How to Register a Micro Business in Georgia: 5 Simple Steps

Georgia offers freelancers and solo entrepreneurs something rare - a micro business status that comes with 0% tax on your income.

If you earn under 30,000 GEL per year (roughly $11,000), you can register as a micro business and keep every lari you make.

The process takes a single day at the Revenue Service, and you do not need residency or citizenship to qualify. This guide breaks down the exact steps to get your micro business registered and running.

Quick Summary:

• Micro business status means 0% tax on gross turnover under 30,000 GEL (~$11,000/year)

• No employees allowed under this status

• Registration takes one day at the Revenue Service (foreigners must visit Center N1)

• Documents needed: passport, Georgian phone number, legal address

• Annual income declaration required by April 1st each year

What Is Micro Business Status in Georgia?

Micro business status is a special tax regime designed for individuals earning modest incomes from self-employment. Unlike most countries where freelancers face income taxes of 20% or more, Georgia lets qualifying micro businesses pay nothing on their eligible earnings.

This status differs from the more commonly discussed Small Business Status. Small businesses pay 1% tax on gross turnover up to 500,000 GEL annually and can hire employees. Micro businesses pay 0% but face stricter limits - you must stay under 30,000 GEL and operate completely solo.

The micro business route works well for side hustlers, small-scale online sellers, part-time freelancers, and anyone testing a business idea before scaling up. You do not need Georgian citizenship or even residency to register. Citizens from over 90 countries - including the EU, UK, USA, Australia, and New Zealand - can enter Georgia visa-free for one year and set up a micro business during that time.

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Who Qualifies for Micro Business Status?

To qualify for micro business status, you must meet all of these requirements:

• Your annual gross turnover must stay below 30,000 GEL (approximately $11,000 USD at current exchange rates). This limit applies to your total business income within a calendar year running from January 1st to December 31st.

• You cannot have any employees. This is a solo operation only - no staff, no contractors working under you, no partners.

• Your business activity must not appear on the prohibited list (covered below).

• You can hold regular employment while running a micro business. However, your employment income gets taxed at the standard 20% rate. Only your micro business earnings qualify for the 0% rate.

Prohibited Activities for Micro Business Status

According to Georgian Government Resolution No. 415, the following activities cannot qualify for micro business status:

• Activities requiring specific licensing or permits fall outside the micro business framework. Currency exchange operations are excluded. All consulting work is prohibited - this includes tax consulting, business consulting, management consulting, and any other advisory services.

• Medical, legal, notarial, and auditing services do not qualify. Architectural services are also excluded. Gambling businesses cannot register as micro businesses. Trading activities are not permitted under this status.

• Any activity requiring significant capital investment or involving the production of excisable goods is excluded.

One important note: you are responsible for determining whether your activity qualifies. The Revenue Service approving your application does not protect you from penalties if your business actually falls under a prohibited category. If audited later, you would face back taxes and fines.

How to Register a Micro Business in Georgia: 5 Steps

Step 1. Gather Your Documents

Before visiting the Revenue Service, collect these items:

Your valid passport serves as your primary identification. Georgian citizens can use their national ID card instead.

You need a Georgian phone number. Local SIM cards cost around 5-10 GEL and are available at any mobile shop or supermarket. Magti, Geocell, and Beeline are the main carriers.

A legal address in Georgia is required for registration. This can be your rental apartment, a friend's address with their written consent, or a virtual office service. Virtual office providers in Tbilisi typically charge 300-750 GEL per year and handle any official correspondence sent to your registered address.

Step 2. Get a Georgian Tax ID

If you do not already have a Georgian tax identification number, you will receive one during this process.

Visit Revenue Service Center N1 in Tbilisi - this is the only location that serves non-Georgian citizens. The office is located at 16 V. Gorgasali Street in the Ortachala district.

You can also start the process online through videocall.rs.ge, which offers video call appointments with Revenue Service agents. This option works well if you want to prepare everything before your in-person visit.

Bring your passport and Georgian phone number. The tax ID registration happens on the same day.

Step 3. Set Up Your Revenue Service Online Portal

While at the Revenue Service office, ask the clerk to help you create your account on rs.ge - the Revenue Service's online tax portal.

This portal becomes your main tool for managing your micro business. You will submit declarations, view your tax status, and communicate with the Revenue Service through this system. Setting it up with a clerk present helps avoid language barriers and ensures everything connects properly to your tax ID.

Step 4. Submit the Micro Business Application

Request the micro business application form from the clerk. You will need to specify your main business activities using NACE codes - the European standard classification system for economic activities. The full list is available on the European Commission website.

Most Revenue Service agents speak basic English, but complex questions can get lost in translation. If you have specific concerns about whether your activity qualifies or how certain income should be classified, bring a Georgian speaker to help. Several agencies in Tbilisi offer this service for 50-150 GEL.

Fill out the application completely and submit it to the clerk for processing.

Step 5. Receive Your Certificate

If your application is approved, you receive your micro business certificate immediately. The status takes effect on the same day - there is no waiting period.

You can start operating your business and earning income under the 0% tax rate right away. Keep your certificate in a safe place, as you may need to reference it when opening a bank account or dealing with clients who request proof of your business registration.

Costs and Fees

Registering as a micro business in Georgia costs very little:

The micro business status application itself is free. There is no government fee for obtaining this tax status.

Getting your tax ID is also free.

Optional costs depend on your situation. A legal address service runs 300-750 GEL per year depending on the provider and services included. Professional assistance from an agency or tax advisor costs 150-300 GEL if you prefer guided help through the process. Translation or interpreter services at the Revenue Service typically cost 50-150 GEL for a few hours.

If you already have a Georgian address and feel comfortable handling paperwork in English, your total cost can be zero.

After Registration: Ongoing Requirements

Maintaining your micro business status requires minimal effort, but you must stay on top of a few obligations.

File an annual income declaration before April 1st each year. This simplified declaration reports your gross turnover for the previous calendar year. You submit it through your rs.ge portal account.

Monitor your turnover throughout the year. If your gross income exceeds 30,000 GEL at any point, you must switch to Small Business Status within 15 calendar days. Failing to do so cancels your micro business status automatically, and you would owe 20% tax on your net income according to Articles 79 and 82 of the Georgian Tax Code.

If you stop business activities entirely, submit your final annual income declaration within 30 days of ceasing operations.

Keep records of all income. While micro business accounting requirements are minimal, having documentation protects you during any audit.

Micro Business vs. Small Business Status: Which Should You Choose?

Both statuses offer favorable tax treatment, but they serve different situations.

Micro business status makes sense if your annual income stays comfortably below 30,000 GEL, you work completely alone, and your activity is not on the prohibited list. The 0% rate cannot be beaten.

Small business status fits better if you expect to earn between 30,000 and 500,000 GEL annually, you need to hire employees or contractors, or your work falls under a prohibited category for micro business (since the prohibited list differs slightly between the two statuses).

Upgrading from micro to small business is straightforward. If your income grows beyond 30,000 GEL, submit a small business status application within 15 days. Your new 1% tax rate takes effect from the first day of the following month.

Many entrepreneurs start with micro business status while building their client base, then transition to small business as revenue increases.

Tips for a Smooth Registration

Apply early in the month if possible. Since micro business status takes effect immediately upon approval, registering early gives you the full month of tax-free operation.

Keep records from day one. Even though micro businesses face minimal reporting requirements, documenting all income and business expenses protects you if questions arise.

Consider opening a Georgian bank account. While not strictly required - you can technically operate with foreign accounts - a local account simplifies receiving payments from Georgian clients and demonstrates business substance. TBC Bank and Bank of Georgia are the two largest options, both with English-language online banking.

FAQ

Do I need to be a resident of Georgia to register a micro business?

No, Georgian residency is not required for micro business registration. Citizens from over 90 countries can stay in Georgia visa-free for up to one year and register a business during that time. You also do not need to become a tax resident, though spending more than 183 days in Georgia during any 12-month period automatically makes you a tax resident.

Can I register a micro business remotely without visiting Georgia?

Yes, remote registration is possible using a Power of Attorney. You would need to prepare a POA document, have it notarized and apostilled in your home country, then send it to a representative in Georgia who completes the registration on your behalf. Several agencies offer this service for 500-1000 GEL including all steps.

How long does the micro business registration take?

The entire process can be completed in a single day. If you arrive at Revenue Service Center N1 with all required documents, you can walk out with your micro business certificate within a few hours. The actual processing time is often under 30 minutes once you reach a clerk.

What happens if my income exceeds 30,000 GEL?

You must apply for Small Business Status within 15 calendar days of exceeding the threshold. If you miss this deadline, your micro business status is automatically cancelled, and you become liable for 20% tax on your net income for the entire period. Acting quickly preserves your favorable tax treatment at the 1% small business rate.

Can I have employees with micro business status?

No, micro business status prohibits hiring any employees. This is a strict requirement with no exceptions. If you need staff, you must register as a small business instead, which allows employees while maintaining the 1% tax rate on your turnover up to 500,000 GEL.

Do I need a Georgian bank account for micro business?

A Georgian bank account is not legally required, but most serious micro business owners open one. Local accounts make it easier to receive payments from Georgian clients, demonstrate business activity if questioned, and handle local expenses. You can also receive international payments through services like Wise or Payoneer and pay Georgian taxes using foreign cards.

Is consulting work allowed under micro business status?

No, consulting of any kind is prohibited under micro business status. This includes tax consulting, business consulting, management consulting, marketing consulting, and any other advisory services. If your primary work involves giving advice to clients, you would need to register as a regular Individual Entrepreneur and pay 20% on net income.

Can I be employed and have a micro business at the same time?

Yes, you can hold regular employment while running a micro business. However, your employment income gets taxed at the standard 20% rate - it does not qualify for the 0% micro business treatment. Only income generated through your registered micro business activities falls under the favorable rate.

What is the difference between Individual Entrepreneur and Micro Business Status?

Individual Entrepreneur is a business registration type - it means you operate as a sole proprietor under your own name rather than forming a company. Micro Business Status is a tax regime that can apply to individual entrepreneurs meeting the qualifications. You first register as an Individual Entrepreneur, then apply for Micro Business Status if you qualify. Not all individual entrepreneurs have micro business status - many have small business status (1% tax) or pay the default 20% rate.

Do I need to pay VAT as a micro business?

VAT registration becomes mandatory only when your turnover exceeds 100,000 GEL in any 12-month period. Since micro businesses are capped at 30,000 GEL annually, you will never reach this threshold while maintaining micro status. If you later upgrade to small business and grow beyond 100,000 GEL, VAT obligations would apply at that point.

Final Thoughts

Registering a micro business in Georgia gives qualifying entrepreneurs a rare opportunity - running a legitimate business with zero income tax. The process takes a single day, costs nothing beyond optional services, and requires no residency or citizenship.

Gather your passport, get a Georgian phone number, secure a legal address, and head to Revenue Service Center N1. With your documents ready, you could have your micro business certificate by afternoon.