Opening an Individual Entrepreneur (IE) in Georgia is one of the popular ways to run a business for both residents and non-residents due to its simplicity, low taxes, and flexible work options. However, situations may arise when an IE decides to close their business, and if they are outside the country, the option of closing IE remotely becomes highly convenient. Let’s explore how to close an IE in Georgia remotely, the steps involved, and key points to consider when arranging this service.
Procedure for Closing an IE in Georgia
The process of closing an IE in Georgia is relatively simple and does not require significant time investments. However, when closing an IE remotely, you need to prepare the required documents correctly and follow a few key steps:
1. Preparation of all necessary documents
To close an IE remotely, you will need to gather the following set of documents:
- Passport or ID (scan or copy).
- Application for closing the IE (a sample can be obtained from the Georgian tax authority’s website or requested through legal service providers).
- Power of attorney (if you plan to close the IE through a representative).
The application for closing the IE must be completed in the prescribed form. If you are closing the IE through a representative, the power of attorney must be notarized and legalized for use in Georgia (apostille may be required for foreign documents).
2. Contacting the Georgian Tax Authorities
Remote closure of an IE is done through the Georgian tax authority, which supports online communication channels. You can submit your application through the electronic document system or by email, if permitted. It is also possible to engage Georgian legal or accounting firms that specialize in such services.
3. Settling all tax obligations
Before the tax authority can close your IE, you must ensure that all tax obligations to the state are fully met. This includes paying any taxes, contributions, and possible fines. The tax authority will conduct a check for any outstanding debts. If debts are found, they must be settled.
4. Closing the bank account (if applicable)
If you have a bank account in the name of the IE, it is important to close it after completing the tax formalities. Remote closure of the account can be arranged with the relevant bank. Most Georgian banks offer this option.
5. Receiving confirmation of the IE closure
After submitting the application and confirming that all tax obligations have been fulfilled, the tax authority will issue a decision to close the IE. You will receive official confirmation, which can be provided electronically. This document serves as legal proof that your IE in Georgia has been successfully closed.
How to Close an IE Remotely Through a Representative
If you do not want to or cannot handle the closure process personally, you can delegate this task to us. To do so, you will need to issue a power of attorney, the template of which we will provide. The power of attorney must be notarized. We will then be able to submit the application on your behalf and liaise with the tax authority.
Key Points for Issuing a Power of Attorney
- The power of attorney must include clear authority related to closing the IE.
- The document must be translated into Georgian and notarized.
- In some cases, legalization or an apostille of the power of attorney is required if it was issued outside of Georgia.
Expenses for Closing an IE
While the closure process itself in Georgia is free of charge, if you choose to use our services, additional expenses may include:
- Notarization of the power of attorney.
- Apostille (in certain cases).
- Courier or mailing costs.
- Additional expenses for settling tax debts or closing bank accounts.
Important Aspects to Consider
- Tax audits
The tax authority will conduct an audit to check for any outstanding debts before closing the IE. Ensure that all tax returns are submitted and obligations fulfilled. - Timing
The process of closing an IE can take a few weeks, so plan ahead, especially when gathering and processing documents remotely. - Proper power of attorney documentation
If acting through a representative, make sure the power of attorney is properly executed to avoid any delays.
