Company registration in Georgia is becoming increasingly attractive for foreign entrepreneurs, especially Russian citizens. The simplicity of registration, low taxes, minimal bureaucracy, and access to international markets make the country one of the most convenient options for starting and developing a business in the post-Soviet space.
Company Registration Procedure
Registering an LLC in Georgia is quite straightforward and can be completed in just 1–2 days. A business can be registered either in person or remotely through a representative with a power of attorney.
Main steps of registration:
- Choosing the legal form: the most popular are LLC (შპს – shezguduli pasukhismgeblobis sazogadoeba) and Individual Entrepreneur (IE).
- Preparing documents: passport or international passport; articles of association (for LLCs); legal address.
- Registration at the House of Justice: submission of application, payment of state fee (about 100 GEL for standard registration and 200 GEL for expedited registration).
- Obtaining an identification number and extract from the registry.
- Registration with the Revenue Service: automatic after company registration.
Taxation for LLCs in Georgia
Georgia has six main taxes:
- Corporate Income Tax (CIT): 15%
Applied only upon profit distribution (the so-called “Estonian model”). As long as profits remain in the business, no tax is charged. - VAT (Value-Added Tax): 18%
Mandatory for companies with a turnover exceeding 100,000 GEL within 12 months. - Personal Income Tax: 20%
Withheld from employee salaries and other individual income. - Dividend Tax: 5%
Applied when paying dividends to individuals. - Excise Taxes: levied on certain goods (fuel, alcohol, tobacco).
- Property Tax: local tax, rate depends on the type of property and the region.
Preferential Tax Regimes
Georgia offers several special tax regimes, especially beneficial for small businesses and self-employed persons:
- Micro Business
- For individuals with annual income up to 30,000 GEL.
- Tax rate: 0%.
- Restrictions: no employees and exclusion of certain activities (e.g., alcohol trade).
- Small Business
- For individual entrepreneurs with annual income up to 500,000 GEL.
- Tax rate: 1% of turnover.
- If the threshold is exceeded, the rate increases to 3% on the excess amount.
- VAT not required unless the turnover threshold is reached.
- Free Industrial Zones (FIZ)
- Provide full exemption from most taxes for companies operating in export.
- Ideal for manufacturing and international trade.
- Virtual Zone for IT Companies
- Status granted to IT companies providing services outside Georgia.
- Benefits:
- 0% profit tax on foreign income.
- 0% VAT on export of IT services.
- Only dividends are taxed (5%).
- International Companies
- Special status for IT and shipping businesses.
- Profit tax: 5%.
- Payroll tax: 5% instead of 20%.
Additional Features of Georgia’s Tax System
- No currency control: no restrictions on capital transfers.
- Simplified reporting: especially for small businesses and IEs.
- Online declaration system: all reports filed electronically.
IE Registration in Georgia — Especially Beneficial
For freelancers, IT specialists, consultants, and other self-employed Russians living in Georgia, registering as an IE is the ideal format. By obtaining small business status, an IE pays just 1% of income. Moreover, Georgian legislation allows operations without a physical office and with minimal accounting costs.
an freely register a company, open an account, conduct transactions, and enjoy the advantages of the EAEU. For those planning long-term and stable business abroad, Armenia and Kyrgyzstan today offer the most practical environment.
At the same time, Georgia is still the ideal choice for IE registration, especially in freelance, IT, and consulting sectors. Its simplicity, speed, minimal taxation, and the ability to operate remotely make Georgia a true hub for individual entrepreneurs from Russia.
