MenuClose

Individual Entrepreneur (1% Tax) Registration

Freelancer / Individual Entrepreneur Registration

If you intend to run a company where you are the sole proprietor, the Individual Entrepreneur with Small Business Status in Georgia affords incredible tax benefits.

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 pay 1% tax on turnover up to a max annual turnover of 500,000 GEL. For many freelancers/solopreneurs this leads to huge tax savings.

ExpatHub can assist with both your IE registration and/or SBS registration (for those who qualify). Our complete service will get you set up quickly and professionally. We'll help you easily avoid translation problems and navigate the pitfalls of Georgian law to complete your business registration without potential legal headaches in the future.

Not all IEs qualify, so read more about Individual Entrepreneur & Small Business Status in Georgia.

From:

₾550 GEL

Approx. 220 USD. + VAT when applicable.

Key Benefits of Georgian "Small Business Status"

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 (Approx. 200,000 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

Approx. 220 USD
+VAT (18%)

Virtual Address:

₾390 GEL

Approx. 155 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 approx. 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

Elena Berezhnaia
Elena Berezhnaia
2024-06-03
Trustindex verifies that the original source of the review is Google.
I've been working with ExpatHub for two years: they were taking care of my accounting + communications with government. I fully recommend them, I only had positive experience, everything was accurate and on-time. Thank you so much ExpatHub and I hope I will be in a position to come back and to work with you again.
Mariam Papashvili
Mariam Papashvili
2024-05-31
Trustindex verifies that the original source of the review is Google.
Great services. I had a call with Gvanca, she was super helpful and informative. Thank you once again!
Cristian B.
Cristian B.
2024-05-15
Trustindex verifies that the original source of the review is Google.
Superb service.
Marek Kolodziejczyk
Marek Kolodziejczyk
2024-05-14
Trustindex verifies that the original source of the review is Google.
Full professionalism. ExpatHub supported me every step of the process. Step by step. Even with difficulties, I could always count on their help and understanding. I sincerely recommend theirs services
Dardo Trento
Dardo Trento
2024-05-13
Trustindex verifies that the original source of the review is Google.
Very helpful and caring. Extremely recommended!
Anastasia Butrym
Anastasia Butrym
2024-04-20
Trustindex verifies that the original source of the review is Google.
We had the pleasure of collaborating with ExpatHub GE and Mr. Gaga Mamuchishvili for a year on a comprehensive legal case in Georgia. Throughout the entire process, which included negotiations, filing the lawsuit, developing a legal strategy, reaching a settlement agreement, and the subsequent recovery of funds, their professionalism and expertise were truly outstanding. The entire case was managed remotely as we were based in the UAE and Australia during this period. Despite the distance, their seamless communication and meticulous approach ensured a smooth process and a favorable outcome. We are deeply grateful for their dedication and highly recommend ExpatHub GE to anyone seeking expert and reliable legal representation globally.
Francisco Ortiz
Francisco Ortiz
2024-04-16
Trustindex verifies that the original source of the review is Google.
We've been working with ExpatHub for years now. They are, by far, the most professional tex/legal firm in Georgia. From helping us register our businesses in the country, tax consultations, virtual addresses, etc. They even helped us navigate the complicated contract and negotiation of an off-plan property that we purchased from a local developer. They have always been very responsive and professional. I highly recommend them if you're not a local and you need help navigating Georgian bureaucracy.
Stefania Guglielmi
Stefania Guglielmi
2024-04-16
Trustindex verifies that the original source of the review is Google.
This is the only accounting firm in Georgia that works at an international standard, and my go-to firm whenever I have any legal and fiscal issues. They even helped me with the purchase of our first apartment, which would have been impossible without them! I have heard horror stories about other accountants in Tbilisi, and I’m happy to say that ExpatHub people are always effective and go out of their way to help customers.
Hoang Le
Hoang Le
2024-04-08
Trustindex verifies that the original source of the review is Google.
Expathub proved to be an exceptional resource in my search for an apartment in Tbilisi. Within a remarkably short span, they efficiently facilitated the entire process, from locating a suitable apartment to managing all necessary paperwork, including assistance with visa matters. Their professionalism and amiable approach made the experience notably smooth. For anyone seeking prompt and reliable assistance in securing accommodation in Tbilisi, I wholeheartedly recommend Expathub