How to Start a Business in Georgia

Georgia is one of the few countries where foreigners can start a business just like locals. Registering a company is quick and very easy. The country has one of the simplest tax systems in Europe, and most foreigners can stay without a visa for up to one year. In this guide, we explain how to register as a sole proprietor or LLC in Georgia, rent an office, hire staff, and handle taxes.

Doing business in Georgia has its specifics. The domestic market is relatively small, and some services may not function as smoothly as expected. Reaching the local audience can also be a challenge. Still, success is absolutely possible if you prepare and understand the details in advance.

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What documents are required to register a business in Georgia

You can register a business in two ways: as an individual entrepreneur (IE) or as a limited liability company (LLC). Both options are available to foreigners. Your choice affects how much tax you pay, how you work with partners, and what rules you must follow.

Individual Entrepreneur (IE)

An IE is a good choice if you work alone or want to run a small business without a complicated setup, like a service, online shop, or creative business. Registration is easy, paperwork is simple, and with small business status, the tax is only 1% of your income.

However, there are limits: you cannot add co-owners, it is harder to keep personal and business expenses separate, and for some activities that need a license or special permission, this format does not work.

To register as an IE in Georgia, you will need:

• passport — valid, with an entry stamp to Georgia;

• legal address — usually a rental address, written consent from the property owner is required;

• Georgian phone number — needed to access your taxpayer account;

• email address;

• receipt for state fee payment: standard registration — ₾25 (~$9.5), fast registration (same day) — ₾75 (~$27.5), statement in English — additional ₾25 (optional).

Alina Tairava moved to Tbilisi and launched a small frozen food business under the brand Chame Chame. The idea came during her maternity leave, when she was preparing meals for her child, such as meatballs and patties. That’s how Alina started making frozen, ready-to-cook products.

Her main customers are busy individuals who value quality and taste but lack the time to cook from scratch. The production runs on a pre-order system: orders are collected via a Telegram bot, meals are prepared and frozen in a fully equipped kitchen, and deliveries are made once a week.

The registration process in Georgia turned out to be very straightforward, especially when setting up as an IE. I only needed my passport and to be present at the House of Justice. I received help with registering my IE and obtaining small business status, but now I confidently file my own tax returns, pay taxes, and download documents, such as those for a residence permit. Everything works quite conveniently.

Alina Tairava, founder of Chame Chame

Limited Liability Company (LLC)

This business structure is suitable if you have partners and employees. It’s also the best option if your business requires a license or you plan to sign contracts with large clients, as they usually require a legal entity.

An LLC gives you more ways to manage your business: you can set ownership shares, have more than one director, and bring in investors. There are also tax benefits, for example, profits that are not paid out are not taxed. However, the paperwork is more complicated, costs are higher, and you must pay VAT if your annual turnover is above ₾100,000.

The state fee for LLC registration is:

• ₾100 (~$36.5) for standard registration,

• ₾200 (~$73) for fast registration.

Registration takes 1–3 working days, depending on the chosen option.

You can submit in person or through a representative with a power of attorney. Companies are registered at the House of Justice in Tbilisi, Batumi, or other major cities.

After registration, the company must submit an information card to the tax office and open a bank account. Only then can the business start operating officially.

Required documents and information for LLC registration:

• valid passport with a Georgian entry stamp;

• Founders’ Agreement and Articles of Association (in Georgian, notarized translation required);

• registration application;

• company name;

• director’s consent to appointment (can be the same person as the founder);

• the property owner’s consent to use the address as the legal address;

• payment receipt for state fee (₾100–200 depending on urgency);

• Georgian phone number;

• email address.

Business Registration: Process and Timeline

In Georgia, you can register a business quickly — usually within one to two days. However, before submitting documents, it’s essential to understand the details, including how to obtain an address, select a name, whether a personal visit is required, and which documents to prepare.

Remote or on-site registration

Legally, remote registration is possible, but in practice, it doesn’t always work. You can open an IE or LLC via power of attorney, but since 2022, the rejection rate for remote registration has increased. It’s safer to visit Georgia in person.

On-site, the process takes just a couple of hours. The key is to collect all necessary documents in advance and arrive at the House of Justice early (open from 9 am to 6 pm, and lines start to form around lunchtime).

Check business name availability

If you’re opening an LLC, you need a unique company name in Georgian or Latin script. You can check availability in advance on the National Agency of Public Registry website and reserve it.

Individual entrepreneurs don’t need a separate business name because the business is registered under their personal name.

Find a legal address for an IE or LLC

Both IEs and LLCs in Georgia are required to have a registered office address. Any real address where you can receive correspondence works. Most often, a rental address is used with the property owner’s written consent. This must be arranged beforehand; without it, your application won’t be accepted.

Some services in major cities offer legal addresses for a fee. This is a risk: the owner can withdraw consent at any time, and you may lose your IE or LLC status. It is best to make an agreement directly with the landlord and put it in writing.

Prepare founding documents

For an IE, no Founders’ Agreement or Articles of Association is required — registration is based solely on the application. For an LLC, documents must be prepared in advance.

The Articles of Association and Founders’ Agreement must be in Georgian. If your original documents are in English or another language, you need to translate and notarize them. These papers include important details like the company name, structure, rights and duties of members, and management rules.

These documents are more than mere formalities: they define the decision-making authority, outline procedures for members to exit or transfer shares, and stipulate the appointment of new directors.

There are no standard templates, but you can find simple forms online. For more complicated businesses, it is better to ask a lawyer for help; otherwise, you might have to redo everything in court later.

Open a Bank Account

The next step after registering your business is opening a business bank account. Without it, you won’t be able to operate officially, such as accepting payments, paying taxes, or purchasing supplies.

You can open an account either as an individual (before registering an IE) or for a registered company. Requirements and fees vary, but the basics are generally the same: a valid passport, a Georgian phone number, and proof of address. For a company account, bring your registration certificate and lease agreement.

Banks usually ask for proof of where your money comes from, like a client contract, invoice, or a short description of your business. They may also ask for extra documents, such as a six-month bank statement, photos of your office or shop, or your lease agreement. This is not just paperwork: banks use this to check if your business is clear and honest.

Major Banks in Georgia

TBC Bank. One of the largest and most tech-savvy banks. Offers a convenient online banking, mobile app, and fast delivery of business terminals. The bank’s approach to foreign customers depends on the branch workload and the level of transparency you provide. Account maintenance starts from ₾110 (~$40/year). Card issuance fees are separate.

Bank of Georgia. The second-largest bank with a strong infrastructure. Opening fee ₾50 (~$18), maintenance fee — ₾10 (~$4/month).

Credo Bank. Formerly a microfinance institution, it now actively serves entrepreneurs. Pros: client-friendliness toward foreigners, fast account opening. Cons: limited functionality, no multi-currency cards, and high fees. Still, if other banks refuse, Credo often approves accounts.

Liberty Bank. Less known among entrepreneurs, but suitable for basic operations. Accounts open in 1–3 days, with maintenance at ₾25 (~$9/month). Additional KYC may be required, including a questionnaire on money sources and planned activities. With correct documents, the account is usually approved without issues.

Account Opening Process

Most banks do not open an account immediately. You first submit an application, and a decision is typically made within 3–5 days, or in some cases, 10–14 days. Once approved, you visit the branch to sign the contract. Some banks offer premium services; for example, at the Bank of Georgia Solo, stable turnover grants access to a personal manager, a foreign currency account, and faster service.

If you plan to accept cards, the bank may issue a terminal immediately; however, it often waits to verify your business turnover first.

Accounting and Taxes

All individual entrepreneurs in Georgia must send in monthly tax reports, which can be done online. The form has only two fields: your monthly income and your total income for the year. Everything else is calculated automatically.

With a small business status, the tax is 1% of income. With small business status, the tax is 1% of your income. If you earn more than ₾500,000 (about $182,600) in a year, the tax goes up to 3%. If you go over this limit for two years in a row, you lose small business status.

The VAT registration threshold is ₾100,000 (~$36,500) per year. From this point, you must pay 18% VAT and keep more detailed records. It’s the business owner’s responsibility to monitor this threshold.

For medium and large businesses, the standard tax system applies:

• corporate tax on profit: 15%, payable only when profits are distributed (undistributed profits are tax-free);

• employee income tax: 20%;

• mandatory pension contributions: 2% each from the employee and employer.

Preferential Tax Regimes in Georgia

Preferential tax regimes are what make Georgia especially attractive for small businesses and IT companies.

Microbusiness. Completely exempt from taxes. Available to those with an annual income under ₾30,000 (~$10,950) and no employees. Suitable for artisans, aspiring freelancers, tutors, and similar professions.

Small Business. This is the most popular option for experienced freelancers, self-employed people, and small startups. If your yearly income is less than ₾500,000 (about $185,500), the tax is 1%. It is important to choose the right business code, because some types (like consulting, legal services, or currency exchange) do not get these benefits.

Virtual Zone (for IT companies). If you develop software for export, you can apply for Virtual Zone status, which exempts your profit from taxation. VAT is also not charged if your client is abroad. This regime suits developers, startups, and digital agencies. To qualify, you must register as a legal entity, submit an application, and wait for approval from the Ministry of Finance.

International Company. Designed for large export-oriented businesses in IT, logistics, maritime shipping, and consulting. Provides even greater tax benefits: corporate tax at 5%, dividend tax at 0%, and employee income tax at 5%. Obtaining this status is more complex: the company must have a physical office and staff in Georgia, generate primary income from abroad, have a business plan, and provide proof of business activity. Applications are reviewed by the Ministry of Economy and Sustainable Development, and the tax authority grants the status.

Free Industrial Zones in Georgia

If your plans include manufacturing goods, assembling equipment, or conducting wholesale trade with minimal tax burden, consider registering your business in a Free Industrial Zone (FIZ).

Benefits of Free Zones

Companies registered in an FIZ have several advantages:

• 0% corporate profit tax,

• 0% VAT,

• 0% dividend tax,

• 0% import duty on equipment and raw materials,

• simplified customs procedures.

These benefits apply only when operating for export or within the zone. Sales on the Georgian domestic market are taxed at standard rates.

Locations of Free Zones

Georgia currently has four Free Industrial Zones:

• Poti Free Industrial Zone — a port city on the Black Sea, suitable for logistics, equipment assembly, and trade.

• Kutaisi Free Industrial Zone — an industrial hub, convenient for manufacturing.

• Hualing Free Industrial Zone (near Kutaisi) — a business park focused on manufacturing, trade, and logistics.

• Tbilisi Free Zone — located near the capital’s airport, oriented toward high-tech and IT businesses.

FIZs have everything you need, like warehouses, offices, and production spaces, which you can rent or buy.

How to Register in a Free Industrial Zone

To start a business in a FIZ, you need to:

1. Contact the zone’s management company and submit your application.

2. Provide a document package that includes the charter, a description of activities, the founder’s passport, and a business plan (if requested).

3. Obtain a license to operate in the zone and register in the company registry.

4. Sign an agreement with the administration that details lease terms, tax benefits, and access to infrastructure.

Costs depend on the zone and the size of your project. Renting an office or warehouse usually starts at $5 per square meter. Extra services like shipping, security, internet, and cleaning cost extra.

Who It Suits

Free zones are not a one-size-fits-all solution. They are ideal if you:

• plan to export products (e.g., to the EU or CIS);

• want to relocate production from another country;

• work in electronics, IT, logistics, packaging, or assembly.

If your project scales internationally, a FIZ can provide substantial savings.

Labor Legislation

Once you have a team, a shop, or production assistants, you need to comply with local labor laws.

Employment Contract

Both IEs and LLCs can hire employees in Georgia. The job terms must be written down, including the salary, work hours, duties, and how long the contract lasts. Without a contract, you could get fined during inspections.

Taxes and Contributions

Employers are required to pay:

• income tax: 20% of the employee’s salary;

• pension fund contributions: 2% from the employer and 2% withheld from the employee.

Salary reports must be submitted monthly through the online taxpayer account.

Hiring Employees

By law, job openings must first be published on worknet.gov.ge before recruiting via social media or personal contacts. Many businesses skip this step in practice, but it is formally required.

Many startups begin without a full team or work with partners. If you decide to officially hire employees, remember to include taxes in your budget, as they make up a big part of your total costs.

After moving to Tbilisi, Mark Mirkin launched a logistics company, Mark’n’Post, helping small businesses send parcels to the CIS, Europe, and Canada. He started with a CDEK franchise, but after a year, he left the franchise and began operating under his own brand. Today, the company holds a postal license, runs its own delivery routes, and even has staff in Bulgaria to cover shipments to the Balkans.

Initial investments were around $7,000, but the main resource was time: the team navigated customs regulations and built the system from scratch. Today, Mark’n’Post competes with major players, offers 8-day deliveries, and continues to grow by serving small businesses in Georgia.

Renting Premises

If you plan to open an offline store, workshop, café, or office, it’s best to start looking for a space in advance.

Where to look

The main real estate website is Myhome.ge, which has listings from both private owners and real estate agencies. Often, good spaces are rented through personal contacts, so asking friends can help.

How to sign a lease

Always obtain​​ a written lease, especially if you plan to use the space as a legal address. The contract should specify:

• lease term,

• who pays utility bills,

• whether it can be used for business,

• whether the owner allows the use of the address as a legal address (for IE or LLC registration).

If an agency manages the property, expect to pay a commission, usually equal to one month’s rent.

What to pay attention to

Legal status. Some properties may not officially be classified as commercial. This is usually not critical, but it can complicate paperwork.

Long-term security. Landlords may suddenly change the terms, raise the rent, or ask you to move out. It is better to write down the terms, penalties, and how to end the contract.

Utilities. Many buildings in Georgia have old pipes and electrical wiring. You may need to fix or upgrade them.

When renting a space, it is important to think about utilities, the condition of the place, and the location, especially if your business depends on people walking by. Check how many people pass by, who your customers are, and if business changes with the seasons.

If you are starting a food production business and want to work officially, you need to register with the National Food Agency (NAPR). They check everything: wet areas, ventilation, and other technical needs. You should find out ahead of time how much money you need to make the space meet the rules.

Also, if you rent as a person or a company and your landlord charges VAT, you will have to pay this tax. In this case, it is often better to rent as a person from a private owner or talk about VAT with the landlord before signing.

Alina Tairava, founder of Chame Chame

We currently rent three spaces in a single building, which is convenient for our operations. The office isn’t in the city center, so the rent is affordable. I’m considering renting a large office-warehouse of 200–250 m², with nearby parking and good transport access, ideally on the first line and the ground floor — this is important for operations and convenient for clients.

Mark Mirkin, founder of the logistics company Mark’n’Post

1tab: International Transfers for Your Business

Tip: If you need help with payments, 1tab helps your business with payments within Georgia and abroad. With 1tab, you can:

• pay for goods and services abroad in GEL, USD, EUR, or cryptocurrency;

• receive payments from clients worldwide in fiat and crypto;

• pay for cars, real estate, and other large purchases abroad in fiat and crypto;

• exchange cryptocurrency in Georgia.

1tab operates legally, licensed by the National Bank of Georgia. For fast, transparent, and cost-effective transfers, submit a request through the form.

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FAQ: Starting a Business in Georgia (2025)

1. Can foreigners open a business in Georgia?

Yes, foreigners can register and run a business in Georgia on the same terms as locals. Both individual entrepreneur (IE) and limited liability company (LLC) formats are available to non-residents.

2. What documents do I need for business registration?

For an IE: valid passport, legal address (with owner’s consent), Georgian phone number, email, and proof of state fee payment.

For an LLC: all of the above, plus Founders’ Agreement, Articles of Association (in Georgian), and a company name.

3. How long does registration take?

IE and LLC registration can be completed in 1–3 business days if you apply in person at the House of Justice.

4. Can I register a business remotely?

Remote registration is possible via power of attorney, but it’s less reliable due to increased rejection rates since 2022. Personal visits are recommended.

5. What are the main tax rates for small businesses?

With a small business status, the tax is 1% of yearly income up to ₾500,000. If you exceed this threshold, the rate increases, and you may lose small business status.

6. Do I need a legal address to open a business?

Yes, both IEs and LLCs must have a legal address in Georgia. Written consent from the property owner is required.

7. How do I open a business bank account?

After registration, visit a Georgian bank with your ID, proof of address, and registration documents. Account approval may take several days.

8. What are the labor requirements if I hire employees?

Written contracts are required. Employers must pay 20% income tax and 2% pension contributions (both employer and employee).

9. Are there special tax regimes for certain businesses?

Yes. Microbusinesses, small businesses, IT companies (such as Virtual Zone), and international companies may be eligible for preferential tax rates.

10. What are Free Industrial Zones (FIZ) in Georgia?

FIZs offer significant tax benefits to companies focused on export, manufacturing, or logistics. Registration is handled by the FIZ administration and requires a separate application.

11. Do I need to file tax reports?

Yes. IEs file monthly reports online. LLCs and larger businesses have more extensive reporting obligations.

12. Where can I find more help?

Consider professional advisors or local legal services for business setup, tax planning, and compliance. For payment and transfer needs, specialized services like 1tab can assist with both local and international transactions.