Georgia offers a simple and attractive system for registering as an Individual Entrepreneur (IE), making it a popular choice for freelancers and small business owners. The process is fast, cost-effective, and comes with significant tax benefits.

Registration Process

1. Apply at the House of Justice – Submit an application with a passport and a filled-out registration form.
2. Receive Registration Certificate – Usually issued on the same day.
3. Open a Bank Account – Required for business transactions.
4. Register for the Small Business Status – To qualify for the 1% tax rate.

1% Tax Regime

Entrepreneurs with an annual turnover of up to 500,000 GEL can benefit from Georgia’s Small Business Status, paying only 1% on their income instead of the standard tax rates. This makes Georgia one of the most tax-friendly countries for small businesses.

Key Advantages

Fast Registration – Typically completed in one day.

Low Tax Rate – Just 1% on turnover.

No VAT Obligations – If turnover is below 100,000 GEL.

Simple Accounting – Minimal reporting requirements.

In terms of International Taxation it is necessary to know that income earned under the Georgian IE shall be taxed only in Georgia, since “small business” is a special Tax status and is not applicable to the Double Taxation Agreement. For example if you stay in Belarus for more than 183 days, but you work under the Georgian IE – you pay 1% PIT in Georgia and 13% PIT in Belarus.