Individual Entrepreneur Registration in Georgia

Three IE Regimes in Georgia

• Micro Business — full tax exemption for annual turnover up to 30,000 GEL; limited range of permitted activities.
• Fixed Taxpayer — a fixed tax amount based on the type of activity and location.
• Small Business — 1% tax on turnover up to 500,000 GEL per year; broad range of permitted activities.

IE Taxes in Georgia: Small Business Status

• 1% of gross turnover — while annual revenue stays below 500,000 GEL (~165,000 USD).
• 3% once income exceeds 500,000 GEL: this rate applies from the month in which income passed the limit until the end of the calendar year (Article 90 of the Tax Code).
• Small Business Status is revoked if income exceeded 500,000 GEL in each of two calendar years. The status is treated as lost from the start of the following year (Article 89).

VAT at 18%: registration becomes mandatory when turnover exceeds 100,000 GEL — only for services provided within Georgia. Electronic services to non-resident legal entities and services rendered outside Georgian jurisdiction are VAT-exempt.

Benefits of Registering an IE in Georgia

• Fast registration: 2–4 business days in person, 7 days remotely.
• Minimal document requirements.
• 1% tax for a wide range of business activities.
• Work from anywhere in the world — no Georgian residency or citizenship required.
• Simple reporting: monthly declaration via the IRS portal.
• Option to obtain a Georgian residence permit through IE status.
• No restrictions on hiring employees.
• Remote registration by power of attorney is available.

What you need to register an IE

Under Article 11 of the Law of Georgia on Entrepreneurs, an IE is registered on a written application accompanied by an identity document. The application states:

• the applicant's full name
• the legal address
• the personal identification number
• the applicant's signature

By law, the legal address must be an actual address in Georgia (Article 5). It is included in all our packages, so you do not need to find an address yourself.

For remote registration, a representative files the application under a power of attorney. We prepare the power of attorney templates, and translation and notarisation of your documents are included in the remote registration packages.

Government fees for IE registration

IE registration is carried out by the National Agency of Public Registry. Its fees:

All government fees are already paid within our packages, so you do not pay them separately. Fee source: NAPR fees and terms.

How registration works

1. We file the application at the Public Service Hall, together with you or under a power of attorney.
2. The Agency registers the IE in the Registry of Entrepreneurs. At the same time you receive a taxpayer identification number.
3. We set up your taxpayer portal on the Revenue Service website.
4. We apply for Small Business Status. Under Article 89 of the Tax Code, the tax authority grants the status and issues a certificate.
5. If the package includes a bank account, we help you open it with a Georgian bank.

A step-by-step walkthrough for those who want to register on their own is in our guide on how to register as an individual entrepreneur in Georgia.

What you have to do after registration

Small Business Status involves little reporting, but its deadlines are strict:

• Monthly return. Filed and paid no later than the 15th of the month following the reporting month (Article 93 of the Tax Code). How to fill it in is covered in our guide to the tax declaration for an individual entrepreneur.
• Record book. An IE with Small Business Status keeps a special record book and retains source documents (Article 91).
• No loss carry-forward. A loss incurred during the year is not carried forward to the next year (Article 91).
• VAT. If taxable transactions over any 12 consecutive months exceed GEL 100,000, the VAT registration application is due within 2 business days (Article 165).

Filing late triggers a fine, and paying late triggers penalty interest. The amounts are covered in our article on late filing tax penalties in Georgia.

Why IEs lose Small Business Status

Article 89 of the Tax Code lists the grounds on which the tax authority revokes the status:

• exceeding the income limit described above
• the entrepreneur's own request
• carrying out an activity for which Small Business Status is not granted (the list is set by the Government of Georgia)
• at least three fines for breaching cash register rules within a calendar year

If the status is revoked for a prohibited activity or cash register fines, it is treated as lost from the start of the calendar year, and an additional fine of GEL 500 applies (Article 288). That is why the activity code is worth checking against the list before registration. If you no longer need the IE, our guide on how to close an IE in Georgia explains the steps.

Service Packages

IE Registration with Bank Account: 4 business days

• Accompanying to the Ministry of Justice.
• Payment of all governmental fees.
• Permanent legal address.
• Extract from the registry in English.
• Filling the IRS taxpayers portal.
• Obtaining Small Business Status.
• Assistance with opening a bank account.

IE Registration without Bank Account: 2 business days

• Accompanying to the Ministry of Justice.
• Payment of all governmental fees.
• Permanent legal address.
• Extract from the registry in English.
• Filling the IRS taxpayers portal.
• Obtaining Small Business Status.

Remote IE Registration with Bank Account: 7 business days

• Providing all templates of powers of attorney.
• Translation and notarization of your documents.
• Submission of an application to the Ministry of Justice.
• Payment of all governmental fees.
• Permanent legal address.
• Certificate in English language.
• Filling the IRS taxpayers portal.
• Obtaining Small Business Status.
• Assistance with opening a bank account.

Remote IE Registration without Bank Account: 7 business days

• Providing all templates of powers of attorney.
• Translation and notarization of your documents.
• Submission of an application to the Ministry of Justice.
• Payment of all governmental fees.
• Permanent legal address.
• Certificate in English language.

FAQ

Can I be officially employed if I have IE with Small Business Status?

With IE and Small Business Status, you can only receive payment under service agreements. The services in the agreement must match the activity code assigned to your IE. To avoid scrutiny from Revenue Service inspectors, it is advisable to have several clients and multiple income sources. Being employed as an individual in parallel is not prohibited — in that case, your salary income is subject to 20% withholding tax.

How many types of activities can I choose?

Up to two main activity codes (preferably related), plus a separate line for a third code — for example, in fields such as science, art, or writing.

When does the 18% VAT obligation arise?

If services are provided within Georgia — when turnover exceeds 100,000 GEL. Electronic services to non-resident legal entities and services rendered outside Georgian jurisdiction are VAT-exempt.

Do I have to pay income tax?

An IE with Small Business Status does not pay 20% withholding tax. Instead, the applicable rate is 1% of gross turnover.

Does IE registration make me a Georgian tax resident?

No. Taxpayer status and tax residency are separate. IE registration gives you a taxpayer identification number, but tax residency requires either residing in Georgia for more than 183 days per year, or qualifying under the HNWI programme (assets over 3,000,000 GEL, or annual income over 200,000 GEL for each of the last three years plus Georgian-source income of at least 25,000 GEL).

Do I have to stay in Georgia permanently?

No. IE with Small Business Status allows you to work from any country. It is advisable, however, to cross the Georgian border at least twice a year to maintain a connection with the jurisdiction.

What is the turnover limit and what happens when it is exceeded?

• Up to 500,000 GEL per year: 1% tax.
• Above 500,000 GEL: 3% tax from the month in which income passed the limit until the end of the year.
• If income exceeded 500,000 GEL in each of two calendar years, Small Business Status is revoked from the start of the following year.

A standard IE (without Small Business Status) has no turnover cap.

How often do I file a declaration?

An IE with Small Business Status files a monthly declaration — from the 1st to the 15th of each month via the IRS portal. A zero declaration must be filed even when there are no transactions. A standard IE files once a year.

Can I close my IE remotely?

Yes. IE liquidation takes up to 10 business days and can be done in person or by power of attorney.

How much does IE registration cost in government fees?

The National Agency of Public Registry charges GEL 26 for registration within 1 working day and GEL 75 for registration on the day of filing. An English-language extract adds GEL 26 to the fee. All government fees are already included in our packages.

What legal address does an IE need?

Under the Law on Entrepreneurs, the legal address must be an actual address in Georgia, and it is stated in the registration application. A legal address is included in all our packages, so you do not need to rent or buy premises to register.

Can Small Business Status be used for any activity?

No. The list of activities for which the status is not granted is set by the Government of Georgia. If you carry out such an activity with Small Business Status, the tax authority revokes the status from the start of the year and imposes a GEL 500 fine. That is why the activity code should be checked before registration.

What happens if I file the monthly return late?

The fine is 5% of the tax under the return for each month of delay, if the delay is two months or less, and 10% after that. If the tax under the return is zero, there is no late filing fine. Unpaid tax separately accrues penalty interest of 0.05% per day.