Tbilisi, Georgia, has become an unexpected yet thriving hub for entrepreneurs in recent years. If you’re looking for a place to launch your next business venture, this vibrant city at the crossroads of Europe and Asia might just be the perfect location. With a business-friendly environment, strategic location, and a lifestyle that blends affordability with culture, Starting a Business in Tbilisi, Georgia has never been easier for Entrepreneurs.

If you’ve never thought of starting a business in Tbilisi, it’s time to consider it. Ranked 7th in the World Bank’s “Ease of Doing Business” report in 2020, Georgia has built a reputation for efficiency, innovation, and a regulatory framework that encourages investment. In this article, we’ll dive into why Tbilisi is a great spot for entrepreneurs and take you through everything you need to know about starting a business in this dynamic city.

Why Tbilisi is a Hidden Gem for Entrepreneurs

Tbilisi, the capital of Georgia, is a city that’s both old and new—a place where cobblestone streets and historic architecture coexist with modern tech hubs and startups. This juxtaposition of tradition and innovation has drawn entrepreneurs from all over the world.

Strategic Location and Growing Entrepreneurial Spirit

Georgia’s strategic location—nestled between Europe and Asia—makes it a prime spot for accessing both markets. For businesses looking to expand their global reach, Tbilisi offers an ideal foothold with easy access to neighboring countries like Turkey, Armenia, Azerbaijan, and Russia, as well as connections to the Middle East. This is particularly advantageous for industries like logistics, tech, and trade.

In recent years, the Georgian government has worked hard to cultivate a business-friendly environment. With initiatives like Tbilisi Startup Bureau, an incubator offering support and funding to startups, the city is steadily building a reputation as an innovation hub. Entrepreneurs, digital nomads, and expats are flocking to Tbilisi for its affordability, quality of life, and budding entrepreneurial community.

Lifestyle and Affordability

One of the key draws of Tbilisi is its affordability. While other startup hubs in Europe or Asia come with sky-high living costs, Tbilisi offers an attractive alternative. The cost of living is low, the rent is affordable, and dining out won’t break the bank. Plus, the city’s rich culture—blending ancient history with modern living—makes it a rewarding place to call home.

Step-by-Step Guide to Starting a Business in Tbilisi, Georgia

Starting a business in Tbilisi is not only affordable, but it’s also incredibly efficient. You can set up your company in as little as 1-2 days, thanks to Georgia’s streamlined registration process.

Step 1: Choosing the Business Structure

Before you can register your business, you’ll need to choose the right legal structure. In Georgia, there are several options, but the most common one for foreign entrepreneurs is the Limited Liability Company (LLC). This structure is simple to manage, requires only one director (who can be a foreigner), and offers the benefit of limited liability for shareholders.

Other options include Joint Stock Companies (JSCs) and partnerships, but for most small to medium-sized businesses, an LLC is the way to go.

Step 2: Company Registration Process

Registering your company in Tbilisi is refreshingly simple. You can do it all in-person at the National Agency of Public Registry, or you can even register remotely if you use a local agent or lawyer. Here’s what you’ll need:

• Company name: Ensure your chosen name is unique and not already registered.
• Founders’ details: The name, address, and identification of the business owner(s).
• Legal address: This can be a rented office or even a co-working space.
• Charter: A simple document outlining your company’s structure and activities.

Once you submit your documents, registration usually takes just one business day!

Step 3: Opening a Bank Account

After your company is registered, the next step is opening a business bank account. Georgia has a stable and reliable banking system, and as a foreigner, you’ll find that the process is smooth and efficient. The requirements typically include:

• Your business registration documents
• A proof of address
• Identification (passport) of the business owner(s)

Some popular banks in Georgia that cater to foreign entrepreneurs include TBC Bank and Bank of Georgia. Alternatively, you can explore fintech solutions if you prefer online banking for more flexibility.

Step 4: Business Licensing and Permits

Depending on the nature of your business, you may need specific licenses or permits. For example, if you’re opening a restaurant or café, a food handling permit is required. The good news is that the process is straightforward, and most licenses are issued within a week or two.

Step 5: Hiring Employees

When it comes to building a team, Georgia offers a pool of talented professionals. You can easily hire both locals and expats, depending on your needs. Labor laws in Georgia are flexible, and wages are relatively low compared to Western countries, making it an attractive destination for scaling a business.

Tax Benefits and Incentives for Starting a Business in Tbilisi, Georgia

One of the most appealing aspects of starting a business in Tbilisi is Georgia’s favorable tax regime. The country has a flat corporate tax rate of 15%, which is significantly lower than most Western countries. In addition to this, Georgia’s tax code is known for its simplicity and transparency, making it easier to manage your business’s financials.

Personal Income Tax Exemptions

If you’re operating a small business or working as a freelancer, you may benefit from personal income tax exemptions. For example, small entrepreneurs (those earning less than 500,000 GEL per year) can qualify for a reduced tax rate of 1% on gross income.

Dividend and Capital Gains Taxes

For investors, Georgia’s tax rates on dividends and capital gains are quite competitive, especially if you’re looking to reinvest profits or expand your business.

Free Industrial Zones (FIZs)

Georgia has also established Free Industrial Zones (FIZs) in several cities, including Tbilisi. Businesses operating within these zones are exempt from VAT, customs duties, and other taxes, making them highly attractive for export-oriented businesses.

Double Taxation Treaties (DTAs)

Georgia has signed double taxation treaties with over 56 countries, which helps businesses avoid being taxed twice on income earned in Georgia and their home country. This is a major advantage for international entrepreneurs.

Business Opportunities in Tbilisi

Tech and Startups

Tbilisi is becoming a tech hub, with a growing number of startups in software development, blockchain, and fintech. The city offers plenty of opportunities for tech entrepreneurs looking to tap into the region’s talent and resources.

Tourism and Hospitality

Tbilisi’s booming tourism industry provides ample opportunity for businesses in the hospitality sector. From boutique hotels to restaurants and travel agencies, the demand for tourism-related services is growing fast.

Real Estate Development

With an increasing number of expats moving to Tbilisi, real estate development is another lucrative sector. Whether you’re interested in residential or commercial properties, the market offers plenty of potential.

Challenges to Consider

While Tbilisi offers numerous advantages, there are some challenges to be aware of:

• Language barriers: While many young Georgians speak English, you may encounter language difficulties when dealing with older generations or government agencies.
• Bureaucratic hurdles: While setting up a business is quick, certain processes (like acquiring specific licenses) can take longer than expected.
• Competition in certain sectors: Some industries, like hospitality, can be competitive, so thorough market research is essential before diving in.

These challenges, however, are easily overcome by working with local consultants or business partners who can help navigate the complexities.

Living and Working in Tbilisi

Cost of Living

Tbilisi is an affordable city for entrepreneurs. Rent for a modern apartment in the city center can be as low as $400 per month, while dining out is a fraction of the cost you’d pay in Western Europe.

Co-Working Spaces and Networking

The city has a growing number of co-working spaces, such as Fabrika and Impact Hub, where you can meet like-minded entrepreneurs, network, and collaborate on projects. The entrepreneurial scene is vibrant, with regular networking events and startup meetups.

Visa Options

Georgia offers a liberal visa policy, making it easy for foreigners to live and work in the country. In most cases, foreigners can stay in Georgia visa-free for up to 365 days. After that, obtaining a residence permit is relatively straightforward for business owners.

Conclusion

Tbilisi, Georgia, is a city on the rise, and now is the time to tap into its vast potential. With its low taxes, strategic location, and growing startup scene, Tbilisi offers everything an entrepreneur could want in a business destination. Whether you’re a freelancer, a startup founder, or an investor, the welcoming business environment and high quality of life make it an ideal place for starting a business in Tbilisi Georgia.

So why wait? The hidden gem of Tbilisi is waiting for you to discover it.

Resources for Starting a Business in Tbilisi, Georgia

Here are some essential resources to help you get started with your business in Tbilisi:

Government and Business Registration

• National Agency of Public Registry: The official body responsible for company registration in Georgia. You can register your business online or in person.
  Website: www.napr.gov.ge
• Enterprise Georgia: A government initiative supporting business development in Georgia with a focus on SMEs, innovation, and export promotion.
  Website: www.enterprisegeorgia.gov.ge

Banking and Finance

• TBC Bank: One of Georgia’s leading banks, offering services tailored to businesses, including account setup, loans, and corporate banking solutions.
  Website: www.tbcbank.ge
• Bank of Georgia: Another major bank offering business banking services, with comprehensive financial solutions for startups and established companies.
  Website: www.bankofgeorgia.ge

Legal and Consulting Services

• BDO Georgia: A reputable consultancy offering legal, tax, and business advisory services for entrepreneurs starting businesses in Georgia.
  Website: www.bdo.ge
• Begels Lawyers & Consultants: A legal firm providing assistance with business setup, compliance, and ongoing legal needs.
  Website: www.begels.ge

Business Networking and Support

• Tbilisi Startup Bureau: An incubator and accelerator that provides mentorship, workspace, and access to funding for startups in Georgia.
  Website: www.startupbureau.ge
• Impact Hub Tbilisi: A vibrant co-working space and community hub for entrepreneurs, freelancers, and startups.
  Website: www.impacthub.ge

Visa and Immigration

• Georgia’s Ministry of Foreign Affairs: For information on visa requirements, long-term residency permits, and immigration services for foreign business owners.
  Website: www.mfa.gov.ge
• Public Service Hall: Provides various services, including residence permits and other legal documents required for foreigners.
  Website: www.psh.gov.ge

Tax and Financial Information

• Revenue Service of Georgia: For detailed information about corporate taxes, tax rates, and registration for VAT and other tax obligations.
  Website: www.rs.ge
• Georgia Free Zones: Information on Georgia’s Free Industrial Zones (FIZs), where businesses can benefit from tax incentives.
  Website: www.gfz.ge

Expats and Relocation

• ExpatHub Georgia: A resource platform offering information and services for expatriates relocating to Tbilisi, including business setup, housing, and visas.
  Website: www.expathub.ge