Georgia is a country located in the Caucasus region. The capital and largest city is Tbilisi, with about 1.1 million inhabitants. When it comes to the economy in 2021, GDP growth of 5.5% is expected, and 5% growth of GDP in 2022. Growth data shows us that Georgia is a country worth starting your business in, and in this article, we will go through the process of registering a sole proprietorship.
Disclaimer: This article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole proprietorship in Georgia
There are many reasons to start a sole proprietorship in Georgia. Georgia ranks 7th in the world for ease of doing business, according to a World Bank study. In addition to giving unlimited liability to the owner, there are many benefits to establishing a sole proprietorship:
- It is straightforward and quick to register
- An uncomplicated process that requires minimal paperwork
- Low taxes for sole proprietors
How to register a sole proprietorship in Georgia
The registration process for sole traders in Georgia is not complicated at all. You can register in Tbilisi Public Service Hall, and the registration process takes about 30 minutes.
To register, you will need the following:
- Passport
- Pay state taxes (55 GEL)
- Phone number and e-mail address ( it's better to have a local phone number)
- A designated bank account
When you pay the taxes, you will wait for about 5 hours for your status to become active. You can also monitor your status online (they will instruct you when you pay the taxes). After you go to the active status on the site itself, you can go back and pick up your papers.
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The taxation system in Georgia
The Value Added Tax (VAT) rate in Georgia is 18%. VAT does not have to be paid by sole traders whose annual transactions do not exceed the value of 100,000 GEL. If they exceed 100,000 GEL, it is necessary to register for VAT, while registration is voluntary for those who do not exceed 100,000 GEL. The standard corporate income tax is 15%, import tax fluctuates between 0% and 12%, and property tax amounts to only 1%.
