How to Get 1% Small Business Status in Georgia
Georgia’s 1% tax rate sounds simple until you actually try to get it. Registering as an Individual Entrepreneur doesn’t automatically give you Small Business Status. They’re two separate applications with two different government bodies, and mixing up the order, or missing one document, can cost you weeks. This guide walks through exactly how to register, in the right order, with the real fees, realistic timelines, and the business activities that don’t qualify.
This is a practical walkthrough of the registration process, not legal or tax advice. Confirm anything time-sensitive directly with the Revenue Service or a local accountant before you file.
What You’ll Need Before You Start
Two different government bodies handle this process, and it helps to know that going in. The National Agency of Public Registry (NAPR) registers you as an Individual Entrepreneur. The Revenue Service, through rs.ge, grants Small Business Status afterward. You’ll deal with both, in that order.
Have these ready:
- A valid passport (no Georgian residency or citizenship required)
- A legal address in Georgia to register your business at (a lease, property deed, or notarized consent from the property owner if you don’t own property here)
- A short, clear description of what your business actually does
- A Georgian phone number and email address, useful for setting up your rs.ge account
Budget roughly a week from a standing start: one business day (or same day, if expedited) to register as an Individual Entrepreneur, then a few more business days for Small Business Status to clear. One more thing worth checking before you go further: your specific business activity has to be eligible for the 1% rate in the first place. We cover exactly which activities are excluded later in this guide, so it’s worth a quick look before you invest time in the process.
Step 1: Register as an Individual Entrepreneur
Small Business Status doesn’t exist on its own. It’s a tax election layered on top of a basic business registration, so the first move is becoming a registered Individual Entrepreneur (IE), Georgia’s version of a sole proprietor.
Where to register
IE registration is handled by the National Agency of Public Registry, a division of the Ministry of Justice, not the Revenue Service. You file at a Public Service Hall (Tbilisi and Batumi both have one, along with several other cities), or through a notarized power of attorney if you can’t travel to Georgia.
Who can register
Any adult can register as an IE, Georgian citizen or not. You don’t need a residence permit, a local sponsor, or even to be physically present if you use a power of attorney. You do need a legal address in Georgia to register the business at. If you don’t own property here, the owner needs to give notarized consent for you to use their address.
What it costs
The National Agency of Public Registry’s official fee schedule lists two options: 26 GEL for standard processing, about one working day, or 75 GEL for same-day service. If you’d rather not handle the paperwork yourself, local lawyers and relocation agencies offer done-for-you registration for an additional service fee on top of that government charge. Get any agency quote in writing before you commit, since rates vary widely and aren’t the same as the government fee.
What you get
Once registered, you’re issued a personal number, which doubles as your tax ID, and you’re now a legal Individual Entrepreneur. At this point you’re automatically taxed under Georgia’s standard regime, 20% on net profit, not the 1% rate. That only kicks in after step two.
Step 2: Apply for Small Business Status Through rs.ge
This is the step people skip or delay, and it’s the one that actually gets you the 1% rate. Small Business Status is a separate application to the Revenue Service, filed after your IE registration exists, not before and not automatically.
Where to apply
Log into your personal cabinet on rs.ge, the Revenue Service’s online portal. If registering your IE didn’t already generate your rs.ge account and credentials, you can request access there directly. From your cabinet, you submit a statement requesting Small Business Status.
Documents and cost
There’s no extra paperwork here. You’re not submitting new documents, just filing a statement that references your existing IE registration. There’s also no separate government fee to apply, unlike the IE registration step.
Timeline
The Revenue Service typically reviews the application within a few business days. As of a Ministry of Finance amendment effective March 7, 2026, Small Business Status takes effect from the date you submit your application, not the first of the following month as it used to work before that change. If you’re reading older guidance, including some still-uncorrected sources, that tells you to time your application around the start of a month, that advice is now out of date.
Fees and Timeline at a Glance
| Step | Who handles it | Cost | Timeline |
|---|---|---|---|
| IE registration (standard) | NAPR / Public Service Hall | 26 GEL | About 1 business day |
| IE registration (expedited) | NAPR / Public Service Hall | 75 GEL | Same day |
| Small Business Status application | Revenue Service (rs.ge) | No government fee | Reviewed within a few business days |
| Small Business Status becomes effective | Revenue Service (rs.ge) | Not applicable | Date of application (since a March 7, 2026 rule change) |
These are government charges only. A lawyer, accountant, or relocation agency handling the process for you will add their own service fee on top.
Who’s Excluded From Small Business Status
Registering as an IE is close to automatic. Qualifying for the 1% rate is not. Your business activity has to be eligible in the first place, and your annual turnover has to stay under 500,000 GEL. Georgia’s Tax Code addresses Small Business Status in its chapter on special taxation regimes and rules out several activity categories entirely, regardless of turnover.
You won’t qualify if your business is primarily:
- Legal, notarial, or advocacy services
- Audit, bookkeeping, accounting, or tax consulting
- Medical services
- Architectural services
- Currency exchange, banking, lending, or other financial intermediation
- Gambling
- Staffing or employment agency services
- Producing or trading excise-taxed goods, such as alcohol, tobacco, or fuel
- Any activity that requires a special license or permit, with one notable exception: M1-category taxi permits in Tbilisi are fine
The construction carve-out, since February 2025
If you provide construction, civil engineering, or specialized construction services, the 1% rate no longer applies when your client is a Georgian company, organization, or another Individual Entrepreneur. That income now falls under the standard 20% regime instead. Construction services sold directly to private individuals still qualify for the 1% rate. This changed under a government decree effective February 1, 2025, so if you looked into this more than a year or two ago, it’s worth checking again.
A related note on income type
Even with valid Small Business Status, a few income types are always taxed at standard rates no matter what: rental income, capital gains, interest, dividends, and salary from employment, for example. That’s a separate mechanic from activity eligibility, and it’s covered in more depth in our full guide to how the monthly filing actually works.
What Happens After You’re Registered
Once your Small Business Status is active, the monthly clock starts. You’ll need to file a tax declaration through rs.ge every month from your effective date onward, even in months you made no money, and pay 1% of that month’s turnover by the deadline.
Working out what actually counts as turnover for the month, and separating it cleanly from personal transfers, refunds, or other non-business deposits, is where most new IEs get stuck. For the full breakdown of how the monthly 1% filing actually works, including deadlines and what counts as turnover, see our complete guide to Georgia’s 1% tax for small business.
That’s also exactly the gap Tax-Calculator.ge fills. Enter your bank statement activity for the month, and it sorts out your turnover and calculates the number you need to declare, so you’re not doing it by hand in a spreadsheet every month.
And if you’d rather not deal with the Public Service Hall or rs.ge at all, the team at Tbilisi-Expat.com registers IEs, gets Small Business Status sorted, and can take over the monthly filings afterward. The first consultation is free.
Key Takeaways
- Small Business Status isn’t automatic. You first register as an Individual Entrepreneur through the National Agency of Public Registry, then separately apply for Small Business Status through rs.ge.
- Foreigners can register with just a passport. No residency permit or citizenship is required, and remote registration is possible with a notarized power of attorney.
- IE registration costs 26 GEL standard, about 1 business day, or 75 GEL expedited, same day. Applying for Small Business Status itself carries no government fee.
- Since a March 7, 2026 rule change, your 1% rate takes effect from the date you apply, not the 1st of the following month as it used to.
- Certain activities are excluded outright, including legal, medical, financial, and licensed professional services, plus B2B construction services since February 2025.
- Once you’re active, monthly filing begins, and that’s where a tool like Tax-Calculator.ge takes over.
Frequently Asked Questions
Do I need to be a resident of Georgia to get 1% Small Business Status?
No. There’s no residency or citizenship requirement for either Individual Entrepreneur registration or Small Business Status. You need a valid passport and a legal address in Georgia to register your business at, but you don’t need a residence permit to hold either status.
Can I register as an Individual Entrepreneur without traveling to Georgia?
Yes. You can register remotely using a notarized power of attorney, which lets a representative file the application on your behalf at a Public Service Hall. Many expats set up their IE this way before relocating.
Is Small Business Status the same thing as being an Individual Entrepreneur?
No, they’re two different things. Individual Entrepreneur is your basic business registration, similar to a sole proprietorship, while Small Business Status is a separate tax election that gets you the 1% rate on turnover instead of the standard 20% on net profit.
How much does it cost to register as an Individual Entrepreneur?
The National Agency of Public Registry charges 26 GEL for standard processing, about one business day, or 75 GEL for same-day service. These are the official government fees. If you use a lawyer or agency to handle it for you, expect an additional service charge on top.
Is there a fee to apply for Small Business Status?
No. Applying for Small Business Status through your rs.ge personal cabinet doesn’t carry a separate government fee. The only cost in the process is the Individual Entrepreneur registration fee.
How long does the entire process take from start to finish?
Budget about a week if everything is in order: one business day, or same day if expedited, for Individual Entrepreneur registration, then a few more business days for the Revenue Service to approve your Small Business Status application.
When does my 1% tax rate actually start applying?
Since a Ministry of Finance amendment effective March 7, 2026, your 1% rate takes effect from the date you submit your Small Business Status application. Before that change, it only kicked in on the 1st of the following month, so double-check the date on any older guidance you’re reading.
What business activities don’t qualify for Small Business Status?
Legal, notarial, medical, architectural, audit, accounting, and financial services are excluded, along with gambling, staffing agencies, and businesses trading excise-taxed goods like alcohol or tobacco. Most activities requiring a special license are also excluded, with an exception for Tbilisi’s M1-category taxi permits. Since February 2025, construction services sold to businesses, rather than individuals, no longer qualify either.
Can I get Small Business Status if I also have a regular job?
Having employment income doesn’t disqualify you from Small Business Status on your IE income. The two are taxed separately. Your salary continues to be taxed as employment income at the standard rate, while your IE turnover gets the 1% rate as long as your activity qualifies.
What happens if I go over the annual turnover limit?
Income above 500,000 GEL in a calendar year is taxed at 3% instead of 1% for the portion over the threshold, and you keep your status for that year. If you exceed the limit two years in a row, you lose Small Business Status starting January 1st of the third year.
Do I need a Georgian bank account to register?
No, a Georgian bank account isn’t a legal requirement to register as an Individual Entrepreneur or to hold Small Business Status. Many IEs open one anyway because it makes tracking business turnover for monthly filing much simpler than sorting it out of a foreign account.