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Business Permits & Incorporation for Foreigners in Tbilisi

Good to know

Good to Know

  • A single foreign individual can be both the sole shareholder and sole director of a Georgian LLC — no local partner, local director, or Georgian residency is legally required.
  • A bilingual (Georgian/English) company charter is strongly recommended even though not strictly mandatory — it avoids translation disputes later and makes bank onboarding smoother.
  • Remote incorporation via Power of Attorney is legal and commonly used, but several service providers report that rejection rates for fully remote filings have risen since 2022, so being physically present in Tbilisi for at least the registration step is the more reliable route if your timeline is tight.
  • Registering the company is the easy part — opening a corporate bank account as a foreign owner has become the real bottleneck, with banks now requiring detailed source-of-funds narratives, UBO charts, and business-activity explanations before approving an account.
  • Since April 1, 2025, most Georgian companies (other than self-employed individuals) must periodically confirm/update their registration data and beneficial-owner information in the public registry, with administrative penalties for failing to do so.
  • VAT registration only becomes mandatory once taxable turnover exceeds 100,000 GEL in a rolling 12-month period, and the filing window after crossing that threshold is strict (2 days), with penalties calculated retroactively from the date the threshold was crossed.
  • The Estonian-model corporate tax means an LLC pays nothing on profit while it stays in the company — tax is only triggered the moment you pay yourself a dividend, so many nomad-run LLCs plan distributions carefully.
  • If you're a solo freelancer with modest expenses, the 1% Small Business Status via Individual Entrepreneur registration is usually simpler and cheaper than forming an LLC — but check whether your profession is on the excluded-activities list (e.g. legal, medical, architectural, financial/advisory consulting) before assuming you qualify.
  • The 1% rate technically applies to Georgian-sourced income, generally meaning work physically performed inside Georgia — if you travel a lot while freelancing, get local advice on how this is actually enforced in practice.
  • From March 1, 2026, new rules require foreigners doing paid work in Georgia (including as an Individual Entrepreneur) to hold a work permit plus a residence permit or D1 visa — factor this into your registration timeline.
  • For IT businesses genuinely serving only foreign clients, Virtual Zone status (0% CIT, 0% VAT) is attractive, but the Revenue Service has tightened scrutiny since 2020 and expects real economic presence, not just a nominal registration.
  • This entry covers company/business-level tax obligations only — your personal tax residency status (183-day rule, worldwide vs. territorial income) is covered separately under Visa & Legal.

Corporate Tax LLC

System
Georgia uses the 'Estonian model' for corporate income tax, introduced in 2017: corporate profits are not taxed while retained in the company and are taxed only when distributed as dividends.
Capital Gains
Georgia does not define a separate capital gains tax for companies; capital gains are taxed as normal business income at the general CIT rate (i.e., only upon distribution).

Standard Cit Rate

Rate Percent
15
Basis
This applies to both Georgian-resident companies and permanent establishments of foreign companies.
Applies To
distributed profits only; retained/reinvested earnings are not taxed

Filing Obligations

Cadence
Corporate income tax is event-driven, not a classic annual filing. It is filed and paid monthly by the 15th of the following month, triggered at the point profits are distributed.
Common Mistake To Avoid
Many foreign founders wrongly assume annual filing as in their home country — a company with no distribution events in a given month generally has no CIT filing trigger that month.

Dividend Withholding Tax

Default Rate Percent
5
Note
Without a double tax treaty (DTT), dividends paid to non-residents are subject to a 5% withholding tax in Georgia; under certain DTTs — notably with the UAE and several European jurisdictions — this can be reduced to 0%.

Structure Options Overview

Which To Choose
For most solo freelancers, consultants, and remote-income earners, the IE + Small Business Status route gives the lowest effective tax. A single owner may still prefer an LLC for liability protection, or for tax reasons if the business has high turnover with high expenses (since LLC tax is levied on distributed profit, not gross turnover) and wants to reinvest earnings tax-free.

LLC Company

Minimum Capital
There is no minimum share capital requirement — an LLC can be registered with zero capital, just the government filing fee.
Foreign Ownership
100% foreign ownership is permitted, with no residency requirement for shareholders or directors, and no need for a local partner or nominee director.
Registration Speed
Registration is fast, typically taking 1-2 business days if documents are in order.
Liability Protection
An LLC creates a legal separation between business debts and personal assets, unlike a sole proprietorship.
Description
A Georgian LLC (SIA-equivalent) is the standard vehicle for foreigners who want liability protection, a scalable structure, or eligibility for IT-sector tax incentives.

Individual Entrepreneur Freelancer

Liability
Individual Entrepreneur registration does not create a separate legal entity — the individual bears personal responsibility for the business's debts and legal matters.
Minimum Capital
There is no minimum capital requirement to register as an IE.
Registration Process
You file your application with the Entrepreneurs Registry of the National Agency of Public Registry, usually in person at a Public Service Hall or through an authorised representative.
Foreigner Eligibility
Foreigners are allowed to register as IEs and do not necessarily need citizenship or permanent residency, though a legal address in Georgia is required.
Important 2026 Change
New rules effective from March 1, 2026 require foreigners doing paid activity in Georgia to hold a work permit and a residence permit or D1 visa in order to register and operate as an IE.
Default Tax Without Special Status
Without Small Business Status, an IE is taxed on net profit at the standard 20% personal income tax rate rather than on gross turnover.
Description
Registering as an Individual Entrepreneur (IE) is the simplest way for a foreigner to legally invoice clients from Georgia without forming a separate legal entity.

Registration Fee

Amount USD Range
approx. 10-29 USD
Amount Local Range
26-75 GEL
Note
Government registration fees are generally modest.

Special IT And Investment Regimes

Virtual Zone Status

Caveat
Approval has become harder since 2020, as the Revenue Service now looks for genuine economic presence in Georgia rather than a shell-like setup.
Eligibility
Available to Georgian LLCs engaged in IT activities such as software development, IT consulting, web development, and app creation.
Tax Treatment
Companies with Virtual Zone designation pay 0% corporate income tax and 0% VAT on services exported to foreign clients.
Key Requirement
Clients must be outside Georgia.

International Company Status

Eligibility
Reserved for companies in the IT and maritime industries and must be granted by the Ministry of Finance of Georgia.
Tax Treatment
Taxed at 5% on distributed profit only, 0% on reinvested profit, with no dividend withholding tax for foreign shareholders in many cases.

Small Business Status Ie 1 Percent Regime

Employees
Having employees is allowed under Small Business Status, but tax withholding still applies to their salaries.
Eligibility
Available to Individual Entrepreneurs (IE); registering as an IE does not automatically grant the rate — you must separately apply for Small Business Status (SBS) through the Revenue Service.
Excluded Activities
Certain professions are excluded from Small Business Status, including legal and notarial services, tax or audit consulting, medical and architectural work, advisory and financial services (e.g. currency exchange), gambling, excise-taxed activities, staffing services, and most licensed activities (with limited exceptions such as Tbilisi taxi permits).
Geographic Income Rule
The 1% rate only applies to income considered Georgian-sourced, which generally means the service was performed while physically inside Georgia; income earned while performing the same work from outside Georgia may not qualify for the 1% rate and could instead be taxable elsewhere.

Filing Obligations

Detail
Tax returns are filed and tax paid electronically before the 15th day of the month following the reporting month, though paying by the 10th is often treated as the safer buffer.
Cadence
monthly
Pension Contribution
Freelancers/IEs are subject to mandatory pension fund contributions at a rate of 4%, made when filing income tax returns.

Turnover Thresholds

Standard Rate Band

Tax Rate Percent
1
Basis
Under this regime, eligible persons pay just 1% income tax on their annual turnover instead of the standard 20%, up to 500,000 GEL annually.
Threshold Local
GEL 500,000

Excess Over Threshold

Tax Rate Percent
3
Note
If turnover exceeds 500,000 GEL during the calendar year, the excess amount is taxed at 3%; exceeding the cap for two consecutive years causes SBS to be automatically revoked.

Micro Business Status

Tax Rate Percent
0
Threshold Local
GEL 30,000
Note
Individuals with annual turnover under 30,000 GEL can apply for Micro Business Status (0% tax), but this status does not allow employing staff.

VAT

Standard Rate Percent
18
Export Of Services
Georgia uses standard B2B place-of-supply rules for VAT; services supplied to non-resident clients are generally not subject to Georgian VAT and are excluded from counting toward the 100,000 GEL registration threshold.
Registration Threshold
GEL 100,000

Below this taxable-turnover threshold, VAT registration is optional; above it, registration is mandatory.

Incorporation Process And Requirements

Overview
Georgia is widely regarded as one of the fastest and least restrictive jurisdictions for foreign-owned company formation. There is no requirement for a local partner, local director, local shareholder, or Georgian residency. A single foreign individual can be the sole shareholder and sole director of a Georgian LLC.
Most Common Entity Type
Limited Liability Company (LLC) — flexible, offers limited liability, and has no statutory minimum share capital requirement (capital can be symbolic). An Individual Entrepreneur (IE) registration is a simpler alternative commonly used by solo freelancers, particularly those seeking Georgia's 1% turnover-based Small Business tax status.

Costs

Typical DIY Total Cost If Self Filed
GEL 1,300
Virtual Legal Address Per Month Range
GEL 300
Government Registration Fee Standard LLC
GEL 100
Post Registration Tax And Accounting Setup
GEL 450
Optional English Language Registration Extract
GEL 26
Government Registration Fee Expedited Same Day LLC
GEL 200
Typical Total Cost With Professional Service Provider
GEL 2,200
Government Registration Fee Individual Entrepreneur Standard
GEL 60
Bank Account Setup And Compliance Support If Using A Provider
GEL 650
Government Registration Fee Individual Entrepreneur Expedited
GEL 85
Note On Currency
All figures below are in Georgian Lari (GEL), the true durable local figures, with a computed USD equivalent using a recent GEL/USD rate.

Timeline

In Person Express
Same-day processing available for an additional government fee
In Person Standard
1 business day for the registration step itself; foreigners physically present in Tbilisi can typically complete registration plus initial tax enrollment within 1-3 working days
Bank Account Opening
A separate step after registration; banks can take up to a week or more to complete KYC/AML review, and this has become noticeably harder for non-resident-owned companies in recent years
Remote Via Power Of Attorney
Roughly 1-2 weeks in practice, since this depends on how quickly a notary and apostille/courier services in the founder's home country can turn around the required documents

Core Steps

  • Choose entity type (LLC is most common for foreigners; IE for solo freelancers/consultants)
  • Choose and check availability of a unique company name (certain words like 'Bank', 'National', 'State' are restricted)
  • Draft the company charter / Articles of Association — a standard Public Registry template can be used for simple structures, or a custom (ideally bilingual Georgian/English) charter for more complex ownership arrangements
  • Secure a registered legal address in Georgia (virtual office providers or a landlord's written consent)
  • Prepare identity documents for all shareholders/directors — for documents executed outside Georgia, these generally need notarization, apostille/legalization, and certified Georgian translation
  • Submit the application in person at a Public Service Hall, or remotely via a notarized (and apostilled) Power of Attorney authorizing a local representative
  • Pay the state registration fee and receive the company's registration/identification number, typically the same day or the next business day
  • Register with the Revenue Service (via the RS.ge portal) for a tax identification number — a company legally cannot begin operating/invoicing until this is done
  • Open a corporate bank account, which involves separate bank-level KYC/AML due diligence

Official Registry

Authority
National Agency of Public Registry (NAPR), a legal entity of public law under the Ministry of Justice of Georgia, operating through Public Service Halls (also called the 'House of Justice')
Official URL
https://napr.gov.ge/en

Documents Typically Required

  • Passports of all directors and shareholders (originals if registering in person; notarized and apostilled copies for remote registration)
  • Company charter / Articles of Association
  • Defined description of business activities
  • Legal address documentation (owner's written consent)
  • Notarized Power of Attorney if registering remotely or via a local representative
  • For a corporate (non-individual) shareholder: an apostilled, translated extract from its home registry plus a board/shareholder resolution approving the Georgian incorporation

Local Partner Or Sponsor Requirement

Status
None required for the vast majority of sectors
Details
Foreign investors enjoy national treatment and up to 100% ownership in Georgian LLCs and JSCs, with no general requirement for a local partner, director, or shareholder, except in a small number of state-reserved sectors such as defense and nuclear energy. There is also no residency requirement to incorporate an LLC, though a mandatory registered legal address in Georgia is required (a virtual office address is acceptable, and the property owner must provide written consent).
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 Tbilisi

Data last updated July 2026 · Verify anything important.