{"id":227,"date":"2023-04-13T09:52:51","date_gmt":"2023-04-13T09:52:51","guid":{"rendered":"https:\/\/companyformationgeorgia.com\/?p=227"},"modified":"2023-12-05T13:25:55","modified_gmt":"2023-12-05T13:25:55","slug":"liaison-office-in-georgia","status":"publish","type":"post","link":"https:\/\/companyformationgeorgia.com\/liaison-office-in-georgia\/","title":{"rendered":"Liaison Office in Georgia"},"content":{"rendered":"\n

A\u00a0liaison office in Georgia<\/strong>\u00a0is a good investment option for those foreign investors who want to test the available market by doing the necessary research and engaging with their potential customers prior to\u00a0starting a business activity in Georgia<\/a><\/strong>.\u00a0The\u00a0liaison office<\/strong>\u00a0provides certain advantages and it can be used as an intermediary between the\u00a0Georgian market<\/strong>, clients and business partners and the parent company abroad.\u00a0Our company formation agents in Georgia<\/a><\/strong>\u00a0can tell you all about the incorporation procedure for a\u00a0liaison office\u00a0<\/strong>and offer you counselling regarding the best business options for your needs.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 Quick Facts<\/th>\n <\/th>\n<\/tr>\n<\/thead>\n
Why open a liaison office in Georgia<\/td>\nIt is proper for a foreign company looking to research the local market and interact with potential customers<\/td>\n<\/tr>\n
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Mandatory for opening a company in Georgia (YES\/NO)<\/p>\n<\/td>\n

NO, opening a representative office is not a mandatory requirement if you wish to open a company in Georgia.<\/td>\n<\/tr>\n
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Regulations<\/p>\n<\/td>\n

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– It must not conduct commercial activities,<\/p>\n

– operates under the guidance of the parent company,<\/p>\n

– the representative office is not a legal entity<\/p>\n<\/td>\n<\/tr>\n

Differences from a branch office<\/td>\n\n

They have different legal statuses;<\/p>\n

Branch offices are authorized to engage in commercial activities, while liaison offices are not;<\/p>\n

A branch office is subject to taxes;<\/p>\n

The incorporation process for a representative office is easier;<\/p>\n

They have different degrees of liability.<\/p>\n<\/td>\n<\/tr>\n

Uses for a representative office in Georgia<\/td>\n\n

– conducting market research,<\/p>\n

– promoting business activities,<\/p>\n

– advertising,<\/p>\n

– providing technical support,<\/p>\n

– quality control, etc. <\/p>\n<\/td>\n<\/tr>\n

Incorporation time for a representative office (approx.)<\/td>\n\n

4 weeks <\/p>\n<\/td>\n<\/tr>\n

Laws governing liaison offices in Georgia<\/td>\n\n

Legislative Herald of Georgia<\/p>\n<\/td>\n<\/tr>\n

 Bookkeping<\/td>\n\n

The liaison office must fulfill its obligation to keep proper financial records and maintain organized bookkeeping in accordance with legal requirements.<\/p>\n<\/td>\n<\/tr>\n

 Liability<\/td>\n\n

The parent company takes full responsibility for the actions and liabilities of the liaison office.<\/p>\n<\/td>\n<\/tr>\n

Local bank required (YES\/NO)<\/td>\nYES <\/td>\n<\/tr>\n
 Taxes<\/td>\n\n

 There are no taxes applied to representative offices in Georgia.<\/p>\n

However, additional costs may be taken into consideration, such as: the employee’s salary, rent, utilities, etc.<\/p>\n<\/td>\n<\/tr>\n

Share capital <\/td>\n\n

A liaison office does not require any share capital.<\/p>\n<\/td>\n<\/tr>\n

Location for the liaison office in Georgia<\/td>\nIt can be rented or owned.<\/td>\n<\/tr>\n
 Advantages<\/td>\n\n

 <\/p>\n

A representative office works as an extension of its parent company in Georgia;<\/p>\n

It is a perfect channel of communication between clients and foreign parent company;<\/p>\n

Conducts market research, valuable for investors before opening a company in Georgia;<\/p>\n

No taxes apply;<\/p>\n

 <\/p>\n

Low maintenance costs.<\/p>\n<\/td>\n<\/tr>\n

  Assistance with opening a representative office in Georgia (YES\/NO)<\/td>\nYES, our team can help you with opening a liaison office in Georgia, as well as with company formation. <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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