Individual Entrepreneur in Georgia

Only 1% tax on income up to USD 200,000.

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Individual Entrepreneurship (Sole Proprietorship)

There are many reasons for wanting to do business in Georgia, and being an Individual Entrepreneur (IE) offers additional advantages, such as the 1% tax on an income falling between GEL 30,000 and GEL 500,000 (approximately USD 200 000). The 1% tax rate is not, however, granted automatically. The Individual Entrepreneur must apply for SMALL BUSINESS STATUS to receive the benefit.  If your turnover is less than GEL 30,000 (approximately EUR 7500), then you qualify for Micro Business Status and your tax rate is 0%.

Key Criteria For An Individual Entrepreneur In Georgia

Sole owner

You must be the sole owner of a business in Georgia or another country.

Maximum turnover

Your income must not exceed GEL 500,000 per year.

Prohibited activities

Your business activity must not fall within the list of prohibited activities (see FAQ section below).

Monthly tax declaration

You must file monthly returns with the Georgian Revenue Service and pay a 1% tax on your income.

Key Benefits for Individual Entrepreneurs

  • 0% to 1% Income tax instead of 20%
    If your annual turnover does not exceed GEL 500,000, you pay 0% or 1% instead of the usual 20%. More specifically, if your business turnover is not more than GEL 30 000 per annum, you qualify for Micro Business Status and your income tax rate is 0%. If your turnover is from GEL 30,000 to GEL 500,000, you qualify for Small Business Status and your tax rate is 1%.
  • No Citizenship Limitation
    An Individual Entrepreneur can come from anywhere. Georgian Citizenship or Permanent Residency are not required.
  • No Limitation on the Number of Activities
    An Individual Entrepreneur can be active in multiple fields. There is no limitation on the number of activities your business is involved in.

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Steps For Attaining Small Business Status

Registration as an Individual Entrepreneur

Everything starts with register as an Individual Entrepreneur at the Public Service Hall in Georgia.

Opening A Bank account for your IE

The individual with Private Entrepreneur status running the company in Georgia must have a personal bank account.

Get Small Business Status

After registering as an Individual Entrepreneur, you must apply with the Revenue Service in Tbilisi for the status of Small Business Owner. After registration as a sole proprietor it is necessary to apply to the Revenue Service in Tbilisi and obtain the small business status. Only after obtaining this status it is possible to start working under 1% tax.

Filing of monthly returns

At the end of each month, before the 15th of next month, you must notify the tax office of your income and pay a tax of 1%.

Here’s How We Help You

Assistance in the Registration Process

We help you register as an Individual Entrepreneur in the Public Service Hall and acquire Business Status from the Revenue Service in Tbilisi.

Legal address

We'll take care to allocate a legal address for your IE. An address where you can receive any future correspondence.

Assistance in opening a bank account

At this stage, we'll help in communicating with the bank and increase the chances of opening an account to almost 100%

Assign your IE a Small Business Status

In order to receive preferential tax treatment (1%), you must obtain small business status. Our consultants will take care of getting this status for you in a timely manner

Monthly declarations

We'll be able to accompany your individual entrepreneur monthly in front of the Georgia tax office. If you wish to do it yourself, no problem, we'll give you a consultation on filing the declaration so that you won't need any assistance in the future to do your own taxes.

Remote procedures

No possibility to come to Georgia? Fortunately, all of the above can be done remotely. We'll help you draw up a power of attorney and on its basis carry out all the procedures for registering a IE and opening a bank account in Georgia.

Frequently Asked Questions

Who Can Receive SMALL BUSINESS Status In Georgia now?

– 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

What Kind Of Business Activities Are NOT Allowed For SMALL BUSINESS Status Owners?

– Activities requiring special licensing – Production of excise goods – Gambling – 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

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