A case of a Russian individual entrepreneur, also registered as an individual entrepreneur in Georgia. Work and taxes in both countries "legally". Without sanctions and restrictions.

Money transfer from Georgia. Or how to work legally having an individual entrepreneur in Georgia and at the same time an individual entrepreneur in the Russian Federation without problems with SWIFT with Western clients.

A client contacted us - a photographer from the Russian Federation with an interesting case that we would like to share.

Input data:

• her all clients are from the EU/USA;
• her individual entrepreneur in the Russian Federation on the simplified tax system 6%;
• clients cannot make payments to her due to sanctions, and she, in turn, cannot accept payments to the Russian Federation from outside, because banks with SWIFT do not want to open an account for her because of too small turnover;
• interested in opening an individual entrepreneur in Georgia, as an opportunity to work with the whole world under 1% tax;
• photographer - works directly with customers (not through photo banks or various stocks) taking custom photos, also processes photos of other professionals;
• interested in showing profit and turnover in the Russian Federation (since there is a mortgage, there are remote hired employees, periodically takes out loans from banks and in general always strives to work "legally").

What to do?

The client has developed the following solution for herself:

1. IP 6% transferred to a region with a reduced tax rate in (Chechnya). In Chechnya, the individual entrepreneur has a simplified tax system "Income" - 1%.
2. With our help, a Individual entrepreneur "Small business" 1% was registered in Georgia. We also opened an account and a card in Georgia.
3. The client transferred clients from the EU/USA to settlements with a Georgian individual entrepreneur.
4. Money in the Russian Federation to the account of a Russian individual entrepreneur comes from Georgia legally to the account through the "contact" payment system. Also from Georgia through the "Contact" payment system you can transfer by card number (i.e. from card to card).
5. Payments come and are credited immediately in rubles. Tax is paid on payments.
6. The income is legal in both countries. At the same time, the client pays a 2% tax in total instead of the previous 6%. Works with EU/US countries without sanctions and without problems with SWIFT.

If you are interested in working through registration of an individual entrepreneur or company in Georgia — ESPERO group will be happy to help you start your business without sanctions and corruption.