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Individual Entrepreneur (1% Tax) Registration

From ₾550 GEL
(~$180 USD)

Key Benefits of Georgian "Small Business Status"

The Small Business Status (SBS) is a special tax scheme designed for Individual Entrepreneurs (IEs), registered in Georgia. It allows for those IEs to apply for the SBS and change their income taxes from 20% on net profit, to 1% on gross turnover. For many freelancers/solopreneurs this leads to huge tax savings. Not all IEs qualify, so read more below to determine if you will. ExpatHub can assist with both your IE registration and/or SBS registration (for those who qualify).

1% tax on gross turnover

No other personal or corporate income tax to pay. If you get SBS status, in most cases, 1% is the only income tax. For IEs without SBS, 20% on net profit is taxable.

0% VAT on most foreign services

If your clients/customers are based outside Georgia: All B2B client services are exempt. B2C are also exempt if rendered electronically.*

Legal residency not needed

You do not need to be a legal resident or citizen of Georgia. You should be (or become) a tax resident though.

* Consult with our tax advisors for exceptions. Other VAT exemptions also apply.

Requirements for Opening a Georgian IE+SBS

Documents and other essential considerations. All sole proprietors qualify for IE registration.

To Qualify For The SBS (1% Tax Rate):

Business turnover of less than 500,000 GEL (~$165,000 USD) annually.
You are the sole operator (individual) of the business - no other directors.

* If you are on the prohibited list, you can still get the Individual Entrepreneur status (20% flat tax on net annual profit), but will not qualify for the Small Business Status (monthly 1% tax on gross turnover).

Required On The Day, To Apply In Person:

Your main business activities, defined. Our advisers will assist you, as needed.
Passport of the applicant.
A Legal business address in Georgia - which must be either a property you own OR a property that you have written consent, signed by the relevant authorities, from the legal owner, to use. ExpatHub can provide you with our legal address and sign the consent (annual fees apply). Note: The business does not need to operate from the legal address location.
A Georgian phone number.
An email address.

Individual Entrepreneur Business Registration Service

Available in Tbilisi & Batumi

Our complete Individual Entrepreneur business registration service will get you set up quickly and professionally. 

We'll help you avoid translation problems and easily navigate the pitfalls of Georgian law to complete your business registration without potential legal headaches in the future. You will be required to attend 1 appointment with our representative, at the Public Service Hall in Tbilisi or Batumi.

We can assist with both Individual Entrepreneur & Small Business Status Registration.

Registration Fee Includes:

Registration of the business at the business registry
Registration at the tax authorities
All relevant government fees & charges*
Legal Fees
If you do not have a legal address in Georgia, get our virtual address service (annual fee applies)

*One Time Fee includes only standard governmental fees & charges. Governmental fees & charges for expedited services shall be covered by the client.

Confused by any of the above? Read our FAQs below.

Business Registration:

₾550 GEL

~$180 USD
+VAT (18%)

Virtual Address:

₾390 GEL

~$125 USD Annual Fee
+VAT (18%)

No Obligation Consultation.

Key Tax Information

How will your Georgian IE with SBS*  be taxed?

1%  Income Tax on gross turnover.

20% tax on your employee salaries (if employees are Georgian permanent residents or citizens, additional 2%+2% for pensions). Employees can be from Georgia or elsewhere. Foreign employee tax situations may vary.
18% VAT if gross VATable turnover exceeds 100,000 GEL in any 12 month period. Non-VATable sales to foreign clients/customers do not count towards this threshold and are VAT exempt even if VAT registered.
18% Reverse VAT on relevant non-Georgian sourced expenses. Can be claimed back if VAT registered.

* If you ONLY qualify for IE status and not SBS (1% tax rate), then all of the above are accurate, except you will pay 20% on annual net profit, rather than 1% on gross turnover (monthly).

International Standard, Local Pricing

Why ExpatHub?


Starting life in a new country is confusing. We know because we faced all the same challenges you will, when we first moved here. But we solved those challenges and hired a team of expert, bilingual accountants and lawyers to help you get set up in Georgia, easier than ever before.

One-Stop-Shop

All Your Legal, Tax, Relocation, Business, Immigration & Accountancy Needs Solved In One Place.

ONLY English-Speaking Staff

Native English Speaking, Or Fluent Bilingual. Your Questions Will Never Be Lost In Translation.

No “Tourist Tax”

Fair, Transparent Pricing For Foreigners.

International Standards

We Bring An International Level Of Service, Logic, Resourcefulness, Confidentiality & Data Protection To All Our Services In Georgia. 

Honest, Fact Checked Advice

We Provide Creative, Tailored Solutions Which Will Never Leave You Exposed.

FAQs

How long does it take to register a business?

In most cases, the registration process takes ~3 business days and involves a visit to the Public Service Hall and the Revenue Service (on different days), where you're accompanied by our specialist. If you already have a Georgian tax ID, it will need to be merged with your new IE account, and this can delay completion of the the SBS registration by up to 10 business days.

Your SBS 1% tax rate is effective from the first day of the month following completion of the SBS application. Therefore, if you already have a Georgian tax ID it is advised to start at least 15 days before the end of the month, in order to have the status active for the first day of the following month.

If I don’t qualify for SBS (1%), what are my options as an Individual Entrepreneur?

If you don’t meet all the criteria to qualify, your application for SBS (1%) will either be rejected, or simply not accepted in the first place. Some typical reasons you do not qualify include:

* You are an employee posing as a contractor/freelancer (i.e., you have only 1 client and various benefits, fixed monthly compensation, etc.)
* You are a consultant (of any kind), architect, tax adviser, or you engage in any of the other prohibited activities.

If you do not qualify for SBS (1%) you can still register as an IE, but the main difference will be that you pay 20% tax on your net annual income (declared annually) rather than 1% on your gross turnover (declared monthly).


Do I need a business bank account?

You do not legally need a business bank account. You can use any bank account - personal, business, local, or international - providing you declare all business income accurately. However, it is highly advised to have a separate bank account for business, even if it is a separate personal account, in order to differentiate your finances and avoid any issues. Read more about bank accounts here.

Can I open my IE + SBS remotely with a PoA?

Technically a Power of Attorney could be used, but this turns a relatively simple process into a far more complicated one. Because tax residency is expected (the full explanation on this is pretty complex, so ask your adviser) when looking to benefit from the 1% tax rate, it is likely you will come to Georgia in person, so we recommend performing the registration as soon as you arrive, in most cases.

When is VAT due on my business income? What transactions are VATable?

VAT registration is mandatory if gross VATable turnover exceeds 100,000 GEL in any 12-month period. Once VAT registered, 18% VAT must be collected on all VATable transactions.

Non-VATable sales to foreign clients/customers do not count towards this threshold. They also remain non-VATable even once VAT registered. With limited exceptions, sales of services (including SaaS) which are digitally rendered and provided to customers outside Georgia and not physically present in Georgia, will be non-VATable. 

All B2B (business to business) service transactions between a Georgian business and a non-Georgian business located outside Georgia are entirely VAT exempt.

These are not the only non-VATable transactions. Read more about what is VAT exempt here.

Do I have to renew the registration annually?

No. Business registration in Georgia is indefinite and there are no annual renewal fees or procedures. Occasionally legislation may change which then requires filing of some paperwork.

Are there any hidden fees?

No. Our fee includes everything to get you started, assuming you have a permanent legal address in Georgia to register your business. If not, check out our virtual address service.

Note: Remote applications, rather than those made in person, can incur higher fees, so see the pricing information above. You will also require a power of attorney and apostilled passport copy for each company director if you will not come to Georgia in person. Physical copies of these must be sent to us, and any fees incurred for this process where you are located outside Georgia, are at your own expense.

What Our Customers Are Saying

Alexander Hu
Alexander Hu
2022-07-05
Verified
Recommended. For all the services they offer.
Infineite
Infineite
2022-05-18
Verified
As others have said, If I could give these guys 6 stars I would. GREAT service. Would recommend whole heartedly!
Nils Dannemann
Nils Dannemann
2021-12-06
Verified
Amazing service, great team, fantastic people. Their success is well deserved. Can't recommend them enough 👍
Helena Liu
Helena Liu
2021-11-06
Verified
If it’s possible to give them 6 stars I would! The whole team has gone above and beyond to help me set up my business inn Tbilisi. They are highly professional and responsive. I would highly recommend them! Thank you Levan, David, Nina, and Saba!
Nikola Stojkovic
Nikola Stojkovic
2021-08-30
Verified
Excellent service. They explained everything before we moved to Tbilisi so we finished the process quickly. Everything was transparent, no hidden fees or additional costs
Gordon Seiler
Gordon Seiler
2021-07-28
Verified
Excellent professional service from ExpatHub, highly recommended company to work with. Thanks for making our future in Georgia much easier.
Tom Shepherd
Tom Shepherd
2021-07-20
Verified
ExpatHub.ge is an excellent service, they have been very professional and helpful. The free information on their web site and the free consultation helped a lot with my planning. They cover a range of tax and relocation areas, so they are able to set everything up without missing any important details. Thanks a lot to the ExpatHub team!