Georgia or Armenia: where to set up as a sole trader in 2026 — from $170 and 1% tax

Comparing a sole trader in Georgia (from $170, 1% tax) and Armenia (from $450, bank account included): prices, taxes, timelines from 1 day, remote registration, accounts. Who each suits.

Maksim Mekhontsev · 16 July 2026

Key points

Registering a sole trader in Georgia costs from $170, and the package with 1% status and bank support from $360; in Armenia a single package with the bank and cards is $450 in person or $600 remotely.
Tax: in Georgia 1% of turnover up to GEL 500,000 a year for almost all services; in Armenia 1% only with an IT certificate, while ordinary services pay 5% turnover tax.
Armenia is stronger on remote setup and banking: the account and Visa/Mastercard cards are in the package, and business residence costs from $280 and takes 7-14 days right after registration.
Pactors finds you a vetted expert in Georgia or Armenia free of charge — partners' prices with no markup, 0% on top.

Georgia and Armenia have a reputation as the two simplest countries for a sole trader, and it's deserved: registration takes one to three days, no citizenship or residence is required, and both can be arranged remotely. But from there the routes diverge — on tax, banking and the cost of starting. All the figures below come from the price lists of Pactors experts working on the ground in both countries.

Registration price: from $170 in Georgia, $450 in Armenia with the bank included

Georgia has three tiers. Basic registration at the House of Justice with a lifetime legal address is from $170. With small business status (that 1% rate) it's from $225, and the full package with support opening a bank account and getting a card is from $360. Those are the prices for filing in person — the remote format costs more.

Armenia has one package, but the fullest possible: registering the sole trader, tax registration, the social card, bank support and Visa/Mastercard cards. In person it's $450, entirely remotely under a power of attorney $600.

A fair comparison means comparing full packages: $360 in Georgia against $450 in Armenia when filing in person. Georgia is noticeably cheaper only if you open the bank account yourself, or don't need one yet.

Tax: 1% for almost all services in Georgia, 1% only for IT in Armenia

A Georgian sole trader with small business status pays 1% of turnover — up to GEL 500,000 a year (about $188,000). Above that threshold the rate is 3% until the end of the year. And if turnover is very small, up to GEL 30,000 a year, there's micro business status at 0%. Since 7 March 2026 the relief applies from the day the application is filed, rather than from the 1st of the following month.

In Armenia turnover tax runs from 1% to 5%. The 1% rate is granted only with an IT certificate. Ordinary services — marketing, consulting, design — are taxed at 5% without one: for non-IT the difference with Georgia is fivefold.

An important caveat on Georgia: the 1% doesn't cover licensed and certain other activities — medicine, audit, legal and notarial services, outstaffing and others. Check the activity code before filing — that's done on a free consultation.

Timing and remote setup: 1 day in Armenia, 1-3 days in Georgia

In Armenia the partner registers a sole trader in one day. In Georgia filing in person takes 15-30 minutes at the House of Justice, the register entry up to a day, and the whole process 1-3 days. On speed both countries beat most jurisdictions.

The difference shows in remote setup. In Armenia it's the standard flow: a notarised power of attorney plus a notarised translation of the passport, and it's all arranged without flying out, for $600. In Georgia remote registration is possible too, but the power of attorney is translated into Georgian and you courier the original yourself — usually 5-7 working days and delivery costs on top.

The bank account: included in Armenia, not guaranteed in Georgia

The Armenian package already contains bank support and Visa/Mastercard cards. Separately the partner opens Payoneer for a sole trader for $100 (included in the registration packages) and a personal account at Ameriabank or Inecobank remotely in 3-14 days. That's why Armenia is often chosen for payment systems and Stripe.

In Georgia account support is included only in the $360 package, and the bank decides for itself after its checks — there's no cast-iron guarantee. The partner helps open a personal multi-currency account at Bank of Georgia or TBC from about $225 in 1-7 days, and most banks require no minimum deposit. Note two things: PayPal and Stripe are available only in limited form in Georgia, and when the account is opened remotely the representative under the power of attorney gets full control of it — control can only be returned by visiting the bank in person.

Residence after the sole trader: from $280 in 7-14 days in Armenia, after turnover in Georgia

If the sole trader is a step towards legal status, Armenia is faster: business residence is filed straight after registration, costs from $280 and takes 7-14 days. In Georgia support for business residence costs from about $450 and review takes 30-60 days, but approval needs turnover of GEL 50,000 over the past 12 months — filing straight after registration is too early.

The verdict: Georgia for minimum tax, Armenia for remote setup with a bank

Georgia suits you if your clients are foreign, your activity qualifies for the 1% and you're willing to fly out or courier a power of attorney. The starting budget is $170 to $360. The 2026 wrinkle: sole traders living in Georgia and working with the local market must obtain a work permit from 1 March (the fine is GEL 2,000); an exemption for those working with foreign clients was added by an amendment in April 2026, but the conditions are worth confirming on a consultation.

Armenia suits you if you need it all without flying out and with a working account from day one: $600 gets you the sole trader, tax registration, a social card and Visa/Mastercard cards. The other arguments are residence from $280 in 7-14 days and compatibility with payment systems — and with an IT certificate the tax is the same 1% as in Georgia. There's no winner “on everything” here: choose by your own profile, not someone else's checklist.

Common questions

Can I set up as a sole trader in Georgia or Armenia without residence or local citizenship?

Yes, in both countries a passport is enough — there are no citizenship restrictions and no residence permit is required. In Georgia a non-resident filing in person needs an entry stamp, and filing remotely needs a notarised power of attorney in Georgian; in Armenia the remote option runs on a power of attorney and a notarised translation of the passport.

What does running a sole trader cost after registration?

In Georgia bookkeeping costs from $30 a month depending on the reporting package; returns are filed monthly by the 15th through rs.ge, and the partner provides a video guide so you can do it yourself. In Armenia the partner keeps the books from $60 a month.

What should an IT freelancer with foreign clients choose?

On tax the countries are comparable: Georgia charges 1% of turnover up to GEL 500,000 a year, Armenia 1% with an IT certificate. If the minimum starting budget matters — Georgia (registration from $170); if you need it all remotely and with a bank account from day one — Armenia ($600, account and cards included).

Is it true that from 2026 a sole trader in Georgia needs a work permit?

Since 1 March 2026 the permit is mandatory for sole traders who live in Georgia and work with the local market; the fine is GEL 2,000, and GEL 4,000 for a repeat offence. For sole traders with clients outside Georgia an exemption was added by a separate amendment in April 2026 — the conditions may still change and are confirmed on a free consultation.