Individual Entrepreneur 

An Individual Entrepreneur is a sole proprietor business structure registered to a natural person under Georgian law. While the business is linked to the individual, it is officially recognized and regulated, allowing the entrepreneur to conduct commercial activity legally.

An IE may:

• Provide services and conduct business activities

• Issue invoices and receive payments

• Sign contracts with local and international clients

• Open business bank accounts

• Pay taxes and submit reports

• Operate both locally and internationally
  
  

The IE model is ideal for:

• Freelancers and consultants

• IT specialists and remote professionals

• Marketing, design, and creative professionals

• Online service providers

• Independent contractors and small agencies
  
  

For businesses with multiple partners or complex structures, an LLC may be more suitable.

1. Simple and Fast Registration

Registering as an IE in Georgia is straightforward:

• No minimum capital requirement

• Minimal documentation

• Registration often completed within one business day

• Remote registration available via notarized Power of Attorney
  
  

This allows entrepreneurs to launch their business quickly and efficiently.

2. Favorable 1% Tax Regime (Small Business Status)

Individual Entrepreneurs may apply for Small Business Status, which offers:

• Flat 1% income tax on annual turnover up to 500,000 GEL

• No progressive tax brackets

• Transparent and predictable taxation
  
  

This regime is especially attractive for freelancers and service-based businesses.

3. Remote Business Setup

Foreign entrepreneurs are not required to be physically present in Georgia:

• Business registration can be completed remotely

• Power of Attorney can be notarized abroad

• Bank account opening may be possible remotely, subject to bank policy
  
  

This makes Georgia highly accessible for international business owners.

4. Support for Residence Permits and Tax Residency

Operating as an Individual Entrepreneur may support:

• Temporary residence permit applications

• Tax residency status, depending on individual circumstances
  
  

This allows entrepreneurs to legally live and work in Georgia on a long-term basis.

5. Scalable Business Framework

The Small Business Status allows entrepreneurs to:

• Scale operations up to 500,000 GEL annually

• Maintain the 1% tax rate

• Grow beyond micro-business size without early restructuring
  
  

6. Full Legal and Commercial Rights

Individual Entrepreneurs in Georgia operate as fully recognized legal entities and may:

• Issue invoices and sign contracts

• Hire contractors or service providers

• Open business and personal bank accounts

• Receive legal protection under Georgian law
  
  

7. Outside the CRS Framework

Georgia is not part of the Common Reporting Standard (CRS), meaning:

• Banking and income data is not automatically exchanged with foreign tax authorities

• Entrepreneurs benefit from increased financial privacy
  
  

All businesses must still comply fully with Georgian tax and reporting obligations.

Georgia offers one of the most entrepreneur-friendly business environments in the region, particularly for foreign individuals operating as Individual Entrepreneurs (IE)

Simple 1% Tax Regime

Entrepreneurs with annual turnover of up to 500,000 GEL (approximately €170,000) benefit from a flat 1% income tax rate under the Small Business Status.
There are no progressive brackets or hidden charges — taxation remains transparent and predictable.

Remote Business Registration

Business registration can be completed entirely remotely through a notarized Power of Attorney.
There is no requirement to be physically present in Georgia to establish or manage your business.

Support for Tax Residency and Residence Permits

Operating as an Individual Entrepreneur in Georgia may support applications for temporary residence permits or tax residency, enabling foreign entrepreneurs to legally live and work in Georgia on a long-term basis.

Scalable Small Business Framework

The Small Business Status allows entrepreneurs to scale their operations up to 500,000 GEL annually while maintaining the 1% tax rate, making it suitable not only for micro-businesses but also for growing service-based companies.

Full Legal and Commercial Compliance

Individual Entrepreneurs in Georgia operate as fully recognized legal entities.
They may issue invoices, sign contracts, engage contractors, open bank accounts, and benefit from legal protections under Georgian law.

Outside the CRS Framework

Georgia is not part of the Common Reporting Standard (CRS), meaning banking and income information is not automatically exchanged with foreign tax authorities.

Interested?
Contact us today to schedule a consultation and receive a clear, compliant roadmap tailored to your situation.