For entrepreneurs seeking a strategic gateway to international business, the country of Georgia offers a compelling destination. In this blog, we'll explore the essentials of opening a business bank account in Georgia, covering crucial aspects such as who needs one, the available options, and the intricacies of standard and online accounts tailored to Georgian businesses.
Who Needs a Business Bank Account in Georgia?
Individual Entrepreneurs are allowed to accept business income to any bank account in their name or the name of their business, whether it be a personal account or a business account. There is no legal requirement to open a dedicated account for your business, or to even open a bank account in Georgia.
That said, there are many reasons why you might want one. I’ll explain those reasons, and your best options, below.
Legal entities, for example, LLCs, are also not required to have a business bank account in order to transact. BUT the practicalities of operating without a business bank account will create a significant overhead, requiring your accountant to register every single movement of money to or from a personal bank account as a cash transaction for tax purposes. In addition, all VAT-registered businesses are required to link their local Georgian business bank account directly to the Revenue Service’s online system, or they won’t be able to file the mandatory tax declarations.
How to open a personal or Business Bank Account in Georgia?
The essentials of opening a personal account:
2. Basic KYC questions relating to your personal wealth & sources/amounts of income.
3. Relevant proof relating to income and wealth (in some cases). This can be in the form of employment or service contracts, proof of foreign pension or inheritance, proof of business income, proof of investment portfolio, etc.
4. For US citizens only, full compliance with the FATCA agreement, including sharing your IRS information.
This is not an exhaustive list, and the bank has the right to refuse to open an account for you without providing a reason.
For the time being, you do not need to be a resident of Georgia to open an account, and no proof of local address is required.