Bakuriani is a small resort town in Georgia; company incorporation is a national-level process (no separate municipal registry), so figures below reflect the country-wide National Agency of Public Registry (NAPR) system that applies equally whether the business is based in Bakuriani, Tbilisi, or elsewhere.
Good to know
Good to Know
- You do not need to fly to Georgia to set up a company — a notarized, apostilled Power of Attorney lets a local representative complete the entire filing on your behalf.
- There is no local-partner or minimum-capital requirement for a standard LLC, and foreigners can own 100% of the company.
- Registering the company is only the first step — separately registering for tax (RS.ge) and opening a bank account each take additional time, and banks can take up to a week for compliance review.
- Small-scale freelancers/consultants often find Individual Entrepreneur status with 'Small Business Status' (roughly 1% tax on turnover up to a set threshold) simpler and cheaper than forming an LLC.
- For the vast majority of solo remote workers and freelancers, registering as an Individual Entrepreneur with Small Business Status (1% turnover tax) is dramatically simpler and cheaper than forming an LLC — no bookkeeping of deductible expenses, just monthly turnover reporting.
- An LLC only starts to make sense once you have real operating expenses to offset against profit, want liability protection, plan to bring on co-founders/investors, or want to qualify for the 0% Virtual Zone IT regime.
- A significant compliance change takes effect March 1, 2026: foreigners doing paid IE activity will need a work permit plus a residence permit or D1 visa — worth checking current status with the Revenue Service before relying on visa-free entry alone.
- There's no local Bakuriani-specific business registration office — registration happens through the National Agency of Public Registry / Public Service Hall network and the Revenue Service's online portal, and can largely be done remotely, so being based in a small mountain town like Bakuriani isn't a practical obstacle.
- Certain professional services — legal, notarial, tax/audit, medical, architectural, and financial-advisory work — are explicitly excluded from the 1% Small Business Status regime, so check your specific activity against the exclusion list before assuming you qualify.
- The 1% rate technically applies to Georgian-source income, generally meaning work physically performed while you are in Georgia — income earned while traveling outside Georgia has a greyer tax treatment, so keep this in mind if you travel frequently while under this status.
Business Tax And Structure Options
- Jurisdiction Scope
- Business registration and corporate/business taxation in Georgia (the country) are governed entirely at the national level by the Revenue Service of Georgia and the Tax Code of Georgia — there is no separate Bakuriani municipal business tax regime. A company or Individual Entrepreneur registered while based in Bakuriani follows the exact same national rules as one registered in Tbilisi or Batumi.
- Pension Contribution Note
- Freelancers/IEs generally make a mandatory 4% contribution to Georgia's funded pension scheme when filing annual income returns — this is a business-filing obligation distinct from personal income tax residency status.
VAT General
- Standard Rate
- 18%
- Filing Obligation
- Monthly VAT returns and payment, due by the 15th of the following month, once registered.
- Registration Threshold
- GEL 100,000
Rolling 12-month taxable turnover; export-of-services to non-resident clients is generally zero-rated / excluded from the threshold.
Micro Business Status
- Rate
- 0% income tax
- What It Is
- An even lighter-touch regime for very small operators; a certificate rather than full registration is sufficient.
- Restriction
- No employees are permitted under this status.
- Turnover Ceiling
- GEL 30,000
- Filing Obligation
- Annual tax return due before April 1 of the following year (extendable).
Corporate Income Tax LLC
- Standard Rate On Distribution
- GEL 15
Rate is a percentage (15%), not a fixed amount — applies to profit at the point of distribution, not to retained earnings.
- Model
- Georgia uses an 'Estonian model' distribution-based corporate income tax: retained/reinvested profit is taxed at 0%, and tax is only triggered when profit is actually distributed (or deemed distributed) to shareholders.
- Filing Obligation
- Corporate tax under this model is event-driven (triggered by distribution or deemed-distribution events) and is generally handled via monthly reporting rather than a classic single annual profit-tax return. Certain non-dividend transactions (e.g. some non-business expenses, certain related-party payments) can also count as 'deemed distributions' and trigger the 15% charge even without a formal dividend.
- Dividend Withholding
- Dividends paid out to shareholders (resident or non-resident) are generally also subject to withholding tax at source; the effective rate can be reduced under an applicable double-tax treaty depending on residency documentation and beneficial-ownership conditions.
Virtual Zone It Incentive
- Benefit
- 0% corporate income tax and 0% VAT on qualifying foreign-source IT revenue; the exemption does not extend to revenue from Georgian-resident clients, so mixed-revenue businesses must track the two income streams separately.
- Relevance
- Mainly relevant to nomads planning to scale a software/SaaS business through an LLC rather than operate solo as an IE.
- Applies To
- LLCs (not IEs) providing IT/software services to non-Georgian clients.
Structure Options Overview
Individual Entrepreneur (IE) / sole proprietor
- Setup Speed
- Registration with the National Agency of Public Registry / Public Service Hall is typically completed in a few hours to one day; government registration fees are modest (roughly 26–75 GEL).
- Who Its For
- Freelancers, solo consultants, and single-operator service businesses (most digital nomads and remote-work freelancers fall here).
- Legal Nature
- Not a separate legal entity — registration is tied to the individual's own tax ID. The owner is personally liable for business debts; there is no asset-shielding.
- Minimum Capital
- None required.
- Upcoming Change
- A new rule effective March 1, 2026 will require foreigners doing paid IE activity to hold a valid work permit plus a residence permit or D1 visa — this is a meaningful compliance change for nomads currently relying on visa-free entry.
- Residency Requirement
- Foreigners do not need Georgian citizenship or permanent residency to register as an IE, and can be non-residents.
Limited Liability Company (LLC)
- Setup Speed
- Registration can often be completed remotely via power of attorney.
- Who Its For
- Anyone running a business with real operational scale, multiple owners/investors, employees beyond a freelance setup, or planning to apply for IT "Virtual Zone" status.
- Legal Nature
- A separate legal entity; owner liability is capped at their contribution to share capital.
- Minimum Capital
- None required.
- Residency Requirement
- A foreigner can own and manage a Georgian LLC entirely as a non-resident; the company pays Georgian tax on Georgian-source activity regardless of where the owner lives. Personal tax residency only becomes relevant for how dividends paid to the owner personally are taxed, not for the company's own tax filings.
Individual Entrepreneur Small Business Status
- Standard Rate
- 1% of gross turnover (no expense deductions), replacing the standard 20% personal income tax on net profit that applies without this status.
- Over Threshold Rate
- 3% applies to turnover above the 500,000 GEL ceiling within the same calendar year; status is retained until year-end but is automatically revoked from January 1 of the third year if the ceiling is exceeded for two consecutive years.
- What It Is
- A simplified turnover-based tax regime available to Individual Entrepreneurs (not a separate legal entity — an add-on status to IE registration), applied for separately through the Revenue Service after IE registration.
- VAT Trigger
- Separate from Small Business Status — VAT registration becomes mandatory once rolling 12-month taxable turnover exceeds 100,000 GEL (about 38,000 USD); revenue from services sold to non-resident clients is generally excluded from this threshold.
- Turnover Ceiling
- GEL 500,000
- Filing Obligation
- Monthly electronic tax returns via the Revenue Service online portal, with tax due by the 15th of the following month.
- Excluded Activities
- Legal and notarial services, tax/audit consulting, medical and architectural work, financial/advisory services (e.g. currency exchange), gambling, excise-taxed goods, staffing services, and most activities requiring a special license are excluded from this status.
- Eligibility For Foreigners
- Foreigners do not need to be Georgian tax residents, citizens, or permanent residents to register as an IE and apply for this status — but the 1% rate strictly applies to Georgian-source income (broadly, work physically performed while in Georgia); income earned while physically outside Georgia may not qualify and could instead be taxable elsewhere.
Typical Cost
- Government Registration Fee
- GEL 100
Registry Extract Fee
- Amount USD Low
- 5
- Currency Local
- GEL
- Amount USD High
- 28
- Amount Local Low
- 13
- Amount Local High
- 75
- Notes
- Fee for an official extract/certificate from the business registry, varies by turnaround speed; English-language extracts carry an additional charge.
Post Registration Service Costs Estimate
- Notes
- These are typical fees charged by local accounting/company-formation service providers for optional assistance, not government charges.
Tax Registration And Accountant Setup
- Amount USD Low
- 114
- Currency Local
- GEL
- Amount USD High
- 228
- Amount Local Low
- 300
- Amount Local High
- 600
Bank Account Setup And Compliance Support
- Amount USD Low
- 190
- Currency Local
- GEL
- Amount USD High
- 304
- Amount Local Low
- 500
- Amount Local High
- 800
Common Entity Types For Foreigners
Limited Liability Company (LLC)
- Notes
- Most popular structure for foreigners; liability limited to members' contributions, suitable for almost any business activity.
Individual Entrepreneur (IE)
- Notes
- Common for freelancers/consultants; can qualify for Small Business Status taxing turnover (not profit) at a reduced rate.
Joint Stock Company (JSC)
- Notes
- Used for larger businesses that intend to issue shares; more complex management structure.
Branch Office
- Notes
- Option for an existing foreign company to register a branch; the parent company remains liable for the branch's obligations.
Regulator
National Agency of Public Registry (NAPR), a legal entity of public law under the Ministry of Justice of Georgia, operating through Public Service Halls / 'House of Justice' centers
Documents Required
Documents Required
- Passports of all shareholders and directors
- Signed company Charter
- Consent/documentation from the owner of the registered legal address
- Apostilled/legalized Power of Attorney (only if registering remotely via a local representative)
Realistic Timeline
- In Person Filing
- Most LLCs are registered within 1 business day when the founder or their representative files in person at a Public Service Hall.
- Remote Filing Via Poa
- Roughly 1-2 weeks when registering remotely via Power of Attorney, depending on notarization, apostille, and courier turnaround in the founder's home country.
- Post Registration Bank Account
- Banks can take up to a week to complete compliance review before a business account is fully operational.
Steps To Incorporate
Steps To Incorporate
- Choose entity type (LLC is standard for most foreign founders).
- Draft the company Charter (standard templates available at the Justice House, or a custom charter drafted by a lawyer for more complex ownership structures).
- Secure a registered legal address in Georgia (a virtual office / registration address service is commonly used if the founder has no physical office).
- Gather documents: passports of all shareholders/directors, the signed Charter, and consent from the owner of the legal address.
- File in person at a Public Service Hall (Justice House) or online via napr.gov.ge, or remotely through a locally appointed representative acting under a notarized and apostilled/legalized Power of Attorney.
- Pay the registration fee and receive registration (standard processing is same-day/1 business day; expedited same-day service is also available).
- After registration: open a 'tax cabinet' with the Revenue Service (RS.ge) and apply for a business bank account.
Official Registry Link
Ongoing Compliance Notes
Ongoing Compliance Notes
- Monthly VAT, income tax, and pension contribution filings are due by the 15th of each month via the RS.ge portal.
- Beneficial ownership (UBO) information must be kept up to date in the state registry.
- Georgian LLCs are taxed under an Estonian-style model: 15% corporate income tax applies only when profits are distributed as dividends; retained earnings are not taxed.
Remote Incorporation Notes
A founder does not need to be physically present in Georgia. An LLC can be set up entirely via Power of Attorney, with a local representative handling the filing at the Justice House. The POA must be notarized and apostilled (or otherwise legalized) in the founder's home country.
Ownership And Capital Rules
Ownership And Capital Rules
- Foreign nationals can hold 100% of equity in a Georgian LLC.
- No minimum share capital is required in practice for standard LLC operations.
Remote Incorporation Possible
Yes
Local Partner Or Sponsor Requirement
None. Georgia places no nationality restrictions on ownership and does not require a local partner, local director, or residency to incorporate.
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
More About Bakuriani
Data last updated July 2026 · Verify anything important.