How to register as an Individual Entrepreneur in Georgia

The actual sequence for registering an IE and getting Small Business Status, what to bring, what it costs, and the three points where people most often get stuck.

Last reviewed

Registration is two separate steps at two separate institutions. Doing them in the wrong order, or assuming the first one gave you the 1% rate, is the most common mistake.

Step 1 — register the Individual Entrepreneur

This happens at a Public Service Hall (Justice House). You will need:

  • Your passport
  • A Georgian legal address for the business
  • The state fee (a small amount, with a higher tier for same-day processing)

You leave with an extract from the Entrepreneurial Register showing your name, your identification number and your status as an Individual Entrepreneur.

At this point you are registered and taxed at the standard 20% rate. You do not yet have the 1% rate.

Step 2 — apply for Small Business Status

This is a separate application to the Revenue Service (rs.ge). It is free, and it is the step that actually gives you the 1% rate under Article 90(1).

Two things to know:

  1. Status is not retroactive. Income earned before the status is granted is taxed under the standard regime. If you register in March and get status in May, those first months are not covered.
  2. Your declared activity decides eligibility. Article 88(2) allows the Government to bar particular activities, and the way you describe your work on the application matters. If your activity is on the excluded list, the status will be refused — or worse, granted and later revoked, with Article 89(4) treating the revocation as effective from the beginning of the calendar year.

Step 3 — the practical infrastructure

None of this is legally part of registration, but you cannot operate without it:

  • A Georgian bank account. Tax payments are made from a Georgian account. Opening one as a foreigner is more involved than it used to be — banks now ask about the source of funds and your connection to Georgia.
  • A Georgian phone number. The Revenue Service portal uses SMS two-factor authentication, and it sends codes to Georgian numbers.
  • Access to rs.ge. You will be filing here every month.

The bank account is where most people lose time. Allow more than a day for it, and go in with documentation of what your business does and where your money comes from.

What it costs

ItemCost
IE registration at the Public Service HallSmall state fee; higher for same-day
Small Business Status applicationFree
Bank account openingUsually free, sometimes a small maintenance fee
Accountant (optional)Commonly 50-150 GEL a month for a simple IE

Three places people get stuck

Assuming registration gave you 1%. It did not. Step 2 is separate, and the gap between the two is taxed at 20%.

Describing the activity carelessly. "Consulting" is widely understood to be excluded. If your work is genuinely development, design or another eligible activity, describe it accurately — and if it genuinely is consulting, do not expect the status to survive scrutiny.

Forgetting that filing starts immediately. Your first monthly declaration is due on the 15th of the month after your first month of activity, whether or not you have earned anything. See the monthly declarations guide.

Before you register

Run your numbers through the 1% tax calculator first. If your margins are thin, or you expect to pass 500,000 GEL, the regime may not be the win you are expecting — and it is far easier to decide that before registering than after.

Frequently asked questions

Can I register remotely?

Not entirely. Registration must be done at a Public Service Hall in person or by a representative holding a notarised power of attorney. Once registered, filing is online, but you will need a Georgian bank account and a Georgian phone number to operate the Revenue Service portal comfortably.

How long does it take?

Registration at the Public Service Hall is typically same-day or next-day. Small Business Status is a separate application at the Revenue Service and is usually granted within a few working days.

Do I need a Georgian address?

Yes, you register a legal address in Georgia. It does not have to be property you own, but it should be an address where correspondence can reach you.

Do I need an accountant?

Not necessarily. The monthly declaration is a single turnover figure, and many people file it themselves. An accountant becomes worthwhile if you approach the VAT threshold, have mixed income sources, or are unsure whether your activity is eligible.

Stuck on your own situation?

Describe where you are and what you are trying to do. We read every message and reply personally.

We use your message only to reply. No newsletter, no sharing with third parties without asking you first.

Where these numbers come from

Verified on against the primary sources listed below. This is information, not legal or tax advice. Rules change and individual circumstances differ — confirm anything you intend to act on with the Revenue Service or a qualified adviser.

Important caveats

  • The 1% and 3% rates apply to turnover (gross income), not profit. Business expenses are not deductible under this regime.
  • Only income from a Georgian source is taxed under this regime, and salary income is excluded (Article 90(3)).
  • Losses cannot be carried forward to the next year (Article 91(5)).
  • The VAT threshold is measured over any 12 consecutive calendar months, not the calendar year used for the Small Business Status limit. The two can be crossed at different times.
  • VAT registration does not by itself end Small Business Status; the 1% regime and VAT registration can coexist (Article 92).
  • Exports and certain exempt supplies are treated specially when measuring the threshold (Article 165(7)).

Sources