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Form a Georgia Small Business

1% tax for individual entrepreneurs — a lean setup for freelancers, digital service providers and remote businesses

Tax advantages do not happen by chance — they come from the right business structure.

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Georgia Small Business formation

Georgia Small Business — 1% tax for individual entrepreneurs

Build a 1% business in Georgia

Georgia is one of the most interesting jurisdictions for individual entrepreneurs, freelancers and digital service providers who want to build an extremely lean, flexible and internationally usable business from a tax perspective — fully remotely.

As an individual entrepreneur, you can register a business in Georgia with minimal effort and apply for the so-called Small Business Status, which allows taxation of only 1% on turnover. Formation is possible fully from abroad — on request, we handle the complete process for you, including bank account support and local administrative steps.

You benefit from a low-bureaucracy tax system, no obligation to keep profit-based accounting — and maximum control over your income.

The key facts at a glance:

  • Only 1% tax on gross turnover up to 500,000 GEL, approx. 160,000 EUR per year
  • No corporate tax, trade tax or dividend tax
  • No VAT obligation up to approx. €34,000 turnover per year — and above that, often no VAT on international services
  • No residency in Georgia required
  • No compulsory memberships, no chamber fees, no IHK-style obligations
  • Fully remote formation possible — including support with administrative steps & bank account opening

Note: If Small Business registration and bank account opening are implemented together, individual pricing may be possible.

Price: 990 EUR

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Detoxhelden handles the strategic structuring and preparatory services. Implementation takes place in cooperation with external partners. Decisions by authorities, banks or other third parties are outside our sphere of influence.

Description

In Georgia, you can build a fully independent business as an individual — with only 1% tax on your turnover. The process is lean, legally clean and can be handled fully remotely — without residency or physical presence in the country.

You are supported by German-speaking contacts who guide you step by step through the entire process — from registration as an individual entrepreneur to successful activation of your tax advantage through Small Business Status. This status is the central element of the structure and is, of course, applied for as part of our formation package.

On request, we can also support you with opening a private bank account in Georgia — without any business obligations. This additional package is optional, but a useful supplement — both to clearly separate business income from private payments and to make tax payments directly within Georgia in a simple way.

You receive complete support from us — from registration with the Georgian commercial register and tax registration to optional bank account opening and organization of your ongoing tax obligations.

Whether you are a developer, freelancer or individual entrepreneur with international clients:

With us, you start your business in Georgia — 100% remote, tax-optimized and legally clean from day one.

Note (2026 update): Due to current regulatory changes, forming a Small Business from abroad is currently no longer possible as it was before.

A proven alternative for location-independent entrepreneurs can be found here: Form a US LLC →

Details about Georgia Small Business Status

Details at a glance

Legal form & status:

You are registered as a natural person under the status “Individual Entrepreneur”. At the same time, the so-called Small Business Status is applied for, which enables flat-rate taxation of 1% on turnover.

Taxation:

The tax is 1% on all incoming payments, regardless of whether they come from services, licenses or other sources of income.

Important: Expenses cannot be deducted, because this is a flat turnover-based tax — it is not profit that is taxed, but gross turnover.

Turnover threshold:

The status applies only up to annual turnover of 500,000 GEL, approx. €160,000.

Activity restrictions:

The 1% tax rate does not apply to all professions. Excluded activities include:

Pure software development, design, web development or other non-consulting digital services are generally permitted — the decisive factor is the correct classification and wording of your activity.

Declarations & obligations:

Note: Even with a simple setup, ongoing obligations arise. For monthly implementation, accounting in Georgia can be useful. For tax questions or special cases, a tax advisor can additionally support you.

Value-added tax (VAT):

No VAT obligation below 100,000 GEL annual turnover. If this threshold is exceeded, VAT registration is required — but international services are subject to no VAT, because they are treated in Georgia as tax-free exports.

Further advantages:

The process — step by step to your 1% business in Georgia

In only 2 working days, you are fully registered and ready for business — including tax registration and remote handling.

  • 1. Initial consultation & guidance — Together, we discuss your plan, check the requirements for Small Business Status and clarify whether the 1% model fits your situation. You receive all information on taxes, structure, activity and potential pitfalls — clear, honest and in German.
  • 2. Document preparation — You receive a structured checklist with the required documents from us. We prepare all applications and registration documents for you, coordinate translations and prepare the registration completely — you do not have to deal with the bureaucracy.
  • 3. Registration as an Individual Entrepreneur — Your registration as an “Individual Entrepreneur” is carried out with the relevant authority in Georgia — either on site or fully remotely by power of attorney.
  • 4. Application for Small Business Status — Immediately afterwards, the Small Business Status is applied for on your behalf — securing the 1% tax rate on your turnover.
  • 5. Optional bank account opening — If desired, we additionally support you with opening a private Georgian bank account.
  • 6. Personal support & local partners — Whether remote or during a stay in Tbilisi, you can always rely on German-speaking contacts.
The requirements — what you need

Registration as an individual entrepreneur in Georgia is straightforward. You only need a few requirements:

  • ✅ Valid passport or identity card — A valid identity document is required for identification and document preparation.
  • ✅ Power of attorney, for remote handling — If you do not personally travel to Georgia, we provide you with a template for an English-language power of attorney.

This must be:

  • signed before a notary and apostilled
  • and submitted together with a certified passport copy

We handle the translation of the documents into the Georgian official language.

Note: Notarization in other European countries is often cheaper and available at shorter notice than in Germany.

  • ✅ Activity description — You state which activity you perform (for example software development, web design, content creation, etc.). We support you with the right wording — it is important that it does not fall under the excluded consulting professions.
  • ✅ Business name & activity description — You choose a business name and briefly describe what your business activity will be. We check availability and handle the registration.
Our service — personal, efficient & professional

With us by your side, registration as an individual entrepreneur in Georgia is clearly structured, legally clean and implemented fully remotely. This is included:

  • ✅ 1:1 consultation, 60 minutes — with our Georgia expert — we clarify your activity, requirements and tax questions around the 1% model in advance
  • ✅ Preparation of the power of attorney, in English — you receive a template for the notarized power of attorney, including instructions for the correct signature, apostille and passport copy. We handle the translation into Georgian and prepare everything for the authorities in Tbilisi.
  • ✅ Registration as an Individual Entrepreneur — legally cleanly prepared and submitted by our local team
  • ✅ Application for Small Business Status — so that you automatically benefit from the 1% tax rate, up to 500,000 GEL annual turnover
  • ✅ Tax registration — including allocation of the personal tax number and official registration confirmation
  • ✅ Support with optional bank account opening — at a local or digital bank, as a separate add-on package
  • ✅ All forms & applications — correctly prepared, fully completed and submitted on time
  • ✅ Clearly structured process plan — you always know what to do and receive transparent updates on every step
  • ✅ Access to German-speaking contacts & local tax partners — on request also for monthly declarations and tax questions
  • ⏱ Processing time: As a rule, you are fully registered and ready for business within 2 working days
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Who the 1% Georgia Small Business is especially suitable for

Who the 1% Georgia Small Business is especially suitable for

The individual entrepreneur model with 1% taxation in Georgia is ideal for:

Start now — and register your 1% business in Georgia

We reliably guide you through the entire process — without bureaucracy, without stress, fully remotely.

You lean back — we take care of the rest for you.

Secure your personal consultation now

Take the first step into a flexible, legally clean and tax-optimized individual business in Georgia — and benefit from one of the most efficient tax systems in the world.

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What becomes decisive after formation - accounting

Accounting for your Georgia Small Business

What becomes decisive after formation

Formation is the first step. What matters afterwards is that your setup also works cleanly in everyday life.

Even with a Small Business in Georgia, ongoing obligations arise — especially the monthly declaration and correct handling of your income.

For practical implementation, accounting in Georgia can be useful. It ensures that your declarations are filed correctly and on time.

For tax questions, uncertainties or special constellations, a tax advisor in Georgia can provide additional support.