Individual Entrepreneur Liquidation

OVERVIEW
Starting an Individual Entrepreneur (IE) business in Georgia is famous for its "1% tax" simplicity. However, many foreign entrepreneurs are unaware that stopping work is not the same as closing the business. In Georgia, an IE remains active indefinitely in the eyes of the Revenue Service (RS) and the Public Registry until it is formally liquidated.
Due to the New Law on Entrepreneurs (2024-2026 amendments) and the Law on Labour Migration, the Georgian government has significantly tightened the rules regarding business compliance and work permissions. If you have moved away, switched to a full-time job, or no longer operate your Georgian IE, keeping it "open" is no longer a neutral status—it is a financial and legal liability.

Why Liquidation is Now Critical
Recent legislative changes have made the "abandon and forget" approach dangerous:

• Work Activity Permit Requirement (2024-2026): New amendments to the Law on Labour Migration now require foreigners to have specific permits for entrepreneurial activity. If you hold an active IE status without the proper updated work permit or residency, you may be in technical violation of the law.
• Mandatory Data Compliance (April 1, 2026 Deadline): Under the New Law on Entrepreneurs, all business entities must align their data with new standards. While IEs are exempt from some charter updates, the increased scrutiny means that "ghost" IEs are being flagged by the registry, leading to restricted bank access and potential administrative penalties.
• The "Monthly Declaration" Trap: Even with zero turnover, most IEs (especially those with Small Business Status) are required to file monthly declarations. Failure to do so triggers automatic fines that accumulate every month, even if you are no longer in the country.

Our service handles the entire "Stop & Close" procedure, ensuring you are 100% compliant with both the Public Registry and the Revenue Service.

1. Tax Audit & Debt Clearance: We review your RS.ge portal to identify any missed declarations or unpaid fines. These must be settled before the liquidation can proceed.
2. Revocation of Small Business Status: We formally cancel your 1% tax status to ensure the Revenue Service stops expecting monthly turnover reports.
3. Public Registry Submission: We submit the application for the termination of entrepreneurial activity to the National Agency of Public Registry. This can be done remotely via Power of Attorney (POA) if you are currently abroad.
4. Final Declaration: We assist in filing the final "closing" tax return, which covers the period from your last filing to the date of liquidation.
5. Confirmation of Closure: Once the 1-3 day processing period (for expedited service) is complete, we provide you with the official extract confirming your IE status has been revoked.