Availeble on:
VIber
Whatsapp
Telegram

Menu

Registering as an Individual Entrepreneur (IE) in Georgia

 

INTRODUCTION:

Becoming an Individual Entrepreneur (IE) offers a flexible and straightforward option for starting a business in Georgia. In this article, we will explore the key aspects of registering as an Individual Entrepreneur, including liability considerations, registration procedures, and the possibility of obtaining the status of a Small Business. We will also outline prohibited activities for Small Business status.

UNDERSTANDING INDIVIDUAL ENTREPRENEURSHIP IN GEORGIA:

An Individual Entrepreneur is a legal form of business activity where a single individual operates a business. It is important to note that as an Individual Entrepreneur, the person is personally liable to creditors with all of their assets for any obligations arising from their entrepreneurial activities. This means that personal assets can be used to satisfy business debts.

REGISTRATION PROCEDURES FOR INDIVIDUAL ENTREPRENEURSHIP:

Registering as an Individual Entrepreneur in Georgia involves the following procedures:

  1. PERSONAL VISIT TO GEORGIA:

    • If the client is personally visiting Georgia, the registration process can be completed in two business days;
    • We will assist in drafting the necessary documents and accompany the client to submit them for registration;
    • Once the registration is completed, we will help to prepare and submit documents for opening bank accounts for the Individual Entrepreneur, including internet banking services.

  2. REGISTRATION BASED ON POWER OF ATTORNEY:

    • If the client cannot personally visit Georgia, the registration process can be done through a Power of Attorney (POA);
    • The client must provide a notarized and apostilled (or legalized) Power of Attorney;
    • We will handle the necessary procedures for registration based on the provided POA;
    • The registration process typically takes 10-15 business days;
    • After the registration is completed, we will assist in opening bank accounts for the Individual Entrepreneur, including internet banking services.

STATUS OF SMALL BUSINESS FOR INDIVIDUAL ENTREPRENEURS:

If the expected annual income of the Individual Entrepreneur does not exceed 500,000 GEL, it is possible to obtain the status of a Small Business. This status offers certain tax benefits, including a reduced corporate tax rate of 1% on Georgian sourced income. However, income earned from abroad will be taxed at the regular rate of 20% income tax.

It is important to note that an Individual Entrepreneur cannot be granted the status of a Small Business if they engage in activities that are prohibited for small businesses. Prohibited activities include:

  • Activities requiring licensing or permits (except for activities related to Permits for M1 category of private taxis in the capital of Georgia);
  • Activities that require significant investment, such as the production of excisable goods;
  • Foreign exchange transactions;
  • Medical, architectural, legal, notarial or auditing consulting (including tax consultations);
  • Gambling business;
  • Recruitment services;
  • Production of excisable goods.

CONCLUSION:

Registering as an Individual Entrepreneur in Georgia provides a straightforward and accessible pathway to start a business. While personal liability is a key consideration, the ease of registration and the possibility of obtaining the status of a Small Business offer valuable advantages. By understanding the registration procedures and adhering to the regulations governing Small Business status, individuals can establish and operate their businesses successfully in Georgia.

Related Posts