The procedure for liquidating a Sole Proprietorship in Georgia is relatively simple and consists of just three steps:
- Visiting the tax office
- Deregistering the SP
- Deactivating the status in the tax authority
Overall, the process can be completed within 2-3 business days.
1. Visiting the Tax Office
Once a decision to close the liquidating a Sole Proprietorship is made, the SP owner must submit an application to the tax authority.
At the tax office, you will need to fill out a form (provided on-site). The issue of settling any tax liabilities at the time of closure will also be addressed. Any outstanding taxes can be paid on-site.
Once all matters with the tax office are settled, the next step is to visit the House of Justice to deregister the SP. If you are not in Georgia, contact us, and we can liquidate the SP remotely.
2. Deregistration of Sole Proprietorship
Deregistering the SP follows a simple application-based procedure. To initiate the process, you will need to submit the following documents to the House of Justice:
- Application to cancel the SP registration (filled out directly by the operator using the electronic system).
- Identification document of the applicant.
- Document confirming the payment for the service (payment can be made at the House of Justice).
You can visit any House of Justice, whether in Tbilisi, Batumi, or another city, whichever is most convenient.
Processing Time:
- Standard procedure: 1 business day, 26 GEL (deregistration will be completed the next day).
- Expedited procedure: Same-day deregistration for 76 GEL.
3. Deactivation of Sole Proprietorship in the Tax Authority
After receiving an SMS confirming the liquidating a Sole Proprietorship deregistration, you must visit the tax office to deactivate the SP status. A specialist will update the necessary information and check for any outstanding tax debts.
If no additional issues arise, the SP status will be deactivated.
Cost: Free, and the procedure is completed during the visit.
Post-Deregistration Actions
- Within 30 business days of terminating the SP, you must submit a final tax declaration.
- The declaration is submitted through your personal online taxpayer account.
- If no business activity was conducted during the SP’s existence and only zero declarations were submitted, the final declaration is not required.
- Once all declarations have been submitted, you must deactivate your account in the online portal.
If you are outside Georgia and require remote SP liquidation, contact us, and we can handle the procedure via power of attorney.
Questions and Answers
Q: What actions are necessary to close an SP? Do I need to close it in the same city where it was opened (e.g., Batumi), or can I close it in another city (e.g., Tbilisi)?
A: You can close the SP in any city. Simply visit the House of Justice and submit the closure application. Then, in your online tax account, submit the final declaration and a request to cancel the small business status (if applicable). Finally, change the status to inactive. If there are no outstanding fines or penalties, the SP will be closed quickly.
Q: I have already closed the SP at the House of Justice, but I still have access to my rs.ge account, and SMS notifications continue to arrive. The tax status shows “active,” but the small business status is inactive. Is everything correct, or should I contact the tax office?
A: In your rs.ge account, if you have submitted all the required declarations and applied to cancel the small business status, you should change the SP status to inactive. The rs.ge account will remain active, and your tax number will not be canceled, as it may be needed for personal purposes. The SMS notifications are just general updates.
Q: What penalties apply if I stop using the SP (no income) and do not submit declarations?
A: You must set the SP status to inactive in your online account. No business activity will be conducted, and declarations will not need to be submitted. Alternatively, if the SP and small business status remain active, you must submit zero declarations monthly.
If you require remote liquidating of a Sole Proprietorship remotely in Georgia, contact us, and we will assist you!