{"id":223,"date":"2023-04-13T09:06:41","date_gmt":"2023-04-13T09:06:41","guid":{"rendered":"https:\/\/companyformationgeorgia.com\/?p=223"},"modified":"2024-02-12T08:46:25","modified_gmt":"2024-02-12T08:46:25","slug":"establish-a-branch-in-georgia","status":"publish","type":"post","link":"https:\/\/companyformationgeorgia.com\/establish-a-branch-in-georgia\/","title":{"rendered":"Establish a Branch in Georgia"},"content":{"rendered":"\n

A branch in Georgia<\/strong> is the preferred business form for entrepreneurs who want to expand an already existing company. A branch office in Georgia<\/strong> can be incorporated following a much simpler procedure compared to the subsidiary, but its founders must know that the branch <\/strong>is seen from a legal point of view as a subdivision of the parent company<\/strong>. If you want to invest in Georgia<\/strong> and open a company here, our team of specialists in Georgian company formation<\/strong> can give you detailed information on all of the available types of companies.<\/p>\n\n\n\n\n\t\t\n\t\t\t\n\t\t\t\t\n\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\t\t\t\t\t Quick Facts<\/th>\n\t\t\t\t\n\t\t\t\t\t <\/th>\n\t\t\t<\/tr>\n\t\t<\/thead>\n\t\t
\n\t\t\t\t\t  Applicable legislation<\/td>\n\t\t\t\t\n\t\t\t\t\t

\n\t\t\t\t\t\tForeign country<\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t

\n\t\t\t\t\t

\n\t\t\t\t\t\tBest used for<\/p>\n\t\t\t\t<\/td>\n\t\t\t\t

\n\t\t\t\t\tStrictly regulated activities, such as financial ones<\/td>\n\t\t\t<\/tr>\n\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\tMinimum share capital<\/p>\n\t\t\t\t<\/td>\n\t\t\t\t

\n\t\t\t\t\t No<\/td>\n\t\t\t<\/tr>\n\t\t\t
\n\t\t\t\t\tTime frame for the incorporation (approx.) <\/td>\n\t\t\t\t\n\t\t\t\t\t

\n\t\t\t\t\t\tApprox. 4 weeks<\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t

\n\t\t\t\t\tManagement <\/td>\n\t\t\t\t\n\t\t\t\t\t

\n\t\t\t\t\t\tLocal (a resident director must be appointed)<\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t

\n\t\t\t\t\tLegal representative required<\/td>\n\t\t\t\t\n\t\t\t\t\t

\n\t\t\t\t\t\tYes<\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t

\n\t\t\t\t\tLocal bank account <\/td>\n\t\t\t\t\n\t\t\t\t\t

\n\t\t\t\t\t\tYes<\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t

\n\t\t\t\t\tIndependence from the parent company<\/td>\n\t\t\t\t\n\t\t\t\t\tFully dependent on the parent company's decisions<\/td>\n\t\t\t<\/tr>\n\t\t\t
\n\t\t\t\t\tLiability of the parent company<\/td>\n\t\t\t\t\n\t\t\t\t\tFully liable for the branch office's debt and obligations<\/td>\n\t\t\t<\/tr>\n\t\t\t
\n\t\t\t\t\tCorporate tax rate  <\/td>\n\t\t\t\t\n\t\t\t\t\t15% <\/td>\n\t\t\t<\/tr>\n\t\t\t
\n\t\t\t\t\tPossibility of hiring local staff <\/td>\n\t\t\t\t\n\t\t\t\t\tYes<\/td>\n\t\t\t<\/tr>\n
Definition of a branch in Georgia<\/td>\nAn extension of a larger organization, such as a business or government office, located within the territory of Georgia.<\/td>\n<\/tr>\n
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General documents required<\/p>\n<\/td>\n

\n

– decision of parent company to open a branch,<\/p>\n

– identification details for parent company and representative,<\/p>\n

– parent company’s Memorandum and Articles of Association,<\/p>\n

– proof of paying the registration fee,<\/p>\n

– power of attorney (if required), etc.<\/p>\n<\/td>\n<\/tr>\n

\n

Setting up multiple branches (YES\/NO)<\/p>\n<\/td>\n

\n

YES<\/p>\n<\/td>\n<\/tr>\n

Steps of opening a branch<\/td>\n\n

– prepare documentation,<\/p>\n

– open a bank account,<\/p>\n

– appoint a representative agent and director,<\/p>\n

– register with the Ministry of Justice,<\/p>\n

– register for tax purposes, etc.<\/p>\n<\/td>\n<\/tr>\n

Business forms for branches in Georgia<\/td>\n\n

– limited liability company,<\/p>\n

– public company<\/p>\n<\/td>\n<\/tr>\n

Remote registration<\/td>\n\n

We handle company formation in Georgia and branch registration remotely, through power of attorney.<\/p>\n<\/td>\n<\/tr>\n

VAT rates and registration<\/td>\n\n

18% standard rate. Companies become liable for VAT payment after their annual taxable turnover reaches GEL 100,000.<\/p>\n<\/td>\n<\/tr>\n

Authorities overseeing branches in Georgia<\/td>\n\n

– National Agency of Public Registry,<\/p>\n

– Ministry of Finance<\/p>\n<\/td>\n<\/tr>\n

Other taxes in Georgia<\/td>\n\n

– custom duties (0%, 5%, or 12%),<\/p>\n

– excise tax (GEL 0.08 – GEL 800 per unit),<\/p>\n

– withholding tax (5% standard), etc.<\/p>\n<\/td>\n<\/tr>\n

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Tax returns<\/p>\n<\/td>\n

Between January 1st and March 31st of the following tax year.<\/td>\n<\/tr>\n
Alternatives to a branch office<\/td>\n\n

Our specialists in company incorporation in Georgia can help you open alternative entities such as a representative office or subsidiary.<\/p>\n<\/td>\n<\/tr>\n

Can hire employees (YES\/NO)<\/td>\n\n

YES<\/p>\n<\/td>\n<\/tr>\n

Number of double taxation treaties in Georgia<\/td>\n\n

58 (approx.)<\/p>\n<\/td>\n<\/tr>\n

Advantages of opening a branch in Georgia<\/td>\n\n

– simplified registration process,<\/p>\n

– lower costs compared to opening a new company in Georgia,<\/p>\n

– access to Asian and European markets,<\/p>\n

– low taxes,<\/p>\n

– skilled workforce, etc.<\/p>\n<\/td>\n<\/tr>\n

 Assistance and additional services<\/td>\n\n

Our team handles company incorporation in Georgia and branch registration. We can also recommend you to our accountants in Georgia for tax-related matters.<\/p>\n<\/td>\n<\/tr>\n\t\t<\/tbody>\n\t<\/table>\n\n\n\n

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Table of Contents<\/p>\n<\/span><\/div>\n