Individual Entrepreneurship (Sole Partnership)

Individual Entrepreneurship (Sole Partnership)

Individual Entrepreneurship is the best business structure for freelancers, digital nomads, expats, and sole entrepreneurs from all over the globe. A Private Entrepreneur is a person, not a legal entity, who operates his/her own business and is the company’s sole proprietor. There is no limit to the number of activities that may be carried out by an Individual Entrepreneur. An Individual Entrepreneur’s assets are not separated from his/her business.

There are many reasons for wanting to do business in Georgia, and being an Individual Entrepreneur offers additional advantages, such as the 1% tax on an income falling between GEL 30,000 and GEL 500,000 (approximately EUR 125,000). The 1% tax rate is not, however, granted automatically. The Entrepreneur must apply for SMALL BUSINESS STATUS to receive the benefit. If your turnover is less than GEL 30,000 (approximately EUR 7500), then you qualify for Micro Business Status and your tax rate is 0%.

Key Benefits for Individual Entrepreneurs in Georgia
0% to 1% Income tax instead of 20%
If your annual turnover does not exceed GEL 500,000, you pay 0% or 1% instead of the usual 20%. More specifically, if your business turnover is not more than GEL 30 000 per annum, you qualify for Micro Business Status and your income tax rate is 0%. If your turnover is from GEL 30,000 to GEL 500,000, you qualify for Small Business Status and your tax rate is 1%.

No Citizenship Limitation
An Individual Entrepreneur can come from anywhere. Georgian Citizenship or Permanent Residency is not required.

No Limitation on the Number of Activities
An Individual Entrepreneur can be active in multiple fields. There is no limitation on the number of activities your business is involved in. 

Key Criteria For An Individual Entrepreneur In Georgia
You must be the sole owner of a business in Georgia or another country

Your company’s annual turnover must not exceed GEL 500,000

Your business activity must not fall within the list of prohibited activities for Individual Entrepreneurs

You must submit monthly declarations to the Revenue Services of Georgia and pay a 1% tax on a monthly basis

Steps For Attaining Small Business Status
REGISTRATION AS AN INDIVIDUAL ENTREPRENEUR
You must register as an Individual Entrepreneur at the Public Service Hall in Tbilisi, Georgia.

OPENING A PERSONAL BANK ACCOUNT IN TBILISI, GEORGIA
The individual with Private Entrepreneur status running the company in Georgia must have a personal bank account.

GETTING STATUS
After registering as an Individual Entrepreneur, you must apply with the Revenue Service in Tbilisi for the status of Small Business Owner.