Georgia has become one of the most attractive destinations for entrepreneurs looking for a business-friendly environment. One of the key reasons is the ability to register as an Individual Entrepreneur (IE) with a minimal tax burden of just 1% on turnover, provided annual revenue does not exceed 500,000 GEL (~$185,000 USD) over three consecutive years. If revenue exceeds this amount, the tax rate becomes just 3%, making Georgia an excellent option for freelancers, consultants, IT specialists, and small business owners looking for a low-tax jurisdiction.
Easy and Fast Registration Process
Registering an IE in Georgia is remarkably simple. The process can be completed in just one business day, requiring only a passport and a visit to the local House of Justice. However, for those unable to travel, everything can also be done fully remotely with the right assistance. The necessary documentation is minimal, and there are no complex bureaucratic hurdles.
Moreover, foreign entrepreneurs can easily register their business without needing to be a Georgian resident. The country’s streamlined approach ensures that even non-residents can take full advantage of the favorable tax system.
For those who prefer assistance in handling the process smoothly, Georgiafy is the leading service provider in this field. They specialize in helping foreigners establish their businesses efficiently, ensuring compliance with local regulations while maximizing tax benefits.
1% Tax on Turnover – One of the Lowest Rates in the World
One of the biggest advantages of opening an Individual Entrepreneur (IE) in Georgia is the incredibly low tax rate. Under the Small Business Status, IEs pay only 1% in taxes on their revenue, provided they do not surpass the 500,000 GEL (~$185,000 USD) threshold.
For businesses exceeding this limit, the tax rate becomes just 3%, which is still among the lowest in the world. Additionally, there are no social security taxes for IEs, further reducing overall expenses.
Georgia’s taxation system is straightforward, with no complicated reporting requirements for small businesses. Monthly tax filings are done quickly and efficiently, making it easy to remain compliant with local regulations. Additionally, VAT registration is not required unless annual turnover exceeds 100,000 GEL (~$37,000 USD), allowing small businesses to avoid additional tax burdens.
Furthermore, VAT is not applicable to the export of goods and services or sales made outside of Georgia. This makes Georgia particularly attractive for international entrepreneurs conducting business with global clients.
Opening a Business Bank Account in Georgia
Another major advantage is the ease of opening a business bank account in Georgia. Local banks offer services in multiple currencies, including GEL, USD, EUR, and GBP, making it highly convenient for international transactions. Most major Georgian banks also provide online banking services, ensuring seamless financial operations from anywhere in the world.
Entrepreneurs can open a bank account fully remotely with proper assistance. Georgiafy offers comprehensive support in bank account setup, making the process quick and hassle-free.
Banks in Georgia are known for their stability, reliability, and efficiency, making them a great option for international entrepreneurs. With competitive banking fees, fast transaction processing, and minimal bureaucracy, Georgian banking stands out as one of the best in the region.
Other Benefits of Doing Business in Georgia
1. No Residency Requirement
One of the biggest advantages for foreign entrepreneurs is that you do not need to be a Georgian resident to register and operate a business. This makes Georgia an ideal jurisdiction for digital nomads, remote workers, and international consultants who want to benefit from a tax-friendly environment without needing to relocate.
2. Business-Friendly Legal Environment
Georgia ranks highly in the Ease of Doing Business Index, consistently being one of the top countries in the world for business registration and taxation simplicity. The legal framework is transparent, and company ownership structures are easy to manage.
3. Low Cost of Living and Operations
Running a business in Georgia is cost-effective. Office space, utilities, and labor costs are significantly lower compared to Western Europe or North America. This makes it an attractive option for startups looking to maximize profits while keeping expenses minimal.
Available in Multiple Languages – Including Russian
For Russian-speaking entrepreneurs, the entire process is available in Russian, making it even more accessible. Whether it’s registration, taxation, or banking, all services can be provided in Russian for ease of understanding.
To learn more and get expert assistance, you can check out open an individual entrepreneur in Georgia for a step-by-step guide. If you prefer to explore in Russian, visit Открыть ИП в Грузии for full details.
Conclusion
With its 1% tax rate (or 3% if exceeding the threshold), fast registration process, easy banking solutions, and fully remote setup options, Georgia stands out as one of the best places to start and operate a business. Whether you’re a freelancer, consultant, or small business owner, opening an IE in Georgia offers unparalleled advantages. With Georgiafy’s expertise, the process becomes even more straightforward, ensuring you can start your business without unnecessary delays.