Separate the person, entity and tax status
An individual enterprise is connected to the natural person; an LLC is a company structure. Small business status is a separate tax status available to qualifying entrepreneur natural persons. Article 89 provides for an application to the tax authority. Registering an individual enterprise does not, by itself, establish that every type of income qualifies for the preferential treatment. Official source: Tax Code of Georgia, including Articles 88–90.
Understand the rate before modelling the saving
Article 90 provides a 1% rate for qualifying small-business taxable income, with exceptions. Its ordinary threshold rule applies a 3% rate after economic-activity gross income exceeds GEL 500,000, from the relevant month through the year-end; special categories have different thresholds. Salary and specified excluded income are not simply swept into this regime. Ask an accountant about activity eligibility, source of income, VAT and other obligations. Official source: Tax Code of Georgia, including Articles 88–90.
Compare practical trade-offs
Tell an adviser whether clients contract with you personally, whether you need partners and how you intend to withdraw money. Ask about personal exposure, employee arrangements and the records each option requires. Also discuss tax obligations in other countries connected with your work. Use a forecast showing expected revenue, expenses and administration rather than comparing one headline percentage with a company's entire tax position.
Plan your next steps
- Describe the actual services and contractual relationships.
- Check eligibility for the proposed tax status.
- Model total tax and reporting costs with an accountant.
- Compare ownership, liability and client-contract needs.
- Assess work permission separately from tax registration.
Legal review checkpoint
Ask the lawyer and accountant to test the same facts. Calling an employment relationship freelance work, or renaming an excluded activity, does not settle its classification.
Confirm case acceptance, consultation language and any in-person work with your chosen lawyer.
For a matter in the capital, compare English-speaking lawyers in Tbilisi by practice area, working language and consultation fee.
Starting a Business in Georgia as a Foreigner
Official sources
Prepared by GeoLawyer from the linked official sources. Editorial source check: . This is general information, not individual legal advice. Confirm the current requirements for your circumstances.