Doing business in Georgia is considered to have many opportunities as lying right on the boundary of Europe and Asia and having a good economic relationship with strategic countries of the region. Due to latest the world bank Ease of Doing Business rankings Georgia is on 7 rank, with a high score of ease DB, which means the regulatory environment is more conducive to the starting and operation of a local firm.
Besides the strategic location should be noted the fact that Georgia has free trade agreements with the EU / China, as well as the Russian Federation, Azerbaijan, Armenia, Ukraine, Moldova, Kazakhstan, Uzbekistan, Turkmenistan and Turkey.
On basis of the transit opportunities of Georgia, a number of international brands carry out their Transcaucasian regional management from the headquarters in Georgia.
In addition, we should mention the support of the government of foreign investment which implies tax reliefs; proper (simplified) legal procedures and qualified business services and outsourcing (BSO).
In this blog, you can find the essential information you have to consider before launching your company. Take your time to evaluate all the first steps of legal issues; tax regulations and primary accounting procedures.
In order to maintain stability of your business and stay in compliance with country regulations, before setting up a new company we recommend you to: 1. Get legal advice regarding the planned activity to determine what regulation this business may be subject to. 2. Implement tax planning to determine in advance the most optimal tax structure for the desired business. 3. Select a qualified business provider to run the current accounting service.
There are some key attributes you should note while selecting companies to partner with :
- International reputation;
- Experience in the market;
- Other signs (liability insurance, etc.).
Tax planning and compliance
To compete internationally, businesses of all sizes are examining their business models to ensure they have the right structures in place to reach their target markets and to produce and deliver their goods or services in the most efficient and cost-effective manner possible.
In parallel with setting up a company, it is good if you will have tax planning with pre-made internal forces or a report received from a trusted company to determine a pre-legal form of tax optimization. After the registration of the company, a tax portal should be opened for the administration of taxes and declarations. The company is automatically assigned an unqualified status, which then requires the application to be uploaded, and after passing the relevant procedures, the tax assigns a “qualified” status.
How to do Business accountancy and bookkeeping
It is desirable to have an accounting policy and primary accounting documents and collection documents confirming the relevant economic events. The company, in order to accomplish the requirements established by law, should taking into consideration the complexity of its activities and organizational structure:
- Determine the accounting policy;
- Develop a plan of accounts within the rules established by the legislation of Georgia;
- Develop the mechanism and procedures for the production and control of documents reflecting economic events;
- determine the terms and technology of processing accounting information;
- Develop financial reporting forms based on the relevant financial reporting standards and define the procedures for preparing and submitting financial statements;
- Develop a combination of business processes and business rules (internal control system), which ensures the efficiency of its activities, the accuracy of financial statements and their compliance with the legislation of Georgia.
Carry out financial reporting according to the relevant standards of accounting and financial reporting, which depends on the size category of the entity, there are 4 size categories. The company needs to prepare financial statements at least once a year.
The company is also obliged to upload the register of employees on the portal of the Revenue Service – before hiring a new employee, the relevant data must first be registered on the portal. you should also keep records of employees’ working hours – by filling in the minimum information required.
How can BDO help ?
If considering to start your business in Georgia you can contact BDO in Georgia and take few consultations regarding all the first legal steps, documentations and evaluate your expectations according to local market analyze.