Verified August 2026 against Georgia's National Agency of Public Registry rules and Revenue Service Small Business Status regime, plus current guidance from Georgia-based advisory firms — Andersen in Georgia, IBCCS Tax, Gegidze, ExpatHub.GE, Georgia Expats — and ECS's own fact set on the Right to Labour Activity permit and residence-by-property threshold. However, we did not pull the primary statute text directly. So every figure below is cross-checked across at least two sources, and anything unconfirmed is flagged. Here's what actually happens once you set up a company in the country of Georgia, as distinct from the U.S. state of the same name.
You can register a company in Georgia — the country, not the U.S. state — as a 100% foreign owner. There's no local partner requirement and no citizenship test on shareholders. Even so, the real planning happens around what registration doesn't cover: which structure fits your income, who has to be Georgia-based on paper, and — since 2026 — a work-authorization requirement that registering a company doesn't satisfy on its own.
Short answer: most foreign founders choose between Individual Entrepreneur (IE) status under Georgia's 1% Small Business regime, and a standard LLC. Both allow full foreign ownership. LLC registration costs around 100 GEL (about $35) and takes one to two business days; IE registration is similarly fast. However, from 1 March 2026, foreign nationals actively working in Georgia separately need a Right to Labour Activity permit — company registration alone doesn't cover it.
| Individual Entrepreneur (1% Small Business Status) | Limited Liability Company (LLC) | |
|---|---|---|
| Ownership | One person; income is personal, not corporate | Up to 100% foreign-owned; multiple shareholders possible |
| Tax rate | 1% of turnover up to 500,000 GEL/year (~$180,000); 3% above that | Standard Georgian corporate tax framework — not eligible for the 1% regime |
| Who it suits | Freelancers, consultants, remote-service providers, solo digital businesses | Businesses with employees, multiple owners, or activities excluded from Small Business Status |
| Excluded activities | Legal, notarial, tax/audit consulting, medical, architectural, financial services, gambling, licensed activities | Not restricted the same way — standard corporate taxation applies instead |
| Registered local contact | Not typically required | A registered agent — a Georgian resident, citizen, or Georgia-based legal entity — is required on the company file |
| VAT | Triggers separately once turnover passes 100,000 GEL in any rolling 12 months (18%) | Same VAT threshold and rate applies |
Neither structure requires you to hire locally or live in Georgia to register. Both are commonly used by remote workers and small business owners relocating to Tbilisi or Batumi. In practice, the choice usually comes down to one question: is your income genuinely solo-freelance (IE), or does it involve a real company structure with employees or partners (LLC)?
Georgia also offers a handful of preferential regimes beyond the standard LLC or IE setup, most relevant to tech and export-oriented businesses. Two are worth knowing by name: Virtual Zone Person status, aimed at IT companies delivering services outside Georgia with significant tax advantages on qualifying income, and International Company Status, available to companies in specific sectors for reduced corporate and dividend tax rates. In addition, Free Industrial Zones offer further incentives for manufacturing and trade businesses operating inside a zone. These are genuinely useful for the right business. Even so, each comes with its own eligibility test, so a direct conversation with a Georgian accountant beats assuming your business qualifies.
Company formation and residency are separate processes in Georgia, but they interact. For instance, Georgia already grants visa-free entry for up to 365 days to citizens of 95+ countries. That's why many remote workers simply register a company and operate without pursuing residency at all. If you do want residency tied to investment, though, the property-based residence permit threshold rose to $150,000 as of March 2026 — a separate route from company ownership itself, and one worth confirming current terms on before relying on it.
Yes. Both an LLC and Individual Entrepreneur status allow full foreign ownership, with no local-partner or citizenship requirement on the owner.
No, but an LLC needs a registered agent on file — a Georgian resident, citizen, or Georgia-based legal entity — which is commonly filled by a local lawyer or corporate service provider for non-resident owners.
The National Agency of Public Registry charges around 100 GEL (about $35) for standard filing, with an optional 100 GEL expedite fee, plus a 50 GEL annual registration fee. Ongoing accounting and registered-agent fees are separate, recurring costs.
Individual Entrepreneur status with Small Business registration taxes qualifying turnover at 1% up to 500,000 GEL a year (about $180,000), but excludes certain regulated activities and is built for solo freelance-style income. An LLC follows standard corporate taxation, suits businesses with employees or multiple owners, and isn't eligible for the 1% rate.
Not by itself. From 1 March 2026, foreign nationals actively working in Georgia separately need a Right to Labour Activity permit, with a compliance deadline of 1 January 2027 for people already working there. Company registration and work authorization are two different requirements.
Georgia's company-registration process is genuinely fast. What catches people off guard is everything around it — which structure actually fits, who needs to be Georgia-based on paper, and the new labour-permit requirement. Talk to someone who knows — connect with ECS today.
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