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GeorgiaPOPULAR CHOICERemote and in person

A sole trader in Georgia with small business status

Three levels of sole trader registration in Georgia — from the bare registration to a full package with small business status (1% tax on turnover up to GEL 500,000 (≈$190,000) a year, 3% above that) and support opening a bank account. Registration at the House of Justice takes from 15 minutes in person, or is done entirely remotely under a notarised power of attorney. There are no restrictions on the applicant's citizenship, and Georgian residence is not required.

Price from
$170
Timeline
1–3 days
Tax
1% of turnover up to GEL 500,000 a year, 3% above that
Restrictions by type of activity

Small business status is not granted for every activity. Annex 4 to government resolution No. 415 closes consulting as a whole — tax consultants are named there only as an example. The list also covers medicine, architecture, law, notarial work and audit, licensed activities, currency operations, gambling, the production of excisable goods and staffing. Development, design and marketing are not on the list. Check the exact activity code with the partner before registering.

From 1 March 2026 — a mandatory work permit

Sole traders living in Georgia and working with the local market must register the “right to work” (PTD, sometimes called RNR) — the rule applies from 1 March 2026, with a transition period until 1 May 2026 for those already trading. The fine for working without registration is GEL 2,000, GEL 4,000 for a repeat offence and GEL 12,000 for the next one. The exemption for sole traders whose clients are outside Georgia was added by a separate amendment in April 2026 — worth confirming on a consultation, as the conditions may still change.

More about the work permit →
Google Play — through an Armenian sole trader

Georgia is not on Google's list of countries where Google Play merchants can register: you can't sell paid apps or in-app purchases through a Georgian sole trader. For the App Store, a Georgian sole trader works. Need both stores — set up a sole trader in Armenia, where both Apple and Google Play are available.

Google Play through a sole trader in Armenia →
Tax calculator for GeorgiaOpen it and see what you keep after tax

The regime being compared is «Small business status for a sole trader (1%)». Enter your own revenue and the rate you pay today — whichever it is.

Today (15% rate)
$375
per month
Small business status for a sole trader (1%)
$25
per month
Today
Georgia
You save per month
$350
$4,200
over 1 year
$12,600
over 3 years
$21,000
over 5 years

An indicative calculation from the figures you entered — it does not account for deductions, double taxation treaties or the specifics of your current jurisdiction. The exact calculation comes on the free consultation.

The choice

A sole trader with small business status, or an LLC in Georgia

What decides it isn't the registration fee but the turnover ceiling and what you answer for debts with. A sole trader with small business status pays 1% of turnover until it passes GEL 500,000 (≈$190,000) a year, and answers with personal assets. An LLC pays 15% on profit and only when the owners take dividends, while the founders' liability is limited to what they put into the company. An LLC can have several founders; a sole trader is one person.

Sole trader with small business statusLLC
Taxes1% of turnover up to GEL 500,000 (≈$190,000) a year, 3% above that; over the limit two years running and the status is lost15% on profit, paid only when dividends are distributed
Liability for debtsThe person answers for the business's debts: liability is not limited to a contribution, as it is in an LLCThe founders' liability is limited to their contribution to the company; personal assets are untouched
Registration costFrom $170 for registration in person; with the 1% status $225, with a bank account $360From $285 for registration with a legal address; end to end with a bank account from $565
Registration time1-3 days, the House of Justice appointment takes from 15 minutes; remotely — plus 5-7 working days to courier the power of attorney3-7 days; remotely under a power of attorney about 5 days, plus 5-7 days to courier the original
What registration needsA passport, 18 or over, and an activity code outside the licensed list: lawyers, auditors, medics, architects and outstaffing don't get the 1% ratePassports of all founders; no share capital is needed — the documents state GEL 0

Sole trader turnover above GEL 500,000 (≈$190,000) two years running cancels small business status, and closing an LLC takes longer: with no debts outstanding, a sole trader is wound up in about one working day.

Packages

Sole trader only

Registration without small business status

from$170
  • Registering the sole trader at the House of Justice
  • A legal address
  • A specialist handling the process
  • Small business status — 1% of turnover
  • A bank account and card

Sole trader + small business status

With the 1% rate on turnover

from$225
  • Registering the sole trader at the House of Justice
  • A legal address
  • Setting up the tax account on rs.ge
  • Small business status — a 1% rate on turnover
  • A bank account and card

Sole trader, end to end

With an account at a Georgian bank

from$360
  • Registering the sole trader at the House of Justice
  • A legal address
  • Setting up the tax account on rs.ge
  • Small business status — a 1% rate on turnover
  • Accompanying you to the bank and getting the card
  • The bank's fees

We fix the exact package after reviewing your case. You pay the expert directly.

Company formation in Georgia: comparing the options

The difference is not the price — it is who each option suits. The “Best for” column is the business profile the option is built around.

OptionBest forTimelinePrice
A sole trader in Georgia with small business statusyou are hereIT specialists and developers working on outsourcing or outstaffing, freelancers, designers and marketers with foreign clients, digital nomads legalising income through a sole trader without moving to Georgia, B2B services and online trade with turnover up to GEL 500,000 a year, app developers publishing on the App Store1–3 daysfrom $170
A Georgian LLC, set up end to endA business with two or more founding partners, companies planning to hire staff on employment contracts, owners who want personal assets separated from business debts (unlike a sole trader)3–7 daysfrom $285
Virtual IT zone status in GeorgiaAn outsourcing developer or freelance programmer setting up an entity for foreign clients, a SaaS startup with no Georgian clients, selling subscriptions abroad, an IT outstaffing team serving foreign partners remotely1–4 weeksfrom $770
International IT company status in GeorgiaAn IT company with a finished product moving its jurisdiction to Georgia, an existing Georgian IT company of 2+ years moving onto the reduced regime, a foreign software company opening a Georgian branch with a real office and team2–6 weeksfrom $945
Registering a company in a Georgian free industrial zoneA manufacturer placing production in Georgia for export, an importer or exporter who needs the VAT and duty relief on goods moving in and out, an owner who can't be in Georgia in person and wants it all done under a power of attorney2–6 weeksfrom $1,000

Documents and programme requirements

  • 1A passport, 18 or over (for a non-resident — with a Georgian entry stamp)
  • 2Choosing the activity code — small business status depends on it (it must not be on the licensed list)
  • 3In person — attendance at the House of Justice (15-30 minutes); remotely — a notarised power of attorney in Georgian, the original of which the client couriers to Georgia themselves (usually 5-7 working days)

How the process runs

1–3 days
  1. ApplicationThe application states the sole trader's brand name, legal address, email and phone. The brand name can be your own name or an invented one.
  2. DocumentsA non-citizen of Georgia submits a passport, a neutral identity card or a neutral travel document. If the legal address belongs to someone else, add the owner's certified consent.
  3. Filing and feeDocuments are accepted at Public Service Halls, territorial offices of the Public Registry and on the my.gov.ge portal. The fee is GEL 26 for registration within one working day, or GEL 75 on the day of filing.
  4. 1% statusThe application for small business status goes to the Revenue Service. It is free from your online account and costs GEL 100 at a service centre.
  5. CertificateThe Revenue Service issues the small business certificate. If it is lost or damaged, you restore it with a separate application from your online account.

Frequently asked questions

Does a foreigner need Georgian residence or citizenship to register as a sole trader?
No. A citizen of any country can register as a sole trader in Georgia, with no citizenship restrictions and no valid residence permit — a passport is enough. If anything it works the other way round: actively trading through the sole trader can later help an application for residence on business grounds.
How long does registration take, and when does the 1% rate start?
The entry in the House of Justice register itself takes from 15 minutes to one day. Since 7 March 2026 small business status and the reduced 1% rate apply from the day the application is filed with the tax service — previously you had to wait for the 1st of the following month, but that rule no longer applies.
Can the sole trader be registered entirely remotely, without coming to Georgia?
Yes, under a notarised power of attorney translated into Georgian. The original has to be couriered to Georgia (usually 5-7 working days) — arranging and paying for delivery is on the client, after which the representative under the power of attorney completes the registration on the ground.
What happens if turnover exceeds the GEL 500,000 limit?
From the month it is exceeded until the end of the calendar year the rate is 3% instead of 1%; from January of the following year it returns to 1%, provided the limit isn't exceeded again. If turnover exceeds GEL 500,000 two years running, small business status is cancelled outright.
Is there a regime better than 1% if turnover is very small?
Yes — with turnover up to GEL 30,000 a year there's micro business status at 0%. If you pass that threshold during the year, micro business status is lost for that year and you move to small business status (1%); income within the micro business limit already earned is not taxed retroactively. We'll advise on a consultation which status works out better in your case.
Which income doesn't get the reduced 1% rate, and how is it taxed instead?
Turnover for the 1% rate excludes: salary (the general 20% rate), interest on bank deposits (0%, exempt), dividends (5%, a final withholding tax), royalties (20% for tax residents), letting housing for residential use (5%, provided the landlord claims no deductions; the tenant may be an individual or a company — article 81(2)), income from selling property (0% after owning a home with its land for more than 2 years, a vehicle for more than 6 months from registration of title, other assets for more than 2 years; otherwise 5% to 20% depending on the asset), inheritance and gifts (0% from heirs of the first and second order — children, spouse, parents, siblings; from heirs of the third and fourth order, grandparents included, GEL 150,000 a year is exempt and 20% applies above that), and gambling winnings and income from forgiven debt or loans issued. The exact rate depends on the type of income and the circumstances — for significant sums it's worth checking with an accountant individually.
Which activities don't qualify for the 1% small business rate?
Small business status is not granted for every activity. Annex 4 to government resolution No. 415 closes consulting as a whole — tax consultants are named there only as an example. The list also covers medicine, architecture, law, notarial work and audit, licensed activities, currency operations, gambling, the production of excisable goods and staffing. Development, design and marketing are not on the list. If your activity is on that list you can still register a sole trader, but you won't get small business status and the 1% rate — check the exact activity code with the partner before filing.
Do I have to open a bank account in Georgia?
Formally no, but in practice you need an account to take payment from clients — a Georgian bank, or Payoneer/SWIFT transfers to a foreign account. Help opening one is included only in the “end to end” package; the bank decides on its own after its checks, and there's no cast-iron guarantee.
How often do I file and pay the tax?
Monthly, no later than the 15th of the following month — through your account on the rs.ge portal. That covers both the tax return and paying the 1% tax itself.
Is it easy to close the sole trader if I stop trading?
Yes — with no debts to the budget outstanding, winding up a sole trader through the National Agency of Public Registry takes about one working day. If there are arrears, or you need to wind up an LLC, that's a longer procedure of its own.
Do I have to pay VAT if the sole trader's turnover passes GEL 100,000?
VAT registration becomes mandatory once transactions taxable in Georgia exceed GEL 100,000 over any continuous 12 months (not a calendar year) — the application is filed within 2 working days of passing it. It's a regime separate from the 1% tax: VAT doesn't cancel small business status. Services to a foreign client are supplied where that client is established, outside Georgia, so they stay outside the threshold and create no duty to register.

Sources

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