Government Agencies and Regulations
VAT
Government Agencies
Registration as a business entity entails a range of obligations established under the legislation of Georgia. These include the accurate calculation and timely payment of taxes, together with the preparation and submission of statutory reports, tax returns, declarations, and other mandatory filings in accordance with applicable legal requirements.
The National Agency of Public Registry provides services related to the registration, reorganization, and deregistration of business entities, as well as the registration of real estate and the administration of other registries established under the legislation of Georgia.
The Revenue Service is responsible for administering taxes and customs procedures and overseeing compliance with tax legislation and tax obligations.
Accounting, Reporting and Auditing Supervision Service (SARAS)
The Accounting, Reporting and Auditing Supervision Service (SARAS) is responsible for implementing and supervising financial reporting, auditing, and professional standards in accordance with the applicable legislation of Georgia.
The Pension Agency is responsible for the administration of the funded pension scheme, the recording of pension contributions, and the management of pension assets in accordance with applicable legislation
The National Statistics Office of Georgia (Geostat) is responsible for the production, processing, and dissemination of official statistics in accordance with the applicable statistical framework
The Labour Inspection Office oversees compliance with labour standards and occupational health and safety requirements across Georgia, in accordance with applicable legislation.
During the course of business activities, government authorities are responsible for carrying out registration, regulatory, and supervisory functions in accordance with applicable legislation.
Saldo Group's goal is to provide entrepreneurs with practical and accessible guidance throughout every stage of their business journey, from business registration to the ongoing conduct of economic activities. We offer information on the relevant government authorities, together with the legal obligations, reporting requirements, and regulations applicable under Georgian legislation.
How to Register a Business
Business registration for individual entrepreneurs and legal entities is administered by the National Agency of Public Registry. It involves registration in the Registry of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities and includes both state registration and tax registration in accordance with the legislation of Georgia.
Information regarding business registration, changes to registration details, and deregistration is transmitted electronically to the Revenue Service. Business registration services are available at Public Service Halls, territorial offices of the National Agency of Public Registry, and through authorized service providers.
Documents Required for Registration
To register as an individual entrepreneur or to amend existing registration details, a natural person must submit an application to the registration authority together with a valid Georgian identity document. If the applicant is a foreign citizen or a stateless person, they must submit an identity document that is recognized for the identification of individuals when performing notarial acts in accordance with the legislation of Georgia
The application must state the applicant’s full name, legal address, and personal identification number. For foreign citizens and stateless persons, the identification number of the identity document must also be provided.
To register a legal entity, an application must be submitted to the registration authority together with the founding agreement, proof of ownership or the legal right to use the registered office address, and the consent of the persons authorized to manage and represent the legal entity to exercise their respective powers, unless such consent is already included in the founding agreement.
How to Confirm Your Registration Has Been Completed
A business entity is deemed to be established from the moment it is registered in the relevant registry. The registration decision becomes effective upon its publication on the Unified Electronic Portal of the National Agency of Public Registry. Information confirming the successful completion of the registration process is sent to the applicant using the contact details provided during registration.
Accounting & Financial Reporting
Accounting is the process through which a company collects, records, summarizes, and systematically documents all financial transactions.
Financial reporting is the outcome of the accounting process and consists of a set of financial statements that present a company's financial position, financial performance, and cash flows for a specific reporting period.
Accounting and financial reporting are regulated by the Law of Georgia on Accounting, Reporting and Auditing.
Financial statements must be prepared in accordance with the International Financial Reporting Standards (IFRS) or the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), depending on the entity's size category.
Entity Size Categories and Financial Statement Submission
Entities submit their financial statements according to their size category. Georgian legislation classifies entities into four size categories, each with its own financial reporting and submission requirements.
Entity Classification by Size:
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Total assets exceed GEL 50 million.
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Revenue exceeds GEL 100 million.
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The average number of employees exceeds 250.
Category I Entity
Category I entities are required to maintain accounting records and prepare financial statements in accordance with International Financial Reporting Standards (IFRS). They are also required to have their financial statements and management reports audited. In cases prescribed by law, they must prepare and publish a Report on Payments to Governments.
Category II Entity
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Total assets do not exceed GEL 50 million.
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Revenue does not exceed GEL 100 million.
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The average number of employees does not exceed 250.
Category II entities are required to maintain accounting records and prepare financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). They may also choose to apply the International Financial Reporting Standards (IFRS). In addition, they are required to have their financial statements and management reports audited.
Category III Entity
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Total assets do not exceed GEL 10 million.
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Revenue does not exceed GEL 20 million.
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The average number of employees does not exceed 50.
Category III entities are required to maintain accounting records and prepare financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). They may also choose to apply the International Financial Reporting Standards (IFRS). Category III entities are exempt from the statutory audit requirement.
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Total assets do not exceed GEL 1 million.
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Revenue does not exceed GEL 2 million.
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The average number of employees does not exceed 10.
Category IV Entity
Category IV entities are required to maintain accounting records and prepare financial statements in accordance with the standard established by the Service for Accounting, Reporting and Auditing Supervision (SARAS). They may also choose to apply the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) or the International Financial Reporting Standards (IFRS). Category IV entities are exempt from the statutory audit requirement.
Financial statements for the previous reporting year must be submitted and published no later than 1 October of the current year.
TAX
Under the Tax Code of Georgia, the tax system consists of national and local taxes, which are administered in accordance with the applicable legislation.
VAT
A taxpayer's tax obligations depend on the legal form of the business, tax status, and the nature of its economic activities. During the course of business, taxpayers must ensure the accurate calculation, filing, and payment of taxes. Tax returns are filed on a monthly, quarterly, or annual basis, depending on the nature of the business activities and the type of tax concerned.
In most cases, tax returns are filed electronically through the taxpayer's personal account on the Revenue Service portal. Tax returns must be submitted within the deadlines established by the Tax Code of Georgia.
Types of Taxes
General State Taxes
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Personal Income Tax
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Profit tax
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VAT
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Excise Tax
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Import Tax
Tax Returns
Local Taxes
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Personal Income Tax
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Business entities are required to complete an information profile in their personal account on the Revenue Service portal, providing details of their business activities, banking information, place of management, and the types of tax returns they are required to file.
In addition to submitting tax returns, business entities may use their personal account on the Revenue Service portal to electronically issue, receive, and manage various types of primary tax documents.
Taxpayer's Personal Account
VAT
The personal account on the Revenue Service portal enables business entities to monitor tax assessments and payments, request VAT refunds, access tax and other important information, receive notifications regarding tax audits and official requests, and submit various applications electronically
A waybill is issued for the sale, transportation, or internal transfer of goods within a business entity.
A tax invoice is issued only by VAT-registered taxpayers upon the supply of goods or the provision of services. It serves as the official document supporting the deduction of input Value Added Tax (VAT).
SVAT
A Special Tax Invoice for Petroleum Products must be issued for the retail and wholesale supply of petroleum products in accordance with the procedures established by the Tax Code of Georgia.
A Combined Tax Document integrates the functions of both a tax invoice and a waybill. Once it has been issued for a transaction, there is no need to issue a separate waybill or tax invoice for the same transaction.
Tax
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Customs Procedures in Georgia
A customs procedure determines the purpose of importing, exporting, or moving goods within the customs territory of Georgia and establishes the applicable customs formalities. The customs procedure selected for the goods affects the declaration requirements, applicable duties and taxes, and other legal obligations.
Types of Customs Procedures:
Customs
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Import
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Export
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Re-export
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Transit
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Temporary Admission
Customs
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Customs Warehousing
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Free Zone Procedure
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Inward Processing
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Outward Processing
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Disposal of Goods
Through their personal account on the Revenue Service electronic portal, business entities may electronically submit the relevant customs declaration and supporting documentation for placing goods under a customs procedure. Declarations may be submitted either under the pre-arrival declaration procedure or under the standard declaration procedure.
A pre-arrival declaration may be lodged no more than 45 calendar days before the goods are imported into the customs territory of Georgia.
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Customs declarations are classified according to the customs procedure selected for the goods and are used for import, export, transit, re-export, temporary admission, inward processing, and other customs procedures.
Customs Declaration
For customs clearance to be completed without delay, all documentation required under the applicable legislation must be submitted in full. The required supporting documents vary depending on the type of goods, the customs procedure selected, and the terms of the specific transaction.
Main Documents Required for Customs Clearance:
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Commercial Invoice
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Transport Document
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Packing List
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Certificate of Origin (if applicable)
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Permits and Licences (if applicable)
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Contract or Other Supporting Transaction Document contract or Other Supporting Document
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Insurance Document (if applicable)
Once customs clearance has been completed, business entities can access their customs declaration through their personal account on the Revenue Service electronic portal. In many cases, they also receive an electronic notification specifying the customs duties and taxes payable.
Incoterms®
Incoterms® define the responsibilities of the seller and the buyer regarding the delivery of goods, transportation, insurance, the allocation of risks, and the allocation of costs. The selected Incoterms® rule has a significant impact on the determination of the customs value and the customs clearance process.
The applicable Incoterms® rule is generally stated in the commercial invoice and the international trade contract.
Funded Pension Scheme
The funded pension is an additional retirement savings scheme independent of the state pension. Participants become entitled to receive their accumulated pension savings upon reaching the statutory retirement age, in accordance with the procedures established by applicable legislation..
Participation in the funded pension system is mandatory for Georgian citizens and permanent residents employed in Georgia, except for non-residents. Participation is voluntary for self-employed individuals and persons who have reached the statutory retirement age, as provided by law.
Participation in the funded pension scheme is voluntary for individuals who, as of the date the law entered into force (6 August 2018), had already reached the age of 60 (for men) or 55 (for women), as well as for self-employed individuals. However, once enrolled in the scheme, participants are required to make pension contributions based on their salary or income earned from self-employment.
Retirement Contributions
The following pension contributions are credited to the individual pension account of an employee participating in the funded pension system:
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Employee's salary – 2%
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Employer contribution – 2%
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State contribution – 2% for annual income of up to GEL 24,000. 1% for annual income exceeding GEL 24,000 and up to GEL 60,000.
No state contribution is provided if the participant's annual income exceeds GEL 60,000.
The following pension contributions are credited to the individual pension account of a self-employed participant in the funded pension system::
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Self-employed contribution – 4%
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State contribution – 2% for annual income of up to GEL 24,000. 1% for annual income exceeding GEL 24,000 and up to GEL 60,000.
If a self-employed individual's annual income exceeds GEL 60,000, the participant is no longer eligible for the state pension contribution.
Administration of the Funded Pension System
The declaration and payment of pension contributions for employees and self-employed individuals are linked to the filing of the personal income tax return and must be made within the deadlines established by the legislation of Georgia.
The funded pension scheme is administered by the Pension Agency, which is responsible for maintaining participants' individual pension accounts, recording pension contributions, managing pension assets, and ensuring participants have access to relevant information.
Geostat collects and processes statistical data from various sectors. The information obtained is used to assess the country's economic, social, and demographic situation and to produce official statistical surveys. The main statistical survey subjects include:
Statistical Survey Entities
Enterprises and Institutions
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Foreign Investment Statistics
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Price Statistics
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Business Statistics
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Social Statistics
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Agriculture and Environment Statistics
Foreign Investment Statistic
Foreign Investment Statistics include statistical surveys on foreign economic activities and international trade in services. These surveys are designed to collect, process, and analyse data on foreign investments made in Georgia, as well as the export and import of international services.
Selected enterprises are required to submit the relevant statistical forms to Geostat. Depending on the type of survey, enterprises must submit quarterly and annual statistical reports, which are used to compile statistics on foreign investment and international trade.
Price Statistics
Price Statistics involve the collection and analysis of data on consumer prices, tariffs, and producer prices. These statistical surveys are used to measure inflation, monitor price changes, and assess economic trends.
The main statistical surveys conducted under Price Statistics include:
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Consumer Price and Tariff Statistical Survey
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Statistical Survey of Producer Prices for Products Intended for the Domestic Market
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Statistical Survey of Export Product Prices
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Statistical Survey of Import Prices
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Statistical Survey of Producer Prices in Construction
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Statistical Survey of Producer Prices for Freight Transport Services
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Survey of Construction Material and Service Prices Used to Calculate the Construction Cost Index.
Selected enterprises are required to submit the relevant statistical forms within the prescribed deadlines. The data collected is used to calculate price indices and other official statistical indicators.
Business Statistics
Business Statistics include the collection, processing, and analysis of data on the activities and performance of enterprises. The information is used to assess business activity, monitor economic developments, and produce official statistical indicators.
The main statistical surveys conducted under Business Statistics include:
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Statistical Survey of Enterprises
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Survey of the Financial Indicators of Non-Financial Corporations
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Survey of Enterprises Engaged in Financial Activities
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Survey of Innovative Activities of Enterprises
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Survey of Information and Communication Technology (ICT) Usage in Enterprises
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Survey of Hotels and Hotel-Type Establishments
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Statistical Surveys of the Construction Sector
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Statistical Surveys on Energy and Energy Consumption
Selected enterprises may be required to submit monthly, quarterly, or annual statistical reports to Geostat.
Social Statistics
A social statistical survey is a survey conducted by Geostat to collect and analyse information on the population's social conditions, standard of living, employment, income, education, health, and other social indicators.
Under the Social Statistics programme, enterprises, educational institutions, and other organisations selected by Geostat are required to submit statistical data on a quarterly and annual basis.
Agriculture and Environment Statistics
Agriculture and Environment Statistics include the collection and analysis of data on agricultural production, crop and livestock farming, aquaculture, natural resources, and environmental activities.
Statistical surveys involve farmers, agricultural enterprises, and other relevant organisations selected by Geostat. These participants are required to submit statistical data on a quarterly and annual basis.
International Comparison Program (ICP
The International Comparison Program (ICP) is an international statistical programme designed to compare the economic indicators of different countries using a common methodology. As part of the programme, data is collected on the prices of goods and services, as well as on economic activity.
The International Comparison Program (ICP) is important for businesses because its results are used to assess markets, price levels, purchasing power, and the overall economic environment. This information supports investment, export, and strategic business decision-making.
Employer Duties
Employers are required to provide employees with a safe and healthy working environment, assess occupational risks, implement preventive measures, and comply with the requirements of Georgia's occupational safety legislation.
For high-risk activities, employers are required to insure employees against occupational accidents at their own expense and cover all necessary costs related to occupational safety.
Employee Rights and Responsibilities
Employees have the right to receive information about workplace risks and safety measures, participate in discussions on occupational safety issues, refuse to perform work that poses a risk to their life or health, request safe working conditions, and receive compensation for any harm caused, in accordance with the procedures established by law.
Employees are obliged to comply with occupational safety rules and instructions, properly use work equipment and personal protective equipment, participate in trainings and instructions, promptly inform the employer of any hazardous conditions, and take care of their own safety as well as the safety of others.
Occupational Safety Management
Occupational safety management includes the assessment of occupational risks, implementation of preventive measures, conducting employee training and instructions, as well as recording and investigating workplace accidents and occupational diseases.
Compliance with occupational safety requirements is supervised by the Labour Inspection Service, which is authorised to carry out inspections and issue relevant instructions.