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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 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
Format
Remote and in person
Restrictions by type of activity

Small business status doesn't cover licensed activities or those with tax regimes of their own: activities requiring significant investment (producing excisable goods, for instance), gambling, currency operations, legal, tax-advisory, notarial and audit services, medicine, architecture, and staffing (outstaffing and recruitment). 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 →
Calculate the tax ↓
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 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 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 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 will match the exact package to your case during the consultation.

What the service includes

Scope: a tick means included in the price, a cross means billed separately
Registering the sole trader at the House of Justice and with the tax authority
A lifetime virtual legal address
Obtaining small business status (1% of turnover) — in the “+ status” and “end to end” packages, see the tiers
Drafting the text of the notarised power of attorney for the remote option (translated into Georgian)
Support opening a bank account and getting a card — in the “end to end” package, see the tiers
A consultation on monthly filings and a video guide to filing them yourself through rs.ge
The House of Justice state fee — GEL 61.50 with next-day registration or GEL 111.50 same-day; registering with the tax authority is free— billed separately
The bank's account opening fee — GEL 50 at TBC, GEL 100 at Bank of Georgia, GEL 150 at Liberty Bank— billed separately
Monthly accounting and preparing filings — from $30/month at the partner's rates, depending on the reporting package (from a nil return to a full one with VAT)— billed separately
Georgian tax residency — arranged separately, it does not come automatically with the sole trader— billed separately
For the remote option — a notarised translation and certification of the power of attorney in Georgia (GEL 65-100) and couriering the originals— billed separately
Help opening an account at a second bank — GEL 300 in person or GEL 600 remotely— billed separately
The work permit (PTD/RNR) — a separate service, mandatory since 1 March 2026 for sole traders serving the local market (see the notice below)— billed separately

What we need from you

  • 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)

Tax calculator for Georgia

The regime being compared is «Статус малого бизнеса ИП (1%)». Enter your own revenue and the rate you pay today — whichever it is.

Today (15% rate)
$375
per month
Статус малого бизнеса ИП (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.

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), renting residential property to individuals (5% of gross income; 20% of net income — only when letting to a legal entity for commercial purposes), income from selling property, vehicles, securities and shares (in most cases 0% after 2 years of ownership, otherwise 5% to 20% depending on the asset), inheritance and gifts (0% from close relatives — children, spouse, parents, siblings, grandparents; up to 20% above GEL 150,000 from others), 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 doesn't cover licensed activities or those with tax regimes of their own: activities requiring significant investment (producing excisable goods, for instance), gambling, currency operations, legal, tax-advisory, notarial and audit services, medicine, architecture, and staffing (outstaffing and recruitment). 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 in Georgia is mandatory once turnover exceeds 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 foreign clients (most clients of a 1% sole trader) are zero-rated — the place of supply for such services is where the client is, i.e. outside Georgia — but registration and reporting are still mandatory once you pass the threshold.

Sources

Company formation in Georgia: comparison

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 from
A sole trader in Georgia with small business statusyou are hereIT specialists and developers working on outsourcing or outstaffing, freelancers, marketers and consultants 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 year1–3 days$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 days$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 weeks≈ $1,460
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 weeks≈ $3,740
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 weekson request

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