An Individual Entrepreneur is not considered a separate legal entity but rather a form through which an individual person can legitimize their business activities. As an Individual Entrepreneur, you maintain personal liability for any debts or legal issues that may arise within your business.
The small business status is specifically designed to cater to Individual Entrepreneurs, offering them certain advantages. One such advantage is the ability to pay a reduced tax rate of just 1% on their turnover, provided that the annual turnover does not exceed 500,000 Georgian Lari (equivalent to approximately $190,000 US dollars). This favorable tax rate makes registering as an Individual Entrepreneur particularly beneficial for freelancers or those operating small businesses, as it allows for the lowest possible tax burden.
It is important to note that while the Individual Entrepreneur status offers tax advantages, it also entails assuming personal responsibility for any debts or legal matters arising from the business. This means that your personal assets could be at risk in the event of financial or legal issues.
By registering as an Individual Entrepreneur, you gain the benefit of the reduced tax rate, which can help optimize your tax obligations. However, it is crucial to carefully consider the potential risks and liabilities associated with this business type and seek professional advice to ensure that it aligns with your specific circumstances and goals.
Benefits:
- Impressive tax rate – 1% for annual turnover less then 500 000 Georgian Lari. (*If your annual turnover exceeds the 500,000 GEL annual threshold, you will be taxed 3% on turnover for all income starting from the month in which the threshold was exceeded, for the remainder of the tax year.)
- No need for employees or director.
- You do NOT need to be a legal resident or a citizen of Georgia.
Our service includes:
- Preparation of documents (contract; Power of attorney)
- Permanent legal address
- Registering of IE
- Registration in Tax office
- Certificate of small business status
- All relevant fees and charges on the territory of Georgia
- Legal Support