Company formationEuropeGeorgia company formation: entrepreneur, LLC or Virtual Zone
Georgia offers founders a choice between registering as an individual entrepreneur, often with 1% small business status, and forming a limited liability company taxed only when it distributes profits. As of October 2026, distributed profits are taxed at 15% and IT companies with Virtual Zone status are exempt on exported IT services.
Updated
An individual entrepreneur is a person registered to do business in their own name. With small business status, turnover is taxed at 1% up to GEL 500,000 a year and 3% beyond that, instead of 20% on profit. The status is not available for consulting, licensed activities and several professional services, so the classification of your work matters.
A Georgian LLC has no minimum capital and no revenue cap. Under the Estonian-style model, 15% profit tax applies when profits are distributed and on certain non-business expenses, not while profits are retained. Dividends then carry 5% withholding tax.
IT companies can apply for Virtual Zone Person status. Profit from information technology developed by the company and supplied outside Georgia is exempt from profit tax; the status requires real IT activity and evidence of substance.
Formation can be completed remotely with a notarised and apostilled power of attorney, apostilled passport copies and a short description of the business. In our experience an individual entrepreneur with a bank account takes two to three weeks and an LLC three to four weeks.
Accounting, tax and legal advice comes from licensed Georgian professionals; we coordinate setup and banking introductions.
Who it suits
Freelancers and remote service providers
Your turnover stays below GEL 500,000 and your activity is not excluded from small business status.
SaaS and software founders
You develop software for clients abroad and can qualify for Virtual Zone status.
Growing businesses with costs
You reinvest profits and prefer tax on distribution to tax on turnover.
Crypto and Web3 businesses
You need a regulated setup; registration as a virtual asset service provider with the National Bank of Georgia is a separate, document-heavy process.
Requirements
- Required
Legal address in Georgia
Needed for registration with the Public Registry.
- Required
Power of attorney for remote setup
Notarised and apostilled.
- Required
Apostilled passport copies
For founders and directors.
- Required
Bookkeeping and declarations
Small business status holders declare turnover monthly; companies keep full accounts.
- Depends on your case
Virtual Zone application
For IT companies supplying their services abroad.
- Depends on your case
VAT registration
Required once taxable supplies pass the statutory threshold; separate from small business status.
Documents
- Charter or founders' agreementFor an LLC, including shareholdings and management.
- Short company descriptionActivities, customers and expected turnover.
- Passport copies, apostilledFor each founder.
- Power of attorney, notarised and apostilledLets a local representative register on your behalf.
- Bank onboarding fileSource of funds and evidence of the business model.
Timeline
- 1Choose the vehicleIndividual entrepreneur, LLC, or LLC with Virtual Zone status.
- 2Prepare remote documentsPower of attorney and apostilled passport copies.
- 3RegistrationFiled with the Public Registry through a local representative.
- 4Tax status applicationsSmall business status or Virtual Zone status; in our experience Virtual Zone approval takes about 10 business days.
- 5Bank accountOpened with a Georgian bank after its due diligence.
Tax notes
- Small business status: 1% of turnover up to GEL 500,000 a year and 3% above; turnover, not profit, is the base.
- LLC: 15% profit tax on distributed profits and certain non-business costs; retained profits are not taxed until distributed.
- Dividends paid by Georgian companies carry 5% withholding tax.
- Virtual Zone: profits from IT supplied outside Georgia are exempt from profit tax; other income is taxed normally.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Georgian banks onboard LLCs and entrepreneurs with a clear activity; a strict source-of-funds review applies.
- Crypto-related companies need regulatory clarity before banks engage.
Questions
How does the 1% tax in Georgia work?
Individual entrepreneurs with small business status pay 1% of turnover up to GEL 500,000 a year, rising to 3% above that. Expenses are not deducted, and certain activities, including consulting, are excluded from the status.
What tax does a Georgian LLC pay?
Profit tax of 15% applies only when profits are distributed or spent on certain non-business items. Retained profits are not taxed, and dividends carry 5% withholding tax.
What is Georgia's Virtual Zone status?
A status for IT companies. Profit from information technology the company develops and supplies outside Georgia is exempt from profit tax. Approval requires genuine IT activity and, in our experience, takes about 10 business days.
Can I open a Georgian company remotely?
Yes. With a notarised and apostilled power of attorney, apostilled passport copies and a short business description, registration and bank onboarding can usually be handled without travelling, subject to the bank's due diligence.
Do I need Georgian residency to own a Georgian company?
No. Non-residents can own an LLC or register as an individual entrepreneur. Residency matters if you want to live in Georgia or claim Georgian tax residency.
More in Georgia
- Everything about GeorgiaView
- ResidencyGeorgia residency and tax residencyGeorgian residency covers two separate things: a residence permit that lets you live in Georgia, and tax residency, which follows a 183-day test or a high-net-worth route. As of October 2026, owning property worth over USD 150,000 qualifies for a short-term residence permit.View
Company formation elsewhere
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Estonia - Serbia company formation: entrepreneur or LLCForeign founders in Serbia usually register either as an entrepreneur, a natural person trading in their own name, or as a limited liability company (d.o.o.). As of October 2026, entrepreneurs pay 10% income tax, companies pay 15% profit tax, and either form can support a single permit for self-employment.View
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Sources
- Order No. 60 of the Minister of Finance of Georgia (2023) on granting residency to high-net-worth individuals (Legislative Herald of Georgia), retrieved 2026-10-25
- BGI Legal: Law Brief, March 2023 (summary of the high-net-worth residency rule), retrieved 2026-10-25
- Public Service Development Agency: Residence permits, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Georgia, taxes on personal income, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Georgia, taxes on corporate income, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Georgia, corporate withholding taxes, retrieved 2026-10-25
- PwC Worldwide Tax Summaries: Georgia, tax credits and incentives, retrieved 2026-10-25
- OECD: Georgia, tax residency rules for individuals (Tax Code, Article 34), retrieved 2026-10-25
- MM Law: Tax residency in Georgia (high-net-worth procedure), retrieved 2026-10-25
- Redomiciled case experience: Georgian company and residency setups (internal), retrieved 2026-10-25
- Redomiciled case experience: Georgian high-net-worth tax residency (internal), retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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