Starting a Business in Georgia

Describe how the business will work

Write a short operating brief. What will you sell, to whom and from where? Will you provide services remotely, run physical premises, import goods or hire people? Which country’s customers will pay you, in which currencies, and through which channels? The answers are more useful than a broad label such as “consulting” or “online business”.

Use the brief to identify questions for the registry, tax adviser, bank and any sector regulator. Look for activity-specific permissions before spending on equipment or signing premises. Registration in an entrepreneur register is not evidence that every planned activity is permitted.

Map the first transaction from contract to payment to accounting record. If you cannot describe that sequence, resolve the missing steps before launching. It will expose practical issues such as who signs, which entity invoices and which account receives the money.

Check your own work and immigration position

Foreign founders should assess whether their intended activity falls under the Labour Migration Law. For covered labour immigrants and self-employed aliens, Articles 13³–13⁴ address the right to work and relevant immigration status; the law also provides exceptions. Holding a registration certificate is not a substitute for that assessment.

Describe where you physically operate and what you personally do. Passive ownership, management, local employment and services for foreign clients should not be collapsed into one category. Ask which provision applies, what evidence supports an exception if claimed, and what current procedure you must follow.

Deal with this before undertaking the activity. A founder abroad and someone working from within Georgia can face different practical questions. If you are already operating, obtain advice on your existing situation rather than assuming a transition provision covers you.

Choose a structure for the whole business

Start with responsibility, ownership and administration. Under the Law on Entrepreneurs, an individual entrepreneur operates as a natural person and generally bears personal liability for business obligations. A company is a legal person. The law recognises several company forms, including a limited liability company, or LLC.

For a solo activity, compare the cost of administration with the exposure you are taking. For multiple founders, discuss ownership, contributions, decision rights and what happens when someone wants to leave. Have important arrangements written down before money or work changes hands.

Ask an adviser to explain the consequences of the structure for your contracts, debts, bookkeeping and exit. Do not choose solely because someone advertises a low tax rate. A structure suitable for one person’s eligible services may be unsuitable for a business with partners, staff or different revenue streams.

A company does not remove every possible personal exposure. Ask about guarantees, director responsibilities and the documents you are personally signing.

Prepare registration and separate the fees

Confirm the current document list for your chosen form with NAPR or the relevant service office. Investigate identity documents, the legal address, representative authority, founding documents where applicable, and any translation or certification requirements. Ask specifically about your foreign-issued documents.

At the check date, NAPR lists individual entrepreneur registration at GEL 26 for one working day or GEL 75 on the filing day. Its listed entrepreneur registration service excluding individual entrepreneurs is GEL 200 for one working day or GEL 400 on the filing day. Confirm the exact service before paying.

These are registry service fees, not an all-inclusive setup price. Translation, professional support, an address arrangement, banking and other services may cost extra. The published service period is also not a promise that your whole preparation and launch will finish in that time.

After registration, check the recorded details and obtain the documents you will need for tax administration and banking. Record who will update the registry if addresses, representatives or other registered information changes.

Establish tax treatment before invoicing

Get a written tax map for your activity: which entity or person earns the income, how the income is classified, whether a special status is available, and what returns, records and payments follow. Discuss VAT separately. Do not treat the location of the payer as the only fact that determines tax treatment.

The Tax Code’s small-business status is an application-based regime for eligible entrepreneur natural persons, with activity and income conditions. Article 90 includes a 1% rate and circumstances where 3% applies. It is not a universal rate for every business or every receipt. VAT and other obligations require separate checks.

Ask your accountant to explain the regime’s effective date, excluded activities and income, thresholds and reporting duties for your exact case. Request a worked example using your expected operations. A short explanation of what happens when circumstances change is more useful than a headline rate alone.

Check responsibilities outside Georgia too. Residence, an existing company, employees or continuing operations in another country can create questions that a Georgian registration does not resolve.

Prepare the bank and accounting workflow

Ask your chosen bank for its current requirements for your structure and ownership. Prepare a coherent business description, registration records, ownership information and evidence of expected funds and transactions. Have supporting contracts or other records ready where relevant.

Treat account opening as a separate decision by the bank. Do not promise a launch date that depends on approval you have not received. Confirm fees, available currencies, payment restrictions and document requests directly; another customer’s experience is not the bank’s commitment to you.

Agree an accounting process before the first payment. Decide who issues invoices, checks incoming funds, stores contracts and reconciles transactions. Keep business and personal records distinguishable and make sure records can be handed over if you change service providers.

Put filing dates, payroll tasks if relevant, and document handovers into a calendar. Assign a named person to monitor it. Ask what must happen in a month with no activity rather than assuming there is nothing to do.

Before signing your first customer contract, make the contracting party, deliverables, price, payment timing and termination terms explicit. Confirm how the agreement will support the accounting record.

Your launch-readiness checklist