1. Individual Entrepreneur (IE)
An IE is particularly suitable for freelancers, consultants, IT professionals and small service businesses.
Qualifying entrepreneurs can apply for Small Business Status, with:
- 1% tax on qualifying business turnover
- Applicable generally up to GEL 500,000 annual turnover
- 3% rate after exceeding the threshold, subject to the applicable rules
The 1% regime is one of the main reasons foreign entrepreneurs choose Georgia.
Why Choose an IE?
- Very low tax for qualifying businesses
- Simple structure and administration
- Suitable for independent professionals
- Georgian business banking
- Ideal for freelancers and service providers
We Assist With:
- Individual Entrepreneur registration
- Tax registration
- Small Business Status application, where eligible
- Georgian business address
- Bank account opening and assistance with ongoing matters
- Accounting and ongoing support
2. Limited Liability Company (LLC)
An LLC is better suited for a larger or more structured business, multiple shareholders, employees, international contracts or clients who prefer to operate through a separate legal entity.
Georgia generally applies a 15% corporate profit tax, with the standard system principally taxing distributed profits rather than ordinary retained earnings. Dividends paid by a Georgian company to an individual are generally subject to 5% withholding tax.
Why Choose an LLC?
- Separate legal entity
- Suitable for larger businesses and international contracts
- Profits can generally be reinvested without immediate profit tax until distribution
- Georgian corporate bank account
- Suitable for employees, partners and shareholders
- More professional corporate structure
We Assist With:
- Company registration
- Preparation of corporate documents
- Legal address
- Tax registration
- Bank account opening
- Accounting and ongoing corporate support
Other Taxes
The standard Georgian VAT rate is 18%. VAT registration requirements depend on the company's activities and turnover.
Start Your Business in Georgia
Contact C100P Limited and we will help to determine whether an Individual Entrepreneur or LLC is more suitable for your activity. We can also assist with opening a Georgian bank account for your new business.