Category: კატეგორიის გარეშე

Tbilisi, the capital of Georgia, has a population of around 1.2 million, representing roughly one-third of the country’s total population of 3.7 million. However, it contributes approximately 50% of Georgia’s GDP, establishing itself as the nation’s central and most important economic hub. As a result, Tbilisi is the top destination for foreign investors in the country.

It should be mentioned that Georgia was ranked as 7 in the world in terms of ease of doing business by the World Bank. If you are considering entering Tbilisi’s vibrant and attractive market, there are two options you could choose from. You can either 1) operate business as an individual entrepreneur and obtain small business status from the Tax Authority of Georgia (details about this option is discussed in the following article Small business status in Georgia ); or 2) register a company in any legal form. In the case of the second option, the most popular choice is Limited Liability Company (LLC), which gives the most flexibility to businesses, especially in the starting phase.

Accounting services in Tbilisi

There are many companies that provide accounting services in Tbilisi. However, the accounting services market is dominated by a few top providers, with significant market shares. Our company, Ants, is a leading accounting firm in Georgia. We serve more than 600 client companies every day and we have been providing our services to clients since 2015. We employ the country’s finest talent and our staff is specially trained to provide exceptional customer experience. In fact, we have been awarded a nomination for Exceptional Customer Experience in the country’s largest business award annual ceremony.

We provide a full range of accounting services, including, but not limited to the following: accounting in the modern software; filing tax declarations; tax advisory; representation with the tax authorities. Our accounting system includes three levels of control: bookkeeping records are prepared by our accountants, then reviewed by financial managers, and finally supervised by internal auditors. We take great care to eliminate any mistakes in tax returns and we take financial responsibility for any tax penalties caused by any mistakes. It should be noted though, that we have close to a hundred percent success track record in tax-related matters. Therefore, choosing Ants as your service provider would be a very safe bet.

Accounting service fees in Tbilisi

Due to high competition, accounting service fees in Tbilisi are both reasonable and affordable. Local firms typically do not impose tourist taxes. Our fees are consistent for both local and foreign companies and individuals, with variations based solely on objective factors such as the number of employees, revenue size and the complexity of the client company’s industry.

 

 

Batumi is a second largest city in Georgia both in terms of population and in terms of economy, based on contribution to the country’s GDP. Batumi is also one of the most popular tourism destinations in Georgia, with breathtaking sightseeing and must-see locations. The city is also very popular among investors.

Accounting services industry in Batumi

A number of companies offer accounting services to businesses in Batumi. Outsourcing accounting is widely considered to be the best option among foreign investors to comply with local tax and accounting regulations. Our company serves hundreds of client companies on a daily basis and approximately one-third of our customers are foreigners, that makes us the leader in the industry across the country. If you are considering investing in Georgia and operating your business in Batumi, we can assist you in your company’s accounting process through fully taking over the bookkeeping, tax declarations filing and financial reporting services.

It should be noted that foreigners have a second option of conducting business in Batumi, which is operating as an individual entrepreneur rather than registering a company. In the latter case, individual entrepreneurs should obtain small business status. Specific requirements, tax benefits and other details associated with the latter status is discussed in our article on the following link: Small business status in Georgia

Why Ants?

In 2023 we were awarded in the country’s largest business award ceremony, organized by the largest local bank, a nomination for Exceptional Customer Experience. We have years of experience in handling complex tax matters, disputes and transactions. We are financially responsible for any tax penalties caused by mistakes in tax declarations. We have accounting responsibility insurance coverage from two leading insurance companies in Georgia. Additionally, the process of signing a contract with us is an easy and comfortable process. Therefore, if you are considering starting your business in Batumi, outsourcing the accounting job to Ants is your best option!

In the first quarter of 2024, an investor expressed interest in expanding operations into Georgia. The investor had been successfully operating in the production of specialized soft drinks across European and Asian markets.

The investor was considering acquiring a local company, which had been selected based on a personal recommendation. The target company owned soft drink production equipment and refrigeration units for storage and the acquisition price had been negotiated at approximately USD 4 million.

 

Risk Identification

Prior to finalizing the transaction, the investor engaged Ants as a financial due diligence advisory firm.

As a result of the analysis, it was revealed that the company had significant overdue liabilities toward suppliers, exceeding GEL 1.5 million. Such liabilities directly impacted the company’s financial position and created substantial financial and reputational risks for the investor, especially given that this information had not been fully disclosed at the initial stage of the transaction.

 

Change of Strategy and New Investment

Considering the identified issues, the investor decided to withdraw from the acquisition and instead establish a new company in Georgia. The responsibility for accounting and financial management of the newly established entity was undertaken by Ants.

The investor invested a total of approximately USD 3.5 million in the new company, which was allocated to:
• Acquisition of equipment
• Financing of inventory and working capital

As a result, the investor was able to avoid significant financial risks and launch operations with a clean balance sheet and transparent financial structure.

 

Role of Ants

Ants conducted a comprehensive financial due diligence, which included an in-depth assessment of the company’s financial position, liabilities and potential risks.

Projects like this once again demonstrate that due diligence is not merely a formal process, but rather a strategic tool that helps investors avoid unfavorable transactions and allocate capital more effectively.

 

Investor’s Comment

“Georgia is an attractive market for us and we initially intended to acquire a specific company. However, the in-depth financial analysis revealed risks that were not visible at the early stage of the transaction.

The financial analysis conducted by Ants played a crucial role in our decision-making process. As a result, we were able to avoid acquiring a problematic asset and instead proceed with an alternative investment approach.”

 

Ants’ Comment

In large transactions, cooperation with a reliable and experienced partner is crucial for investors.

Our involvement in investment projects once again highlights Ants’ role as a trusted partner, helping investors make well-informed decisions and effectively manage financial risks.