To thrive in Georgia's dynamic business landscape, registering a commercial entity is not merely a preference; it is an absolute necessity. While establishing a company may not always be feasible, particularly for small businesses, registering as an Individual Entrepreneur emerges as the optimal choice.
One of the main advantages of being an Individual Entrepreneur lies in the relatively straightforward operational framework accompanied by fewer regulations and a preferential tax regime. An Individual Entrepreneur is essentially a physical person granted a license to engage in entrepreneurial activities within Georgia. Moreover, for Individual Entrepreneurs earning an annual income of 500,000 GEL or less, there are special tax regimes available — Micro and Small Business Status. Under the Micro Business Status, Individual Entrepreneurs (although, Micro Business Status is also accessible to individuals who do not hold the title of Individual Entrepreneur) earning 30,000 GEL or less annually are exempted from income tax. For those with an annual income of 500,000 GEL or less, the Small Business Status offers a preferential regime with a mere 1% income tax rate. Without the availability of these advantageous tax regimes, individuals would be subject to a substantially higher income tax rate of 20%.
Choosing to become an Individual Entrepreneur proves to be a favorable option for various professionals, such as IT specialists and independent contractors serving their clients. It also suits individuals operating small shops and engaging in business activities without complex employment and corporate structures. By opting for this path, entrepreneurs can navigate the Georgian business landscape with relative ease, benefiting from simplified procedures and advantageous tax treatment.
📌 What’s Included?
AI Law provides a comprehensive range of legal services to Individual Entrepreneurs seeking to establish and register their businesses. We offer a client-focused approach and ensure that our services are tailored to meet the unique needs of each client. Our Services Include:
1. Registration of an Individual Entrepreneur
2. Obtaining the Small Business Status
Manage the registration of the client and taxpayer;
Establish the www.eservices.rs.ge portal for the client;
Handle the submission of the application to obtain Small Business Status;
Deliver the small business certificate to the client.
3. Opening of a Bank Account
Schedule a visit to the relevant bank;
Assist the client in preparing all the required documents;
Assist the client in submitting the application;
Assist the client in setting up mobile banking;
Assist the client in receiving the credit card;
Assist the client in obtaining bank account details.
⚠️ Note. In the case of remote registrations, our services extend to assisting clients in the preparation of essential documents, such as the Power of Attorney, and coordinating the necessary procedures for translation and notarization in the Georgian language. Kindly take note that, with regards to bank account establishment, it is important to be aware that citizens from specific countries are subject to restrictions when attempting to open an account through the utilization of a Power of Attorney.
📌 Price & Timeline
The registration procedure for an Individual Entrepreneur in Georgia stands out for its remarkable efficiency and economical nature. Essentially, the associated costs can be divided into three distinct categories: (1) legal fees covering our professional services; (2) the state commission imposed by the Registry; and (3) additional costs including translation and notarization expenses.
Our legal fees for conducting in-person registrations stand at a competitive rate of 450 GEL, which also includes Small Business Status and bank account. Alternatively, for remote registrations facilitated via Power of Attorney, our legal fees amount to 598 USD.
The state commission imposed by the Registry varies based on the specific services selected, with standard or accelerated options available, ranging from 60 to 108 GEL. It is important to note that these fees are subject to periodic revisions. For comprehensive and up-to-date information regarding these charges, we encourage you to visit the official website of the Registry at: https://psh.gov.ge/main/page/2/85. Individual Entrepreneur registration happens in 1 or 2 days.
The associated costs pertain to the expenditures undertaken by the client in preparation for the Individual Entrepreneur registration process. These expenses primarily encompass the costs associated with document preparation, translation, and notarization. In the case of an in-person registration, the client will only need to present their passport, a Georgian phone number, and the requisite funds. Conversely, for remote registration, it becomes necessary to prepare a notarized Power of Attorney and a copy of the passport. Depending on the client's country of citizenship, an apostille may also be required. Typically, the price of translation services per page falls within the range of 15-25 GEL. The fees for notarization, contingent upon the type and quantity of documents, generally do not exceed 200 GEL.