have the ability to enforce the PE rule.
Georgia seems very affordable to live in and attractive for beginner
nomad with not huge income, and I think with the above simple setup with US LLC, one can live in Georgia for a while, earning money and paying super little tax (like 1% of total amount you wire just enough to cover living cost there, not your real turnover) as long as one uses personal bank account transaction and stay under radar with incoming wire from abroad. If the country tax and legal system is not consistent and does not have resource to enforce, why bother with complicated setup and paperwork?
I have to agreee with you Georgia
payment gateway can be issue,
Stripe does not work there and it is not EU country so limited options for
EMI.
If one wants legit corporate structure with banking (esp when biz is scaling up like millions per year), yes Dubai
UAE company is the only sustainable way to go.
No tax on profit or dividend. Those tax scheme like Georgia VZC or Romani micro company if done correctly as law, still have to pay
dividends tax 5-8% which could get big when scaling..
Hi thanks for your input
-UBO does not live in Georgia (non tax resident)
This article was posted 2 years ago by a blogger, which sounds like same story with you. So in the end after fighting, did you manage to open company account with them, having local staff with you?
Well, in the last year they made things extremely difficult. Now it’s close to impossible to set up as a foreigner. The first thing that happened, free zone companies had an extremely hard time setting up bank accounts. You couldn’t bank with these companies anywhere. They weren’t even accepted...
offshorecitizen.net
-UBO lives there as Georgia tax resident, then either
+register for Individual Entrepreneur (Sole Proprietor, Solopreneur) with Small Business Status (to get 1% total turnover tax) OR
+set up a Virtual Zone (if main business is software development and delivery, to get 0% CIT & 5% dividend tax).
Out of the two, I think for choosing the Individual Entrepreneur (practically sole trader and not really a LLC/business entity) is much easier option to do: easier paperwork and less hassle with banking, and you can save a lot of taxable money. Just have a cheap US LLC with business account with Mercury/Wise or US street bank (if UBO can travel to US), then send to your personal bank account (either at your home country or a EMI), then from that offshore personal account wire money to your Georgian personal account .Georgian bank is quite easy with personal account in that aspect, as long as you don't swift wire frequently and only wire from a personal account of your name. Just keep the wired amount small to cover living cost & expense, which reduces the amount liable to be taxed with 1%. Your main money is in US LLC bank account. Georgia does not know or really have the ability to enforce the PE rule.
Georgia seems very affordable to live in and attractive for beginner nomad with not huge income, and I think with the above simple setup with US LLC, one can live in Georgia for a while, earning money and paying super little tax (like 1% of total amount you wire just enough to cover living cost there, not your real turnover) as long as one uses personal bank account transaction and stay under radar with incoming wire from abroad. If the country tax and legal system is not consistent and does not have resource to enforce, why bother with complicated setup and paperwork?
I have to agreee with you Georgia
payment gateway can be issue, Stripe does not work there and it is not EU country so limited options for EMI.
If one wants legit corporate structure with banking (esp when biz is scaling up like millions per year), yes Dubai UAE company is the only sustainable way to go. No tax on profit or dividend. Those tax scheme like Georgia VZC or Romani micro company if done correctly as law, still have to pay dividends tax 5-8% which could get big when scaling..
like for non Georgian tax resident UBO, how complex it is to maintain a Georgian company from outside Gerogia... Even one manages to open a company bank account there for Imagine suddenly the Georgian bank closes the account one day demands you to fly there and gets
cash out. It could be a deal breaker for many....Not to mention many people here complain about strict
KYC with international wire transfers even small amount they ask for invoice etc...