One of the biggest advantages of a Georgian LLC is the low ongoing maintenance cost. Unlike many jurisdictions that charge hefty annual fees, Georgia keeps it simple and affordable. Here's everything you need to budget for.
The Good News: No Annual Government Fees
Unlike many countries, Georgia does not charge:
- Annual registration renewal fees
- Corporate franchise taxes
- Annual report filing fees
- Mandatory capital maintenance
Your LLC registration is valid indefinitely without any renewal payments to the government.
Mandatory Ongoing Costs
While there are no government annual fees, you'll still have some necessary expenses:
1. Legal Address (Required)
Every Georgian LLC must maintain a registered address:
| Option | Monthly Cost | Annual Cost |
|---|---|---|
| Virtual office (basic) | 50-100 GEL | 600-1,200 GEL |
| Virtual office (premium) | 100-200 GEL | 1,200-2,400 GEL |
| Physical office | 300+ GEL | 3,600+ GEL |
| Home address | Free | Free |
Note: Using a home address is only possible if your lease agreement permits commercial use.
2. Accounting and Tax Compliance
Georgian companies must maintain proper accounting records:
| Business Size | Monthly Cost | Annual Cost |
|---|---|---|
| Micro (minimal activity) | 100-200 GEL | 1,200-2,400 GEL |
| Small (regular activity) | 200-400 GEL | 2,400-4,800 GEL |
| Medium (complex operations) | 400-800 GEL | 4,800-9,600 GEL |
This typically includes:
- Bookkeeping
- Tax return preparation
- Annual financial statements
- Payroll processing (if applicable)
3. Bank Account Fees
Most Georgian banks charge minimal fees:
| Fee Type | Typical Cost |
|---|---|
| Monthly maintenance | 0-20 GEL |
| Incoming transfers | Free or minimal |
| Outgoing transfers (domestic) | 0.1-0.5 GEL |
| Outgoing transfers (international) | 15-50 GEL |
| Card issuance | 0-30 GEL |
Annual estimate: 0-500 GEL depending on activity level.
Tax Obligations
Corporate Income Tax (CIT)
Georgia uses an Estonian-style tax system:
- Retained profits: 0% tax
- Distributed profits (dividends): 15% tax
This means if you reinvest your profits, you pay no corporate tax.
VAT (Value Added Tax)
- Registration threshold: 100,000 GEL annual turnover
- Rate: 18%
- Filing: Monthly
If your turnover is below 100,000 GEL, VAT registration is optional.
Small Business Status (If Eligible)
For qualifying businesses with turnover under 500,000 GEL:
- Tax rate: 1% of gross revenue
- No corporate tax on distributions
- Simplified reporting
This can dramatically reduce your tax burden.
Annual Cost Comparison by Business Type
Dormant Company (No Activity)
| Expense | Annual Cost |
|---|---|
| Legal address | 600 GEL |
| Minimal accounting | 600 GEL |
| Bank fees | 100 GEL |
| Total | ~1,300 GEL ($480) |
Active Freelancer/Consultant
| Expense | Annual Cost |
|---|---|
| Legal address | 1,200 GEL |
| Accounting | 2,400 GEL |
| Bank fees | 300 GEL |
| Tax (1% on 100k revenue) | 1,000 GEL |
| Total | ~4,900 GEL ($1,800) |
Small Trading Company
| Expense | Annual Cost |
|---|---|
| Legal address | 1,800 GEL |
| Accounting | 4,800 GEL |
| Bank fees | 600 GEL |
| Tax (varies) | Variable |
| Total | ~7,200 GEL ($2,650) + taxes |
Comparison with Other Jurisdictions
| Country | Annual Maintenance Cost |
|---|---|
| Georgia | $500-2,500 |
| Estonia | $1,000-3,000 |
| UK | $500-2,000 |
| USA (Delaware) | $1,500-5,000 |
| Hong Kong | $2,000-5,000 |
| Singapore | $2,000-6,000 |
| Switzerland | $5,000-15,000 |
Georgia remains highly competitive for ongoing costs.
Ways to Minimize Annual Costs
1. Choose the Right Tax Regime
- Small Business Status (1% tax) if eligible
- Virtual Zone for IT companies (0% on exports)
- Standard regime only if necessary
2. Use Virtual Office
Unless you need a physical presence, a virtual address saves significantly.
3. Bundle Services
Many providers (including us) offer packages that combine:
- Legal address
- Accounting
- Tax filing
- Compliance monitoring
Bundled services typically cost 20-30% less than separate providers.
4. Maintain Clean Records
Disorganized records mean more accounting hours. Keep your documentation organized to minimize professional fees.
5. Plan Transactions Efficiently
- Batch international transfers to reduce fees
- Use local payment methods when possible
- Consider multi-currency accounts
What Happens If You Don't Pay?
Accounting Non-Compliance
- Late filing penalties: 50-200 GEL per instance
- Continued non-compliance: Increased penalties
- Severe cases: Company suspension
Tax Non-Payment
- Interest on unpaid taxes: 0.05% per day
- Penalties: 10-50% of unpaid amount
- Asset freezing possible
No Legal Address
- Registration may be invalidated
- Unable to receive official correspondence
- Banking complications
Closing Your LLC
If you decide to close your Georgian LLC:
- Liquidation fee: ~300 GEL
- Processing time: 1-3 months
- Final tax clearance required
There's no penalty for closing a company in good standing.
Annual Compliance Calendar
| Month | Task |
|---|---|
| Monthly | VAT returns (if registered) |
| Quarterly | Income tax advance payments (if applicable) |
| March 31 | Annual financial statement deadline |
| April 1 | Profit tax return deadline |
| Ongoing | Payroll taxes (if employees) |
TaxWizzards Annual Packages
We offer all-inclusive annual maintenance packages:
Starter Package (Dormant/Low Activity)
- Virtual address
- Annual compliance filing
- Basic accounting
- From 1,500 GEL/year
Business Package (Active Companies)
- Premium virtual address
- Monthly bookkeeping
- All tax filings
- Quarterly consultations
- From 3,500 GEL/year
Premium Package (Complex Operations)
- Physical address options
- Dedicated accountant
- Unlimited consultations
- Priority support
- Custom pricing
Contact us to discuss the right package for your business.
Frequently Asked Questions
Are there any hidden government fees?
No. Georgia is transparent about costs. There are no hidden annual registration or franchise fees.
What if my company has no activity?
You still need to file nil returns and maintain a legal address, but costs are minimal (~1,300 GEL/year).
Can I do my own accounting?
Technically yes, but Georgian accounting standards require professional knowledge. Most businesses use accountants.
What currency should I budget in?
Most costs are in Georgian Lari (GEL). Budget approximately $500-2,500 USD annually for a small business.
Need help budgeting for your Georgian LLC? Reach out for a personalized cost estimate based on your business activities.