The first question everyone moving to Georgia asks: should I register as an IE or an LLC? The short answer: look at your turnover, your hiring plans, and whether you need outside investment.

TL;DR

If you are a solo operator with turnover up to ₾ 500,000 a year — go with an IE under Small Business 1%. If you plan to hire a team, raise investment, or work with enterprise clients — go with an LLC.

Side-by-side comparison

IE

Individual Entrepreneur
  • Tax1%
  • Turnover cap₾ 500,000
  • Registration1 day
  • Costfrom ₾ 350
  • Reportingmonthly
  • Hiringup to 5 people
  • Liabilitypersonal assets
  • Investorsno

LLC

Limited Liability Company
  • Tax15% / 5% IT
  • Turnover capnone
  • Registration1–2 days
  • Costfrom ₾ 580
  • Reportingannual + VAT
  • Hiringunlimited
  • Liabilitycharter capital
  • Investorsyes

When to choose an IE

An IE is the best fit for solo entrepreneurs with predictable turnover:

  • Freelancers and remote workers (developers, designers, marketers)
  • Marketplace sellers (Amazon, Etsy, Wildberries — within the turnover cap)
  • Consultants and experts not on the prohibited list
  • Photographers, videographers, producers running small projects
!
Important: the ₾ 500,000 cap

If your turnover exceeds the cap by even ₾ 1 within a year, your Small Business status is revoked and your entire annual income is recalculated at 20%. So if you are approaching the limit, open an LLC ahead of time.

When to choose an LLC

An LLC (Georgian შპს, English LLC) is for those building a real company:

  • IT startups aiming for Virtual Zone status (5%)
  • Businesses with turnover above ₾ 500,000
  • Companies with multiple founders or investors
  • Teams of 5+
  • Businesses dealing with VAT-registered counterparts in the EU

The benefit: limited liability

Unlike an IE, with an LLC you only risk your charter capital (formally as little as ₾ 1). Your personal assets are protected.

Can you switch later

Yes. If you started as an IE and outgrew it, you open an LLC, migrate your contracts, and gradually wind down the IE. We do this kind of migration regularly — it takes 2–3 weeks and costs around ₾ 800–1,200.

"Open what you need today. Bridges you burn can be rebuilt in two weeks."

Ready to start?

Free consultation — 15 minutes. We will tell you whether this service fits and how we will deliver it.

Get consultation