How to Register as an Individual Entrepreneur in Georgia in 2026

Registering as an individual entrepreneur (IE) is the fastest and simplest way to set up a business in Georgia. Foreigners don't need a local partner, a residence permit or any starting capital, and registration takes one business day. It's a natural fit for freelancers, IT specialists and small business owners.

If you work for yourself or serve clients abroad, an IE is usually the easiest route to working legally. A business-based residence permit in Georgia is another matter and calls for a bigger operation: under the rules in force since July 9, 2026, the company needs annual turnover of at least 50,000 lari for each foreigner who receives a work residence permit.

The 2026 Change: Foreigners Now Need a Work Permit

Since March 1, 2026, Georgia has required foreigners doing paid work in the country to hold a separate work permit. That includes self-employed people with an IE who live in Georgia and work for clients abroad.

An IE registration alone no longer covers you. Whether a foreigner can work in Georgia without the permit depends on the type of work and the contract.

Who an IE in Georgia Is For

An IE is a good match for anyone running a business solo, whether in software development, consulting, design, trade or services. If you plan to build a large team or bring in investors, an LLC in Georgia usually makes more sense, though it comes with a higher registration fee and different rules. Most newcomers who work for themselves or for foreign clients will find an IE is all they need.

How Registration Works

Registration goes through the National Agency of Public Registry at the Public Service Hall. In Tbilisi, that's the building with eleven white "petals" on the bank of the Mtkvari (2 Zviad Gamsakhurdia Embankment), the same place where residence permits are issued.

You can apply in person or send a representative with a notarized power of attorney. The second option works well if you want to register remotely before you move to Georgia.

Once you're on the register of entrepreneurs, there's one more step: registering for tax with the Georgian Revenue Service (rs.ge). Until you do, your IE exists on paper but can't legally trade or pay taxes.

Documents You'll Need

• your passport
• a registered address in Georgia (your legal address)
• a notarized power of attorney if a representative applies for you

By most countries' standards, that's a short list. You don't need articles of association, a criminal record check or proof of income.

How Long It Takes and What It Costs

According to the official fee schedule of the National Agency of Public Registry, standard registration costs 26 lari and takes one business day. Same-day registration costs 75 lari. That's several times less than an LLC, which costs 200 and 400 lari for the same turnaround times.

Small Business Status: How to Get the Low Rate

Registering an IE doesn't cut your tax bill by itself: by default, you pay the standard 20% income tax. To pay 1% of turnover instead, you need to apply for small business status separately through your rs.ge account. Nothing happens automatically, and many people only realize this after paying the standard rate for their first tax period.

With small business status, you pay 1% on turnover, not profit, as long as your annual turnover stays under 500,000 lari. From the month your annual turnover passes that limit (700,000 lari for wine tourism and agritourism), all your turnover for the rest of the year is taxed at 3%. If you exceed the threshold two years in a row, the status is cancelled from the start of the next year, so you can go over once but not twice.

Micro Business Status: When You Can Skip the IE

If you earn less than 30,000 lari a year and have no employees, you don't need an IE at all. You can apply for micro business status as a private individual through rs.ge, pay 0% tax and file a single annual return by March 31. It's a good option for a small side income or for freelancing in the early days, before your turnover picks up.

Opening a Bank Account for Your IE

You can open a Georgian bank account for your IE, although banks sometimes turn foreigners away after compliance checks on the source of funds, tax residency or ties to certain countries. A decision usually takes 3-5 business days, or up to 10-14 days if the bank runs enhanced KYC checks.

Find out ahead of time what your bank expects from non-residents with foreign clients. This is where the process most often gets stuck.

Renting a Legal Address: What Can Go Wrong

This is one of the few genuine risks in the whole process. Plenty of companies rent out legal addresses for IE registration, but some later withdraw the address, demand extra money to renew it or simply stop replying. Before you pay, check the company's reputation and agree on renewal terms up front, not when the contract is about to expire.

An IE Doesn't Make You a Tax Resident

Registering an IE doesn't make you a Georgian tax resident. Residency depends on where you actually spend your time, which means at least 183 days in any 12 months. You can run a Georgian IE and stay a tax resident of another country if you spend more time there. It works the other way too: you can be a Georgian tax resident as an individual without ever registering an IE.