Key Benefits for Entrepreneurs in Georgia
0% to 1% Income tax
If your annual turnover does not exceed GEL 500,000, you pay 0% or 1% instead of 20%.
No Citizenship or Residency Limitation
An Individual Entrepreneur can come from anywhere. No residency in Georgia is required
There is no limitation on the number of activities your business is involved in.
(*) VAT is included
(*) VAT is included
Power Of Attorney
Registration Remotely (without visiting Georgia)GEL 800
Monthly accounting and declarationsfrom GEL 200/month
Renewal of Legal address
Legal address renewal from second yearGEL 250/year
FAQ – Frequently Asked Questions
Who Can Receive SMALL BUSINESS Status In Georgia?
– Resident of any country who decides to register as an individual entrepreneur in Georgia
– Individuals whose annual turnover does not exceed GEL 500,000 in two consecutive years
What If My Annual Turnover Exceeds GEL 500,000?
If your annual turnover exceeds this amount, your tax rate rises to 3% from the month you get more than GEL 500,000 turnover and continues until the end of the year.
For example: Your turnover exceeded GEL 500,000 in September 2021. Your tax rate becomes 3% from September till December 2021. Beginning in January 2022 you return to a 1% rate until turnover exceeds the limit again.
What Kind Of Business Activities Are Allowed For SMALL BUSINESS Status Owners?
– Marketing services
– Cryptocurrency trading
– Online trading
– Intermediary services
– Any other services that are not specified in prohibited activities
What Kind Of Business Activities Are NOT Allowed For SMALL BUSINESS Status Owners?
– Activities requiring special licensing
– Production of excise goods
– Financial services and operations
– Advocatory services, Law firm
– Tax and legal consulting
– Foreign exchange transactions
– Medical services
– Architectural services
– Auditory and notary services
– Beauty centers
– Car repair services
What Is The Time Frame For BUSINESS Status Registration?
An individual entrepreneur can be registered and receive status in a day. Small business status and the 1% tax rate, however, are only valid from the first day of the next month.
What Kind Of Incomes Are Covered By The 1% And 3% Tax Rates?
All incomes that are received from selling a service or product.
What Kind Of Incomes Are Not Covered By The 1% And 3% Tax Rates?
– Incomes in the form of a salary
– Incomes from property leasing
– Incomes from loans
– Profit from gambling
– Incomes from gifts
– Profits from selling property, vehicles, securities
– Incomes from inherited property
– Incomes in the form of dividends
– Incomes from interest rates
– Incomes in the form of royalties
– Incomes from debt forgiveness
– Incomes received from the sales of partner shares
How Often Do I Pay 1% Tax, And How Do I Report It?
The 1% tax rate is payable every month (no later than the 15th day of the next month). Simple tax declarations must also be sent no later than 15th of each month. Apart from that you should keep a special journal proving all of your expenses. Our accountant can handle all the paperwork if you don’t want to do it yourself
How Many Days Should I Plan To Be In Georgia? Can I Receive IE Status Remotely?
You need to plan to be here for a minimum of 3, an average of 4, and a maximum of 5 days.
But a visit is not required. We can open both a company and a bank account within a week with just a Power of Attorney.
How About Banking For IE?
A bank account for an Individual Entrepreneur can be opened both in Georgia and in Digital Banks
When Is My SMALL BUSINESS Status Cancelled?
– When you contact the Revenue Services office to cancel it
– If your annual income exceeds GEL 500,000 per year in two consecutive years under active SMALL BUSINESS status