According to the Georgian legislation, any natural person who has reached the age of majority, regardless of citizenship, religion and views on life, may become an individual entrepreneur.

The favorable tax treatment that allows you to pay 1% tax instead of 20% is called Georgia Small Business Status.

An individual entrepreneur can obtain small business status as soon as he or she is registered.

It is important to remember that small business status is activated on the 1st day of the month following the date of application for the status. That is, if the application is submitted in October, the small business status is activated from November 1, and all business transactions received before the small business status is activated are subject to 20% tax.

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Activities requiring licensing or permits, except for activities related to Permits for private M1 category cabs traveling in the capital city of Georgia;

Activities the realization of which requires significant capital investments (production of excisable goods);

Carrying out currency exchange operations;

Medical, architectural, legal or notary, auditing, consulting (including tax) activities;

Gambling;

Recruiting

Production of excisable goods.

Счета в банках Грузии мультивалютные (национальная валюта лари, доллар США, фунт стерлингов и евро). Законодательство Грузии позволяет использовать личный или бизнес счёт в грузинском банке для расчётов с заказчиками услуг или клиентами. Счет возможно открыть с личным визитом в Банк и/или удаленно.

An international account is an account with banks located outside Georgia. You have the right to use such an account for settlements with your customers, being an individual entrepreneur of Georgia (except for non-FATF member banks and FATF gray and black lists). In order to start using such an account it is necessary to notify the Tax Service of Georgia about this event.

In addition to traditional banks you can use PayPal, Wise and other payment systems. To start an account in a payment system you need to notify the Georgian Tax Service about this event.

You are required to report your income to the IRS every month.

Tax period runs from the 1st through the 15th.

All incoming transactions from customers of your services and customers received in the previous month are accepted for reporting.

The money you earn - you can spend as you please, just don't forget to pay the tax.

50,000 GEL ($18,000) - for those who live in Georgia. Gives the right to obtain a residence permit for 1 year

GEL 100,000 - applies only to IEs whose clients are Georgian companies or individuals. When this limit is reached, the VAT payer status is activated, which adds 18% tax on each transaction from Georgian clients.

500,000 GEL ($180,000) - the limit at which your tax becomes 3% instead of 1%. If you exceed this limit two years in a row, your small business status is deactivated and the tax on all subsequent transactions becomes 20%.