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Conditions for obtaining small business status in Georgia in 2025: Step-by-step instructions

Georgia offers one of the simplest and most favorable tax regimes for individual entrepreneurs (IE). Especially attractive is the “small business” system with a tax rate from 1% on turnover. This regime is available not only to Georgian citizens, but also to foreigners working in Georgia or remotely.

What is small business status in Georgia?

This is a special tax regime provided for by the Tax Code of Georgia for individual entrepreneurs with annual turnover up to 500,000 GEL.

Advantages:

Who is eligible for this status?

Legally any natural person, including foreigners. No citizenship or residence permit required.

Conditions

  1. Registration as a sole proprietorship in the Register of Legal Entities through the House of Justice.
  2. Opening a bank account in Georgia.
  3. Registration in the tax system on rs.ge.
  4. Applying for small business status through personal cabinet on rs.ge.
  5. Turnover for the year should not exceed 500,000 GEL.
  6. The activity must not be included in the list of exemptions (Art. 88.1 of the TC).

Step-by-step instructions

  1. Prepare your passport (translation is not required).
  2. Come to the House of Justice and register the IE.
  3. Open a bank account.
  4. Register on rs.ge.
  5. Apply for small business status through the office on the tax office website.
  6. Start your business.

Table: Comparison of modes

Indicator Ordinary sole proprietor Small business (1 %)
Tax rate 20% of profit 1% of turnover
Declarations 1/year Every month
Turnover restriction None Up to 500,000 GEL per year
Citizenship required? No No

Facts and features

  • Foreigners can open a sole proprietorship and obtain the status without residence permit.
  • Turnover in foreign currency is taken into account when calculating the limit.
  • If the turnover exceeds GEL 500,000 for two consecutive years — the status is lost in the third year.
  • It is possible to conduct online activities and work with foreign clients.

Frequently asked questions

Can I get small business status without a residence permit?
Yes, you can register as a sole proprietor and obtain small business status without a residence permit.
What counts as turnover?
Any receipts to the sole proprietor's account from entrepreneurial activities, including in foreign currency.
What happens if I exceed the GEL 500,000 limit?
If the excess occurs two years in a row, you will lose your small business status from the third year and move to the general taxation system.
Can I work for a foreign company?
Yes, if you are working as a contractor (and not under an employment contract), it does not prevent you from obtaining small business status.

How ESPERO can help

ESPERO provides a full range of services:

  • IP registration — online enrollment and support;
  • translation and apostille of documents if necessary;
  • connection to the tax system and customization of the office;
  • application for small business status;
  • consultations on taxation and turnover;
  • support for foreigners in opening bank accounts.

Contact us — we will simplify the process, eliminate errors and save your time.

Useful links and sources

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