Georgian Company set up

[Jezzawalt]

I am interested in a Georgian Company set up but have a few queries if anyone is familiar with this set up.

So from my research, there is only tax paid when shareholders withdraw money?

If I invoice the Georgia company from my other company in my home country then this is considered as a business expense, not a withdrawl from a shareholder. I then pay tax on this money in my home country under that business but not in Georgia as its considered a "business expense" is this correct?

So effectively, I won't pay any tax in Georgia but just on the income coming into my country through the business there?

Does anyone know if the above is correct?

I've found a company that can incorporate and set up a bank account remotely. But need to know the above is correct first. Unfortunately these companies that incorporate tell you what you want to hear to get a sale and then leave you to it.

Another reason why I'm looking at Georgia is because cbd oil is legal there (cbd oil eccom business) Those ive spoken to about Mauritius etc have advised me not to do it there given the nature of my business.

Currently set-up in hong kong and its somehow not illegal there but given the current situation with China and for other reasons I'm getting out of there!

 

[davethegreat2503]

Hey

Contact me in private in case you need info about incorporating in Georgia

 

[Marzio]

in case you need info about incorporating in Georgia

Why don't you share what you know with others instead?

 

[davethegreat2503]

Why don't you share what you know with others instead?

A good magician never reveals his tricks

If you want to know general things feel free to ask.

Been providing incorporation services since 2008. Also in Georgia

 

[onemansomewhere]

I am interested in a Georgian Company set up but have a few queries if anyone is familiar with this set up.

So from my research, there is only tax paid when shareholders withdraw money?

If I invoice the Georgia company from my other company in my home country then this is considered as a business expense, not a withdrawl from a shareholder. I then pay tax on this money in my home country under that business but not in Georgia as its considered a "business expense" is this correct?

So effectively, I won't pay any tax in Georgia but just on the income coming into my country through the business there?

Does anyone know if the above is correct?

I've found a company that can incorporate and set up a bank account remotely. But need to know the above is correct first. Unfortunately these companies that incorporate tell you what you want to hear to get a sale and then leave you to it.

Another reason why I'm looking at Georgia is because cbd oil is legal there (cbd oil eccom business) Those ive spoken to about Mauritius etc have advised me not to do it there given the nature of my business.

Currently set-up in hong kong and its somehow not illegal there but given the current situation with China and for other reasons I'm getting out of there!

You are almost correct in most of what you wrote.

Remote bank account openning of corporate bank account in Georgia, if you are not a resident of Georgia, is almost impossible. If someone promises to help you with that, just run away. I am a lawyer and I am in touch with 6 georgian banks. 5of them says exactly NO and 1 says - MAYBE. Depends on case. And if they say YES, their fees for non resident account will be much more higher than in the most western banks..

 

[Traveler]

You are almost correct in most of what you wrote.

Remote bank account openning of corporate bank account in Georgia, if you are not a resident of Georgia, is almost impossible. If someone promises to help you with that, just run away. I am a lawyer and I am in touch with 6 georgian banks. 5of them says exactly NO and 1 says - MAYBE. Depends on case. And if they say YES, their fees for non resident account will be much more higher than in the most western banks..

I can second what was said above.

Sadly, you will have many service providers who promise you the moon, but that tends to end the moment your payment clears. The story of "Sure, I'll get you an account opened, no problem. I've done it for hundreds of clients before" quickly becomes "well, we did our best but the back rejected".

These days, it's difficult to open corporate accounts even in person, unless you can prove economic substance and/or at the very least have a local director or a shareholder. Adding the remote factor into the equation, it quickly turns from difficult to virtually impossible.

As for the "magicians" that "don't reveal their tricks", well, I probably don't need to comment on that

 

[JustAnotherNomad]

So effectively, I won't pay any tax in Georgia but just on the income coming into my country through the business there?

That’s probably not how it will work, no. From the Georgian side maybe, but your country won’t accept it so easily if they find out what you are doing.

Where do you live?

 

[Davis123]

I can second what was said above.

Sadly, you will have many service providers who promise you the moon, but that tends to end the moment your payment clears. The story of "Sure, I'll get you an account opened, no problem. I've done it for hundreds of clients before" quickly becomes "well, we did our best but the back rejected".

These days, it's difficult to open corporate accounts even in person, unless you can prove economic substance and/or at the very least have a local director or a shareholder. Adding the remote factor into the equation, it quickly turns from difficult to virtually impossible.

As for the "magicians" that "don't reveal their tricks", well, I probably don't need to comment on that

How about personal account ? Everyone promises but doesn't deliver. I was told by one agency that they would do it but right now due to Covid 19., consulates are shut down.

 

[Zyncol]

@Jonny Cage Should be able to help you with everything.

 

[Jonny Cage]

That's not that easy to pay to your company abroad. There are tax risks that needs to be avoided. Obviously I am not able to explain everything in details but you can google Reverse VAT and Tax on source from service import. Those are taxes that you might need to pay if you just take and transfer everything from your company to abroad.

A few comments on Georgian bank account. For personal bank account there is no problem. Banks are cooperative, and they are happy to onboard private clients. For corporate one, yes, there are banks that do open account, but if you are not local, and all your business is related to outside transactions, your account will be blown up soon. But even in this case there are foreign banks that accept Georgian companies and work very well. Not to mention endless number of EMIs.

So, problems are as in everywhere. So are the solutions. And solutions change every day. This is how offshore business work unfortunately.

 

[davethegreat2503]

Feel free to contact me perhaps I could help.

As everyone said here it really depends on several paraments such as type of business, amounts, etc.

 

[AndersonDrew]

That's not that easy to pay to your company abroad. There are tax risks that needs to be avoided. Obviously I am not able to explain everything in details but you can google Reverse VAT and Tax on source from service import. Those are taxes that you might need to pay if you just take and transfer everything from your company to abroad.

A few comments on Georgian bank account. For personal bank account there is no problem. Banks are cooperative, and they are happy to onboard private clients. For corporate one, yes, there are banks that do open account, but if you are not local, and all your business is related to outside transactions, your account will be blown up soon. But even in this case there are foreign banks that accept Georgian companies and work very well. Not to mention endless number of EMIs.

So, problems are as in everywhere. So are the solutions. And solutions change every day. This is how offshore business work unfortunately.

I need a Georgia personal bank account remotely with the name of a beneficiary added to it but everyone I have talked to wants me to open up an offshore company which does not suit my needs at the moment. If someone could let me know, I would retain them ASAP. I am new here to this group and going through some threads. Its a fantastic forum. A1 job Admin.

 

[onemansomewhere]

I need a Georgia personal bank account remotely with the name of a beneficiary added to it but everyone I have talked to wants me to open up an offshore company which does not suit my needs at the moment. If someone could let me know, I would retain them ASAP. I am new here to this group and going through some threads. Its a fantastic forum. A1 job Admin.

If anyone is promising you a remot bank account openning in Georgia is a scammer or is a person who will be paying some bribe to someone in a bank. Both is not good. I kow few guys, who are able to open a personal bank accounts in Georgia remotely. But all of them do it by corrupting a bankers. Sooner or later, bank accounts openned by that bankers will be examined and closed.
Georgia will open its international borders soon. You can fly there and open account by yourself.

 

[Jonny Cage]

If anyone is promising you a remot bank account openning in Georgia is a scammer or is a person who will be paying some bribe to someone in a bank. Both is not good. I kow few guys, who are able to open a personal bank accounts in Georgia remotely. But all of them do it by corrupting a bankers. Sooner or later, bank accounts openned by that bankers will be examined and closed.
Georgia will open its international borders soon. You can fly there and open account by yourself.

This is false information. There is no need to bribe banker. Personal bank account is possible to be opened remotely. Using Power of Attorney. Please do not share false information.

 

[Spinat]

This is false information. There is no need to bribe banker. Personal bank account is possible to be opened remotely. Using Power of Attorney. Please do not share false information.

Thank you very much, I know you that's why I know you speak the truth

I have had feeling for a long time that @onemansomewhere is spreading (let's say) false information for some reason all over the forum. If you look into his posts they are most often way beyond what is discussed or it is simply not true. I wonder why @Admin is not removing him from this forum.

 

[AndersonDrew]

Thank you very much, I know you that's why I know you speak the truth

I have had feeling for a long time that @onemansomewhere is spreading (let's say) false information for some reason all over the forum. If you look into his posts they are most often way beyond what is discussed or it is simply not true. I wonder why @Admin is not removing him from this forum.

Yes i had that feeling too. I am in touch with many remote Georgia bank providers. They all told me yes its possible to open up account in Georgia remotely.

 

[onemansomewhere]

This is false information. There is no need to bribe banker. Personal bank account is possible to be opened remotely. Using Power of Attorney. Please do not share false information.

Just do it. Yes, do it. I have 3 clients in last year, who contacted me after their personal bank accounts openned by PoA were closed. It is absolutely possible to open it with PoA. But after first account review (which is done usualy in 1-3 months after openning), account will be closed. And bank will not tell you any reason. If you ask them, they will just tell you, that they have no obligation to tell a reason. There are many providers in Georgia declaring, they are willing to open account remotely. Just do it. Pay them. Your account will be openned. But be prepared for having your account closed and funds frozen. Do you know how long time is a funds freeze time in Georgia? I will tell you. 12 months. Are you willing to have your funds frozen for 12 months? Yes? Let do it. Do it now.

People are willing to promise you almost anything, when they want your money. They will help you to open bank account remotely. You will pay them. They will do what they promised. When your account will be closed, it will be not their problem. If you will ask for help, they will deny. But do you know what most of them will do? They will offer you to open a bank account somewhere else. There is just one small problem. You have to pay them, again.

If you are looking a short time solution and you do not care about having your account frozen, you can do it.

Things in Georgia are changing rapidly. DD and AML procedures are more and more strict.

 

[onemansomewhere]

Thank you very much, I know you that's why I know you speak the truth

I have had feeling for a long time that @onemansomewhere is spreading (let's say) false information for some reason all over the forum. If you look into his posts they are most often way beyond what is discussed or it is simply not true. I wonder why @Admin is not removing him from this forum.

Hahaha, False information is everything what you do not agree with.
Let just continue in reselling a non senses and do not try to adjudicate opinions of professionals from a real practise who are right on the ground.

 

[khinkali]

Georgia is already strict on AML. It is a good place to do business but it's not a typical (or good) offshore banking centre. It doesn't want to be.

As with all places, you can find an inexperienced and overoptimistic provider to sell you an unsuitable product.

@onemansomewhere it seems like your 3 clients were badly advised.

 

[Jonny Cage]

Just do it. Yes, do it. I have 3 clients in last year, who contacted me after their personal bank accounts openned by PoA were closed. It is absolutely possible to open it with PoA. But after first account review (which is done usualy in 1-3 months after openning), account will be closed. And bank will not tell you any reason. If you ask them, they will just tell you, that they have no obligation to tell a reason. There are many providers in Georgia declaring, they are willing to open account remotely. Just do it. Pay them. Your account will be openned. But be prepared for having your account closed and funds frozen. Do you know how long time is a funds freeze time in Georgia? I will tell you. 12 months. Are you willing to have your funds frozen for 12 months? Yes? Let do it. Do it now.

People are willing to promise you almost anything, when they want your money. They will help you to open bank account remotely. You will pay them. They will do what they promised. When your account will be closed, it will be not their problem. If you will ask for help, they will deny. But do you know what most of them will do? They will offer you to open a bank account somewhere else. There is just one small problem. You have to pay them, again.

If you are looking a short time solution and you do not care about having your account frozen, you can do it.

Things in Georgia are changing rapidly. DD and AML procedures are more and more strict.

Again False information. First you said it's not possible to open account. Now you are saying it is possible to opne, but it will be closed in three months period.

Many on this forum knows that I live in Georgia and I had many clients, for which I opened personal bank account. And you know how many of them were closed? 1 only. And the guy appeared to be international financial criminal or something like that.

If you want to open bank account in Georgia for the legit reasons (save term deposit and earn quite attractive yield, or just use debit/credit car in everyday use, or invest you money in low risk assets or any other legit business) your account will not be closed. Moreover, Georgian banks does not freeze accounts, if they close account (which is quite common if you have corporate account, for your company) they just call you ask you to come to the bank and take money.

@khinkali as far as I know, you live in Georgia, have you heard anything about freezing client's money in Georgia?