Your Sole Proprietorship in Georgia
A simple and cost-effective solution without needing to leave your home country. Ideal for freelancers and small entrepreneurs.
Georgia: A Business-Friendly European Destination for Foreigners
Opening a sole proprietorship in Georgia is an excellent opportunity for freelancers, such as programmers, marketers, graphic designers, and small entrepreneurs who want to maintain a company in a country open to foreigners, with low costs and a minimal tax burden.
At Settee, you will find experts in opening bank accounts, residency, and company incorporation in Georgia, along with a full suite of services to help you establish and manage your company, including:
- Business registration
- Opening business bank accounts
- Tax compliance
- Assistance with all legal matters
Furthermore, we provide customized solutions to meet your specific business needs.
Advantages of Companies in Georgia
Located at the crossroads of Eastern Europe and Western Asia, Georgia has experienced a remarkable economic rise, becoming an attractive destination for foreigners looking to live or establish businesses in a practical and prosperous region.
Today, Georgia is ranked as the 7th easiest country for doing business by the World Bank Group and the 32nd most economically free by The Heritage Foundation. It offers a business-friendly environment with advantages such as:
Low Tax Burden
Adopting a territorial tax system and deferred local taxation, Georgia does not tax foreign-sourced income and also exempts local micro-businesses with no employees and an annual turnover of up to 30,000 GEL (approx. €10,000). For annual turnovers of up to 500,000 GEL (approx. €185,000) per year, the tax rate on gross income is just 1%.
Fast and Remote Setup
The process can be completed entirely remotely, via email or mail, without the need to travel to the country. In just 3 to 5 business days after receiving your documents, your company will be ready to operate.
Low Operating Costs
With efficient business management and reduced operating costs, including salaries and labor expenses, Georgia is an ideal option for startups, freelancers, and individual entrepreneurs looking to maximize their profits.
Global Business
No matter your country of origin, Georgia is welcoming to your business. Offering a strategic location with easy access to the European hub (just 3 to 4 hours away), it operates as an environment conducive to accelerating your company's global expansion.
Solid Banking System
Having a bank account in Georgia is essential for setting up a company. Fortunately, the country offers a stable financial hub with protection against government surveillance, cryptocurrency support, and unrestricted access to global markets. Just like company formation, opening a bank account can be done remotely.
Simplified Residency
Georgia is one of the easiest European countries to obtain residency in. For example, a sole proprietor with an annual turnover exceeding GEL 50,000 (approx. €17,000) can apply for a residence permit through an individual entrepreneur visa.
Open Your Sole Proprietorship in Georgia
With a sole proprietorship in Georgia, you strategically position yourself in global markets, no matter where you are in the world. Benefit from legal security and optimized management with reduced taxes, low costs, and minimal bureaucracy.
If you are interested in learning more, you can find further information and documents here:
- Offshore Account in Georgia
- Offshore Brokerage in Georgia
- Real Estate in Georgia
- Article: The 4 Best Business Regimes in Georgia - And the Advantages of Starting Your Company There
- Article: How to Live in Georgia: One of the Paradises for Entrepreneurs in Europe
- Article: How to Get a Digital Nomad Visa in Georgia
- Article: Discover: 8 Reasons to Go to Georgia as a Digital Nomad
- Podcast: Nomadism in El Salvador and Georgia with Gustavo (The Crypto Khalifa)
Simple. Transparent. No surprises.
Is opening a Sole Proprietorship in Georgia right for me?
We Recommend Opening a Sole Proprietorship in Georgia For:
- Professionals and Business Owners with Annual Revenue Under 185k EUR: Georgia offers advantageous tax conditions for lower income levels, providing an efficient and cost-effective structure for smaller-scale businesses.
- Those Who Want Access to European and Asian Markets: With free trade agreements with the European Union and some Asian countries, Georgia offers international expansion opportunities for small business owners.
- Professionals and Business Owners Who Need Proof of Tax Payments: For those who need to verify income and tax payments for KYC purposes due to banking or commercial requirements, Georgia allows for low tax payments within a simplified structure.
- Individuals Interested in Obtaining Residency in Georgia: A sole proprietorship can be used as a basis for applying for a visa, making it an excellent option for those who wish to live or spend part of their time in the country.
- Entrepreneurs Who Value Fast and Simple Processes: Known for the ease of setting up and managing companies, Georgia is ideal for those who want agility and low operating costs.
We Do Not Recommend Opening a Sole Proprietorship in Georgia For:
- Clients Seeking Zero Tax: Georgia offers an advantageous tax regime, but it does not have a total tax exemption. For completely tax-free structures, countries like the US, UK, or Cyprus may be more suitable options.
- Businesses Needing Access to the European Union: Although Georgia is located in Europe, it is not part of the European Union (EU). Companies that need to be based within the EU or require full access to the European market may find other jurisdictions more advantageous, such as Cyprus, the UK, or Estonia.
- Companies That Need to Distribute Dividends: A sole proprietorship in Georgia does not distribute dividends in the same way as other corporate models. It transfers profits to the owner, which may not be suitable for companies that wish to follow a traditional dividend distribution structure.
- Companies Requiring Complex Structures or Multiple Partners: Georgia is best suited for sole proprietorships, and its structure is not ideal for businesses with multiple stakeholders or significant corporate complexity. For those needs, we recommend setting up companies in the UAE or using British LPs.
Frequently Asked Questions (FAQ)
- Business-Friendly Environment: Georgia is the 7th easiest country to do business in, according to the World Bank Group, and ranks 32nd in the index of economic freedom (Brazil is 124th).
- Foreigner-Friendly: It has a territorial tax system, with 0% tax on foreign-sourced income.
- Low Corporate Tax Burden: Sole proprietorships with annual revenue up to 30,000 Lari (approx. €10,000) are tax-exempt, and the rate is only 1% for revenue up to €170,000.
- Low Debt: The country has a low debt-to-GDP ratio (49.5%), compared to 128% in the US and 93% in Brazil.
- Diverse Bank Accounts: Access to accounts in US Dollars, Euros, Georgian Lari, and Russian Rubles.
Generally, setup takes 3 to 5 business days after your documents arrive in Georgia.
No. All documents can be sent via email or mail; there is no need to visit the country.
A notarized power of attorney and an apostilled copy of your passport. Templates will be provided.
Although there is no limited liability, you are still protected, as suing someone in Georgia can be a complicated task.
There are basically no restrictions. However, citizens of Syria, Libya, Iraq, Afghanistan, Iran, North Korea, and Russia may face difficulties opening a bank account in Georgia, which is essential for businesses.
Yes, you can select a brand name, but your own name will always appear on the registration.
Immediately after incorporation, but the 1% tax rate only begins the following month; before that, a 20% tax applies.
Payment can be made via international wire transfer in USD or with cryptocurrencies: BTC, ETH, USDC, or USDT. To do this, contact us.
We also accept credit card payments on the page above or PayPal with an additional 5% fee.
We can issue an invoice for the service. Please send us your preferred billing address.
Yes, if you have specific questions about offshore accounts or about residency and business in Georgia, we would be happy to help. Please also read the fact sheet and our articles above, where many other questions are answered.
If you have further questions, you can of course also book a consultation with our team.
If you would like to obtain residency or open accounts in Georgia, we also have trusted lawyers who can assist you with the process. To do so, simply get in touch.
You will be directed to our partner who handles company formations in Georgia. They will guide you through the entire process.