Register a company in Georgia (2026): the 1% Small Business tax and LLC setup

Founders & Company Structures
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To register a business in Georgia as a solo founder, most people register as an Individual Entrepreneur (IE) through the National Agency of Public Registry, usually at a Public Service Hall, then apply to the Revenue Service for Small Business status. That status taxes eligible turnover at 1% up to GEL 500,000 a year and 3% above. If you need a separate legal entity, a Georgian LLC pays 15% corporate tax only when profits are distributed, plus 5% withholding on dividends. Neither helps unless your own tax residence and activity fit the rules.

Last checked: October 2026

In short:

  • An Individual Entrepreneur with Small Business status pays 1% on turnover up to GEL 500,000 a year and 3% above, but consultancy, legal, audit, medical, architectural, staffing, licensed and currency-exchange activities are excluded under Government Ordinance No. 415.
  • An LLC pays 15% corporate tax on the grossed-up value of distributed profit (nothing while profits stay in the company), and dividends paid to individuals carry 5% withholding; VAT registration is required once turnover exceeds GEL 100,000 in any 12 months.
  • Resident individuals are taxed only on Georgian-source income; residence comes from 183 days in any continuous 12-month period, or from the high net worth certificate if you meet its asset or income thresholds.

Three structures compared

Individual Entrepreneur (IE), Small Business status LLC, standard regime LLC with International Company status
Legal entity No. You are personally liable with all your assets Yes, limited liability Yes
Tax 1% of turnover to GEL 500,000; 3% above 15% on grossed-up distributed profit; 0% on retained profit 5% on distributed profit and taxable expenses
Dividends to you Not applicable 5% withholding Exempt from withholding
Who it suits Freelancers and solo service providers living in Georgia Founders who reinvest, hire or need a company for clients and investors Established IT or shipping businesses with real staff in Georgia
Registration fee (NAPR) GEL 26 in 1 working day, GEL 75 same day GEL 200 in 1 working day, GEL 400 same day As LLC, then apply to the Revenue Service

Registration fees are from the National Agency of Public Registry fee table, checked October 2026. Tax figures are from PwC Worldwide Tax Summaries (last reviewed 2 September 2026) unless stated.

The 1% regime: how Small Business status works

Small Business status is a special regime for natural persons registered as Individual Entrepreneurs. It is not available to LLCs. PwC’s summary: entrepreneurs with annual turnover under GEL 500,000 can register as a small business and pay 1% on turnover, rising to 3% if turnover exceeds GEL 500,000. Andersen’s Georgian office describes the 3% as applying to the amount above the cap, and says exceeding it in two consecutive years means losing the status from 1 January of the third year.

A separate micro business status (turnover under GEL 30,000, no employees) exempts business income.

Excluded activities. Annex 4 of Government Ordinance No. 415 (29 December 2010, last amended 24 January 2025) lists activities that cannot get Small Business status:

  1. Activities that require a licence or permit
  2. Activities that require significant investment (excise goods production)
  3. Currency exchange operations
  4. Medical, architectural, legal (advocacy), notarial, audit and consultancy activity, including tax consultancy
  5. Gambling business
  6. Provision of personnel (staffing)
  7. Production of excise goods

The word that trips people up is “consultancy”. Software development, design and content are not named, but if your contracts say “consulting services”, expect questions. Have a Georgian accountant check your activity description first.

Changes since 2025. Three to know about:

  • Construction. From 1 February 2025, IEs in construction pay 20% instead of 1% on services supplied to companies, organisations or other entrepreneurs. Services to private individuals stay at 1% (Eurofast and Revera summaries of Ordinance 415 amendments).
  • Agritourism. From 1 January 2025, the turnover limit for agritourism and wine tourism rose from GEL 500,000 to GEL 700,000 (Revera).
  • Ministry of Finance Order No. 38. Published 6 February 2026 and effective about 30 days later, it makes Small Business status effective from the date of application rather than the following month. After cancellation, you can only reapply from the next tax year. A missing monthly declaration is not treated as a zero declaration, so file every month, including months with no income (Eurofast, Kreston).

What the 1% does not cover. The regime covers business turnover from the eligible activity. Other income, such as rental income, capital gains or dividends, is taxed under the general rules. Small Business status also does not exempt you from VAT once your turnover passes the threshold.

How to register

  1. Register as an IE or form an LLC with the National Agency of Public Registry (NAPR). You can apply at a Public Service Hall. The Revenue Service’s English guidance says registering an entrepreneur takes one day and you receive an identification number and a registry extract.
  2. Apply for Small Business status (IE only) to the Revenue Service. Under Order No. 38 it now applies from the application date.
  3. Open a bank account in Georgia (see below).
  4. File monthly declarations with the Revenue Service, and register for VAT when required.

Many foreigners use a representative with a notarised power of attorney; budget for notary and translation costs, for which we found no official figure.

The LLC: 15% only when you distribute

Georgia moved to an “Estonian model” corporate tax on 1 January 2017. Profit that stays in the company is not taxed. Tax at 15% is charged on the grossed-up value of:

  • profit distributions
  • expenses not related to economic activity
  • free-of-charge transfers
  • representation expenses above the limit (1% of the prior year’s revenue or expenses, whichever is greater)

Banks, credit unions, microfinance organisations and loan providers pay 20%.

Dividends paid to individuals carry 5% withholding (Andersen, February 2026; Eurofast’s 2025 tax card). Because the 15% is calculated on the grossed-up distribution, paying out GEL 100 of pre-tax profit typically means GEL 15 corporate tax, a GEL 85 dividend and about GEL 4.25 withholding, so roughly 19.25% in total. That is our arithmetic, not an official figure.

VAT. A business established in Georgia must register for VAT when taxable turnover exceeds GEL 100,000 in any continuous 12-month period. The standard rate is 18%.

International Company status (5%)

An LLC can apply to the Revenue Service for International Company status. Per PwC, distributions and taxable expenses are then taxed at 5%, dividends paid by the company are exempt from withholding, and salaries to qualifying employees are taxed at 5%. Property tax is exempt except on land.

Eligible activities include software development, information technology and other computer services, web hosting, supply of images, text and information, and certain services connected to ship ownership. The company cannot be in a Free Industrial Zone.

The conditions are the real filter. Per IBCCS (August 2026) and Eurofast, you generally need at least two years’ experience in the approved activity, either yourself, through a non-resident company you represent, or through a partner owning more than 50%. You also need real income-generating activity in Georgia, qualified staff and appropriate operating costs. IBCCS says revenue from non-permitted activities is capped at 2% of permitted-activity revenue. It is built for established IT companies relocating teams, not a freelancer’s first invoice.

Virtual Zone status is an alternative: profit from IT developed in Georgia and supplied abroad can be exempt from profit tax.

Personal tax: territorial, 183 days and the HNWI certificate

Territorial. Per PwC, resident individuals are exempt from tax on income that does not have a Georgian source. The general personal rate is 20%. Work you perform while physically in Georgia is generally Georgian-source, which is why the IE or LLC route matters if you live there. For how territorial systems compare, see Territorial tax countries compared: where foreign income isn’t taxed.

183 days. You are tax resident if you are in Georgia for 183 days or more in any continuous 12-month period ending in the tax year. Residence is assessed per tax year. Day-counting is only one test in other countries, so check your home country’s rules too; see Tax residency explained: why the 183-day rule is a myth for most countries.

High net worth (HNWI) certificate. Ministry of Finance Order No. 60 of 1 March 2023 lets wealthy individuals obtain a Georgian tax residence certificate without 183 days. Per Revera and PB Services, you need:

  • global assets over GEL 3,000,000, or annual income over GEL 200,000 in each of the last three years; and
  • assets in Georgia worth about USD 500,000 (Revera’s summary of Revenue Service guidance refers to real estate; PB Services lists a broader set of assets); and
  • a Georgian link: a residence permit, or Georgian-source income of at least GEL 25,000 in the previous year. Revera reads the asset route as needing the residence permit.

The certificate covers only the year you apply. Treaty partners and your former country of residence may not accept it as ending your residence there.

Banking: TBC and Bank of Georgia

Bank of Georgia and TBC are the two banks most foreigners use. Their sites block automated reading and require JavaScript, so we could not check their current published terms. PB Services (November 2025) reports:

  • both screen foreigners thoroughly, and weak source-of-funds documents are the main reason applications stall;
  • they may ask for proof of the origin of funds, an employment contract or business registration certificate, and a Georgian lease or property documents;
  • annual service packages run roughly GEL 60–180 at Bank of Georgia (up to GEL 800 for its premium Solo tier) and GEL 100–400 at TBC;
  • remote opening is possible through a representative with a notarised power of attorney.

Go in person if you can, bring your registration extract and client contracts, and keep a second account elsewhere; see Why banks close digital nomads’ accounts, and which are safer bets.

Is Georgia right for you?

Good fit: a freelancer or small agency owner (outside the excluded activities) who lives in Georgia, invoices foreign clients and wants low tax with simple monthly filing. Low living costs help; see Cost of living in Georgia (the country, 2026): Tbilisi, Batumi, Kutaisi.

Poor fit: anyone who will not actually live there, since income earned while living elsewhere usually stays taxable where you are. Also consultants, lawyers, accountants and founders raising venture capital.

LLC or IE? The IE is simplest and cheapest. An LLC suits limited liability, staff, retained profits, partners or a later International Company application. Holding a Georgian LLC through a foreign company raises substance and CFC questions; see Holding company for founders (2026): how it works and where to set one up. For how Georgia compares with other countries, see Where to incorporate as a digital nomad: US LLC, UK, Estonia, UAE.

Related guides: Cost of living in Georgia (the country, 2026): Tbilisi, Batumi, Kutaisi · Where to incorporate as a digital nomad: US LLC, UK, Estonia, UAE · Holding company for founders (2026): how it works and where to set one up · Tax residency explained: why the 183-day rule is a myth for most countries · Territorial tax countries compared: where foreign income isn’t taxed

Quick answers

Q: How do I register a company in Georgia as a foreigner?
Register an Individual Entrepreneur or LLC with the National Agency of Public Registry, usually at a Public Service Hall. The fee is GEL 26 for an IE and GEL 200 for an LLC, both in one working day. An IE then applies to the Revenue Service for Small Business status. Many foreigners use a representative with power of attorney.

Q: Who qualifies for Georgia’s 1% small business tax?
Individual Entrepreneurs with annual turnover up to GEL 500,000 whose activity is not excluded. Ordinance No. 415 excludes licensed activities, currency exchange, medical, architectural, legal, notarial, audit and consultancy work, gambling, staffing and excise goods. Turnover above GEL 500,000 is taxed at 3%. LLCs cannot use the regime.

Q: Do I pay tax in Georgia on foreign income?
Not if you are a Georgian tax resident: residents are exempt on income without a Georgian source. But work you perform while physically in Georgia is usually Georgian-source, and that is what the IE regime taxes. Residence normally requires 183 days in any continuous 12-month period, or the HNWI certificate.

Sources

This is general information from the Nomad Forums team, not legal, tax or financial advice. Rules change; check the official source or a qualified adviser before acting.

Over to you: If you run an IE with Small Business status, what activity code did you register under, and did the Revenue Service ever question it? Which bank opened your account, and what did they ask for?

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