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Business Permits & Incorporation for Foreigners in Batumi

Good to know

Good to Know

  • Georgia does not require a local partner, local director, or minimum share capital for a foreigner-owned LLC — 100% foreign ownership is standard.
  • Filing remotely via Power of Attorney is legal and common, but it's noticeably slower and reportedly faces higher rejection rates than showing up in person at the House of Justice — worth budgeting extra time if you can't travel to Batumi/Tbilisi.
  • If you're a solo freelancer/consultant, the Individual Entrepreneur (IE) status with 'small business' tax treatment (as low as 1% of turnover up to a threshold) is often simpler and cheaper than forming a full LLC.
  • Registering a company does not automatically grant you Georgian residency — that requires a separate investment residence permit application with its own minimum capital threshold.
  • The Revenue Service tax portal (rs.ge) you'll need for monthly filings is only available in Georgian, so many foreign founders hire a local accountant.
  • The 1% Small Business Status is popular with digital nomads and remote consultants in Batumi, but it does not cover every profession — legal, medical, architectural, and consulting/advisory services are specifically excluded and default to 20% tax on net profit instead.
  • Under Small Business Status, tax is 1% of everything you bring in with zero expense deductions — great for high-margin service work, but potentially worse than the LLC/standard-IE profit-based regimes if your costs are high relative to revenue.
  • There's a subtle rule that the 1% rate is intended for Georgian-source income, generally meaning you were physically in Georgia while performing the work — working the same contract from outside Georgia can complicate eligibility, so keep this in mind if you travel frequently.
  • An LLC's headline 15% corporate tax only bites when you actually distribute profits as dividends — money kept and reinvested in the business is taxed at 0%, which is a real structural advantage over many other countries' flat annual corporate tax.
  • Registering as an Individual Entrepreneur is fast (often 1-2 days) and doesn't require Georgian residency or citizenship, but a local registered address is needed, so most people handle this together with their housing/visa paperwork rather than before arriving.

Corporate Structure LLC

Who Its For
Foreigners wanting limited liability, planning to scale, hire staff, hold assets, or qualify for IT Virtual Zone status.
Foreign Ownership
Georgia allows 100% foreign ownership in most sectors, and there is no statutory minimum capital requirement for LLCs, making it accessible for startups and international founders launching lean structures. There is no requirement for a local director or shareholder, though banks may apply enhanced KYC/AML checks for non-resident owners.
Filing Obligations
LLCs must maintain accounting records and file CIT returns; because tax is triggered on distribution rather than accrual, actual CIT payment/filing events occur around dividend payments rather than a flat annual profit-tax bill. VAT-registered companies file VAT declarations monthly.
Other Company Taxes
Property tax of 1% applies annually on the average residual value of a company's fixed assets/investment property on the balance sheet; there are no transfer taxes in Georgia.

VAT

Rate Type
percentage
Standard Rate
GEL 18
Registration Trigger
Mandatory VAT registration once taxable turnover exceeds 100,000 GEL within any rolling 12-month period; voluntary registration is possible earlier.
USD Equivalent Of Threshold
GEL 100,000
Note On Foreign Clients
Services supplied to non-resident (foreign) clients generally follow B2B place-of-supply rules and are excluded from the VAT threshold calculation, which is one reason many foreign-client service businesses stay under the VAT line.

Corporate Income Tax

Rate Type
Percentage of distributed profit
Standard Rate
GEL 15
Model
Georgia uses the 'Estonian model' of corporate taxation: undistributed/reinvested company profits are taxed at 0%, and the standard 15% corporate income tax (CIT) is triggered only when profit is actually distributed as dividends (or on certain deemed distributions such as non-business expenses).
Notes
There is no separate capital gains tax; capital gains are taxed as ordinary business income and only become taxable at the 15% rate upon distribution.

IT Virtual Zone Option

Eligible Services
Software development, IT consulting, design, digital marketing, web development, data analysis and similar remotely-delivered, foreign-paid services.
Description
An LLC providing IT services to customers outside Georgia can apply for Virtual Zone (Special Preferential Regime for IT Services Exporters) status, which reduces CIT on qualifying export income to 0% and can also apply 0% VAT on eligible exports.

Freelancer Sole Proprietor Option

VAT For Ies
Same 100,000 GEL/12-month rolling turnover trigger for mandatory VAT registration as companies; below that, no VAT obligation, and this is separate from (not automatically triggered by) Small Business Status.
Who Its For
Freelancers, consultants (non-excluded fields), remote service providers and solo operators who don't need a separate legal entity or limited liability.
Registration
Registration is digital/fast, typically completed within one to two days, filed with the Entrepreneurs Registry, with a modest government fee.
Structure Name
Individual Entrepreneur (IE) status, optionally combined with Small Business Status (SBS) or Micro Business Status
Registration Fee
GEL 50
Foreigner Eligibility
Foreigners from many countries can register as Individual Entrepreneurs; residency or Georgian citizenship is not required to register as an IE or to obtain Small Business Status, though a legal address in Georgia is needed.
Filing Obligations Summary
Small Business Status: monthly 1% turnover declarations. Standard IE (20% regime): annual filing, with Georgia's general personal income tax filing deadline of 1 April for the prior calendar year. IEs with employees must also withhold and remit payroll taxes.

Tax Regimes Available

  • Standard IE Taxation (No Special Status)
    Rate
    20% on net profit (i.e., after deducting documented business expenses).
    When It Applies
    Default regime if you don't qualify for or don't apply for Small Business/Micro Business Status.
  • Small Business Status (SBS)
    Rate
    1% tax on gross turnover (no expense deductions) for annual turnover up to 500,000 GEL; turnover above that threshold in the same year is taxed at 3% on the excess.
    Filing
    Declared and paid monthly (1% of that month's turnover) via the Revenue Service's rs.ge portal, rather than a single annual filing.
    Sourcing Income Nuance
    The 1% rate is meant to apply to Georgian-source income, and this usually means the service must be performed while physically within Georgian territory; income earned while physically outside Georgia may not qualify and could trigger tax questions in another jurisdiction instead.
    Eligibility Restrictions
    Certain professional services are excluded from Small-Business Status, for example legal and notarial services, tax or audit consulting, medical and architectural work, and general advisory/financial services; the regime also excludes gambling, excise-taxed activities, staffing services, and most licensed activities.
    Turnover Cap USD Equivalent
    GEL 500,000
  • Micro Business Status
    Rate
    0% income tax on gross turnover, for annual turnover under 30,000 GEL.
    Restrictions
    No employees are allowed under this status, and IE registration is not required to obtain it.
    Turnover Cap USD Equivalent
    GEL 30,000

Jurisdiction Note

Business taxation is set by national Georgian law (Georgian Revenue Service / Tax Code), not by the city of Batumi — there is no separate Batumi municipal corporate tax. All figures below apply the same in Batumi as anywhere else in Georgia.

LLC Vs Freelancer Decision Points

LLC Vs Freelancer Decision Points

  • If your work is solo, service-based, and not in an excluded professional category (law, medical, architecture, audit/tax consulting, financial advisory), Individual Entrepreneur + Small Business Status (1% on turnover) is usually the simplest and cheapest route for turnover under 500,000 GEL/year.
  • If you're in an excluded professional category, plan to hire a team, want limited liability protection, need investor/banking credibility, or plan to reinvest profits rather than pay yourself out, an LLC is generally the better fit — especially since retained/reinvested LLC profit is taxed at 0% under the Estonian model.
  • If your business is IT services exported to foreign clients, forming an LLC and applying for Virtual Zone status can bring CIT down to 0% on that qualifying income, which the IE/SBS regime does not offer.
  • High-expense businesses (low margin relative to turnover) may do better under an LLC's profit-based 15%-on-distribution model or the standard 20%-on-net-profit IE regime than under SBS's turnover-based 1%, since SBS allows no expense deductions.

Incorporation Process And Requirements

Local Partner Or Sponsor Requirement
None. Foreigners can own 100% of a Georgian company (LLC or Individual Entrepreneur) with no requirement for a local partner, local director, or sponsor, and no minimum share capital.
Country Note
Company formation rules for Batumi are set at the national (Georgia) level and administered identically to Tbilisi — registration happens at the local House of Justice / Public Service Hall in Batumi under the same national registry.
Residency Note
Incorporating a company does not by itself grant residency. A foreign national who invests at least $50,000 USD in capital in a Georgian company may separately apply for a temporary/investment residence permit.

Typical Cost

DIY Minimum Total
GEL 150

Government State Fee

Standard Processing
GEL 100
Same Day Express Processing
GEL 200
Note
Sources disagree on the exact fee schedule — some cite a lower standard fee (~25 GEL) and same-day fee (~75 GEL); figures above reflect the more commonly cited 2025 figures. Confirm current fee at your local Public Service Hall before applying.

Typical Full Setup With Agent

Amount USD Low
570
Currency Local
GEL
Amount USD High
1140
Amount Local Low
1500
Amount Local High
3000
Note
Covers state fee, legal (virtual) address rental, notarized/apostilled Power of Attorney if filing remotely, tax registration and accountant setup, and bank account setup assistance — commonly used by remote/foreign founders.

Typical Timeline

In Person In Georgia
1–3 business days for standard processing at the House of Justice; same-day express service is available for an added fee.
Post Registration Steps
Tax ID registration and bank account opening add extra time and typically happen in the days immediately following incorporation.
Remote Via Power Of Attorney
Roughly 1–2 weeks, since the main delay is obtaining and courier/mailing a notarized (and apostilled, if issued abroad) Power of Attorney to your local representative before they can file.

Registry Authority

Name
National Agency of Public Registry (NAPR), operating under the Ministry of Justice of Georgia
Official Site
https://napr.gov.ge
Note
Business registration in Georgia is handled by the National Agency of Public Registry (NAPR), also known as the House of Justice.

Steps To Incorporate

  • 1. Check and reserve a unique company name (distinguishable from existing entities) via the NAPR registry.
  • 2. Prepare required documents: passport(s) of founder(s)/director(s); company charter/Articles of Association; a Georgian legal address (a virtual address is accepted); founders' agreement if more than one owner.
  • 3. If any founding documents originate from a foreign legal entity, they must be notarized and apostilled, then translated into Georgian by a certified translator.
  • 4. Submit the application in person at a Public Service Hall / House of Justice branch in Batumi, or remotely via a notarized (and apostilled, if issued abroad) Power of Attorney authorizing a local representative to file on your behalf.
  • 5. Pay the state registration fee (standard or expedited same-day rate).
  • 6. Receive the registration/identification number, which also serves as the company's tax ID.
  • 7. Register on the Revenue Service portal (rs.ge, Georgian-language only) to begin filing tax declarations.
  • 8. Open a corporate bank account — Batumi banks are described as accustomed to working with foreign clients and typically offer multi-currency (GEL/USD/EUR) accounts.

Entity Types Available To Foreigners

  • Limited Liability Company (LLC) — most common choice for foreign founders; single shareholder/single director permitted
  • Individual Entrepreneur (IE) — simplest structure for solo freelancers/consultants; not a separate legal entity so founder is personally liable, but eligible for preferential 'small business status' tax treatment
  • Joint Stock Company (JSC) — for larger businesses raising capital
  • Branch or Representative Office of a foreign company
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.

  1. 1.napr.gov.ge

More About Batumi

Data last updated July 2026 · Verify anything important.