Georgian LLC
Georgia taxes companies on the Estonian model. Profit that stays in the company is not taxed. On distribution the company pays 15% profit tax and the shareholder 5% dividend tax. For founders who reinvest, or whose activity is excluded from the 1% regime, this is usually the better structure.
Retained profit: 0%. Distributed profit: 15% at the company, calculated on the gross amount (15/85 of the net dividend), plus 5% withholding on the dividend. The effective burden on a full distribution is about 19.25%. VAT registration becomes mandatory above 100,000 GEL of taxable Georgian turnover in twelve months; exported services are zero-rated but a reverse charge of 18% applies to services bought from abroad.
You reinvest most of your profit and do not need to take it out every month
Your turnover will pass 500,000 GEL, where the IE drops to 3% and loses the status after two years
Your activity is consultancy, advice or another activity excluded under Annex 4
You have partners, staff or investors, or you want limited liability
You want to apply for Virtual Zone or International Company status later
Georgian banks open corporate accounts after full KYC. In practice they expect a physical office lease and at least one employee paid by the LLC, plus a clear description of the business and its clients. Remote opening by power of attorney is possible but never guaranteed; the bank decides. More on banking.
Holding shares in a Georgian LLC does not require a work permit. Being its director can: the exemption of 15 April 2026 covers directors of category I to III enterprises, and most new companies start as category IV. Our partner assesses which case applies before registration. Residency and work permits.
Where is the company really managed?
If you run the LLC from the Netherlands, Germany or Belgium, your home country can treat it as resident there, or as having a permanent establishment there, and tax it accordingly. A Georgian LLC needs real management and activity in Georgia to work as intended. We raise this in the screening, not after registration.