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Open an SPV in Georgia

Open an SPV in Georgia

An SPV company is beneficial for those looking for asset protection and financial risk minimization. The process of opening an SPV in Georgia is relatively straightforward and includes registering a company and complying with local regulations and tax laws. The SPV has a distinct legal personality and its obligation and assets are secured, even if its parent company goes bankrupt. Our specialists in company incorporation in Georgia can help all interested individuals in the process of opening an SPV.

How to open an SPV in Georgia

In order to set up an SPV company in Georgia, you must open a limited liability company. Here are some general steps about the company incorporation process:

  • Select available business name;
  • Choose a business address, that will serve as your official address and must be located in Georgia;
  • Submit the necessary paperwork (Memorandum, Articles of Association, ID documents of the director, application for registration, etc.);
  • Pay the registration fee;
  • Register with the Entrepreneurial Register and obtain your company’s identification number and certificate of state and tax registration;
  • Open a corporate bank account, to facilitate business transactions.

A Georgian limited liability company requires no minimum share capital. However, after opening a new company, you must also be aware of Georgia’s taxation system. The standard corporate income tax (CIT) rate in Georgia is 15%, but depending on your business activities, it might be levied at 20%.

An interesting aspect of the Georgian taxation system that could benefit an SPV company in Georgia is its new CIT system, based on the Estonian model. Under the new regime, retained profits are not immediately taxable. Instead, taxation occurs when profits are distributed to shareholders. Profit distribution is taxed at the standard 15% tax rate.

You can open a company in Georgia remotely, with the help of our agents, through a power of attorney.

Advantages of an SPV in Georgia

Establishing an SPV company in Georgia can be beneficial for those looking to establish a separate legal entity, for specific financial transactions. This can secure the parent company from any potential risks associated with those transactions or other projects. Additionally, other advantages of an SPV in Georgia include:

  • Possibility to raise capital for other investments, projects, or joint ventures;
  • It can be easily registered and incorporated;
  • Can be used as a tax optimization tool;
  • SPVs offer asset protection in case the parent company goes bankrupt or faces other legal issues;
  • It is cost-efficient;
  • Risk-sharing (losses are shared among investors, not separately).

Investors looking to start a business in Georgia might find appealing the possibility of opening an SPV. This company can protect the main firm from any associated risks with the new business.

Statistics about Georgian companies

According to the National Statistics of Georgia, the country’s business landscape has been growing in recent years. Those interested in opening a company in Georgia can learn more from these statistics regarding the performance and activity within the business sector during the fourth quarter of 2023:

  • The total revenue generated by businesses amounted to 56.4 billion GEL;
  • The total value of goods and services produced by Georgian businesses amounted to 21.2 billion GEL;
  • 782.3 thousand persons were employed in the fourth quarter.

Aside from our company formation services, we can also recommend our partner accountants in Georgia for assistance in taxation matters.

Do not hesitate to contact our team if you are looking to set up an SPV company in Georgia and seek advice regarding its registration and management.