Frequently Asked Questions regarding IE in Georgia

What’s the most advantageous way to pay in Georgia?

In Georgia, it’s recommended to make payments in Georgian Lari (GEL). For currency exchange, it’s better to use non-bank exchange points, especially those not oriented towards tourists. When using Georgian bank cards, it’s optimal to have the currency you’re paying with in your account. For example, if you’re paying in US dollars, it’s better to have dollars in your account. Otherwise, make sure you have the currency set as the priority currency for your card.

How to get a tax ID in Georgia?

There are two ways to obtain an individual tax number in Georgia:

  1. If you’re actively engaged in business, you need to register as an individual entrepreneur (IE).
  2. If your activity is not commercial (for example, renting out property), you can apply to the tax service to register as a non-entrepreneurial individual.

How much does it cost to open a company in Georgia?

The cost of opening a company in Georgia can vary depending on the chosen service package. Factors affecting the price include:

  • The need to open a bank account
  • Obtaining small business status
  • Citizenship of the applicant (affects the complexity of banking procedures)
  • Registration method (remote or in-person)

For accurate information on costs, it’s recommended to seek a personal consultation (See details – Open an IE in Georgia).

How much does it cost to open an IE in Georgia remotely?

The cost of remotely opening an IE in Georgia also varies depending on specific services and requirements. Remote registration incurs additional expenses, such as notarization and translation of documents. For detailed cost information, it’s recommended to seek an individual consultation.

What documents are needed to register an IE in Georgia?

For in-person IE registration in Georgia, you need:

  • Passport
  • Consent from a property owner to use their address as a legal address
  • Georgian SIM card

For remote registration, you additionally need:

  • Notarized (sometimes apostilled) copy of passport
  • Power of attorney granting rights to your representative

What is needed to open an IE remotely?

To open an IE in Georgia remotely, you need:

  • Georgian SIM card
  • Notarized (sometimes apostilled) copy of passport
  • Power of attorney for a representative
  • Consent from a property owner to use their address as a legal address

Do I need to notify the tax authorities about opening an IE in Georgia?

Generally, you don’t need to notify your home country’s tax service about opening an IE in Georgia. However, this should be confirmed with your local tax service. Usually, if there’s a tax on income from IE in your country, you need to report the fact of receiving income, not just the opening of an IE. If you become a tax resident of Georgia (and also, besides this, you are not a tax resident of your previous country), you definitely won’t need to notify about this.

Can I use a personal account for IE in Georgia?

Yes, in Georgia you can use personal bank accounts for IE activities. This is because registering an IE doesn’t create a separate legal entity; instead, an individual gets the right to do business. Thus, you can use personal accounts, including accounts in PayPal and other neobanks.

Who can get “Small Business” status?

Small business status in Georgia can be obtained by individual entrepreneurs engaged in certain types of activities. This status is applicable to businesses with annual income up to 500,000 GEL. With this status, the tax is only 1% of income. However, if VAT-taxable income within Georgia exceeds 100,000 GEL, VAT must also be paid.

How to get small business status in Georgia?

To obtain small business status in Georgia, follow these steps:

  1. Register as an individual entrepreneur
  2. Register with the tax service
  3. Apply for small business status

Usually, the status is granted on the day of application but takes effect from the first day of the month following its granting.

What happens if I don’t submit an IE declaration in Georgia?

Late submission of an IE declaration in Georgia can result in a fine of 100 GEL. Therefore, it’s recommended to submit declarations even if there’s no income (with zero indicators). It’s important to remember that monthly declarations must be submitted by the 15th of each month.