Common Mistakes to Avoid When Registering a Business in Georgia
- Giorgi Gamsakhurdashvili
- Jul 22
- 6 min read
Table of contents
Starting a business in Georgia is easy, unless you get it wrong
Georgia has a reputation for fast company registration, low taxes, and foreigner-friendly rules. But that doesn’t mean you can’t make costly mistakes. Every month, we see new founders stuck because they used the wrong legal address, missed a tax deadline, or trusted a template they didn’t understand.
The registration process itself is simple. The challenge comes from what happens around it: bank paperwork, tax codes, translations, and monthly declarations. Many problems don’t show up until weeks later, when your account is frozen, a tax fine appears, or a bank requests documents you don’t have.
If you’re registering a company in Georgia in 2025, read this guide carefully. We’ve listed the most common mistakes foreign founders make, and how to avoid them from day one.
Mistake 1: Using a friend’s address or no address at all
To register a business, you need a legal address in Georgia. This address must be real, verifiable, and match the one listed with the National Agency of Public Registry. Many founders ask a friend or Airbnb host to “borrow” their address. Others pick a random co-working space or leave it blank.
That’s a problem. Banks send letters. The Revenue Service sends notices. If these never reach you, your business could face non-compliance penalties or account restrictions.
The fix:
Use a verified legal address. If you don’t have one, rent a virtual legal address from a provider like Gegidze. Make sure your name is on the lease or rental agreement. This avoids complications later with banks and the Revenue Service.
Mistake 2: Choosing the wrong business structure
LLC or I.E.? It matters.
We’ve seen freelancers register an LLC because they thought it “looked more professional.” But now they’re stuck with higher accounting costs and 15 percent tax on profits, when they could have paid just 1 percent as an Individual Entrepreneur.
On the other hand, some startups register as I.E. to save money, then run into problems when hiring staff or signing contracts with investors.
The fix:
Choose based on your income, risk, and future goals.
I.E. with Small Business Status: Perfect for freelancers, coaches, designers, and solo consultants earning under 500,000 GEL per year.
LLC: Best for teams, growing startups, remote-first agencies, or anyone planning to reinvest profits or apply for Virtual Zone status.
Mistake 3: Trying to register everything without translation
Documents in Georgia must be submitted in Georgian. That includes your passport, company charter, and sometimes a Power of Attorney if you’re registering remotely.
Some founders submit English documents or hire unverified translators. Others skip notarization. Later, the Public Registry rejects their application, or the bank refuses to open the account.
The fix:
Always use an official translation and notary service. If you work with Gegidze, we handle certified translation, notarization, and document prep as part of your package.
Mistake 4: Assuming the bank process is automatic
Your company is registered. Now you want to open a bank account. Easy, right?
Not quite. Georgian banks have strict compliance checks. They’ll ask about your business model, transaction types, and beneficiaries. If anything looks unclear, they can delay or reject the account entirely. If they open it too quickly without proper review, it could be frozen later.
Some founders show up without a clear purpose, no legal address, or no tax registration. Others get stuck because their passport isn’t translated properly.
The fix:
Prepare the required documents and go in with a clear explanation of your business. Use our full checklist here: How to Open a Corporate Bank Account in Georgia
Mistake 5: Registering but not declaring taxes
Georgia’s Revenue Service expects monthly declarations, even if your income is zero. Many founders assume they don’t need to file anything until they “make real money.”
That leads to fines, interest, and sometimes tax audits. In the worst cases, your business gets flagged for inactivity or non-compliance.
The fix:
File monthly reports through the RS portal. Hire a local accountant who knows the system. Gegidze connects you with accountants who handle declarations for as little as 200 GEL/month.
We’ll continue with the second half now. It will cover more registration pitfalls, banking setup issues, VAT mistakes, tax residency confusion, and how Gegidze prevents them.
Mistake 6: Forgetting to apply for tax statuses
Georgia offers incredible tax incentives, but they are not automatic. You must apply for Small Business Status (for I.E.) or Virtual Zone status (for IT LLCs). Without them, you’ll pay standard taxes even if you qualify for 1 percent or 0 percent.
Some founders think that just being a freelancer or building software is enough. Others miss the deadline or file the application incorrectly.
The fix:
Apply for the right tax status immediately after registering.
Small Business Status: Apply through RS.ge after registering as I.E.
Virtual Zone: Apply to the Ministry of Finance after forming an LLC. Gegidze prepares the application and submits on your behalf.
Mistake 7: Opening a personal bank account for business
Some founders, especially I.E.s, use their personal bank account for business income. That seems harmless at first. But it creates a mess when tracking income, filing taxes, or dealing with banking compliance.
Banks monitor transaction patterns. If your account shows consistent business activity but isn’t linked to your company or I.E. number, they can freeze it or request clarification.
The fix:
Open a business account in your company or I.E.’s name. Separate all personal and professional transfers. If you’re unsure which bank to choose, read: Top Banks in Georgia for Foreigners and Businesses
Mistake 8: No monthly payment structure
After registering, your business needs a system. You’ll have to make recurring transfers for taxes, salaries, rent, software, utilities. Many founders don’t prepare this. They miss due dates or forget to document payments.
The bank then asks for proof. The Revenue Service asks for receipts. And it turns into a scramble.
The fix:
Create separate accounts for income, payroll, tax, and reserves. Schedule transfers. Automate where possible. Check this guide: Monthly Banking Management in Georgia
Mistake 9: Assuming company registration = legal residency
Some founders think that opening a business in Georgia gives them legal residency. It doesn’t. Company registration and tax residency are two different things. You can open a company as a tourist, without any visa or residency permit.
But if you want to stay long-term, open local accounts, or become a tax resident, you need to apply separately.
The fix:
If you want legal or tax residency, read this guide: Is a Georgian Tax Residency Right for You?And if you want both, structure your stay and your company together from the start.
Mistake 10: Relying on outdated templates or random forums
You’ll find a lot of English blog posts and Reddit threads from 2019 or 2020 with “easy hacks” for registration in Georgia. Many are outdated or based on pre-reform rules. Others use translation tools that miss legal nuance.
This leads to errors in your company charter, tax registration, or even your business name spelling.
The fix:
Use real legal support. Gegidze gives you up-to-date documents, real lawyer-verified templates, and current RS filing processes in English. No guesswork.
Mistake 11: Thinking you can fix everything later
One of the biggest problems is delayed action. Founders skip steps during registration thinking they’ll fix it later. But in Georgia, late corrections often mean new filings, fines, and hours of extra admin.
The fix:
Do it right the first time. Use the right documents, register for the right tax status, open the right bank account, and start clean.
How Gegidze helps you avoid these mistakes
We’ve registered hundreds of businesses for foreign founders. Our process prevents the most common errors with:
Verified legal addresses
Certified translation and notarization
Full LLC or I.E. registration in 1–2 business days
RS portal setup and accountant onboarding
Bank account setup with local rep
Tax status filing: Small Business, Virtual Zone, or I.T. company
Ongoing compliance checklists and alerts
Whether you’re launching a solo freelance practice or a tech team, we’ll keep you out of trouble and fully compliant from day one.
Ready to start the right way?
Avoid costly mistakes and save hours of stress.
Frequently asked questions (FAQ)
What’s the biggest mistake foreigners make when registering a company in Georgia?
Using an unverified legal address or skipping translation and notarization. These lead to rejections or delays in registration and banking.
Can I open a personal bank account instead of a business one?
You shouldn’t. Business activity in a personal account often triggers compliance reviews or freezes. Always separate personal and business banking.
Is registering a company enough to get Georgian residency?
No. Company registration does not grant legal or tax residency. These require separate applications through the Revenue Service or Ministry of Justice.
Do I automatically qualify for 1% or 0% tax?
No. You must apply for Small Business Status (I.E.) or Virtual Zone (LLC). Without the application, you’ll pay standard tax rates.
How can I avoid fines after registration?
File monthly reports through the RS portal, even with zero income. Hire a local accountant to handle declarations and keep you compliant.
