Small Business Status in Georgia for Individual Entrepreneurs
Activate Small Business Status in 24 hours
Small Business Status
1% tax
49 Gel
- Online registration in Revenue Service of Georgia
- Selection of economic activities
- Application for activation of Georgian small business status
Have a question? 👉🏻 text us
How to obtain Small Business Status
In Georgia, individual entrepreneurs (IE) can obtain small business status, which provides significant tax benefits.
Requirements for obtaining small business status:
- Annual turnover: Up to 500,000 GEL (approximately 170,000 USD).
- Types of activities: Some activities are excluded from this regime, including:
- Activities requiring special licensing.
- Production of excisable goods.
- Gambling.
- Financial services.
- Legal, tax, and consulting services.
- Medical and architectural services.
The complete list of prohibited activities is specified in Georgian Government Resolution No. 415.
Benefits of small business status:
- Low tax rate: 1% of annual turnover up to 500,000 GEL. When exceeding this threshold, the rate increases to 3% on the excess amount.
- Simplified reporting: Monthly filing of declarations and tax payment by the 15th of the following month.
- VAT exemption: VAT obligation arises only when turnover reaches 100,000 GEL within 12 months or through voluntary registration. IEs with income from sources outside Georgia are exempt from VAT.
Process of obtaining small business status:
- IE Registration: Apply to the House of Justice with passport, legal address in Georgia, and contact details.
- Obtaining small business status: After IE registration, submit an application to the tax service for small business status assignment. The status becomes effective from the first day of the month following the application month.
Important considerations:
- Exceeding turnover: If annual turnover exceeds 500,000 GEL, the tax rate increases to 3% on the excess amount. If exceeded for two consecutive years, small business status is revoked.
- Prohibited activities: Conducting prohibited activities may result in loss of small business status and application of standard tax rates.
Activate Small Business Status in 24 hours
Small Business Status
49 Gel
- Online registration in Revenue Service of Georgia
- Selection of economic activities
- Application for activation of Georgian small business status
Have a question? 👉🏻 text us
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