Sole trader in Georgia and 1% tax: starting a business in Batumi
Almost all my clients who open their own business in Batumi — a shop, a workshop, a studio, an agency — start with one question: "how do I register and how much tax do I pay". Here are the basics; the articles in the Business section cover specific kinds of business. I am not a lawyer or an accountant: check details with the tax office or a consultant; sources are linked below.
Individual entrepreneur (sole trader)
The simplest form for a small business is an individual entrepreneur. Registration is at the Public Service Hall; according to open sources, with documents ready it takes from one to a few working days, and the state fee is small. A foreigner does not need a residence permit to register as a sole trader; documents in a foreign language are translated and notarised.
Small business status — 1% tax
- After registering as a sole trader, small business status must be requested separately in your account on rs.ge — it does not switch on by itself.
- The tax is 1% of turnover while annual turnover does not exceed 500,000 ₾; turnover above that amount is taxed at 3%.
- If turnover exceeds 500,000 ₾ two years in a row, the status is removed.
- Not every activity qualifies: for example, consulting services in some cases do not fall under the status — check your activity with the tax office.
- 1% is income tax; VAT is counted separately once turnover reaches the VAT registration threshold.
Cash registers
When taking cash, a cash register registered with the tax office is required (with exceptions — for example, street trading). From 1 May 2028, under amendments to the Tax Code, cash registers and terminals of the new standard working in a single system will become mandatory. The register is set up by its supplier — I help with the computers, network and internet around it.
If you are a foreigner
From 1 March 2026 foreigners need a work permit for employment in Georgia in a number of cases. How this applies to your own business — check on the Ministry of Labour portal: the rules are new and interpretations in sources differ.
What to do in the first week
- Register as a sole trader and request small business status.
- Open a business bank account.
- Set up email on your own domain rather than a personal Gmail.
- Create a Google Maps profile (Google Business) — clients in Batumi search there.
- Make a simple website or at least a page with prices and WhatsApp.
- Set up backups of work files from day one.
How I can help
Computers and a network for an office or shop, email on your domain, a business card website (from 150 ₾), a Google profile, backups, AI training for working with texts and clients. I do not handle registration and taxes — for that you need an accountant.
Everything for the start in one pack — website, Google, email, WhatsApp Business and business cards: Business starter pack →
Sources: ExpatHub — sole trader and 1% small business status · Gegidze — sole trader registration in 2026 · Gegidze — activities that rule out the 1% status · Revenue Service of Georgia · Revenue Service — cash registers · GBC — new cash registers mandatory from May 2028 · Ministry of Labour of Georgia — work permits