Starting a Business in Georgia: The Complete Expat Guide (2026)

Georgia is one of the easiest places on earth to start a business. You can register a company in a single day, there's no minimum capital requirement, and the tax rates are genuinely low — not "low by European standards" low, but 1%-on-revenue low. For certain structures, it's literally 0%.

But there's a gap between "it's easy" and "I did it right." The system is simple, but the choices you make during registration have real consequences. Pick the wrong structure, skip the Small Business Status application, or misunderstand the VAT threshold, and you'll spend months cleaning up the mess — often paying thousands in unnecessary taxes in the meantime.

This guide walks through everything: which business type to choose (there are more options than most people realize), exactly how to register, what it costs, how to file taxes, how to invoice clients, and the common mistakes that trip up expats every single week. Every section links to deeper guides where relevant.

Why Expats Start Businesses in Georgia

Georgia consistently ranks in the top 10 globally for ease of doing business. That's not marketing — it's the World Bank's assessment. The government deliberately built a business-friendly environment after the Rose Revolution in 2003, and two decades later, the results speak for themselves.

The practical advantages go beyond taxes. Georgia has no foreign ownership restrictions — a non-resident can own 100% of a Georgian company. There's no currency control, so you can freely move money in and out. English is increasingly spoken in government offices, and services like ExpatHub, Gegidze, and PB Services exist specifically to help foreigners navigate registration.

The digital nomad crowd discovered Georgia around 2020, but it's not just remote workers. Georgia has genuine advantages for e-commerce businesses, SaaS companies, trading firms, import/export operations, and service providers of all kinds. The question isn't whether Georgia is good for business — it's which structure is right for yours.

Business Structures: The Full Picture

Most guides only mention two options: IE and LLC. But Georgia actually has five business structures relevant to expats. The right choice depends on your revenue, number of partners, activity type, and how much administrative hassle you can tolerate.

Micro Business Status (0% Tax)

The least-known option, and a genuine zero-tax regime. If your annual turnover is under 30,000 GEL (roughly $11,000), you can register as a Micro Business and pay absolutely nothing in income tax. Not 1%. Zero.

Micro Business is perfect if you're just starting out, have a small side project, or earn modest freelance income. If you exceed the 30,000 GEL limit, you automatically move to the 1% Small Business rate (not 20%), so there's no cliff-edge penalty.

IE vs LLC: The Core Decision

For most expats, the choice comes down to Individual Entrepreneur (with Small Business Status) versus LLC. This is the most important decision you'll make, and choosing wrong can cost you thousands in unnecessary taxes.

Choose IE with Small Business Status if:

• You're a freelancer, remote worker, or solo operator
• Your annual revenue is under 500,000 GEL (~$180,000)
• Your activity qualifies (most do — see exclusions below)
• You want the simplest possible tax setup
• You don't need liability protection

Choose LLC if:

• You have business partners or co-founders
• You want limited liability protection
• You plan to reinvest profits and grow the company
• Your activity is excluded from IE Small Business Status
• You expect revenue over 500,000 GEL or plan to raise investment
• You need the business to look more "established" for clients or contracts
• You have high expenses relative to revenue (LLC taxes profit, not revenue)

The Revenue Question: IE vs LLC Math

The IE's 1% is on gross revenue — total money received, before any expenses. The LLC's 15% is on distributed profits — what you actually take out after expenses. This means:

The rule of thumb: if your net profit margin is above 7%, the IE usually wins on total tax paid. Below 7%, the LLC starts making sense — especially if you can reinvest profits rather than distribute them.

Which Structure Is Right for You?

Here's a quick-reference guide for the most common expat scenarios:

Labour Permit (New — February 2026)

This is the biggest change to Georgian business registration for foreigners in years. As of February 20, 2026, all foreign nationals who operate as IEs, work as self-employed, or are employed by a Georgian company must obtain a "Right to Work" labour permit under Government Ordinance No. 70.

Who's Exempt

• Permanent residents and investment residence holders
• Remote workers for foreign companies who don't have a Georgian employment contract and don't enter Georgia for work purposes
• Diplomats, international organization staff, accredited journalists
• Refugees and asylum seekers

How to Apply (Self-Employed / IE)

For the complete walkthrough including edge cases and employer-sponsored permits, see our labour permit guide.

How to Register as an Individual Entrepreneur

Registering as an IE is the fastest business setup you'll ever do. The entire process can be completed in a single visit to Public Service Hall, and the cost is zero for standard processing.

Step 1: Gather Your Documents

You need surprisingly little:

• Valid passport (original — they'll scan it)
• Georgian address — can be your rental apartment. You don't need to own property.
• Georgian phone number — get a Magti or Silknet SIM for a few lari
• Email address

That's it. No business plan, no proof of funds, no notarized documents.

Step 2: Visit Public Service Hall

Public Service Hall (საჯარო სერვისების განვითარების სააგენტო) is Georgia's centralized government services building. The main one is on the Kura River in Tbilisi — the futuristic mushroom-shaped building you can't miss.

Walk in, take a number, and tell the clerk you want to register as an Individual Entrepreneur. No appointment needed. The whole process takes 15–30 minutes at the window, and your registration is confirmed within one business day.

Step 3: Choose Your NACE Code

You'll be asked to specify your business activity using a NACE code (the European standard classification). This matters because it determines your tax treatment. Common codes for expats:

You can register multiple NACE codes, and you can change them later. Don't overthink this step — just make sure your primary activity is covered and isn't on the excluded list.

Step 4: Apply for Small Business Status (SBS)

This is the critical step that gets you the 1% rate. After IE registration, you need to separately apply for Small Business Status at the Revenue Service. This is not automatic — it's the step most expats delay or forget, costing them the 20% default rate on any income earned before approval.

The SBS application is done online through rs.ge (the Revenue Service portal) or in person at the Revenue Service office. It takes a few additional business days to process. Your 1% rate becomes effective from the first day of the month after your application is approved.

Step 5: Open a Bank Account

You don't legally need a business bank account — you can invoice from a personal account. But practically, keeping business and personal finances separate makes life much easier come tax time. Most expats open a dedicated account at TBC Bank or Bank of Georgia, which takes about 30 minutes with your passport and IE registration confirmation.

For the full banking walkthrough, see our banking guide.

Step 6: Apply for Labour Permit

As of February 2026, this step is mandatory for all foreign IEs. In practice, self-employed applicants should use self-employment.moh.gov.ge, while employer-sponsored cases use the separate labour migration portal. Budget 200 GEL for standard processing or 400 GEL for the faster lane. If you already have an active IE, pull your turnover evidence from Revenue Service first, then follow our self-employment registration walkthrough alongside the labour permit section above.

How to Register an LLC

LLC registration is slightly more involved than IE, but still remarkably fast by global standards. You can have a fully operational LLC within 1–2 business days.

What You Need

The Registration Process

Take your documents to Justice House (სამართლის სახლი) — not Public Service Hall. This is a common point of confusion. IEs register at Public Service Hall; LLCs register at Justice House.

Submit your application, pay the registration fee (~100 GEL for standard processing, ~200 GEL for expedited same-day), and you'll receive confirmation within one business day. Your company gets a unique identification number that serves as both the company ID and tax ID.

Virtual Zone & International Company (IT Businesses)

If your business is in the IT sector, Georgia offers two special regimes with even better tax treatment than standard IE or LLC:

Both are only available to LLCs, not IEs. And they only apply to IT services exported outside Georgia — domestic IT revenue is taxed normally. For most IT freelancers earning under 500K GEL, the IE + SBS route (1% on everything) is actually simpler and comparable in total tax burden.

What It Actually Costs

One of the best things about Georgia: the costs are refreshingly transparent and low.

Tax Obligations by Structure

Understanding your ongoing tax obligations is just as important as the registration itself. Here's the complete picture:

The 500K GEL Overflow Rule

If your IE revenue exceeds 500,000 GEL during a calendar year, you don't immediately jump to 20%. Instead:

• The rate increases to 3% on all revenue from the month you exceeded the threshold through December
• Revenue earned earlier in the year at 1% stays at 1%
• If you exceed 500K GEL in two consecutive years, your Small Business Status is revoked entirely
• After revocation, you revert to 20% on net income — at which point most people switch to an LLC

Filing Taxes on RS.ge

All tax filing happens through rs.ge — the Revenue Service's online portal. It's available in Georgian and English (though the English translation can be rough in places). Here's how the monthly process works for IEs with SBS:

That's it. Five steps, once a month. The whole process takes 10–15 minutes once you're used to it. If you had zero income in a given month, you still need to file a zero declaration — don't skip months.

Invoicing & Getting Paid

One of the most practical questions new business owners have: how do I actually invoice clients and receive money?

Invoicing

Georgia has no specific invoice format requirements for IEs with SBS. Your invoices should include:

• Your name and IE registration number
• Your bank details (IBAN, bank name, SWIFT code)
• Client's name and address
• Description of services
• Amount and currency
• Date and invoice number

You can use any invoicing tool — FreshBooks, Wave, Stripe invoicing, a Google Docs template, or even a plain PDF. There's no requirement to use Georgian software or register invoices with the Revenue Service (unless you're VAT-registered, in which case you use the rs.ge e-invoice system).

Receiving Payments

Hiring an Accountant

For IEs with SBS, accounting is so simple you can genuinely do it yourself. Log into rs.ge, enter your monthly income, pay 1%, done. Many expats handle this without any help.

For LLCs, an accountant is practically mandatory. Georgian accounting standards, even for small companies, require proper books, and the annual profit tax return has enough complexity that doing it wrong costs more than hiring a professional.

Service Provider Comparison

Several firms in Tbilisi specialize in helping expats with business registration and ongoing accounting. Here's how the main options compare:

For IE registration, honestly — do it yourself. It's genuinely easy and takes 30 minutes at Public Service Hall. Save the money for an accountant if you register an LLC. For LLC registration, using a service provider the first time is worth the $300–500 to ensure the charter is drafted correctly and all the paperwork is in order.

Opening a Business Bank Account

Georgia has two dominant banks: TBC Bank and Bank of Georgia. Both offer business accounts with online banking, multi-currency support, and reasonable fees.

For IEs, you technically don't need a separate business account — you can receive business income into a personal account and just declare it properly. But for LLCs, a business account is essential. You'll need your registration documents, passport, and company charter to open one.

For the complete banking walkthrough including KYC tips, rejection avoidance, premium accounts, and deposit interest rates, see our banking guide.

Ongoing Obligations

For Micro Business

• Annual declaration — File once per year via rs.ge. No monthly filings.
• Monitor 30K GEL threshold — If you exceed it, you automatically move to 1% SBS rate.
• No employees — The moment you hire, you need to upgrade to SBS or LLC.

For IEs with Small Business Status

• Monthly declaration — File via rs.ge by the 15th of the following month. Report all income received that month and pay 1% tax.
• Keep records — Save all invoices and payment confirmations. The Revenue Service can audit you going back 3 years.
• Monitor the 500K GEL threshold — If you exceed it, the rate jumps to 3% on overflow.
• Labour permit renewal — Renew before expiry (200 GEL, 30 days processing).
• Zero declarations — Even months with no income require a declaration. Don't skip.

For LLCs

• Bookkeeping — LLCs must maintain proper financial records per Georgian accounting standards. Most expats hire an accountant ($50–150/month).
• Monthly VAT return — Required if VAT-registered, even if the amount is zero.
• Annual profit tax return — Due by April 1st for the previous calendar year.
• Employee tax withholding — If you have employees, withhold and remit their 20% income tax monthly.
• Annual audit — Required if revenue exceeds certain thresholds (currently ~1.5M GEL for mandatory audit).

Hiring Employees in Georgia

Both IEs and LLCs can hire employees. Georgia's labor market is employer-friendly with relatively flexible hiring and termination rules compared to Western Europe.

Average Salaries in Tbilisi (2026)

Home Country Tax Implications

This is the section most "move to Georgia" guides conveniently skip. Your home country might still want a piece of your income, even if you're living in and paying taxes to Georgia.

US Citizens

The US taxes citizens on worldwide income regardless of where they live. If you're American, you still need to file a US tax return every year and report your Georgian income. The Foreign Earned Income Exclusion (FEIE) lets you exclude roughly $130,000 of earned income, and Foreign Tax Credits let you offset Georgian taxes against US taxes. Between FEIE and the low Georgian rates, most American expats in Georgia owe little or nothing to the IRS — but you must file.

Most Other Countries

Most countries (EU, UK, Canada, Australia) use tax residency rather than citizenship to determine tax obligations. Once you're no longer a tax resident of your home country (usually after spending fewer than 183 days there per year), you generally stop owing taxes there. But some countries have exit taxes, clawback provisions, or different rules for property income, pensions, and investments.

CRS & FATCA

Georgia participates in the Common Reporting Standard (CRS), which means Georgian banks automatically report account information to your country of tax residency. US citizens are also subject to FATCA reporting. This isn't a problem if you're declaring everything properly — it's designed to catch people who aren't.

Closing a Business

If you're leaving Georgia or simply no longer need your business structure, here's how to properly close it:

Common Mistakes Expats Make

After watching hundreds of expats go through this process, certain mistakes come up again and again:

Practical Tips from Expat Business Owners

These tips come from years of watching expats set up businesses in Tbilisi — the things nobody puts in the official guides.

1. Do IE registration yourself. It's genuinely easy. Don't pay $300 for a service to do something you can handle in 30 minutes at Public Service Hall.
2. Don't register before you arrive. While remote registration is possible, it's more expensive and slower. If you're coming to Georgia anyway, register on day two after getting a SIM card.
3. Register on day one or two. Because the 1% rate starts the month after SBS approval, every day you delay potentially costs you a full month at 20%.
4. Get a virtual address if needed. If your rental agreement is short-term or the landlord won't cooperate, a virtual address service costs $50–150/year and solves the problem permanently.
5. Start with IE, upgrade later. If you're unsure, start as an IE. It costs nothing, takes 30 minutes, and you can always register an LLC later. You can even run both simultaneously — IE for freelance income (1%) and LLC for a separate venture (0% reinvested).
6. Reclassify "consulting" immediately. If your contracts say "consulting services," work with your clients to reword them as "marketing services," "software development," "content production," or whatever accurately describes the actual work.
7. Set aside tax money monthly. The 1% rate is so low it's easy to forget. Set up an automatic transfer to a savings account on the 1st of every month.
8. File on time, every time. Late filing penalties are surprisingly steep. Set a recurring calendar reminder for the 12th of each month (3 days before the deadline).
9. Join the Facebook groups. "Expats in Tbilisi" and "Digital Nomads Georgia" have thousands of people who've been through exactly this process. Search before you post — your question has been answered 50 times.
10. Use Wise as your payment hub. Receive foreign payments into Wise, transfer to Georgian bank when you need GEL. Better rates, lower fees, and your clients get familiar bank details in their own currency.

Frequently Asked Questions