Individual Entrepreneur Registration

OVERVIEW
Georgia has created a business-friendly environment for small and medium-sized enterprises. One attractive option is the 1% tax regime for Individual Entrepreneurs (IE), allowing businesses to pay just 1% of their turnover with minimal administrative tasks.

Designed for small businesses and freelancers, the IE 1% regime allows entrepreneurs to pay 1% on their turnover, up to GEL 500,000. This makes it a great option for those looking to reduce their tax obligations while maintaining a formal business structure.

GENERAL INFORMATION
An Individual Entrepreneur (IE) in Georgia benefits from a tax rate of only 1% on their turnover up to GEL 500,000. Importantly, an IE can be established and managed fully remotely, offering flexibility and convenience for entrepreneurs who may not be physically present in Georgia. Business Structure: An Individual Entrepreneur (IE) is defined under the Law on Entrepreneurs of Georgia, specifically articles 2, parts 3 and 5, and article 11. It is not a legal entity but a natural person with a business structure in Georgia. Taxation: IEs benefit from a special tax regime known as "Small Business Status," per the Georgian Tax Code, which allows payment of only 1% tax on turnover. Naming Flexibility: IEs can be registered under various names, including brand names, provided they do not conflict with already registered business names. Remote Management: IEs can be established and managed fully remotely, adding convenience for entrepreneurs globally. Banking Options: There is no mandatory requirement for IEs to have a bank account in Georgia. Entrepreneurs can use foreign bank accounts or online payment systems, as long as these accounts facilitate tax payments and transfers. Ease of Management: IEs are easy to manage through access to the business portal of the National Agency of Public Registry (NAPR) and a personal cabinet on the Revenue Service page of Georgia, where tax declarations can be submitted easily.

REGISTRATION PROCESS

• Documents Required: Identification (ID for Georgian citizens, passport for foreign nationals), and optionally, a power of attorney for remote registration;
• Where to Register: The National Agency of Public Registry (NAPR), with options for both in-person and online registration through power of attorney;
• Legal Address Requirement: A legal address in Georgia is required for registration. We provide assistance in securing a legal address to facilitate this requirement;
• Timeline: The registration process is typically completed within two business days, with expedited services available to conclude the process in just one day from the moment the documents are submitted.

RESTRICTIONS

• Revenue Cap: Applicable only for annual turnovers up to GEL 500,000.
• Excluded Professions: Certain professional fields such as law and notary services are excluded from this regime.

ADDITIONAL SERVICES
I. OPENING A BANK ACCOUNT Although not mandatory, opening a bank account in Georgia is advisable for easier management of business finances. This can be done with minimal hassle and remotely, if necessary.
II. COMPLIANCE AND REPORTING Entrepreneurs must maintain compliance with local tax laws, including the submission of an monthly tax declaration through Georgia’s online tax portal. This streamlined process ensures easy and convenient management of tax obligations.

RESUME
Embark on your entrepreneurial journey in Georgia with the IE 1% regime, designed for ease and efficiency. This regime offers low tax rates and simplified administrative processes, allowing you to focus more on growing your business and less on bureaucratic overhead. Ready to start? Follow our straightforward process to register and take advantage of Georgia's favorable business environment.