The law distinguishes four categories of enterprises and, separately, public interest entities (PIEs). PIEs and first-category enterprises report under full IFRS, the second and third categories under IFRS for SMEs, and the fourth category under standards set by SARAS, with the option of IFRS for SMEs or full IFRS. An audit is mandatory for PIEs and the first and second categories, while the third and fourth categories are exempt unless another law requires one. The reporting period usually follows the calendar year, and the filing deadline is 1 October of the year following the reporting period.
A standard financial reporting package includes: a balance sheet, a profit and loss statement, a cash flow statement, and notes to the financial statements. The statements are submitted electronically to SARAS together with the management report and the audit report where these are required for the company's category.
Enterprise categories and requirements
The category is determined as of the end of the reporting period. An enterprise falls into a category if it meets at least two of three criteria: total assets, income and the average number of employees (Article 2 of the Law on Accounting, Reporting and Audit).
| Category | Reporting standard | Mandatory audit |
|---|---|---|
| PIEs and first category | full IFRS | yes |
| Second category | IFRS for SMEs | yes |
| Third category | IFRS for SMEs | no |
| Fourth category | SARAS standards, optionally IFRS for SMEs or full IFRS | no |
Deadline: no later than 1 October of the year following the reporting period. If the reporting period is not the calendar year, the statements are due no later than nine months after it ends (Article 9). Annual statements are part of our accounting services, and other filing deadlines are covered in our guide to reporting deadlines for IEs and LLCs.
What the client needs to provide
- Source documents for the reporting year (invoices, acts, bank statements)
- Fixed asset and depreciation records
- Information on share capital and ownership structure
- Details of loans, credit facilities, and other liabilities
Timeline
Typical preparation time, given complete source documents, is 5–15 business days. The final report must be filed no later than 1 October.
Frequently asked questions
Is it necessary to file a report if the company had no activity?
Yes. Even if the company had no revenue and made no transactions, it must submit a nil report. Georgian law does not provide exemptions for dormant companies.
Which reporting standard applies to a small LLC on the standard tax regime?
Most small foreign LLCs in Georgia fall into the small or medium enterprise category and prepare financial statements under IFRS for SMEs. The exact category is determined by the financial indicators from the previous year.
Is an audit mandatory for all companies?
No. An audit is mandatory for public interest entities and for first- and second-category enterprises. Third- and fourth-category enterprises are exempt from the mandatory audit unless another law requires one. A bank or investor may still ask a smaller company for an audit.
What happens if the report is not filed on time?
Liability for failing to file or filing financial statements late is set by the Law on Accounting, Reporting and Audit, and compliance is supervised by SARAS. So the 1 October deadline is worth planning for well ahead, especially if your category requires an audit.
Can a company file its own report without an accountant?
In principle yes: the Revenue Service portal is accessible to any authorised company representative. In practice, correctly preparing IFRS-based statements requires professional knowledge, and most companies use an accountant or an outsourcing firm.
Where are annual financial statements filed?
With the Service for Accounting, Reporting and Auditing Supervision (SARAS) under the Ministry of Finance of Georgia, no later than 1 October of the year following the reporting period. The management report and audit report are filed with them where required for the company's category.
How is a company's category determined?
As of the end of the reporting period, by three criteria: total assets, income and the average number of employees. A company falls into a category if it meets at least two of the three criteria.