A foreign citizen can initiate a business venture in Georgia with the same ease as a local resident. For individuals from foreign countries who have entered Georgia legally and seek to establish a new enterprise or open a subsidiary/representative office of an existing foreign company, the process is straightforward. The initial step involves determining the type of organization you intend to establish.
In addition to establishing a limited liability company (LLC), individuals have the option to utilize one of the following alternatives:
Fixed-rate payer.
Small business (for entrepreneurial individuals granted the status of "small business").
Micro-business (for natural persons granted the status of "micro-business").
A fixed tax payer can be a person who is not a VAT payer and at the same time carries out one or more activities subject to a fixed tax. The fixed tax rate, depending on the type of activity determined by the Government of Georgia, can be either within 1 to 2,000 GEL per taxable object, or 3% of the income from taxable activity.
Small business status is granted to an entrepreneurial individual (certificate is issued). If the combined income received from the economic activity of a small business does not exceed 500,000 GEL per year, it will be taxed at the rate of 1%, otherwise at the rate of 3%.
A person with the status of a small business is obliged to use a special journal of accounting, the rules of production of which (including in electronic form) are determined by the Minister of Finance. Losses received by a small business during a tax year will not be carried over to the next year, unless the special taxation regime is withdrawn.
The status of micro business is granted to such an individual who independently carries out economic activities, does not hire labor force and his total income does not exceed 30,000 GEL per year.
In addition to the fact that foreign entrepreneurs must transfer the taxes established by law to the treasury of Georgia, they are required to submit regular information and reports to tax and other state authorities.
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