Closing an LLC in Georgia is not as easy as opening and requires more time. Here we will describe the process that we went through as we were closing an LLC that had absolutely no transactions. We want to do it because no one could describe to us the whole process neither in Tax authorities nor in Public service hall and we had to find it out by ourselves.
Firs step is to initiate the liquidation process in the Public service hall (known as Mushroom Building). There we paid around 105 GEL and submitted documents: Decision of partners to close the company and statement that the company does not have any current debts to suppliers or Tax authorities. At this point they told us just to wait for 10 business days and then return to Public service hall to finalize the registration.
It turned out that we did not have to wait but we needed to apply to Tax authorities with special application about liquidation and to fulfill our liabilities to Tax authorities which is to submit tax declarations and pay tax liabilities if any. As the application in Public service hall was initiated in May 2020 we had to submit following declarations:
- Corporate Income Tax Declaration – May 2020
- Property Tax declaration 2019 and 2020.
After that we uploaded the declarations in the application for liquidation and waited for some time. At that point Tax authorities may consider that the company needs tax audit and initiate the process though in our case as there were no transactions, they just confirmed our application. Though even after that when we returned to Public service hall to proceed with the liquidation our application got rejected because Tax authorities did not inform Public service hall that our application was approved. Also, we spent several days calling Tax authorities and waiting until they sign the official letter to Public service hall and send it. In the end they sent the letter and Public service hall automatically finished the registration of liquidation. We could get the confirmation document that the LLC was liquidated from their online portal napr.gov.ge.
The last step that we need to do was to cancel the rs.ge account which could be done only by going there physically.
We did all the above procedures based on the Power of attorney provided by the partners of the company.
It took us more than 2 months to finalize the process though now after knowing the roadmap we think it is possible to di it within 1 month.