What convenience is there in a company in georgia?

[drspak]

Hi everyone,
I don't understand why Georgia is recommended to open offshore companies.
It's true you can use front names and have privacy.
it is also true that it is not cheap because you need a monthly accounting and at least one georgian accountant asks 60 euros a month.
another thing is to pay taxes of 15%.
Isn't it clear to me what you're doing with a company in Georgia?

 

[CAKEBRAINS]

Accountant at 60 Euros a month is cheap.

Here in the UK it's usually around £2000 + VAT annually.

 

[khinkali]

I don't understand why Georgia is recommended to open offshore companies.

Neither do I. But then, do serious people really make this recommendation? I think that people read sensible recommendations to locate businesses in Georgia and then assume that Georgia is a good offshore location.

If you locate yourself, your office and your management staff in Georgia then you have advantages such as easy company registration, simple and less bureaucratic tax system, low tax rates, tax on distribution, specific tax exemptions for Virtual Zone and Free Zone entities, good banking options, good Internet access, cost effective labour, etc. Depending on your personal preferences you get a low cost and nice lifestyle, good weather, food, etc.

Some but not all of these advantages apply to UAE or Spain or Singapore or Thailand. If you want to do things by the book and avoid corruption then from my personal experience I'd forget Thailand. If you want simple and low taxation then I'd forget Spain. If you want a nice low cost lifestyle then I'd forget about UAE or Singapore. The lifestyle issues vary from person to person but the combination of business and lifestyle advantages make Georgia a re-location sweet spot for some entrepreneurs.

As an offshore jurisdiction Georgia has easy company opening and easy personal bank account opening. There are easier offshore locations for accounting etc. as you've noticed. More importantly, once you actually run an offshore business through Georgia the local banking options tend to evaporate.

This makes a lot of sense. The Georgian government, central bank and commercial banks want people to start and run real businesses here, rather than funnel invoices and money through the country that don't relate to Georgian business activity.

 

[drspak]

Hello,
Thanks for the reply.
Georgia is a jurisdiction that I am looking into to open the company.
I am not interested in jurisdictions that as soon as you hear the name you understand that the company is offshore
I want to stay resident in my heavily taxed state in europe.
I have a quote from an agent in georgia for a company, director and shareholder appointments, and bank account for the company, appointment agreement, and power of attorney.
Spending the first year is high.
Eventually send me your offer
What I don't understand is how can I withdraw my earnings from the company?
How can I use that money from abroad while remaining anonymous
how i justify these exits from society in georgia.

thank you




https://www.offshorecorptalk.com/javascript:void(0);

 

[khinkali]

High @drspak Georgia is not trying to be an offshore banking centre. Georgian banks tend to ask you for copies of invoices so they can understand the flow of money. If you're not in Georgia, the money is coming from outside Georgia and then going outside Georgia then I would be surprised if the account isn't closed rather quickly.

If you want to stay resident in a heavily taxed part of Europe and your income will come from abroad then there some approaches:
1. Get good tax advice in your jurisdiction and try to minimise the tax burden legally (this might still be high tax depending on your circumstances).
2. Pick an offshore location that currently gives the anonymity that you want (the options are reducing) and hope not to get caught
3. Other methods to hide your identity that people discuss in the mentor group.

Georgia can be a great place to relocate to, but I would not consider Georgia for offshore business banking.

 

[offshore xpert]

hi, I have established a few companies in Georgia and have been there several times. You can call Georgia a mid shore jurisdiction. You can establish the company and find easily a resident agent that would provide their law office as your registered address. However, the banks there are changing, they are derisking. Before BOG, TBC, VTB they all wanted your money, now not that much. As you would be a non-resident then the will perform enhanced due diligence. There are ways around it, and it all depends on what volumes you will manage and how reliable is your lawyer. In my personal experience Georgian law offices can be slower than Caribbean law offices. That tells you a lot!

 

[drspak]

Hello,
I've been looking around for a while.
I am an entrepreneur in a highly taxed European state.
I want to create a company in a state that does not suggest offshore, on which to move the capital of my current company.
I was focusing on Georgia, I also found the possibility of appointments.
I discarded some agents because the answers were too vague.
I have discarded some law firms because they don't have appointment service.
I was focusing on tbilisivirtualoffice.com, they are slow in the answers but they are more exhaustive.
Do you have any proven agents to report to me?

 

[sonato]

Isn't it clear to me what you're doing with a company in Georgia?

obvious not. As mentioned already 60 EURO for accounting a month is ultra cheap, I don't know where on earth you will get it that cheap. To pay 15% corporate tax is also very cheap. I assume it is possible to deduct company expenses from the amount you have to pay tax of, so it will even be cheaper.

Furthermore, I don't believe that what is official written in the laws in the republic of Georgia is what actually will go on in the real world. I assume there are lots of loopholes if done right.

 

[saetta]

Hello
i saw through google some agents to set up the company in georgia.
I also saw some lawyer sites.
I asked for quotes, the difference between them is great.
Such a high difference makes me think of a scam or a poor service or to cheat the foreigner.
I ask you if you can refer me to some proven agent or lawyer

thank you

 

[offshore xpert]

I know 4 law offices in Georgia that can establish a company in Georgia, but none of them are as professional as you would expect them to be. Also the banks in Georgia are derisking, so don't count on them to easily accept transfers for your company, unless you use a nominee director. But again, their service is very poor.

 

[avalanche]

I know 4 law offices in Georgia that can establish a company in Georgia, but none of them are as professional as you would expect them to be. Also the banks in Georgia are derisking, so don't count on them to easily accept transfers for your company, unless you use a nominee director. But again, their service is very poor.

Law firms in Georgia are extreme s**t. Super inefficient, cant even do simple docs in English without making typos, accounting is as inefficient as it gets. They don't use any modern cloud solutions, you can only get some weird-a*s ancient software in Georgian language that you cant even use properly to get insights like Xero, Quickbooks etc.

 

[avalanche]

obvious not. As mentioned already 60 EURO for accounting a month is ultra cheap, I don't know where on earth you will get it that cheap. To pay 15% corporate tax is also very cheap. I assume it is possible to deduct company expenses from the amount you have to pay tax of, so it will even be cheaper.

Furthermore, I don't believe that what is official written in the laws in the republic of Georgia is what actually will go on in the real world. I assume there are lots of loopholes if done right.

You are likely to get taxed afterwards for using these uncertainties and loopholes. There are cases already with people who used Free Zone company to offer exported consulting services and they got taxed afterwards like a normal Georgian company (because gov thinks Free Zone are for trading only and not for services). You get the same tax minus your brain cells and health + lost sleep.

If you have small turnover (below 30k EUR annually) have a look at Armenia. They have tax-exempt regime for all LLC companies who are considered micro business. You only pay 5% dividend tax, no corporate tax or VAT.

For up to 200k EUR annual turnover you can get small business status: 5% turnover tax regime + 5% dividend tax. No corporate tax or VAT.

Banking & card processing are very good as long as you are transparent and not doing anything fishy. Taxation is very clear. The biggest downside so far is 23% withholding tax on all payments for services going to non-resident entities and individuals that starts with small business status.

 

[xipoid]

Accountant at 60 Euros a month is cheap.

Here in the UK it's usually around £2000 + VAT annually.

I'd say that's on the high end for the UK -- you can find accountants that will allow you to run everything through FreeAgent (they have guest access so they can ensure everything is being done correctly) for just over half that. It's a competitive market which has a favourable effect on pricing.

 

[Spinat]

it is also true that it is not cheap because you need a monthly accounting and at least one georgian accountant asks 60 euros a month.

do you really consider this to be expensive? if so, you don't need any offshore company!

Law firms in Georgia are extreme s**t. Super inefficient, cant even do simple docs in English without making typos,

any good experience with a Georgia company or only bad?