Government Institutions and Regulatory Requirements
VAT
Registration as an entrepreneurial entity entails various legal obligations under Georgian legislation. These include the proper calculation and payment of taxes, compliance with reporting requirements, and the timely submission of tax declarations, financial reports, and other mandatory forms prescribed by law.
Government authorities play an important role in business operations by carrying out registration, regulatory, and supervisory functions in accordance with applicable legislation
At Saldo Group, our goal is to provide entrepreneurs with practical and accessible guidance throughout every stage of their business journey—from business registration to day-to-day operations. We help navigate key government authorities, legal obligations, regulatory requirements, and compliance responsibilities to support informed and confident business decisions
Government Agencies
The National Agency of Public Registry is responsible for the registration and cancellation of entrepreneurial entities, as well as the administration of real estate and other registries established in accordance with Georgian legislation.
The Revenue Service is responsible for administering taxes and customs procedures, ensuring tax compliance, and overseeing the fulfillment of tax obligations in accordance with applicable legislation.
The Accounting, Reporting and Auditing Supervision Service (SARAS)
The Accounting, Reporting and Auditing Supervision Service (SARAS) is responsible for the implementation and supervision of financial reporting, auditing, and professional standards in
The Pension Agency is responsible for administering the funded pension scheme, maintaining records of pension contributions, and overseeing the management of pension assets in accordance with applicable legislation.
The National Statistics Office of Georgia (Geostat) is the official authority responsible for collecting, producing, processing, and disseminating statistical information in Georgia.
The Labour Inspection Office is responsible for monitoring and enforcing compliance with labour legislation and occupational safety requirements across Georgia.
Registration Process
The National Agency of Public Registry is responsible for the registration of individuals and legal entities engaged in entrepreneurial activities. Registration includes entry into the Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities and covers both state and tax registration procedures.
Information on business registration, changes to registered data, and cancellation of registration is electronically shared with the Revenue Service. Entrepreneur registration services may be obtained through Public Service Halls, territorial offices of the National Agency of Public Registry, and other authorized persons.
Required Registration Documents
To register as an Individual Entrepreneur or to amend registered information, an individual must submit an application and a valid Georgian identity document to the registering authority. In the case of a foreign citizen or a stateless person, an identification document recognized for personal identification in notarial procedures must be provided.
The application must contain the applicant’s full name, legal address, and personal identification number. For foreign citizens and stateless persons, the identification number of the document used for personal identification must be provided.
To register a legal entity, an application must be submitted to the registering authority together with the entity’s founding agreement, documentation confirming the legal address, and the consent of individuals authorized to manage and represent the entity, unless such consent is already incorporated into the founding agreement
How to Confirm the Completion of Registration
An entrepreneur is considered legally established upon registration in the relevant register. The registration decision takes effect once it is published on the Unified Electronic Portal of the National Agency of Public Registry. Upon successful completion of the registration process, the applicant receives a notification through the contact information provided during the application
Accounting and Financial Reporting
Accounting is the process through which a company collects, records, summarizes, and systematically presents all financial transactions
Financial reporting represents the result of the accounting process and comprises a set of financial statements that provide information about a company’s financial position, financial performance, and cash flows for a specific reporting period.
Accounting and financial reporting in Georgia are governed by the Law of Georgia on Accounting, Reporting and Auditing, which establishes the legal framework for accounting, financial reporting, and auditing activities.
Financial statements are required to be prepared in accordance with International Financial Reporting Standards (IFRS) or the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), depending on the size classification of the entity and the applicable reporting requirements
Entity Size Categories and Financial Reporting Requirements
Entities are required to submit financial statements based on their size category. Georgian legislation defines four size categories of entities, each with its own financial reporting and submission requirements.
Entity Size Categories:
- The total value of assets exceeds GEL 50 million.
- Revenue exceeds GEL 100 million.
- Average number of employees exceeds 250.
Category I Entity
A Category I entity is required to maintain accounting records and prepare financial statements in accordance with International Financial Reporting Standards (IFRS). In addition, it must obtain an independent audit of its financial statements and management report. Where required by applicable legislation, the entity must also prepare and publicly disclose a report on payments made to government authorities
Category II Entity
- The entity’s total assets do not exceed GEL 50 million.
- Revenue does not exceed GEL 100 million.
The entity’s average number of employees does not exceed 250.
A Category II Entity is 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), although it may voluntarily apply full International Financial Reporting Standards (IFRS). The entity is also required to ensure the audit of its financial statements and management report in accordance with applicable legal requirements.
Category III Entity
- Total assets do not exceed GEL 10 million.
- Revenue does not exceed GEL 20 million.
- Average annual number of employees does not exceed 50.
A Category III Entity is 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), although it may voluntarily apply full International Financial Reporting Standards (IFRS). Unlike Category I and Category II entities, a Category III Entity is not subject to a mandatory audit requirement.
- The total value of assets does not exceed GEL 1 million.
- Revenue does not exceed GEL 2 million
- The average annual number of employees does not exceed 10.
Category IV Entity
A Category IV entity is required to maintain accounting records and prepare financial statements in accordance with the reporting standard prescribed by the Accounting, Reporting and Auditing Supervision Service (SARAS). It may also elect to prepare its financial statements under IFRS for SMEs or full International Financial Reporting Standards (IFRS). Financial statements of Category IV entities are not subject to a mandatory audit requirement.
Financial statements for the previous reporting year must be submitted and publicly disclosed no later than 1 October of the current year.
Types of Taxes in Georgia
TAX
According to the Tax Code of Georgia, the tax system includes state and local taxes, which are administered in accordance with applicable legislation.
VAT
State Taxes
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საშემოსავლო გადასახადი
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მოგების გადასახადი
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დღგ
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აქციზი
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იმპორტის გადასახადი
An entrepreneur’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 operations, entrepreneurs must ensure the accurate calculation, declaration, and payment of taxes. Tax returns are submitted on different reporting schedules—monthly, quarterly, or annually—depending on the nature of the business activities and the
Tax returns are generally submitted electronically through the entrepreneur’s personal account on the Revenue Service portal. All tax returns must be filed within the statutory deadlines prescribed by the Tax Code of Georgia.
Tax Returns
Local Tax
- Property Tax
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Through the personal electronic account, the entrepreneur is required to complete an information card containing details of the business activity, banking information, place of management, and the types of tax returns and reports applicable to the business.
In addition to submitting tax returns, entrepreneurs have access to a range of electronic services through their personal account on the Revenue Service portal, including the electronic issuance, receipt, and management of various types of primary documents.
Personal Account on the Revenue Service Portal
VAT
The Revenue Service’s electronic personal account provides entrepreneurs with access to a wide range of electronic services, including monitoring tax liabilities and payments, requesting VAT refunds, reviewing tax and regulatory information, receiving notifications regarding audits and official requests, and submitting various applications electronically.
A waybill is issued in cases involving the sale, transportation, or internal transfer of goods within a business entity.
A tax invoice is issued exclusively by VAT-registered taxpayers when supplying goods or providing services. It serves as the official document supporting the crediting and deduction of Value Added Tax (VAT) in accordance with applicable tax legislation.
SVAT
A special petroleum products invoice must be issued for the retail and wholesale supply of petroleum products in accordance with the procedures established by the tax legislation of Georgia.
A combined tax document serves as both a tax invoice and a waybill. When such a document is issued, separate issuance of a tax invoice or a waybill for the same transaction is not required.
Tax
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A customs regime establishes the purpose for which goods are imported into, exported from, or moved within the customs territory of Georgia and determines the customs procedures applicable to those goods. The selected customs regime has a direct impact on declaration requirements, customs duties, taxes, and other obligations prescribed by law.
Customs Procedures and Regimes in Georgia.
Types of Customs Regimes:
Customs
- Import
- Export
- Reexport
- Transit
- Temporary Admission
Customs
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საბაჟო საწყობი
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თავისუფალი ზონა
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შიდა გადამუშავება
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გარე გადამუშავება
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საქონლის განკარგვა
Through their personal account on the Revenue Service’s electronic portal, entrepreneurs may electronically submit customs declarations and supporting documents required for placing goods under the relevant customs procedure. Customs declarations may be filed either under the advance declaration procedure or under the non-advance declaration procedure, in accordance with applicable customs regulations.
An advance customs declaration may be submitted up to 45 calendar days before the goods enter the customs territory of Georgia.
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Customs declarations are categorized based on the customs procedure (regime) applied to the goods and are used in connection with import, export, transit, re-export, temporary admission, inward processing, and other customs procedures established under customs legislation.
Customs Declaration
The efficient processing of customs clearance requires the complete and accurate submission of all documentation prescribed by law. The required documentation may vary depending on the nature of the goods, the customs procedure applied, and the specific conditions of the transaction.
Key Documents Required for Customs Clearance:
- Commercial Invoice
- Transport Document
- Packing List
- Certificate of Origin (if applicable)
- Permits and Licenses (if applicable)
- Contract or Other Transaction Documents (if applicable)
- დაზღვევის დოკუმენტი (საჭიროების შემთხვევაში)
After the completion of customs clearance, entrepreneurs may access the customs declaration through their personal account on the Revenue Service’s electronic portal. In addition, notifications regarding customs duties, taxes, and other payable charges are often issued electronically.
Incoterms®
Incoterms® (International Commercial Terms) establish the obligations of sellers and buyers regarding the delivery of goods, transportation arrangements, insurance, transfer of risk, and allocation of costs. The applicable Incoterms® rule plays an important role in determining the customs value of goods and may significantly affect customs clearance procedures..
Incoterms® terms are usually indicated in the commercial invoice and the international sales contract.
Funded Pension System
A funded pension is an additional retirement savings scheme separate from the state pension. Participants receive their accumulated pension benefits upon reaching retirement age in accordance with applicable legislation.
Under Georgian legislation, participation in the funded pension scheme is mandatory for employed Georgian citizens and permanent residents, with the exception of non-residents. Participation is voluntary for self-employed individuals and for persons who have reached the statutory retirement age.
Participation in the funded pension scheme is voluntary for individuals who had attained the age of 60 (for men) or 55 (for women) by the date the legislation entered into force (6 August 2018), as well as for self-employed persons. Upon joining the scheme, participants are required to make pension contributions based on their employment income or taxable income derived from self-employment, in accordance with applicable legislation.
Pension Contributions
Under the funded pension scheme, the following amounts are credited to the employee’s individual pension account:
- 2% of the employee’s salary
- Employee Contribution – 2%
- State Contribution – 2% for annual income up to GEL 24,000; 1% for annual income from GEL 24,000 to GEL 60,000.
For participants whose annual income exceeds GEL 60,000, no state co-contribution is provided under the funded pension scheme.
The following contributions are credited to the individual pension account of a self-employed participant under the funded pension scheme:
- Self-Employed Contribution – 4%
- State Contribution – 1% (annual income from GEL 24,000 to GEL 60,000)
Where the annual income of a self-employed participant exceeds GEL 60,000, the participant is not entitled to receive the state co-contribution under the funded pension scheme.
Funded Pension Scheme Administration
The reporting and remittance of pension contributions for employees and self-employed individuals are associated with the submission of income tax declarations and must be completed in accordance with the deadlines prescribed by Georgian legislation.
The Pension Agency is responsible for the administration of the funded pension scheme, including the maintenance of individual pension accounts, recording and allocation of pension contributions, management of pension assets, and the provision of relevant information and services to scheme participants.
The National Statistics Office of Georgia (Geostat) collects and processes statistical data across a wide range of sectors. The information gathered is used to evaluate the country’s economic, social, and demographic conditions and to produce official statistics and analytical reports. The primary subjects of statistical surveys include:
Entities Subject to Statistical Surveys
Enterprises and Institutions
- Foreign Direct Investment (FDI) Statistics
- Price Statistics
- Business Statistics
- Social Statistics
- Agricultural and Environmental Statistics
Foreign Investment Statistics
Foreign Investment Statistics encompass statistical surveys related to external economic activities and international trade in services. These surveys aim to collect, process, and analyse data on foreign investment inflows, as well as the export and import of services, in order to support economic analysis and informed decision-making.
Enterprises selected for statistical surveys are required to submit the relevant statistical forms to Geostat. Depending on the nature of the survey, quarterly and annual statistical reports must be filed and are used for the collection, processing, and production of official statistics on foreign investment and international trade
Price Statistics and Indices
Price Statistics encompass the collection, processing, and analysis of data relating to consumer prices, tariffs, and producer prices. The resulting information is used to measure inflation, evaluate price movements, and monitor broader economic trends and developments.
The principal statistical surveys conducted under Price Statistics include:
- Consumer Price and Tariff Survey
- Statistical Survey of Producer Prices for Products Intended for the Domestic Market
- Statistical Survey of Export Prices
- Statistical Survey of Import Prices
- Statistical Survey of Producer Prices in Construction
- Freight Transportation Producer Price Survey
- Statistical Survey of Construction Material and Service Prices for the Calculation of the Construction Cost Index.
Selected enterprises are obligated to submit the required statistical forms within the deadlines established by law. The information collected through these surveys is used for the compilation of price indices and other official statistical indicators published by the National Statistics Office of Georgia (Geostat).
Business Statistics
Business Statistics encompass the collection, processing, and analysis of data relating to the economic activities of enterprises, financial indicators, innovation, the use of information and communication technologies (ICT), energy consumption, and other business-related processes. These statistics provide valuable information for economic analysis, policymaking, and business development.
The principal statistical surveys conducted under Business Statistics include:
- Enterprise Statistical Survey
- Statistical Survey of Financial Indicators of Non-Financial Corporations
- საფინანსო საქმიანობით დაკავებული საწარმოების გამოკვლევა.
- საწარმოთა ინოვაციური აქტივობის გამოკვლევა.
- საწარმოებში საინფორმაციო-საკომუნიკაციო ტექნოლოგიების გამოყენების გამოკვლევა.
- სასტუმროებისა და სასტუმროს ტიპის დაწესებულებების გამოკვლევა.
- მშენებლობის სფეროს სტატისტიკური გამოკვლევები.
- ენერგეტიკისა და ენერგორესურსების მოხმარების სტატისტიკური გამოკვლევები.
Enterprises selected for statistical surveys may be required to submit monthly, quarterly, or annual statistical forms to Geostat, depending on the nature and requirements of the respective survey.
Social Statistics
A social statistical survey is conducted by Geostat to collect, process, and analyse data on the social and economic well-being of the population. These surveys cover areas such as living standards, employment, income, education, health, and other key social indicators used for statistical and policy analysis.
As part of Social Statistics surveys, enterprises, educational institutions, and other organizations selected by Geostat are required to submit statistical data and reports on a quarterly and annual basis in accordance with the requirements of the respective survey.
Agriculture and Environmental Statistics
Agricultural and Environmental 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 selected by Geostat, agricultural enterprises, and other relevant entities, which are required to submit statistical information on a quarterly and annual basis in accordance with the requirements of the respective surveys.
International Comparison Program (ICP)
The International Comparison Program (ICP) is a global statistical program designed to compare economic indicators across countries using a unified methodology. Within the framework of the program, data are collected on prices of goods and services, as well as on various aspects of economic activity.
The International Comparison Program (ICP) provides valuable data for businesses by enabling comparisons of markets, price levels, purchasing power, and economic environments across countries. Its results support investment planning, export development, market analysis, and strategic business decision-making.
Employer Obligations
The employer is required to ensure a safe and healthy working environment for employees, assess occupational risks, implement preventive measures, and comply with the requirements of Georgian occupational health and safety legislation.
In the case of high-risk activities, the employer is obliged to provide employees with accident insurance at its own expense and to cover all necessary costs related to occupational health and safety.
Employee Rights and Obligations
Employees have the right to be informed about workplace risks and occupational safety measures, to participate in the discussion of occupational health and safety matters, to refuse to perform work that endangers their life or health, to demand safe working conditions, and to receive compensation for any harm caused, in accordance with applicable legislation.
Employees are obliged to observe occupational safety and health requirements, properly use work equipment and personal protective equipment, participate in mandatory training and safety briefings, promptly inform the employer of any hazardous situations, and contribute to maintaining a safe and healthy working environment for themselves and others.
Workplace Safety Management
Occupational health and safety management encompasses the identification and assessment of occupational risks, the implementation of preventive measures, the organization of employee training and safety briefings, as well as the recording and investigation of workplace accidents and occupational diseases.
The Labour Inspection Office is responsible for supervising compliance with occupational health and safety requirements and is empowered to carry out inspections and issue appropriate instructions.