I want to open my bank in Georgia and move my whole finance there
i run affiliate marketing business as individual so I don’t have a company already registered anywhere i know it’s easy to go there and open bank account (personal) without business but is that okay for banks in Georgia to have personal account and run business through it?
the other thing, what you guys think is better, to set up a business there and open a business account or personal without business and what benefits/drawbacks from each setup?
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Hello Yacoub,
Georgia is a territorial tax country, so using a personal or business account will not get you taxed there if your business is from outside it’s borders. More important is which country(ies) you are from and where you reside.
Regardless of what you choose to do, it will be less stressful to separate your personal money from your business money. Outside of accounting and tax issues, knowing where you stand business wise would be next to impossible if you run a single account with your business and personal funds.
Consider opening a company and a business account in Georgia, then open a FinTech borderless account with N26 and or Transfarwise for your personal use. This way, all expenses from your business account in Tbilisi is business related (wages to you or business purchase/sales orders) . You might want to do it the other way around with a FinTech business account and a personal account in Georgia. This way, you have more accounts/currencies you can receive in and spend in for your business, plus as a territorial tax country, your personal account is not stressed.
Having said this, please note that the country you reside in or are a tax resident of is very important as it could render this plan pointless from a tax perspective.
Cheers and goodluck
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Please allow me to recommend to you “The 4 hour work week” by Tim Ferriss. While I encourage you to read the whole book, I believe Step 3 (Chapter 8 from page 128 on wards) would be the most enlightening to you for your business.
Enjoy
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that’s good to know thank you
a question in here, what if i sent money outside my personal account to myself in my home country or as salaries to employees ! will i pay TAX here ?
i like to understand the TAX behind this too and the freedom of doing my affiliate marketing business with Personal account
It depends on where you live and the tax laws. I am assuming you are living in a country that taxes your world wide income, while you may not get noticed or hassled sending money to yourself or paying wages to your employees initially, it will always come back to bite you in the long run.
It would be wrong of me to promote banking in Georgia as the best solution because where you are from and where you live can nullify the advantages of banking in Georgia from a legal point of view.
If your employees had FinTech or Georgian accounts you pay into, this would make things easier for you.
In the end, it all depends on how much you are making from your business. If it is small, then not following the tax requirements where you live would not be worth getting in trouble but if it is big, why tie yourself to living in a country that does not favor you especially when you can relocate and visit as often (within reason) as you feel like?
Remember that your business is location independent, maybe you could be too…
there is no taxes in my country of Residence .
i’m asking for example if Georgia government will put taxes on me for any money that go outside the account and Georgia ?
and you are right about why to live somewhere i don’t feel good , like here in Palestine.
thats why i want to move my banking somewhere safer and understand my business at least.
As the law stands, Georgia will not tax you for money coming in or out of your personal account in Georgia
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Bro , how much time i will need to finish setting up my personal account in 2 banks ? with all the setup and debit/credit cards collection ?
It should not take you long. What might take your time is the preparation of the power of attorney for the lawyer in Georgia and the certified/apostille of the documents. Once in Georgia, the remaining process should take less than a day. You would be sending and receiving your documents/bank cards via DHL. So you could say, all can be done in under a week.
i’m opening a personal account not business one !
i will ask the banks for credit cards and online shopping cards(if they have) , so i want to know how much time it takes for these cards to be ready ?
This is for a personal account. The documents needed are a copy of your passport and the power of attorney for the lawyer in Georgia.
The cards are usually given in the same day the application is made.
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