In Georgia, the Law on Entrepreneurs is applied, which regulates relations connected with entrepreneurial activity and determines the business statuses within the framework in which an entrepreneur registered in Georgia is allowed to operate.
Entrepreneurship may be carried out in the form of an individual entrepreneur or a legal entity (including a limited liability company).
An individual entrepreneur is one person who conducts entrepreneurial activity. It is the only subject of entrepreneurial activity who exercises his/her rights and fulfills obligations in business relations as a natural person. An individual entrepreneur is not a legal entity. An individual entrepreneur shall be personally liable to creditors or other persons with all of his/her assets for all obligations arising from his/her entrepreneurial activity. The responsibility of an individual entrepreneur shall not be limited only to the business activity assets. He/she shall be liable for the obligations arising within the activities with all of his/her assets, without restriction. For example, to settle bank indebtedness or accounts payable, both the activities resources (cash or non-cash assets) and an individual entrepreneur’s personal assets shall be considered.
An individual entrepreneur shall be obliged to pay a tax, specifically, income tax. Income tax shall be paid out of the profit gained from the income less documented expenses. For detailed information on taxes, see a separate section.
A limited liability company (LLC) is a legal entity, the capital of which is divided into shares and the responsibility of its partners for the company liabilities shall be limited to the legal entity’s assets, in particular, LLC shall be liable to a creditor with all of its assets. This means that a partner shall not be responsible for fulfillment of the obligations proceeding from the activities of the LLC. On the other hand, neither LLC shall be responsible for its partners’ obligations. However, it should be pointed out that according to the agreement other terms may be also provided and responsibility may arise within the framework of the agreement.
LLC’s activities shall be managed by and representative authority shall be conferred on the management body, which shall include one or several senior officers (director or directors). It should be pointed out that a director may be both a natural person and a legal entity. LLC is not required to have a supervisory board. It shall create a supervisory board if it is expressly provided for by law or if by the partners’ decision the Charter stipulates the existence thereof.
For registration as an individual entrepreneur, as well as for the registration of any changes in the registered records, a natural person shall submit to the registering authority a written application for registration as an individual entrepreneur or for registration of changes. If an entrepreneur is a foreign citizen, he/she shall submit also a foreign passport. And a Georgian citizen shall submit a citizen’s identity document.
The application shall include the following data:
An individual entrepreneur’s business name shall include an addition specifying its legal form: “Individual Entrepreneur” or “IE”.
Limited Liability Company
For registration of LLC the following documents shall be submitted to the registering authority:
In the case of an individual entrepreneur
In case of a limited liability company
Registration as an entrepreneur may be carried out at any Public Service Hall or any regional office of the National Agency of Public Registry.
Website (Public Service Hall): https://psh.gov.ge/main/menus/2;
Google Map Link (Tbilisi): https://goo.gl/maps/YBYnXyT3LYFUrCBx8;
Google Map Link (Batumi): https://goo.gl/maps/Ax5hjUDcDSTvJ8S57;
Google Map Link (Kutaisi): https://goo.gl/maps/K1D2FRkhvMw51ZFA7;
Google Map Link (Zugdidi): https://goo.gl/maps/SumzXqfUEchsdzP46;
Google Map Link (Mestia): https://goo.gl/maps/j6RtG79ov1AA1DKZ8;
Google Map Link (Akhaltsikhe): https://goo.gl/maps/sXvM9om9jKLVttrG6;
Google Map Link (Marneuli): https://goo.gl/maps/9XLsd5FT3uij4kas6;
Google Map Link (Kvareli): https://goo.gl/maps/zVnqWpjm1Mi9vfKr8;
Google Map Link (Rustavi): https://goo.gl/maps/dFVSuYvG9kwPG6Fe8;
Google Map Link (Telavi): https://goo.gl/maps/XaxLy2mUWupCyZiq9;
Google Map Link (Gurjaani): https://goo.gl/maps/d38V2CyRVsfd9vn67;
Google Map Link (Ozurgeti): https://goo.gl/maps/eqjbEWpgGV1x9e6u9;
Google Map Link (Gori): https://goo.gl/maps/S12KwSz6ih9HCiLd7;
Google Map Link (Poti): https://goo.gl/maps/kQekdbbf315q3CkMA;
● If a person owns property on the territory of Georgia and the previous year's family income exceeds GEL 40,000. The declaration will be submitted to the tax authority no later than November 1 of the current year, and the data on the taxable property will be submitted according to the previous (last) year.
(for example, if a person buys a car in 2022, it will be reflected and the tax will be paid in the 2023 declaration, and the tax will be calculated only for the period during which the car was registered)
● If a person has taxable land on the territory of Georgia, regardless of the amount of his or her family income. The declaration will be submitted to the tax authority no later than November 1 of the current year, and the data on the land will be submitted as of April 1 of the current year.
(for example, if a person buys a plot of land before April 1, 2022, it will be reflected and the tax will be paid in the 2022 declaration, and the tax will be calculated only for the period during which the land was registered, as well as if the person bought the plot after April 1, its reflection and tax payment will be made in the 2023 declaration).
● Distributed profit
● Expenses or other payments unrelated to economic activities, including the provision of goods/services free of charge and/or the transfer of money
● Expenses not supported by documents
● Representative cost in excess of the threshold amount
● Produces excise goods in Georgia (for example tobacco, and alcoholic beverages);
● Performs import or export of excise goods to/from Georgia;
● Performs supply of natural gas (in the form of gas) for vehicles;
● Provides international call termination service received from a non-resident or resident person in a mobile or fixed network;
The taxpayer website is an electronic website of the Revenue Service that allows the taxpayer to run own business remotely. The website allows user to manage all necessary tax-related transactions.
Based on the platform, the business is able to:
To be registered, the e-page Registration Application, is to be filled out. It can be activated both in the tax authority, as well as via the link for e-activation.