Register Individual Entrepreneur (IE) in Georgia Remotely

Individual Entrepreneur Georgia (IE): 1% Tax Status & Remote Setup

Becoming an Individual Entrepreneur Georgia (IE) is one of the most effective ways for freelancers, service providers, and small business owners to legally operate in Georgia while benefiting from one of the world’s lowest tax regimes. Georgia’s famous 1% tax for small businesses has made the IE model especially attractive for foreigners, remote workers, and digital entrepreneurs seeking a simple, transparent, and affordable way to register their business.

Today, more than 100,000 entrepreneurs use the IE system because of its extremely low tax burden, minimal bureaucracy, and the ability to register and manage everything remotely – even without visiting the country. For international founders looking to reduce costs and optimize global operations, establishing an Individual Entrepreneur Georgia (IE) is often the most flexible and cost-efficient option. 

How to Unlock the 1% Flat Tax in Georgia  – Small Business Status and Its Benefits

What’s one of the most attractive tax policies about IE Georgia? – 1% tax on annual turnover up to GEL 500,000. This is not income tax – it is a simple turnover tax, calculated and paid monthly. If you stay under the limit, your tax obligations remain extremely low and predictable. It’s also worth noting that in Georgia sole proprietorship setup is legally the same as the individual entrepreneurship – both being called ინდივიდუალური მეწარმე in local language.

Here’s  a detailed guide on how to get Georgia 1% tax benefits and what are the key stages in the process.

• No Citizenship Limitations

The IE regime is fully open to non-residents. Individual entrepreneur Georgia for foreigners is straightforward: any nationality can register and enjoy the same benefits, including the 1% tax rate and simplified reporting rules.

• Remote Registration Capability

Through a power of attorney, you can register IE in Georgia remotely, obtain Small Business Status, and open a bank account without visiting the country. This makes it ideal for entrepreneurs working globally who want a stable, EU-aligned tax system while remaining fully remote.

Register IE in Georgia Remotely: Step-by-Step Guide

1. IE Registration with the Public Registry

Your registration begins with submitting your documents to the House of Justice or remotely through a representative. The process takes 1-2 business days. Once approved, you receive your official IE certificate and your Georgian tax identification number.

2. Applying for Small Business Status (1% Tax)

After registering as an entrepreneur, you must request Small Business Status from the Revenue Services. This approval activates the 1% tax regime for IE in Georgia. Without this step, the standard 20% income tax applies, so it is essential for optimization.

3. Remote Bank Account Opening

To operate your IE, you will need a Georgian bank account. With POA support, the bank account can also be opened remotely. Most banks offer online banking in English and fully support international clients.

Critical Tax and Activity Rules for Your Georgian IE (1% Status)

1. IE tax Exemptions

Not all business activities qualify for the 1% tax rate. The following are excluded and taxed at higher rates:

• Financial services
• Legal, tax, or accounting consulting
• Gambling
• Real estate brokerage
• Medical services
• Auditing

If your business falls under any of these, you cannot apply for the small business regime.

1. Income Not Covered by 1% Tax

Certain income categories are automatically excluded from the small business benefit:

• Employment salary
• Dividends
• Leasing income
• Passive investment income

Only entrepreneurial income directly tied to your business activity is eligible for the reduced rate.

1. Beyond Registration: IE Status and the Georgian Entrepreneur Visa

Becoming an Individual Entrepreneur can support long-term residency plans. Many applicants use their entrepreneurial activity to qualify for the Individual Entrepreneur visa – Georgia usually grants such residence permits for the businesspeople registered in the country.

While IE status itself does not guarantee residency, it strengthens your application by showing:

• Legal business activity
• Monthly turnover
• Active presence in the Georgian tax system
• Financial stability

For entrepreneurs who plan to relocate or spend significant time in Georgia, combining the IE model with a residence permit strategy is a practical long-term approach.

Why Should One Go For The Legal Status of an Individual Entrepreneur? – Georgia (IE) system recognised worldwide

Georgia’s IE framework is designed for simplicity, transparency, and global accessibility. By securing the Individual Entrepreneur (IE) status in the country and activating the 1% tax for Small Business, you can dramatically reduce tax costs while enjoying a streamlined, remote-friendly business environment.

Staying compliant, reporting monthly turnover, respecting activity restrictions, and monitoring the GEL 500,000 limit ensures your IE remains fully optimized.

For freelancers, agencies, consultants, and global entrepreneurs, now is one of the best times to benefit from Georgia’s business-friendly ecosystem and look for a Georgian business partner paving the way for you from the country.