After Registration: Monthly Tax Accounting and Bookkeeping for Georgian Companies
- Tinatin Tolordava
- Jul 31
- 8 min read
Table of contents
Why post-registration accounting is where most founders get lost
Setting up a company in Georgia is fast. It takes a day.The mistake? Thinking the hard part is over.
Every month after registration, you’re expected to keep detailed accounting records, track every transaction, submit tax returns, file payroll, and stay compliant with a tax system that, while simple on paper, has zero tolerance for sloppiness.
And unless you’ve worked in Georgian finance or can interpret tax law from RS.ge in Georgian, you’ll quickly realize this is not DIY territory.
That’s where most founders go wrong. They confuse Georgia’s ease of incorporation with ease of ongoing compliance.
Here’s the truth:
Georgia has a territorial tax system, but only if you structure your business correctly
Georgia has no corporate income tax on reinvested profits, but only if you file Form 500 properly
Georgia offers 1% tax for small businesses, but only if you stay within limits and report monthly
Let’s break down everything that happens after your company is registered.
What monthly accounting in Georgia actually involves
There’s no “set and forget” option here. If you run a Georgian LLC or are registered as an Individual Entrepreneur, you’re required to:
Maintain a proper chart of accounts
Georgia follows its own accounting standards based on IFRS for SMEs.You can’t just plug in QuickBooks and hope it works.
You need:
A proper Georgian chart of accounts
Categorization of income and expenses aligned with local rules
GEL-based reporting (even if your operations run on USD or EUR)
This means your foreign currency invoices must be translated into GEL at the official exchange rate of the National Bank of Georgia on the transaction date.
File monthly declarations on RS.ge
The Georgia Revenue Service portal (RS.ge) is where everything happens.Each month, you’ll need to:
File a VAT declaration, even if you have zero VAT
Submit a reverse VAT report if applicable
Upload salary declarations if you have employees
File Form 100 for payroll withholding
Track your turnover against tax thresholds
Upload Form 200 for dividend and other income taxes
Track and pay property or land tax, if applicable
This applies to:
Georgian LLCs
IEs under small business status
Companies with Virtual Zone or International Company status
If your status changes mid-year, your declaration obligations change too.
Prepare and file Form 500 (corporate income tax)
Form 500 is the annual tax return that determines if your company owes 15% profit tax on distributed earnings.If you reinvest profits or leave them in the company, no tax is due. But if you withdraw funds for personal use without proper documentation? That’s a taxable event.
Form 500 isn’t optional. It’s due once per year (usually April), and it requires clean books going back 12 months.
The most common mistakes (and why they’re expensive)
Let’s be real. Nobody plans to mess up tax reporting.
But here’s what actually happens:
You invoice clients in EUR, get paid into a foreign bank account, and forget to track the GEL equivalent
You use PayPal or Wise, but don’t match payment dates to service dates
You register your company but never file on RS.ge, until a penalty notice arrives
You deduct business meals or software subscriptions with no documentation
You “loan” yourself money from the company, not realizing it’s taxable
The Georgian Revenue Service doesn’t just accept excuses. If your company fails to submit declarations, misses payment deadlines, or underreports revenue, you get flagged. And once that happens, good luck getting a residency certificate, a VAT refund, or even opening a new business bank account in Georgia.
This is why professional accounting is a must, not a nice-to-have.
What accounting for Georgian companies actually costs
You might think: “Okay, but this sounds expensive.”
Here’s the good news. Georgia is one of the cheapest countries in Europe for full-service accounting, especially if you partner with a firm that specializes in working with foreign founders.
At Gegidze, we’ve designed two accounting service tiers, one for solo founders and SMEs, and one for companies with more volume, team members, or complex compliance needs.
For Individuals – Starting at €45/month
Perfect if you’re a solo entrepreneur or running a startup with limited, straightforward transactions. You’ll also pay a one-time onboarding fee of €95.This plan includes:
• Tax accounting and filing• Administrative support• Ongoing compliance monitoring• A dedicated customer support specialist who actually replies
It’s ideal if you’re working under Small Business Status or Virtual Zone Status, and your monthly turnover is steady and predictable. Most of our international clients start here.
Premium – Starting at €195/month
If you’re managing employees, tracking multiple income streams, or preparing for international growth, the Premium plan covers it all. There’s a €200 onboarding fee, and after that, you get:
• Full bookkeeping
• Income tax declarations
• Profit tax and property tax filings
• Payroll management
• Banking coordination and transaction oversight
We recommend this for Georgian LLCs with staff, foreign owners receiving dividends, or firms preparing for audits or investor due diligence.
Not sure which plan you need? We’ll walk through your business model, payment flows, and tax status and tell you what’s actually required, no upselling.
How the wrong accountant can mess up everything
We’ve seen it all:
Accountants who never check whether your invoices match your RS.ge reports
Payroll filed late because your advisor “forgot”
Salary processed without proper documentation, leading to personal tax liability
Missing Form 500, resulting in a full 15% penalty even when no profits were distributed
Double taxation triggered by misreporting of foreign income
This stuff isn’t obvious until it’s too late.
If your goal is to stay under 1%, keep tax-free reinvestment, or qualify for tax residency in Georgia, your monthly filings have to be airtight.
That’s what we handle every month for founders like you. Clean books, clear structure, no surprises.
Penalties and real risks of non-compliance
Georgia’s tax system rewards discipline. But it doesn’t tolerate sloppiness.
Late filings, missing declarations, or incorrect data can lead to:
• Financial penalties that increase monthly
• Loss of Small Business Status or Virtual Zone Status
• Account freezes or investigations by the Revenue Service
• Delays in processing income tax refunds or residency applications
Even filing one day late can put you on the wrong side of the system. And if you’re a foreigner trying to qualify for tax residency, open a business bank account in Georgia, or prove your company is clean for future investors, you can’t afford those slip-ups.
These risks aren’t theoretical. We’ve seen founders blocked from issuing invoices, stuck waiting months for bank approvals, or even denied DTA certificates because of one missed Form 200.
For a deeper look at what can go wrong after setup, see 7 Common Accounting Mistakes in Georgia.
Form 200 and salary declarations
If your company pays a salary, even if it’s just to the director, you’re required to file monthly payroll reports using Form 200.
This form includes:
• Gross salary amounts
• 20% personal income tax
• 2% employee pension contribution
• 2% employer pension contribution
• 2% employer tax
This means that from every 1,000 GEL paid as salary, an extra 60–70 GEL must be declared and paid in taxes and pension obligations. You also need to provide a formal employment contract, which must be registered in the Georgian Labor Inspection platform.
Many founders miss this step. They assume that because they own the company, paying themselves doesn’t count as payroll. But unless the payments are structured correctly and declared through Form 200, the Revenue Service may reclassify those withdrawals as profit distributions, triggering the 15% corporate tax.
For foreign owners who hold director status, this process is especially important if you’re planning to apply for tax residency in Georgia or need to prove income for a visa or bank loan.
Just because you’re exempt doesn’t mean you’re invisible
You might hold Virtual Zone Status or qualify as an International Company with 0% tax on profits. That doesn’t mean you don’t need accounting. You still have to prove that your income qualifies for exemption. You still have to submit monthly and annual reports. And you still have to track revenue, expenses, salaries, and dividends just like any other company.
If you don’t file on time or your declarations are inconsistent with your status, the tax office can revoke your exemption and retroactively apply corporate tax penalties.
Many founders also make the mistake of relying on foreign payment platforms like Stripe, PayPal, or Wise without properly reporting the income. Even if money never enters a Georgian bank account, you’re still required to declare it if your Georgian entity issued the invoice.
Monthly checklist for Georgian companies
Monthly compliance checklist
Here’s a realistic monthly routine for accounting for Georgian companies. Use it to stay on track:
Week 1–5 (Previous month):
Collect all expense receipts
Send client invoices (with or without tax documents)
Before the 15th:
File VAT declaration (even if zero)
File reverse VAT (if buying services from abroad)
Before the 20th:
Submit Form 200 for payroll
Pay salary taxes if applicable
By the 20th:
File income tax Form 100 or Form 500 (depending on structure)
Anytime:
Download bank statements for record-keeping
Keep all records in GEL for RS.ge compatibility
Even if your accountant handles this, you are legally responsible for accuracy and timing.
Each month, you’ll need to close out your invoices from the previous month, collect all expense documents, convert all revenue into GEL using the National Bank of Georgia’s daily rate, and prepare your declaration package.
Before the 15th, you’ll submit your VAT report, yes, even if you’re not VAT-registered, a zero filing is often still required. You’ll also file a reverse VAT declaration if you purchased digital services or consulting from abroad.
By the 20th, if you paid salaries, you must submit Form 200 and pay all related income taxes and pension contributions. If there’s dividend income, Form 100 or Form 200 will be used depending on the structure.
And even if nothing happened in a given month, you still need to submit your “zero activity” report to show the tax office you’re not hiding anything.
These rules apply whether you’re a solo freelancer with Small Business Status, a Virtual Zone IT firm, or a team running an LLC with employees.
The Georgian Revenue Service tracks everything. Missing one step doesn’t just cost money, it undermines your business’s credibility.
Why Gegidze makes all the difference
Every month, we clean up books that other firms left messy.
We fix missed filings, clarify foreign transactions, respond to audit requests, and bring companies back into good standing. But we’d rather set you up right from the beginning.
Here’s what we do for every accounting client:
• Assign a bilingual accountant who knows Georgia’s tax code inside and out• Set up a chart of accounts that works for your specific business model• Translate your revenue into GEL accurately and in line with official rates• File every form on time, Form 200, Form 100, VAT, income tax, and annual declarations• Maintain clean, auditable records for residency, investment, or future M&A
If you’re running a company in Georgia, staying compliant isn’t optional. But it doesn’t have to be stressful either.
We make accounting for Georgian companies easy, precise, and predictable, so you can focus on growth.
Let us know how you work, and we’ll show you the smartest, most tax-efficient way to stay compliant in Georgia.
Frequently asked questions (FAQ)
What are the monthly accounting obligations for Georgian LLCs?
Georgian LLCs must submit monthly VAT returns, salary declarations, and track business expenses in accordance with Revenue Service rules. Even if there’s no revenue, zero declarations are still mandatory.
Do I need a local accountant in Georgia?
Yes. Georgian accounting uses local standards, interfaces with RS.ge (in Georgian), and requires proper classification of income and expenses. A local accountant ensures accuracy and legal compliance.
How much does monthly accounting cost in Georgia?
Basic packages start from €45/month for small businesses and solo founders. Full-service options with bookkeeping, payroll, and tax declarations start at €195/month. Gegidze offers both tiers with transparent pricing.
What happens if I miss a filing deadline?
Missing deadlines leads to automatic fines, compliance flags, and potential loss of tax benefits. It’s crucial to submit declarations on time, even if the amount is zero.
Can I do accounting on my own with software like Xero or QuickBooks?
You can use them for internal bookkeeping, but Georgian tax reports must still be filed through RS.ge. Your software must align with Georgian formats, or your accountant will need to convert everything.
