Opening a business bank account in Georgia for a foreign-owned LLC

LLC, joint stock company or individual entrepreneur

A business bank account in Georgia opens for a company registered in the Public Registry, usually an LLC, or for an individual entrepreneur. The bank checks shareholders, beneficial owners and the real business planned in the country. The LLC is the form most used by foreign investors, while the individual entrepreneur has no separate legal personality and opens an account in their own name.

The Georgian LLC, or limited liability company, is the form most used by foreign investors, while the joint stock company suits larger projects. The individual entrepreneur, with no separate legal personality, suits freelancers and opens an account in their own name.

Fast registration through the Public Registry and House of Justice

The National Agency of Public Registry registers a company in about one working day, often at a House of Justice. A foreign shareholder can act through a notarised and apostilled power of attorney, but the bank will later want to identify each beneficial owner directly.

What the bank checks on foreign shareholders

The bank asks for the registry extract, the company charter, passports of shareholders and directors and the origin of capital. For a company owned by a foreign entity, it requires apostilled documents of the parent up to the individuals.

Real activity in Georgia or international invoicing only

An LLC that rents an office, employs local staff or works with Georgian clients obtains an account more easily. A company used only to invoice foreign clients faces detailed questions on contracts and counterparties.

15 percent profit tax only on distribution

Since 2017 Georgia has used an Estonian-style model: reinvested profit is untaxed and 15 percent tax applies to distributions and similar outflows. Dividends paid to shareholders are also subject to 5 percent withholding.

Georgian VAT at 18 percent and the 100,000-lari threshold

VAT registration becomes mandatory once taxable turnover exceeds 100,000 lari over any twelve-month period, and the standard rate is 18 percent. Monthly VAT returns are then filed online with the Georgia Revenue Service.

Collecting in foreign currency and paying in lari

A business account can receive dollars or euros from foreign clients, but payments between Georgian businesses are in principle made in lari. Companies therefore convert regularly, and exchange differences show up in their books.

Free zones and international company status

Free industrial zones exist in Tbilisi, Poti and Kutaisi, and international company status, reserved for IT and maritime activities, offers reduced rates subject to substance conditions. Banks then review whether these conditions are actually met.

Card acquiring for Georgian tourist-facing businesses

Large Georgian banks provide payment terminals and online acquiring in lari, after reviewing the merchant's business model. Hotels, restaurants and shops serving tourists in Batumi or Tbilisi rely heavily on these services.

Opening an LLC account at a Georgian bank

At Bank of Georgia, an account for a foreign-owned LLC is usually opened at a branch with the director or an authorised representative present, the registry extract and a questionnaire on activity and expected flows.

Business bank account in Georgia: steps to open for an LLC

To open a business bank account in Georgia, the first step is to have the company registered with the National Agency of Public Registry, often at a House of Justice. Registration takes about one working day, but it is not enough: the bank will then examine the shareholders, the beneficial owners and the planned activity. Plan for these checks from the moment you choose the structure.

Next, assemble the file: registry extract, company charter, passports of shareholders and directors, evidence of the origin of capital and, if a foreign entity owns the company, its apostilled documents up to the individuals. Add a clear description of the activity, target customers, countries concerned and expected monthly flows. This information answers the questionnaire that the bank hands over at opening.

Finally, go to a branch, in person or through a representative holding a notarised and apostilled power of attorney. Review times vary depending on the bank and the complexity of the file, and no opening is guaranteed. A refusal can come from a correctable detail, and another institution may apply a different policy.

Common mistakes with a Georgian LLC

The first mistake is to form a Georgian LLC believing that quick registration guarantees the account. Registration in one day concerns the registry, not the bank. The bank assesses the risk specific to the company, its shareholders and its customers. It is better to prepare the explanation of the activity before you even file the registration request. This preparation saves many back-and-forth exchanges.

The second mistake is to present a company with no substance. An LLC that rents an office, employs local staff or works with Georgian clients obtains its account more easily than a company used only to invoice foreign customers. If your model relies on international invoicing, prepare contracts, sample invoices and the justification of counterparties. A good file explains the real purpose of the company.

The third mistake concerns foreign documents. A registry extract that is not apostilled, an approximate translation or an incomplete ownership chain blocks the file. Have documents legalised and translated from the start, check names and dates in each document, and keep copies consistent with each other, because the bank systematically cross-checks the information received. A sworn translator may help with this.

Choosing a bank for a company bank account in Georgia

Before choosing, compare the services useful for your activity: payments in lari and in foreign currency, payment terminals, online acquiring and multi-user online banking. The large Georgian banks, including Bank of Georgia, offer these services, but their conditions vary. Ask for the written price list, conversion fees and the limits that apply to international transfers. Keep the written answers you receive.

Also ask the bank about its policy toward foreign-owned companies: branch visit required or not, presence of the director, documents needed to renew the file and frequency of reviews. A bank that explains its rules plainly saves you time. Note the answers and compare at least two institutions, because practices differ from one branch and adviser to another. Ask each bank which documents it needs to renew the file.

Finally, check that your needs fit the tax model. With a 15 percent tax payable on distribution, managing cash and dividends calls for discipline. A local accountant can tell you which flows will be treated as distributions, and which supporting documents the bank and the tax authority may request. This step is best prepared with a local accountant, who knows how a company bank account in Georgia is monitored.

Running the account and meeting obligations after opening

Once the account is open, organise day-to-day management: separation of personal and business flows, monthly reconciliation of statements, filing of contracts and invoices. The bank may request supporting documents for a large transfer, and answering quickly with consistent papers avoids blockages. Appoint one person to handle these requests so that you do not depend on the availability of the shareholders. Keep a monthly routine for it.

Watch the thresholds and deadlines: VAT registration becomes mandatory when taxable turnover exceeds 100,000 lari over twelve months, with a standard rate of 18 percent, and monthly returns are filed online. Also keep in mind the 5 percent withholding on dividends. Regular follow-up with an accountant prevents calendar errors. Set reminders in advance. Doing so protects your business account in Georgia from avoidable questions.

On the reporting side, the bank applies automatic information exchange rules, notably CRS, with regard to non-resident shareholders. This never exempts them from declaring their income in their country of residence. Check these obligations with a tax adviser and, if needed, with the competent Georgian authority before distributing dividends. Keep proof of your enquiries. Keep proof of your enquiries with the records.