Georgia or Armenia: where to set up as a sole trader

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 the turnover tax rate depends on the activity. The 1% rate applies only to activities on the government's high-tech list: software development, electronic systems design, data processing. Other services, marketing and design included, are taxed at 10%: for non-IT the difference with Georgia is tenfold. What a sole trader pays on top of the tax is covered in our guide to sole trader taxes in Armenia.

In both countries the rate is checked against the activity code before filing — that's done on a free consultation. In Georgia the 1% doesn't cover licensed activities or the ones listed in decree 415 — medicine, audit, legal and notarial services and outstaffing among them. Since 2025 Armenia has closed turnover tax to legal and accounting services, management consulting and a number of other activities.

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 usual route: a notarised power of attorney plus a notarised translation of the passport, and it's all arranged without flying out, for $600. Remote setup is for people who work online: if the business involves goods, the bank won't open the account remotely. 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 $130 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: straight away 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 and costs from $400. The decision takes up to 30 days, and the law allows another 30. In Georgia support for business residence costs from $170 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 work online and need it all without flying out, 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 $400 with a decision within 30 days and compatibility with payment systems — and for activities on the high-tech list 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.