Georgia has rapidly become one of the top destinations for entrepreneurs seeking a business-friendly environment. One of the key attractions is the ability to register as an Individual Entrepreneur (IE)—a straightforward and cost-effective business structure with exceptionally low tax rates. Entrepreneurs enjoy a minimal 1% tax on turnover if their annual revenue remains under 500,000 GEL (~$185,000 USD) over three consecutive years. Even if revenue exceeds this threshold, the tax rate only increases to 3%, making Georgia an ideal hub for freelancers, consultants, IT professionals, and small business owners.
Quick and Easy Registration Process
One of the biggest advantages of registering an IE in Georgia is the simplicity of the process. You can complete registration in just one business day with minimal paperwork—only a passport and a visit to the local House of Justice are required. Can’t travel? No problem. You can complete the entire process remotely with professional assistance.
Foreign entrepreneurs don’t need to be Georgian residents to start a business, and the country’s streamlined process allows non-residents to fully leverage the favorable tax system.
Need help? Services like Georgiafy specialize in guiding foreigners through the process, ensuring compliance with local laws while helping maximize tax benefits.
1% Turnover Tax – Among the Lowest in the World
Georgia’s tax system is particularly attractive for small business owners. If you hold Small Business Status, your tax rate on turnover is just 1%—one of the lowest rates globally. If your revenue exceeds the 500,000 GEL (~$185,000 USD) limit, the rate rises to only 3%.
Other tax benefits include:
- No social security taxes for Individual Entrepreneurs
- Simple monthly tax reporting without complicated paperwork
- No VAT registration required unless annual turnover exceeds 100,000 GEL (~$37,000 USD)
Additionally, exports and sales made outside Georgia are VAT-exempt, making it an ideal location for international entrepreneurs working with global clients.
Effortless Business Banking in Georgia
Opening a business bank account in Georgia is simple and efficient. Local banks offer multi-currency accounts (GEL, USD, EUR, GBP), making international transactions convenient and seamless. Major Georgian banks also offer robust online banking solutions for managing finances from anywhere in the world.
With expert guidance from services like Georgiafy, entrepreneurs can even open business accounts remotely—no need to be physically present. Georgian banks are known for:
- Low banking fees
- Fast transaction processing
- Minimal bureaucracy
The country’s stable and efficient banking system is another reason why so many international entrepreneurs choose Georgia as their business hub.
Key Advantages of Doing Business in Georgia
1. No Residency Requirement
You don’t need to be a Georgian resident to register an IE, making Georgia perfect for digital nomads, remote workers, and international consultants looking for a favorable tax jurisdiction without relocating.
2. Business-Friendly Legal Framework
Georgia consistently ranks highly in the Ease of Doing Business Index. Its transparent legal system and straightforward business regulations make it one of the easiest places in the world to register and operate a company.
3. Low Operating Costs
The cost of running a business in Georgia is significantly lower than in Western Europe or North America. Affordable office spaces, low utility costs, and reasonable labor expenses make it an ideal location for startups aiming to maximize profits while keeping overheads low.
4. Multilingual Support (Including Russian)
For Russian-speaking entrepreneurs, the entire business registration process—along with taxation and banking services—is available in Russian. This makes Georgia even more accessible for Russian-speaking business owners.
How to Get Started
Ready to open your business in Georgia? Here’s how to begin:
- Collect necessary documentation (passport, registration forms)
- Register your IE at the local House of Justice (or remotely with professional help)
- Open a business bank account
- Apply for Small Business Status to access tax benefits
For expert guidance, visit Georgiafy to ensure a smooth and fully compliant registration process.
Conclusion
With its low tax rates (1% or 3%), fast and simple registration process, flexible banking options, and remote setup possibilities, Georgia offers one of the most entrepreneur-friendly environments in the world. Whether you’re a freelancer, consultant, or small business owner, registering as an Individual Entrepreneur (IE) in Georgia is a smart, efficient, and tax-friendly business solution.
Take the first step today—simplify your business setup with expert help and start growing your international venture in Georgia!